Massachusetts laws and rules
Which of the following is a potential punishment given to a producer found guilty of an unfear method of competition
License suspension or revocation
Who is required to notify the superintendent of a licensees change of address,?
Licensee
What determines how much an annuitant is paid for a variable annuity?
The market value variations of the securities backing it
Which of the following describes the act of insuring a risk against possible loss
Risk transfer
Assets that back to nonguaranteed values of variable life insurance products are held in which account?
Separate account set up by the insurer
After the first three years of licensure, a producer must complete ....credit hours of a continuing education for each licensing.
45
Which of the following is an example of Defamation?
A producer who publicly and erroneously announces that an insurance company is insolvent
Life insurance replacement can be best
A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered
Proceeds of a life settlement contract could be subject to the claims of
Creditors
Death proceeds from the life insurance policy or typically included any disease insured gross estate
For federal income tax reasons
An accelerated (living) benefit rider in a life insurance policy may provide funds to an insured who
Is expected to remain in a nursing home for life
According to ERISA regulations, a summary plan description must be provided to a new plan member within... Days of the members eligibility date.
90
In order for a prohibited person to sell insurance in Massachusetts, he or she must have a
A letter signed by the superintendent
All of the following are unfair claims settlement practices except
An attempt to settle a claim by arbitration
Group life plan sold in Massachusetts typically contain a conversion option. If the insured elects the option, the new policy
Does not require evidence of insurability
Which benefit supplement added to a life insurance policy insures an entire family
Family term rider
A business may purchase annuity for all the following reasons except
Informally funding a non-qualified deferred compensation plan
When compared to a fix annuity , a variable annuity has what distinguishing feature
Investment risk is assume by the purchaser
An insurable interest in each other's lives may exist in absence of an economic interest when the individuals are
Marriage partners
Why do insurers require a minimum number of employees participate in a group insurance plan?
Minimize adverse selection
Which of the following is considered to be an unfair claim settlement practice?
Misrepresenting pertinent policy provisions relating to coverage after loss
Which statement regarding the joint and survivor life insurance settlement option is not true?
The amount of each installment is larger than the single life income option
A life insurance policy can be reinstated upon meeting company requirements within a maximum of
Three years
A producers license in Massachusetts must be renewed every;
Three years
If an individual violates a cease and desist order issued by the Superintendent, he will be subject to a fie of
$10,000
A Massachusetts producer has violated an unfair trade practice law. This producer must be fine up to you... Per violation
$1000
An insured has a $25,000 whole life insurance policy with $6000 cash value available. Under the extended term nonforfeiture option, what is the amount of insurance available to the insured
$25,000
In Massachusetts, a producer must be at least how many years if age?
18
How many days notice must a producer be given prior to a scheduled hearing?
21 days
What is juvenile life insurance policy?
A life policy that covers the life of a minor
Life settlements between a policyowner and a life settlement provider are negotiated through
A life settlement broker
Which of these is not considered to be an example of a misrepresentation?
A producer comparing the benefits of competing insurance policies
Which statement is true regarding Massachusetts continuing education requirements for license producers?
A producer must meet specified course requirements within a three-year period
A life insurance policy provision that has the ability to reduce the death benefit is called the
Accelerated live in benefit
An insurer operating in the US but headquarter outside the US is
An alien insurer
Which of the following is not a valid contract exchange
An annuity exchange for life insurance policy
Which of the following individuals is eligible to receive a temporary producer license?
An appointed employee who is replacing a deceased producer
An individual purchases a modified life insurance policy expects
An improvement in future income.
In what situation could insurance policies coverage be modified?
Applicant is a substandard rest
Before an individual is permitted to act as an insurance agent he must hold a valid insurance license and be... By an authorized insurer
Appointed
Which of the following is NOT the responsibility of an insurer?
Assuming liability for a producer's unauthorized acts
Which would be described as a beneficiary designation by class,?
Children of the insured
Which of these is not a punishment for committing an unfair and deceptive insurance practice?
Community service
When the Massachusetts superintendent of insurance examines it produces insurance records, the purpose will primarily be to determine;
Compliance with state insurance laws and regulations
Which report contains information regarding an individuals general reputation and credit standing?
Consumer report
Which of the following does not involve a life settlement transaction?
Converting term life coverage to whole life insurance.
Which of the following is considered an activity of a daily living when determining an accelerated life insurance benefit?
Eating. To qualify for an accelerated insurance benefit, An individual must be unable to perform at least two activities of daily living.
Christopher is issued in insurance policy that contains an attached agreement which alters the terms of the policy. The attached agreement is called a
Endorsement
Which provision makes the application part of the annuity contract?
Entire contract clause
Which of these may not be deducted from premium payments or the cash value of a variable life insurance policy?
Federal premium taxes
When an annuity contract has been fully surrendered. How will the surrender charges affect the final contract settlement?
Final contract settlement will be reduced
An annuitant is paid for $494 per month untillnthe contract value is exhausted at some undetermined date in the future. Which type of annuity payout option is this
Fixed amount
John has a criminal record in which he was convicted of a felony that involve dishonesty. Under federal law, how would Jon be able to engage in insurance transactions?
Given written consent by the state insurance regulatory agency
A producers license may only be suspended or revoked if the producer
Has been afforded a right to a hearing
Agreements made by terminally Ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called
Life settlements
Tim is confined to a nursing home but doesn't have a terminal illness. Which life insurance rider is designed to help pay for this type of expense?
Long-term care benefit rider
An insurer may contest the validity of a life insurance policy during the policies first two years for all of these reasons except
Misstatement of age
If the commissioner request access to a producers business records, the producer
Must provide access to the records upon request
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional benefit payments will be derived primarily from funds that were
Not distribute to life annuitants who have died before life expectancy
A life insurance producer is required to give a disclosure notice about information practices to an applicant
Prior to or at the time of signing the application
What is considered interstate travel and is a federal fraud and false statements act?
Puerto Rico
Splitting the commission with the buyer on a sale of insurance is known as
Rebating
Ron recently purchased an immediate, straight life fixed annuity. His benefit payments will
Remain a constant dollar amount for the duration of the annuity period
Which of the following would prevent a person from obtaining a Massachusetts resident producer license?
Residing in a state outside of Massachusetts
TWhat does your 401(k) plan generally provide it's participants?
Salary deferral option
Which of these is not considered the responsibility of a producer during the underwriting process?
Selecting the final approval date
A life insurance policy can be backdated before the application date for up to
Six months
A life insurance producer license in their state is authorized to
Solicit, receive, and forward applications to the insurer
Which entity is responsible for regulating claim settlement practices of insurers?
Stace insurance lol department
Which entity is responsible for regulating claim settlement practices of insurers?
State insurance department
What is payable to the policy owner if a whole life policy is surrendered prior to maturity date?
The cash value
K is an agent who takes an application for individual life insurance in accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?
The date the agent deliver the policy, collected the initial premium, and obtain a good health statement from the insured
Which of the following is true regarding a person receiving a waiver of premium benefit?
The insured must be disabled for a period of time
In advantage of owning a flexible premium life insurance policy would be
The policy owner can make policy changes without difficulty
Notice of information practices must be given to a policyholder at LEAST every _____years(s)
Three
A life insurance policy that includes a return of premium rider will pay the beneficiary how much a point to the insured's death?
Total premiums paid plus the policy face amount
A survivorship life insurance policy usually covers how many lives?
Two
A life insurance policy can be contested by the insurer only during the first... Years of the contract
Two years unless fraud was involved
Insurance crimes which affect interstate commerce are persecuted by them
US Attorney General. A violation of code 1033
Which of the following is not considered to be an expense for surviving family members of a deceased wage earner?
Unemployment tax expenses
The producers insurance records must be provided to the superintendent
Upon request by the superintendent
A policy owner is permitted to take out a policy loan on a whole life policy at what point?
When the policy has a cash value
According to federal fraud and false statements regulation, what is required for a prohibited person to transact insurance business in this state?
Written consent from the state insurance regulatory agency
Before an individual is permitted to act as an insurance agent, he/she must hold a valid insurance license and be ......by and authorized insurer
appointed
All of these are considered to be a violation of the federal fraud and false statement act except
Claims reimbursement
Which of the following combinations best described a universal life insurance policy
A flexible premium deposit find any monthly renewable term insurance policy
A life insurance policy holder has been diagnosed with a terminal illness. Which of the following is off doing payable to a policy owner who is life expectancy is substantially reduced due to illness?
Accelerated (living) benefit. It's often payable to a life insurance policy holder when a medical condition drastically limit is the insured's life expectancy
Tim is retired and has recently separated from his wife. He receives benefits from a qualified retirement plan through his former employer. The plane stressed you have decided to split this benefit payments between Tim and his extreme wife. This decision is likely in violation of which IRS rule?
Alienation of benefits
Which statement is incorrect concerning a tax shelter annuity (tsa)
Annual investment games are included in participants gross
In the event of premium default, which life insurance provision will use the cash value to keep the policy in force?
Automatic premium loan
If the superintendent has reason to believe a producer has violated Massachusetts insurance law, the superintend it may issue a
Cease and desist order
A foreign insurer wishing to conduct business in Massachusetts must obtain a
Certificate of authority from the Superintendent of insurance
Which of these is true regarding the exchange of consideration among parties involved in an insurance contract ?
Can be an unequal
Which of the following is not a condition that must be met for an accidental death benefit to be paid?
Cause of death must be a job related injury
And employee requested that the balance of a 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately And employee requested that the balance of a 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately had the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?
Distribution is subject to federal income tax withholding
Group life plan sold in Massachusetts typically contain a conversion option. If the insured Elects this option, the new policy
Does not require evidence of insurability
An annuity contract maybe return for a full refund during the
Free look period
An annuity contract maybe return for full refund during
Free look period.
An annuity which starts paying monthly benefits within a month after issuance is called a
Immediate annuity
All of these are considered features of whole life insurance except
Initial premium is lower for Equivalent amount of term insurance
When a producer is appointed, the... is considered the principal
Insurer
Which of these would not be a valid reason to add a waiver of premium rider to a life insurance policy?
It allows the policy loan to cover premium payments if the policy becomes totally disabled
Which of the these is not a true statement of the ward exclusion?
It applies to civil insurrections
Which life insurance settlement option pace lifetime benefits to two or more people?
Joint and survivor
Laura added a children's rider to her life insurance policy. What type of coverage was added?
Level term
When must a producer provide a replacement notice on life insurance?
No later then at the time of taken an application
Who typically makes to purchase payments to an individual annuity
Owner
Employers often purchase life insurance on the key employee in order to
Pay for finding a replacement if the employee died prematurely
These are all accurate statement regarding universal life insurance except
Policy loans are not permitted
Which statement regarding an adjustable life insurance policy is not true?
Policy loans are not permitted
According to the law of large numbers, how would losses be affected if the number of similar insured units increases?
Predictability of losses will be improved
Which of these policies is considered a whole life policy?
Single premium life
A material change in the modify endowment contract (MEC) results in
The 7 paid test adjusted for cash value applies again
And premiums are determined? One factor would be the expenses of
The insurer
What would be considered an advantage purchasing term life insurance
They initial premium is lower compared to an equivalent amount of whole life
The producer originating an insurance application
Usually is the major personal contact with the insured
Insurance policy that can also be classified as a securities product is called
Variable life
Which event triggers a deferred annuity to start making benefit payments to the Annuitant?
When the contract is annuituzed
A prospective client was intimidated by a producer to purchase an insurance contract. The producer could be found guilty of
coercion
