NE Producers Life and Annuities, Sickness, Accident and Health
The insured estate
A 40-year old man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the policy will go to?
Collateral Assignment
A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?
15
A group 5 insurance is covered to an individual policy. The insured is eligible for individual life insurance coverage without any evidence of insurability. Within how many days of the first premium must the insurer notify the insured of the eligibility?
The purpose of the group wants to purchase that life insurance
A group of 15 sky divers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?
Joint and Survivor
A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select
What is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
Assign inappropriate premium based on preference
According to the terms of the policy or an agreement between the insured, the group policyholder, and the insurer, the insurer may not do which of the following?
There is a requirement to prove insurability on the part of the participants
All of the following are characteristics of a group life insurance plan, except?
fixed period installments
All of the following are divided options Except
The owner must be the party to receive benefits
All of the following are true of an annuity owner EXCEPT
Reinsurance System
All of the following our marketing arrangements used by ensures EXCEPT
The insurer will pay the full death benefit from the group policy to the beneficiary
An employee quit his job on May 15 and doesn't convert his group life policy to an individual policy for two weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
Guaranteed Insurability Option
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
If the primary beneficiary predecreases the insured
An individual purchased a life insurance policy on his life naming his wife as primary beneficiary, and their daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
Avoidance
An individual was involved in a head on collision while driving home one day. His injuries were not serious, and he recovered. However, he decided that in order to never be involved in another accident, he would not drive or ride in a car ever again. Which method of risk management does this describe?
Pay a reduced death benefit
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Direct response marketing
And insurance company sells an insurance policy over the phone in response to a TV ad. Which of the following best describes this act?
$50,000
Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?
Contracts of adhesion
Contracts that are prepared by one party, and submitted to the other party on a take it, or leave it basis are classified as
Which of the following is not an example of a valid insurable interest?
Debtor in the life of the creditor
hedge against inflation
Fixed annuities provide all of the following EXCEPT
6 months
For how long is an insurance company allowed to defer policy requests?
Until the beneficiary's death
How long will the beneficiary receive payments under the single life settlement option?
Joint Life Annuity
If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a
Joint Life Annuity
If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a?
Reasonable Expectations
If a court ordered payment for a loss that was not covered in the policy, even if it was clearly worded, it would be an example of which legal concept
It is a percentage of the cash value and decreases over time
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?
It is a percentage of the cash value and decreases over time.
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?
Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount
If an annuitization occurs, what will the beneficiary receive?
The loan amounts are deducted from the death benefit
If an insured under variable life insurance policy dies, how will the insurer respond to the outstanding policy loans?
When would a misrepresentation on the insurance application be considered fraud?
If it is intentional and material
The type of investment
In an adjustable life policy, all of the following can be changed by the policy owner except
If the insured lives to age 100
In which of the following cases, will the insured be able to receive the full face amount for my whole life policy?
Reduction
Installing deadbolt locks on the doors of a home is an example of which method of handling risk
The insurer may suspect that a moral hazard exists, if the policyholder
It's not honest about his health on an application for insurance
Exclusions clause
Items stipulated in the contract that the insurer will not provide coverage for are found in the
Participating insurance policy may do which of the following
Pay dividends to the policyholder
Considered true to the best of the applicant's knowledge
Representations are written, or oral statements, made by the applicant that are
In case of a loss, the indemnity provision in insurance policies
Restores and insured person to the same financial state as before the loss
Protection in Annuity Transaction Act
The Act that sets the standards for advice given by insurance producer's regarding annuities is known as the Nebraska
Universal Life
The Waiver of Cost of Insurance rider is found in what type of insurance?
Becomes terminally ill
The accelerated benefits provision will provide for an early payment of the death benefit when the insured
Which of the following is not a consideration in a policy?
The application given to a prospective insured
As the application date
The full premium was submitted with the application for the life insurance, and the policy was issued two weeks later as requested Does the policy coverage become effective?
Utmost Good Faith
The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as.
Lower
The premium of a survivorship life policy compared with that of a joint life policy would be
Convertible term policy
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
Only for the life of the annuitant
Under a pure life annuity, an income is payable by the company
Level fixed
Variable whole life insurance is based on what type of premium
Face amount
What does the "level" refer to in level term insurance
Ownership
What is the major difference between a stock company and a mutual company?
Universal Life
What kind of policy allows withdrawals or partial surrenders?
Increasing Term
What type of insurance would be used for a Return of Premium rider?
The insurance companies general account
When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is the money placed?
The insurance company's general account
When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is the money placed?
Pure life provides payments for as long as the annuitant is alive
Which of the following best describes a pure life annuity settlement option?
Exchange of unequal values
Which of the following best describes the aleatory nature of an insurance contract?
Only the annuity owner
Which of the following can surrender a deferred annuity contract?
The only annuity owner
Which of the following can surrender a deferred annuity contract?
The annuitant assumes the risks on investment
Which of the following is TRUE regarding variable annuities?
Warranty
Which of the following is a statement that is guaranteed to be true, and if untrue may reach an insurance contract?
Life paid Dash up at age 65
Which of the following is an example of a limited pay life policy?
The owner is guaranteed a fixed interest rate for a specific period of time
Which of the following is true regarding a market value adjusted annuity?
Universal life - Option A
Which of the following policies would have an IRS required corridor or gap between the cash value in the death benefit?
Whole life
Which of the following types of policies will provide permanent protection
Single payment or periodic payments
Which two terms are associated directly with the way an annuity is funded?
Policyholders
Who might receive dividends from a mutual insurer?
