NY life insurance examFX practice

Which of the following life insurance policies would be considered interest sensitive

Universal Life

Which type of life insurance policy allows the policy owner to pay more or less than the planned premium

Universal Life

The needs approach to calculating the amount of life insurance needed is based on

Predicted needs of a family after the premature death of the insured

A married couple wants to include the entire family in their whole life policy under one rider, which of the following writers will help them achieve that goal A other insurance term B inclusive term C children's term D family term

Family term

An illustration used in the sale of a life insurance policy must include a label stating

"Life insurance illustration"

Robert wants to ensure his four year old son Tyson. Robert currently has a policy and it's only for $400,000. He's getting ready to lower that amount to 100,000 next year what is the maximum amount that he can purchase and Tyson

$100,000

Before it adjuster license may be issued an applicant must file a surety bond with the superintendent in the amount of

$1000

If an individual willfully, violating provisions of the fair credit reporting act, what is the maximum civil penalty

$2500

What is the maximum fine for violating a cease and desist order

$5,000

The validity of coverage under a life insurance policy may not be contested except for nonpayment of premium after the policy has been in force for at least how many years

2 years

If a consumer request additional information concerning investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

According to the life insurance replacement regulations, which of the following would be an example of a policy replacement A elapsed policy is reinstated with specific time frame B a policy is re-issued with a reduction in cash value C a term policy expires and the insured buys another term life policy D Turman Sherance is exchanged to a whole life policy

A policy is re-issued with a reduction in cash value

When an annuity is written, whose life expectancy is taken into account?

Annuitant

Which of the following is not fundable by annuities

Death benefits

Which of the following types of insurance policies is most commonly used in credit life insurance

Decreasing term

Which of the following is not a standard exclusion in life insurance policies A hazardous occupation B war in military service C aviation D disability

Disability

Variable life insurance is regulated by all of the following entities, except A financial industry regulatory authority finra B do US Department of treasury C the securities and exchange commission D the department of insurance or financial services

Do US Department of treasury

When life insurance proceeds are used to pay inheritance taxes in federal estate taxes it is known as

Estate conservation

The face amount of an indexed whole life policy does what A is half the cash value B remains the same as long as the policy is in force C is double to cash value D increases annually to keep pace with inflation

Increases annually to keep pace with inflation

What type of insurance would be used for a Return of Premium rider?

Increasing Term

What does the guaranty association guard against?

Insurer insolvency

As an insurers field underwriter, a producer has all of the following responsibilities, except A soliciting insurance contract, B, collecting premiums C issuing policies on behalf of the insurer D completing applications

Issuing policies on behalf of the insurer

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

A rider attached to a life insurance policy that provides coverage on the insurance family members is called the

Other-insured rider

Which dividend option will increase the death benefit

Paid-up additions

What is the difference between a straight life policy and a 20 pay whole life policy?

Premium payment period

Which services are associated with standard & poor's and am best

Rating the financial strength of insurance companies

Which nonforfeiture option provides coverage for the longest period of time?

Reduced Paid-Up

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability. which policy provision allow this?

Reinstatement provision

What method do insurers use to protect themselves against catastrophic losses?

Reinsurance

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

SEC registration

What is not different between qualified and non qualified retirement plans

Taxation on accumulation

Which type of insurance policy provides pure life insurance protection without a savings element

Term

Upon the surrender of a life insurance policy any cash value accumulated in excess of the premium payment is

Text as ordinary income

Which of the following is true regarding variable annuities

The annuitant assumes the risks on investment

All of the following are true about group, life insurance, except A the employee is the insured B the employer is the beneficiary C it is usually written as an annual renewable term insurance D evidence of insurability is usually not required

The employer is the beneficiary

What happens to the face amount of a whole life policy if the insured reaches the age of 100

The face amount is paid to the insured

When an insured terminates membership in the insured group, the insured can convert two

Whole life, without proof of insurability

Who does the spendthrift clause in a life insurance policy protect

beneficiary

What type of an interest rate is guaranteed in universal life policies

contract interest rate

The automatic premium loan provision is activated at the end of the

grace period

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

implied

To purchase insurance the policy owner must face the possibility of losing money or something of value in the event of loss. What is this concept called?

insurable interest

Who bears all of the investment risk in a fixed annuity?

insurance company

Which of the following insurance options would be considered a risk sharing arrangement

reciprocal

AnIRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed

10%

In order for a business partner to be eligible for a keogh plan, he or she must work full-time and on, at least how much of the business

10%

How long must insurers keep records of claims

6 years

Which of the following named beneficiaries would not be able to receive the death benefit directly from the insurer in the event of the insurer's death

A minor son of the insured

Which of the following is a feature of a variable annuity

Benefit payment amounts are not guaranteed

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

All of the following apply to defined benefit plans except

Contributions are tied to the company profits.

The term fixed in an annuity refers to all of the following except A. equal annuity payments B. amount in length of payments C.death benefit D. guaranteed rate of interest

Death benefit

Which of the following would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount

Buy sell agreement

All of the following are true of key person insurance except

The plan is funded by permanent insurance only.

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life which settlement option. Should this policy owner select

Joint and survivor

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-pay life

What does an annuity protect the annuitant against?

Living longer than expected

All of the following statements are true regarding installments for a fixed amount except

The payments will stop when the annuitant dies.

Which of the following is a key distinction between variable whole life and variable universal life products

Variable whole life has a guaranteed death benefit

If a hearing is scheduled for a producer who has violated regulations regarding unfair trade practices, the superintendent must send a prior notice within how many days of the hearing

10 days

Which of the following would be required to become licensed as an insurance producer? A a person who's activities are limited to insurance advertising B an officer of an insurer, who does not receive commissions C a customer service representative solicits no more than one policy a year D agency supervisor whose actions to not include selling insurance

A customer service representative, who solicit no more than one policy a year

In order to get a nonresident license in the state, an agent must

Apply and pay a fee to a nonresident state that reciprocates

All of the following statements are true, regarding an ordinary, straight life policy, except A it is funded by a level premium B build cash value C if the insured lives to 100 the policy butchers in the face amount is paid to insert D it does not have a guaranteed death benefit

It does not have a guaranteed death benefit

In variable life and variable universal life insurance policies, who decides where premiums will be invested

The policy owner

Which of the following is a short-term annuity that limited the amounts paid to a specific fixed period or until a specific fixed amount is liquidated

Annuity certain

Which of the following is not true of section 1035 policy exchanges

Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30 days.

Which of the following methods of calculating the amount of life insurance need it takes into account, the insured salary and years until retirement A The needs analysis approach B an estate planning approach C a traditional planning approach D the human life value approach

The human life value approach

An agent except the premium payment 35 days after it's due telling the ensure that the policy will continue to remain in force. This is an example of what agent authority.

Apparent

Which of the following is incorrect regarding a $100,000 20 year level term policy

At the end of 20 years, the policy's cash value will equal $100,000.

Which of the following is true of a qualified plan

It has a tax benefit for both employer and employee.

Which of the following best describes annually renewable term insurance

It is level term insurance

Which of the following is not one of the independent reading services that publishes guides to insurance companies financial integrity? A NAIC B Fitch C AM Best D Moody's

NAIC

In which of the following circumstances would a contract between an insurer and prospective insured be legal A the applicant is a 13 year old middle school student B the applicant is heavily medicated in this having trouble focusing C the applicant has a prior felony conviction D the applicant is intoxicated at the time of the application

The applicant has a prior felony conviction

Which of the following would not be eligible for coverage under keep person? A the manager of a small store B the owner of the shop C the executive officer of a company D the pharmacist in a drugstore

The owner of a shop

Which of the following is true of level term insurance A the policy endow's at age 100 B the policy offers nonforfeiture values C it is temporary protection D the premium will increase or decrease based on current interest rates

It is temporary protection

All of the following statements are true, regarding installments for a fixed amount, except A value of the account in future earnings will determine the time period for the benefits B. This option pays a specific amount until the funds are exhausted C. The annuitant may select how big the payments will be D. The payments will stop on the annuitant dies.

The payments will stop when the annuitant dies

Which dividend option will increase the death benefit A reduced paid up B paid up additions C accumulation D extended term

B. Paid-up additions

Which of the following types of insurance is investment based has a level fixed premium and a non-guaranteed cash value A universal life B credit life C variable whole life D interest based life

Variable whole life

Which statement below is incorrect regarding the type of term insurance that fits best with the applicants needs What is a applicants wishing to pay off the mortgage? A Applicants wishing to pay off a mortgage Should they suffer a premature death might buy a decreasing term plan. B employers looking to provide cost-effective group life insurance, for their employees may choose annual renewable term C applicants who may require a larger death benefit in the future should buy convertible term insurance D applicants concerned with the increase in cost of living should purchase increasing term

Applicants who may require a larger death benefit in the future should buy a convertible term insurance

Life settlement contracts must be approved by

The superintendent of insurance

Which of the following is not an IRS requirement for a qualified retirement plan A the plan must satisfy vesting requirements B the plan must favor, shareholders C the plan must for be formally communicated to the employees D the plan must be permanent and approved by the IRS

The plan must favor shareholders

Which of the following statements is true regarding advertising it that the insurance guaranty association, would ensure payment of benefits, in the event of insure insolvency A it is an unfair trade practice to mention the association in advertisements B ensures may choose whether to mention the association in advertisement, but if they choose to do so, they must first pay a fee to the association C if insurance join the association, they will be protected financially, if their insurance become insolvent D all advertisements of an insurer must mention coverage by the association

It is an unfair trade practice to mention the association in advertisements

Which of the following is required to provide a notice of information practices to all applicants in policyholders A NAIC B THE UNDERWRITER C THE PRODUCER D THE DEPARTMENT OF INSURANCE

The producer

Which of the following terms refers to the non-taxable portion of each annuity benefit payment A interest B principal C cost base D tax base

Cost base

All of the following statements about indexed whole life insurance are correct, except A there is a guaranteed minimum interest rate B the cash value depends on the performance of the equity index C the policy face amount remains level throughout the life of the policy D the premium is fixed

The policy face amount remains level throughout the life of the policy

What characteristic makes whole life permanent protection

Coverage until death or age 100

Which of the following statements is correct regarding a whole life policy? A cash values are not guaranteed. B the policy Premium is based on the attained age. C the death benefit may increase or decrease during the policy. D the policy owner is entitled to policy loans.

The policy owner is entitled to policy loans

What method is used to determine the taxable portion of each annuity payment

Exclusion ratio

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends plus interest and the policy cash value to pay the policy up early

paid up option

Whenever the superintendent has a reason to believe that a person has violated, or is about to violate any unfair method of competition or an unfair claim or practice here she may serve a statement of the charges, and a notice of hearing what is the timeframe

10 days

Which nonforfeiture option has the highest amount of insurance protection?

Extended term

What does "level" refer to in level term insurance?

Face amount

And insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation forget to pay the premium 10 days later his policy is still in effect and has not left which policy provision allowed for this

Grace. Period.

Which of the following when attached to a permanent life insurance policy allows the policy owner to customize the policy to provide an additional amount of temporary insurance on the insured or allows amounts of temporary insurance to cover other family members

Term rider

In life insurance policies cash value increases

Grow tax deferred.

If a loan request is for payment of duke premiums on the policy, how soon must the insurer issue a loan?

Immediately

S set up an individual retirement account that her employer is now contributing to her employer contributions are not included in her gross income. What kind of retirement plan does us have?

SEP

When applicants submit, prepaid applications, they will receive a A statement of good faith B conditional receipt C binding agreement D entire contract

Conditional receipt

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

And insured covered by a life insurance policy with an accidental death. Rider was injured injured in an accident and died 120 days later the policy had $50,000 coverage with triple indemnity what was the beneficiary receive A the amount equal to the cash value B the face amount C $150,000 D $100,000

The face amount

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

The full death benefit

All of the following statements about indexed whole life insurance are correct, except A the cash value depends on the performance of the equity index B the policy face amount remains level through the life of the policy C the premium is fixed D there is a guaranteed minimum interest rate

The policy face amount remains level throughout the life of the policy