pass now

How much time does the insurer have to pay the death benefit to the beneficiary of a life insurance policy after the receipt of proof of death?

2 months

Which of the following is NOT specified under Rule 39, AIDS & HIV Underwriting?

Benefits triggers

An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his

Attained age.

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

In order for a Canadian insurance company to do business in this state, it must apply for and obtain

A certificate of authority.

A new insurance company wants to begin conducting insurance in Indiana. What will it need to receive before it can legally open for business?

Certificate of Authority

Representations are written or oral statements made by the applicant that are

Considered true to the best of the applicant's knowledge.

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed amount

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?

If the father is disabled for more than 6 months

All of the following are qualifications of a resident producer EXCEPT

Obtaining a sponsorship of an admitted insurance company.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

Under which circumstance can a producer receive a commission and a consultant's fee for the same transaction?

A producer makes a disclosure about the compensation arrangements prior to the transaction.

For a retirement plan to be qualified, it must be designed for the benefit of

Employees.

Which of the following is true about the premium on the children's rider in a life insurance policy?

It remains the same no matter how many children are added to the policy.

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

Erase the incorrect answer and record the correct answer.

All of the following are unfair claims settlement practices EXCEPT

Suggesting negotiations in settling the claim.

For what reason may a life insurance producer backdate a life insurance policy?

To avoid an increase in premium rate for the insured

Which of the following is NOT a type of group eligible for group life insurance?

A social group

Which of the following is NOT correct regarding qualifications for a resident producer license in Indiana?

Applicants must be at least 21 years old.

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

Face amount

Which of the following best describes annually renewable term insurance?

It is level term insurance.

What describes the specific information about a policy?

Policy summary

Which of the following will be included in a policy summary?

Premium amounts and surrender values

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

Which of the following would be considered a violation of Rule 13: Life Insurance Advertising?

Calling an insurance policy an investment plan

If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?

Policyowner

According to underwriting rules pertaining to AIDS and HIV, all of the following questions will be allowed on an application for health insurance EXCEPT

Questions directed to determine the applicant's sexual orientation.

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called

Single premium whole life.

The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as

The policy contains sufficient cash value to cover the cost of insurance.

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application.

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

When would a 20-pay whole life policy endow?

When the insured reaches age 100

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

6 months

Which of the following would be considered an unfair claims settlement practice?

Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

Who can make a fully deductible contribution to a traditional IRA?

An individual not covered by an employer-sponsored plan who has earned income

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

Common Disaster Clause

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated.

A Return of Premium term life policy is written as what type of term coverage?

Increasing

Which of the following types of license is most suitable for an individual or corporation that, for compensation, acts or aids in any manner in soliciting applications for a policy of insurance on behalf of an insurance company admitted to do business in Indiana?

Insurance producer

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

An applicant who receives a preferred risk classification qualifies for

Lower premiums than a person who receives a standard risk.

What is the term for how frequently a policyowner is required to pay the policy premium?

Mode

The Federal Fair Credit Reporting Act

Regulates consumer reports.

What authority is responsible for examining the operations of insurance companies in this state?

The Commissioner

Which of the following is NOT the consideration in a policy?

The application given to a prospective insured

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage.

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 proceeds will go to

The insured's estate.

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

Twisting.

In a survivorship life policy, when does the insurer pay the death benefit?

Upon the last death

What is the name of the insured who enters into a viatical settlement?

Viator

If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about

Whether an insurable interest exists between the individuals.

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

Which of the following can remove the Insurance Commissioner from office?

Governor

All of the following could qualify as a group for the purpose of purchasing group life insurance EXCEPT

An association formed 1 year ago.

Which of the following premium payment modes will incur the lowest overall payment?

Annual

Which of the following limited lines producer's licenses would require life producer's prelicensing education and examination?

Funeral director insurance

In a life settlement contract, whom does the life settlement broker represent?

The owner

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract.

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?

Automatic premium loan

Which of the following conditions is NOT necessary for becoming a non-resident producer in Indiana?

Passing the proper examination

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?

Collateral assignment

Which of the following is NOT true of life settlements?

The seller must be terminally ill.

Any payment to a producer from an insurer that is contingent on the sale of an insurance policy or contract is called a

Commission.

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original application

During partial withdrawal from a universal life policy, which portion will be taxed?

Interest