Practice Exam

180 days

Temporary liceenses can last for how long?

A producer's retirement

This state provided for a temporary license for all of the following EXCEPT

Joint Life

Twin Brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Generally not taxed as income

life insurance death proceeds are?

3

What is the minimum required number of continuing education credits in ethics every licensing period?

An insured is diagnosed with cancer and needs help paying for her medical treatment.

Under which of the following circumstances would an insurer pay accelerated benefits?

Insurance and cash account

What are the two components of a universal policy?

Straight Life

Which of the following is an example of a limited- pay life policy?

Settlement option

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

5 years

Insurer examinations must occur no less frequently than every

Limited- pay life

An insured has 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?

Variable annuity

Which of the following products requires a securities license?

This rider is available to all insureds with no additional premium.

All of the following are true regarding the guaranteed insurability rider EXCEPT

A 60- year old man

All other factors being equal, which of the following individuals would receive the largest monthly cheack from a single premium straight life immediate annuity?

The date of medical exam.

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submint to a medical exam. If the policy is issued, what would be the policy's effective date?

For 20 years or until death, which occurs 1st.

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premium must be paid

Equal to the original policy for as long a period of time that the cash values will purchase.

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

1. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

Which of the following best describes the MIB?

Life Paid- up at Age 65

Which of the following is an example of a limited-pay policy?

The benefit is received tax free

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefits, then.....

$100k

An individual purchased a $100k joint life policy on himself and his wife. Eight years later he died in an automobile accident. How much will his wife receive from the policy?

Policy owner

Which of the following individuals must have insurable interest in the insured

Pay- in period

Which of the following is another term for the accumulation period of an annuity?

Agent's contract with the principal

What documentation grants express authority to an agent?

Executive bonus

When am employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)

When the application is signed and a check is given to the agent.

When is the earliest a policy may go in effect

Bail- out

Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level?

Monthly premium waiver and monthly income

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?

insurer

All advertisements are the responsibility of the

Adhesion

An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe?

Substandard Risk

Which of the following types of rish will result in the highest premium?

Providing a customer with a incomplete illustration

Which of the following would be a violation of life policy illustration regulation?

Yes, but not unfairly

Are insurance company underwriters allowed to discriminate?

Face amount

What policy component must decrease in decreasing term insurance?

Domestic

Which of the following best describes an insurance compant that has been formed under the laws of this state?

The charge may be waived if the annuitant is confined to a long term care facility for at least 30 days.

Which of the following is true regarding a waiver of surrender charge on an annuity contract?

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

The paid- up addition option uses the dividend

fixed period

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Favorable tax treatment

What is the advantage of having a qualified annuity?

The amount of the distribution is reduced by the amount of 20% withholding tax.

A 60- year- old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?

The interest is not taxable since it remains inside the insurance policy.

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

The Guaranty Association

All of the following entities regulate variable life policies EXCEPT

It is a life contingency option.

All of the following statements are true regarding installments for a fixed period annuity settlement option Except?

An index like Standard & Poor's 500.

The equity index annuity is linked to

Expenses

The factor added to the net premium to cover the costs of the insurer in obtaining and maintaining the business is called?