Pre-Licensing 41-50

48. In order for a company to make a contributory group life insurance plan available to its employees, what minimum percentage of the eligible employees must participate in the plan? A. 25% B. 50% C. 75%

75%

43. R's life insurance policy lapsed because R did not pay the premium after 60 days. In order to put the policy back in force R should take which of the following actions? A. Complete a new application B. Complete an application for reinstatement and submit all back premiums due C. Submit all back premiums due

Complete an application for reinstatement and submit all back premiums due

45. An agent receives an unsolicited call from a prospective client who wants to purchase a large single premium life policy. When advised about early withdrawal penalties, the client does not seem concerned and is evasive when the agent inquires about the source of the funds. In this situation, the agent should take which of the following actions? A. Contact the insurance company compliance officer to report a red flag concerning possible money laundering B. Contact FINRA to report a red flag concerning possible money laundering C. Do nothing, this is the underwriters job.

Contact the insurance company compliance officer to report a red flag concerning possible money laundering

42. Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability? A. Conversion privilege B. New policy privilege C. Cobra Insurance

Conversion privilege

49. Which of the following types of policies offers the owner investment in money-market funds, long term bonds or equities? A. Index Life B. Variable Life C. Fixed Life

Variable Life

50. An application for life insurance must be informed of their rights under the Fair Credit reporting Act at which of the following times? A. When the producer completes the insured's application B. When the client receives their policy C. When the client makes their first payment

When the producer completes the insured's application

47. An application for a life insurance policy that is submitted with the initial premium is legally considered to be: A. an offer B. a dividend C. a conditional receipt

an offer

41. Elite Construction Company wants to take out an insurance policy on its president to offset the cost of replacing the president if the president should die prematurely. The type of policy the company should buy is called: A. Owner's Policy B. Payor Policy C.Key Employee Policy

key employee policy

46. An insurance company accepts an application containing several unanswered questions and issues the policy. In this situation, the company must: A. retract the application and ask the client to fill out a new one B. honor the policy as issued C. contact the client to let them know that they made a mistake and deny the insurance

must honor the policy as issued

44. The primary purpose of including a Suicide provision in a life insurance policy is to: A. There is not such thing as a suicide provision B. decrease the suicide count in each state C. protect the insurer against purchase of a policy in contemplation of suicide

protect the insurer against purchase of a policy in contemplation of suicide