Primerica

What age will the terminal reserves be reached

120

If an insurer terminates a producer's appointment, the Commissioner must be notified within how many days?

30

For an initial license the fee must be

300

Which of the following is an example of a producer's fiduciary responsibilities?

A producer promptly forwarding premiums to the insurance company

Documents grants express authority to an agent

Agent's contract with the principal

What documentation grants express authority to an agent?

Agent's contract with the principal

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

How are the variable annuities regulated?

By state and federal agencies

How are state Insurance Guaranty Associations funded?

By their members - authorized insurers

the act of holding information in confidence, not to be released to unauthorized individuals

Concealment

Which of the following would be considered an illegal inducement to purchase insurance?

Confirming future dividends in a life insurance proposal

Not a term for when annnuiant or beneficiaries receive income

Depreciation period

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?

Depreciation period

When an 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)

Executive bonus

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

Foreign

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?

Guaranteed insurability option

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

Installments for a fixed period

The Medical Information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons.

What is the main purpose of the Seven-pay Test?

It determines if the insurance policy is an MEC.

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

It is reduced to the amount of what the cash value would buy as a single premium.

An insured who had a life insurance policy for $1 million died. In filing the claim, his wife and children discovered that there was no beneficiary named on the policy. What will happen to the death benefit in this case?

It will go to the insured's estate.

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

Life Paid-up at Age 65

Which of the following best describes the unfair trade practice of defamation

Making derogatory oral statements about another insurer's financial condition

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

Other-insured rider

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

Settlement option

Classified as a traditional level premium contract

Straight life

Results in the highest premium

Substandard risk

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

Substandard risk

Example of liquidity

The cash value available to the policy owner

If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?

The death benefit will be smaller.

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

The interest credited under this option is not taxable since it remains inside the insurance policy

NOT a characteristic of an insurable risk

The loss must be catastrophic

What happens if a deferred annuity is surrendered before the annuitization period?

The owner will receive the surrender value of the annuity.

In terms of parties to a contract, which of the following does NOT describe a competent party?

The person must have at least completed secondary education.

Producer should personally deliver the policy when first premium has been paid

To help the insured understand all aspects

The annuitant must be a natural person

True

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

a fixed amount

A Universal Life Insurance policy is best described as a/an

annually renewable term policy with a cash value account

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

increasing

A situation in which a person can only lose or have no change represents

pure risk

Installing deadbolt locks on the doors of a home is an example of which method of handling risk?

reduction

In a direct rollover, how is the money transferred from one plan to the new one?

From trustee to trustee

Insurance policy may

Pay dividends to policy owner

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

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

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

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 submit to a medical exam. If the policy is issued, what would be the policy's effective date?

The date of medical exam

An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?

The policy will terminate when the loan amount with interest equals or exceeds the cash value.

Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds?

Vacation travel expenses

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Universal life

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

Utmost good faith