psych week 7
By how many days does the discontinuance of a group insurance policy reduce time limit for providing notice of claim or proof of loss
0 Days
What % of a company's employees must take part in a noncontributory group life plan?
100%
Within how many days of requesting an investigative consumer report must an insurer notify the consumer that the report will be obtained?
3 days
An insurer is closing a branch office in this state. Within how many days of the office closing must the insurer notify the Department?
30 days
Licenses must notify the department within how many days of any change of address
30 days
What is material misrepresentation?
A statement by the applicant that upon discovery, would effect the underwriting decision of the insurance company
The 2 types of assignments are
Absolute and collateral
What is another term for authorized insurer?
Admitted
What is reinsurance
Agreement between a ceding insurer and assuming insurer
Settling a lawsuit involving a life insurance policy the insurer belives that the application would help to establish material facts in the case
Applicants can only be used in court cases if they are attached to or endored upon the policy
All of the following is true of the federal tax advantages of a qualified plan except
At distribution all amounts received by employers are tax free
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer
Long stretch of hardship causes 7% rate of inflation
Cost of living rider
All of the following statements concerning dividends are true except
Dividend amounts are guaranteed in policy
Which of the following regulating authorities participated in the do not call registry
FTC
Which is true about the cash surrender in a nonforfeiture option
Funds exceeding the premium paid are taxable as ordinary income
Eligibility requirements for all social security disability income benefits
Have attained fully insured status
Life income joint and survivor settlement option guarantees
Income for 2 or more recipients until they die
All of the following are nonforfeiture options except
Interest only
The type of settlment option which pays throughouy the lifetimes of 2 or more benefictiarys is called
Joint and survior
What is the other term for the cash payment settlement option
Lump sum
If an insured continually uses the automatic loan option to pay the premium
The policy will terminate when the cash value is reduced to nothing
an insured has chosen joint and 2/3 survivor as the settlement option
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
Which of the following of a life insurance policy would be allowed in an insurance advertisement
This is a term life insurance policy
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
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
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
rebating
If a policy includes a free look period at least 10 days, the buyers guide may be delivered to the applicant no later than
with the policy
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income and period certain
An organization licensed in NY wants to do business in NJ. What is true
Organization will need to obtain a nonresident business entity license and the producers need nonresident license's
A participating insurance policy may do which of the following
Pay dividends to the policy owner
Which of the following allows the insurer to relieve a minor insured from premium payments if the minors parents have died or become disabled
Payor Benefit
Which of the following licenses is required for a surplus lines producer
Property and casualty
All of the followings are unfair claims settlement practice's except
Suggesting negotiations in a settling claim
Which of the following is an example of a producer being involved in a unfair trade practice of rebating
Telling a client that his 1st premium will be waived if he purchases the insurance policy today
Which of the following is true regarding variable annuities
The annuitant assumes the risks on investment