Review

Applicants for an individual producer license must submit proof of completing certain number of hours of approved continuing education credits. How many hours are required?

24

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with reduction in cash value

All of the following candidates for a resident producer license may be exempted from the examination requirement except

A resident producer licensed for Property and Casualty insurance applying for Life insurance license

If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

Prior to the performance of the test

An applicant for disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be a

Representation

What happens to the face amount of a whole life policy if the insured reaches the age of 100?

The face amount is paid to the insured

Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly

The producer

Which of the following acts stated that the federal government would not regulate insurance as long as the states did an adequate job of regulating the industry?

McCarran-Ferguson Act

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

Misrepresentation

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

One year term option

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

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

Where are premiums from fixed annuities invested?

general account

The commissioner conducts an investigation regarding a possible misconduct. At a hearing, the licensee is found guilty for knowingly violating a cease and desist order. What is a likely penalty?

$5,000 for each violation

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$50,000

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

Which of the following best describes fixed period settlement option

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

A long stretch of economic hardship causes a 7% rate of inflation. a policy owner notices that the face value of her life insurance policy has been raised 7% as a result. which policy rider caused this change? a. value adjustment rider b. return of premium rider c. inflation rider d. cost of living rider

Cost of living rider

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

Which of the following statements is incorrect concerning Modified endowment Contracts

An MEC must always pass the 7-pay test

All of the following are among the commissioner's broads powers except

Have interest in insurance companies regulated by the department