Simulate your Exam

Which nonforfeiture option has the highest amount of insurance protection

Extended Term

If an insurer believes that it has received a fraudulent claim, it must notify the bureau and request an investigation within

60days

which of the following individuals engaged in the business of insurance would NOT be required to be licensed

A person who secures information for enrolling individual into a group insurance

An individual has just borrow $10,000 from his bank on a 5 year installment loan requiring monthly payment. What type of life insurance policy would be best suited to this situation

Decreasing term

When is the earliest a policy may go into effect?

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

It is suspected that a producer is consistently violating insurance laws. Which of the following entities is responsible for making sure that the producer stops committing these violations?

commisioner

An individual has been making periodic premium payments on an annuity. The annuity income payment are scheduled to begin 2 years after the annuity was purchased. What type of annuity is it?

deferred

Which of the following statement is TRUE concerning the Accidental Death Rider?

it will pay double or triple the face amout

The type of settlement option which pays throughthout the lifetime of two or more beneficiaries is called

joint and survivor

Variable life insurance is based on what kind of premium

level fixed

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

life paid up at age 65

Equity indexed annuities

seek higher returns

Who may contribute to an HR 10 plan

self employed plumber

Suitability is based on all of the following EXCEPT

the client's initial premium

What is the purpose of establishing the target premium for a universal life policy?

to keep the policy in force

What is the name of the insured who enters into a viatical settlement

viator

Which of the following best describes the aleatory nature of an insurance contract?

Exchange of unequal values

What provision in an insurance policy extends coverage beyond the premium due date?

Grace period

Which of the following is TRUE regarding the accumulation period of an annuity

It is a period during which the payments into the annuity grow tax deferred

Insurance is the transfer of

Risk

Which of the following statement about a suicide clause in a life insurance policy is TRUE?

Suicide is excluded for a specific period of years and covered thereafter

The Commissioner has scheduled a hearing for a produced who is implicated in engaging in an unfair method of competition. THe notice of hearing must be delivered to the produWcer no later than how many days prior to the hearing

Ten

Which of the following protect consumer against the circulation of inaccurate or obsolete personal or financial information

The fair credit reporting act

Which of the following determine the cash value of a variable life policy

The performance of the policy portifolio

What is the purpose of the buyer's guide?

To allow the consumer to compare the costs to compare the costs of different policies

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all the following information EXCEPT the applicant's

ancesty

What is the name for the owner of a life insurance policy who enters into a viatical settlement contract

viator

Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT

An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. THis is an example of

Coercion

Which of the following is NOT consideration on the part of an insured?

Promise to submit timely claims

Which of the following is a permissible adjustable policy loan interest rate taken out in connection with a life insurance policy

The interest rate is no greater than the rate used to compute the cash surrender value of the policy, plus 1% per year

Who has the right to assign the benefits and or all other incidents of ownership under a group life insurance policy?

The person insured

All of the following information about the applicant is identified in the Gerneral information section of a life insurance application EXCEPT

education

All of the following are true regarding insurance policy loans except

policy loan can be made on policies that do not accumulate cash value

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

the benefit is received tax free

Which of the following best describe what the annuity period is?

the period of time during which accumulated money is converted into income payments

what is the name of the insured who enters into a viatical settlement

viator

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

Depreciation period

When a reduced paid up noforfeiture 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

What is the other term for the cash payment settlement option

Lump Sum

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application

An insured will be allowed to reactivate her lapsed life insurance policy if action is take within a certain period of time, and proof of insurability is provided

Reinstatement provision

All of the following entities regulate variable life policies except

The Guarantly Association

When a life insurance policy was issued, the policy owner designated a primary and contigent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit.

The insured's contingent beneficiary

What required provision protects against unintentional lapse of the policy?

Grace period

The death benefit under the Universal life Option B

Gradually increases each year by the amount that the cash value increases

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

Notice Regarding Replacement

An insured purchases a policy in 2008 and died in 2013. The insurance company discovers at the time that the insured concealed information during the application process. What can they do?

Pay the death benefit

Which of the following is correct concerning the taxation of premiums in a key person life insurance policy?

Premiums are not tax deductible as a business expense

Which of the following factors determine the amount of each installment paid in life income option arrangement?

Recipeint's life expectancy and amout of principal

Which of the following is an example of a producer being involved in an unfair trade practice of rebating?

Telling a client that his first premium will be waived if he purchased the insurance policy today

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to the

The contingent beneficiary

Which of the following is TRUE regarding the premium in term policies

The premium in any type of term policy is level

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

They have a guaranteed minimum interest rate

what is the purpose of disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

Which of the following term will be permissible in describing a life insurance policy in company advertisements?

Variable plan

Whgich of the following when attaced to a permanent life insurance policy allow the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allow amounts of temporary insurance to cover other family members

Term rider

An investor buys a life policy on an elderly person in order to tell sell it for a life settlement. This is an example of

A STOLI policy

Which of the following would be deducted form the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?

Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit

which of the following would be considered a nonmedicail insurance application?

An application on which the medical information is completed by the applicant and the agent only

In the executive bonus plan, who is the owner of the policy, and who pays the premium?

executive is the owner, and the executive pays the premium

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability the policy includes a

guaranteed insurability rider

Which of the following was desighned to investigate and collect evidence relating to insurance fraud

insurance fraud bureau