Simulator Exam
A group insurance policy issued to a nonprofit industrial association must cover at least how many employees at the date of issue?
1,000
After a hearing, civil penalties imposed by the commissioner is for each unfair method of competition may NOT exceed
1,000
The commissioner has scheduled a hearing from a producer who is implicated and engaging in an unfair method of competition. The notice of hearing must be delivered to the producer NO later than how many days prior to the hearing?
10 days
If the commissioner believes an individual is involved in unfair trade practices and delivers to the individual a notice of hearing, the hearing may be no sooner than
10 days after receipt of notice
In Iowa, a group of insurance policy issued to trustees of a fund established by two or more employers must cover how many eligible, insurance employees at the time of the issues?
100
What is the maximum amount of time that a person can have a temporary producer's permit?
180 days
When an insurance policy provides for payment to a beneficiary, the company must pay interest if the proceeds aren't paid within
30 days
In Iowa, a group life insurance policy must provide a grace period provision of at least
30 days.
Conversion privilege in group life insurance policies must be exercised within what period of time after termination of group coverage?
31 days.
In Iowa a group life insurance policy must provide a grace period provision of at least
31 days.
A producer earns 40 continuing education credit hours during the 3 year license renewal period. How many continuing education credit hours will the producer need to complete during the new 3 year period?
36
How many continuing education credit hours must be completed during each licensing period?
36
How many continuing education credit hours must be completed during each licensing period?
36 credit hours
How long is a commissioner term?
4 years
According to the regulations on life insurance policy solicitation, what two documents must be presented to an applicant during the application process?
A Policy Summary and Buyer's Guide
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
Who is a third-party owner?
A policyowner who is not the insured
Which of the following would be required to obtain a producers license in this state?
A trustee of an employee trust plan that is compensated indirectly by the company issuing the contract
An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?
Aleatory
Which of the following is NOT a producer's responsibility when making recommendations for an annuity exchange?
Always comply with the NASD conduct rules
The life and health guaranty association maintains all of the following EXCEPT
An unallocated life insurance account
The life and health guaranty association maintains all of the following accounts EXECPT
An unallocated life insurance account
In Iowa, group insurance may be written to provide insurance coverage for
Any group that conforms to one of the descriptions of eligible groups as established by the Insurance Division or that receives special approval from the Commissioner
Employer contributions made to a qualified plan
Are subject to vesting requirements
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 generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process?
Buyer's Guide
What does liquidity refer to in a life insurance policy?
Cash values can be borrowed at any time
It is suspected that a producer is consistently violating insurance laws. Which of the following entities is responsible for making sure that the producer stop committing these violations?
Commissioner
A temporary producer license may be used for which of the following?
Complete the affairs of an insurance producer
Which of the Following is NOT allowed in credit life insurance?
Creditor requiring that a debtor buys insurance from a certain insurer
The commissioner regulates insurance rate through detailed rate reviews. The commissioner will prohibit insurance rate that are
Excessive, Inadequate, Unfairly discriminatory. Any of the Above.
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
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
Which nonforfeiture option has the highest amount of insurance protection?
Extended term
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?
Federal Insurance Regulation Bureau
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 was designed to investigate and collect evidence relating to insurance fraud?
Insurance Fraud Bureau
What is the main purpose of the seven pay test?
It determines if the insurance policy is a MEC.
What is a definition of a unilateral contract?
One-sided: only one party makes an enforceable promise
What is a definition of unilateral contract?
One-sided: only one party makes an enforceable promise
An insured has continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would been possible otherwise. What dividend option could she use?
Paid-up option
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by the age, sex and occupation of each individual certificate holder.
An insured pays $1,200 annually for her life insurance premium. The insured applied this year'a $300 worth of accumulated dividends to the next years premium, thus reductions it to $900. What options does this describe?
Reduction of Premium.
Which of the following statement is NOT accurate regarding commissions and referrals?
Service fees are acceptable as long as the policyholder is licensed
All of the following are considered unfair trade practices in the business of insurance EXCEPT
Sharing commissions
The advantage of qualified plans to employers is
Tax-deductible contributions
What entity was created to protect insureds against insurer insolvency?
The Iowa life and Health Guaranty Association
The individual conversion policy CANNOT exceed
The amount of insurance being terminated
Which of the following would qualify as a competent party in an insurance contract?
The applicant has a prior felony conviction
Which of the following is true if an insurer based a life insurance policy loan interest rate on a published monthly average?
The average must not exceed the monthly average of the month ending 2 months before the date the rate is determined
If a life insurance policy has an irrevocable beneficiary designation,
The beneficiary can only be changed with written permission of the beneficiary.
Suitability is based on all of the following except
The clients initial premium
Which of the following would NOT be relevant in helping a producer determine if his life insurance policy recommendation is suitable for a client?
The information in the buyer's guide
Illustrations used in the sale of life insurance policies must contain all of the following EXCEPT
The insured's financial classification
Who has the right to assign the benefits and or all other incidents of ownership under a group life insurance policy?
The person insured
A nonresident Iowa producer moves to Iowa and becomes an Iowa resident. Which of the following is true?
The producer must surrender his/her producer's license from the other state
What is the purpose of key person insurance
To lessen the risk of financial loss because of the death of a key employee
What is the purpose of key person insurance?
To lessen the risk of financial loss because of the death of a key employee
What is the purpose of a suicide provision within a life insurance policy?
To protect the insurer from persons who purchase life insurance with the intention of committing suicide
The paid up addition option uses the divdend
To purchase a smaller amount of the same type of insurance as the original policy.
When a producer uses an illustration while selling a life insurance policy, which of the following terms is the producer forbidden to use?
Vanishing premium
Which of the following life insurance policies allows a policy owner to take out a loan from the policy's cash value?
Variable Universal life
When transacting business in this state an insurer formed under the laws of another country is known as a/an
alien insurer
All of the following are personal uses of life insurance EXCEPT
buy-sell agreement
Which of the following would describe a legal document which would dictate who can buy a deceased partners share of a business and for what amount?
buy-sell agreement
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?
commissioner
The commissioner is conducting an examination of a domestic insurance company. Who is responsible for the cost of the examination?
company being examined
