Stimulare your exam 5.0
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant
With the policy
Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
items situated in the contract that insurer will not provide coverage for are found in the
Exclusion clause
All of the following entities regulate variable life policies except
The Guaranty Association
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
consideration
What is the term for how frequently a policy owner is required to pay the policy premium?
mode
Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly
producer
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to
Charge a higher premium
All of the following could be considered rebates if offered to an insured in the sale of insurance except
Dividends from a mutual insurer.
An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of
A STOLI policy.
What is a foreign insurer?
An insurer with a home office in another state
All of the following are true of the federal tax advantages of a qualified plan except
At distribution, all amounts received by the employee are tax free.
Which of the following includes information regarding a person's credit, character, reputation, and habits
Consumer report
What would be an advantage to naming a contingent ( or secondary ) beneficiary in a life insurance policy?
It determines who receives policy benefits if the primary beneficiary is deceased.
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
The federal fair credit reporting act
Regulates consumer reports
Which type of life insurance policy generates immediate cash value?
Single Premium
Which of the following applicants would not qualify for a Keogh Plan?
Someone who works 400 hours per year
The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the
Spendthrift Clause
Which of following statements is correct about a standard risk classification in the same age group and with similar lifestyles?
Standard risk is representative of the majority of people.
Which of the following types of risk will result in the highest premium?
Substandard risk
Which of the following best describes the tax advantage of a qualified retirement plan?
The earnings in a qualified plan accumulate tax deferred
All of the following are true statements regarding the accumulation at interest option EXCEPT
The interest is not taxable since it remains inside the insurance policy.
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination
Which is true about a spouse term rider?
The rider is usually level term insurance
What is the purpose of establishing the target premium for a universal life policy
To keep the policy in force
What kind of policy allows withdrawals or partial surrenders?
Universal Life
Which type of life insurance policy allows the policy owner to pay more or less than the planned premium
Universal Life
Which of the following statements is not true concerning insurable interest as it applies to life insurance?
A debtor has an insurable interest in the life of a lender.
Which of the following products provides income for a specified period of years of life, and protects a person against outlining their money?
An annuitant
What license or licenses are required to sell variable annuities?
Both a life insurance license and a securities license
Which of the following must an insurer obtain in order to transact insurance within a given state?
Certificate Authority
What is the name of the clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military?
Military service or war
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report
Using a class designation for beneficiaries means
Naming beneficiaries as a group
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
Respond to the consumer's complaint.
All of the following statements about equity index annuities are correct EXCEPT
The annuitant receives a fixed amount of return
What happens when a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated
Which of the following is not true regarding a nonqualified retirement plan?
It needs IRS approval
If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a
Joint life annuity
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
If the father is disabled for more than 6 months
An applicant for a life agent's license may obtain a temporary license for a maximum period of
6 months
The death protection component of universal life insurance is always
annually renewable term
Which of the following products will protect an individual from outliving their money?
annuity
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
beneficiary
A producer who fails to segregate premium monies from his own personal funds is guilty of
commingling
