Stimulate your exam 6
An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?
paid up option
all of the following are true regarding policy loans except
policy loans must be repaid
Which of the following is called a second-to-die policy?
survivorship life
The advantage of qualified plans to employers is
Tax-deductible contributions
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
The insured may renew the policy for another 10 years, but at a higher premium rate.
Which of the following named beneficiaries would not be able to receive the death penalty fit directly from the insurer in the event of the insured's death?
A minor son of the insured Because he minor does not have the legal capacity to release the insured from her other obligation, benefits normally have to be passed through Guardian or a trustee
The insured also the policyowner of a whole life policy. What age must the insured attain in order to receive attain in order the receive the policy's face amount?
Age 100
If only party to an insurance contract has made a legally enforceable promise, what kind of contract is it?
Unilateral
Which of the following is a feature of a variable annuity?
Benefit payment amounts are not guaranteed
Which of the following is not true regarding an annuity certain?
Benefits stop at the annuitant's death.
When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called
Class designation
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
all of the following statement concerning dividends are true
Dividend amounts are guaranteed in the policy
Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in
Expiration of the license
The requirement that agents not commingle insurance monies with their own funds is known as.
Fiduciary responsibility
Which of the following information about the applicant is not include in general information section of the application for insurance?
Gender
What is the purpose of a free-look period in insurance policies?
It allows the insured to reject the policy with a full refund.
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date earlier than the date of the issuance of the policy.
Which of the following best describes annually renewable term insurance?
It is level term insurance
Which of the following another term for accumulation period of an annuity?
Pay in period
An individual buys a flexible premium deferred life annuity with 20 years period certain. What would his beneficiary receive if he died 5 years after beginning the annuity phase?
Payment for 15 yrs
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.
To sell variable life insurance policies, an agent must receive all of the following except
SEC registration
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
Settlement option
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
All of the following are general requirements of a qualified plan except
The plan must provide an offset for social security benefits.
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans
How are contributions to a tax-sheltered annuity treated with regards to taxation?
They are not included as income for the employee, but are taxable upon distribution.
Which of the following is true regarding taxation of accelerated benefits under a life insurance policy?
They are tax free to terminally ill insured
Which of the following statements is TRUE concerning irrevocable beneficiaries?
They can be changed only with the written consent of that beneficiary.
What is the purpose of settlement options?
They determine how death proceeds will be paid
What is the purpose of the buyer's guide?
To allow the consumer to compare the costs of different policies
What is the purpose of a disclosure statement in life insurance policies?
To explain features and benefits of a proposed policy to the consumer
Which of the following products requires a securities license?
Variable annuity
When would a 20-pay whole life policy endow?
When the insured reaches age 100
What is the timeframe for filing relevant Suspicious Activity Reports
Within 30 days of INITIAL DISCOVERY
Which of the following is another term for an authorized insurer?
admitted
Which of the following premium payment modes will incur the lowest overall payment?
annual
In terms of social security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse turns age 60 called
blackout period
Which of the following statements about suicide clause in a life insurance policy is true.
Suicide is excluded for a specific period of years and covered thereafter.
If an employee is accepted into a group insurance plan, which status will the employee have?
certificate holder
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is?
conditional
No insurance policy form can be issued, delivered, or used unless it has been
filed with and approved by the commissioner
What required provision protects against unintentional policy lapse?
grace period
Certificates of coverage are issued to
participants in a group plan