Test

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

Stranger-originated life insurance policies are in direct opposition to the principle of

Insurance interest

Which of the following best defines earned surplus?

Insurer's unassigned funds

What is true regarding free insurance issued in this state?

It is illegal

The growing tendency of individuals to file lawsuits and to claim tremendous amounts for alleged damage is known as

Legal hazard

What describes a situation when poor risks are balanced with preferred risks and average risk are in the middle?

Profitable distribution of exposure

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

In a group life insurance policy, the employer may select all of the following except

The beneficiary

An inside stopped making payments on a loan taken from his cash value policy. What will most likely happen?

The policy will terminate when the loan amount with interest equals or exceeds te cash value.

Which of the following is not true of a life settlement

The seller must be terminally ill

What is the major problem with naming a trust as a beneficiary of a life insurance policy?

They are expensive to administer

Which of the following is NOT a goal of risk retention

To minimized the insured's level of liability in the event of loss.

Under what circumstances would a life insurance contract qualify as a standard policy

Under no circumstances

Which is true regarding the convertibility option under a term life insurance policy except?

Upon conversion the death benefit of the permanent policy will be reduced by 50%

An insurance agent who commits repeated violation of insurance code with respect to insurance replacement will be liable for?

An administrative penalty of no less than $5000 and no more than $50,000 per violation

The code defines the term "transact" as all of the following except

Analyzing a contract of insurance

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original policy