Test questions wrong

What is the maximum penalty for habitual willful noncompliance with the fair credit reporting act

$2,500

A licensed Minnesota insurance producer must notify the commissioner of a change of address within

10 days

Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is correct

100% participation members is required in non-contributory plans

And insured purchased a variable life insurance policy with a face amount of 50,000. Over the life of the policy, stock performance decline in the cache Valley fell to 10,000. If the insured dies, how much will be paid out

50,000

After an insurance company examination, the commissioner or the examiner appointed by the commissioner must follow a written report of the examination within :

60 days

This state provided for a temporary license for all of the following except

A producer's retirement

This state provided for a temporary license for all of the following EXCEPT :

A producers retirement

Insurance policies are not drawn up through negotiations, and the insured has little to say about its provisions. What contract characteristic does this describe

Adhesion

Which of the following is NOT a group typically recognized as eligible for group insurance?

Association-patron groups

And insured receives an annual life insurance dividend check. What term best describes this arrangement

Cash option

And insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

What happens when a policy is surrendered for its cash value

Coverage ends and the policy cannot be reinstated

If you consumer request additional information concerning an investigative consumer report, how long does the insure or reporting agency have to comply

Five days

An individual is purchasing a permanent life insurance policy with the face value of 25,000. Well this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

What is the other term for the cash payment settlement option

Lump sum

Under the fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report

Must be informed on the source of the report

During replacement of life insurance, I replacing insurer must do which of the following

Obtain a list of all life insurance policies that will be replaced

Under the fair credit reporting act, if a consumer challenges the accuracy of the information contained in a consumer investigative report, the reporting agency must

Respond to the consumers complaint

The ownership provision entitles the policy owner to do all of the following except

Set premium rates

Which two terms are associated directly with the weight and annuity is funded

Single payment or periodic payments

Credit life insurance contains which of the following

Term insurance protection for the amount of the indebtedness

Which of the following, when attached to a permanent life insurance policy, unless the policy owner to customize the policy to provide additional amount of temporary insurance on the insured, or less amounts of temporary insurance to cover other family members

Term rider

The initial amount of credit life insurance may not exceed

The amount to be repaid under the contract

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional payer benefit rider. If the father becomes disabled what will happen to the life insurance premiums

The insurance premiums will be waived until she is 21

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had the income for life after the insureds death, he chose the life and come settlement option. The amount of payments that will be determined by taking into account all of the following except

The insured's age at death

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.

In a life settlement contract, whom does the life settlement broker represent

The owner

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

The performance of the policy portfolio

All of the following statements concerning the use of life insurance as an executive bonus are correct except

The policy is owned by the company

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

The premium is level

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the benefit to the beneficiary if the policy is approved. This is an example of what kind of contract

Conditional

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract

Conditional

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called

Credit life

What is another name for interest sensitive whole life insurance

Current assumption life

Which of the following types of long-term care is provided mainly for the purposes of meeting the insurance needs for activity of daily living

Custodial care

Which of the following is not typically excluded from life policies

Death due to plane crash for a fare-paying passenger

A portion of loss that must be covered by the insured is called

Deductible

All of the following could be considered rebates of offered to the insured in the sale of insurance except

Dividends from a mutual insurer

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will produce

Which nonforfeiture option has the highest amount of insurance protection

Extended term

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

Guaranteed insurability rider

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

Guaranteed insurability rider

Life income joint and survivor settlement option guarantees

Income for two or more recipients until they die

Annually renewable term policies provide a level death benefit for a premium that

Increases annually

To which of the following life products to the replacement regulations apply

Individual annuity

All applicants for life, annuity or endowment contracts must be given notice concerning policyholder's rights in the event that their insurance company becomes :

Insolvent

Which of the following best describes a misrepresentation

Issuing sales material with exaggerated statements about policy benefits

Which of the following best describes annually renewable term insurance

It is level term insurance

Which statement is not true regarding a straight life policy

It's premium steadily decreases overtime, in response to his growing cash value

Variable whole life insurance is based on what type of premium

Level fixed

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factor

Life expectancy

Which of the following settlement options in life insurance is known as straight life?

Life income

And insured purchased an insurance policy five years ago. last year, she received a dividend check from the insurance company that was not taxable. this year, she did not receive a check from the insure from what type of ensure did the insured purchased the policy?

Mutual

In Minnesota, what are the continuing education requirements for nonresident producer's

Nonresident producer's only need to fulfill the CEU requirements in their home state

During replacement of life insurance, and replacing insurer must do which of the following

Obtain a list of all life insurance policies that will be replaced

In a commercial general liability policy, which of the following forms covers losses that occur, start or discovered during the policy, regardless of when the date is actually reported by the insured

Occurrence

The dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as the

One year term option

Which of the following allows the insure to receive a minor insured from premium payments if the minors parents have died or become disabled

Payor 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

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

The policy owner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She's decided that she would rather use the dividends to help her pay for her next year premium. What option would allow her to do this

Reduction of premium

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

The policy will be interpreted as if the insure waved it's right to have an answer on the application

All of the following are requirements for the life insurance illustrations except

They must be part of the contract

Which type of misrepresentation persuades an insured to cancel apps or switch policies from one to another

Twisting

Which of the following types of policies allows for flexible premium variable investment component

Variable universal life insurance

Which of the following is a characteristic of reciprocal insurance exchange

the chief administrator of the insurer is called an "attorney-in-fact"

All of the following are true regarding a decreasing term policy except

the payable premium amount steadily declines throughout the duration of the contract