Test

The combination of Whole Life and Term insurance is referred to as a Family Income Policy Decreasing Universal Variable Level

Decreasing

F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed? Level term policy Whole life policy Limited-pay policy Decreasing term policy

Decreasing term policy

Additional coverage can be added to a Whole Life policy by adding a(n): payor rider accelerated benefit rider decreasing term rider automatic premium loan rider

Decreasing term rider

Which of the following does Social Security NOT provide benefits for? Survivorship Dismemberment Disability Retirement

Dismemberment

What provision in a life insurance policy states that the application is considered part of the contract? Application provision Policy Exclusions provision Entire Contract provision Incontestability provision

Entire Contract provision

Which of the following is an important underwriting principle of group life insurance? A)Physical examinations are required B)Everyone must be covered in the group C)Employer must pay for the entire premium D)The group must be formed for the purpose of getting affordable insurance

Everyone must be covered in the group

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? A)No benefits are payable under the Master contract B)Full benefits are payable under the Master contract C)Full benefits are payable under the converted policy D)Benefits less required premium are payable under the converted policy

Full benefits are payable under the Master contract

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a: A)$125,000 individual whole life policy B)$25,000 modified whole life policy C)$25,000 individual term life policy D)$25,000 individual whole life policy

$25,000 individual whole life policy

Insurance agent licenses normally must be renewed every _ _ years in Georgia. 2 3 4 5

2

In Georgia, an insurance company must notify the Commissioner within days to terminate an agent's appointment. 30 45 60 90

30

Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to file for Social Security disability benefits? 3 4 5 6

5

An IRA owner can start making withdrawals begining at suit aed to a lax penally 70 1/2 65 55 59 1/2

59 1/2

An insurer may normally delay the payment of a cash value loan or surrender value for up to 2 months 4 months 6 months 8 months

6 months

Which of these is NOT a reason for a business to buy key person life insurance? A)The reduction in sales as a direct result from death of the key employee B)A void in leadership if the key person were to die C)The loss of company revenues while a replacement is being sought D)A pension deficiency if the key employee dies

A pension deficiency if the key employee dies

What does the insuring agreement in a Life insurance contract establish? A)An insurer's basic promise B)The insurance policy's grace period C)An insurer's required reserve amount D)The obligations of the beneficiary

An insurer's basic promise

What action can a policyowner take if an application for a bank loan requires collateral? A)Utilize accelerated benefits provision B)Borrow against policy cash value and use as a down payment C)Assign policy ownership to the bank D)Name bank as beneficiary

Assign policy ownership to the bank

P died five years after purchasing a life policy.While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take? A)Beneficiary will be denied the claim B)Beneficiary will be denied the claim and refunded all paid premiums C)Beneficiary will be paid the Death Benefit D)Beneficiary will be paid a partial Death Benefit

Beneficiary will be paid the Death Benefit

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability? Owner's Rights clause Incontestable Period Insuring Agreement Conversion privilege

Conversion privilege

What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability? Endowment policy Limited-Pay Whole life Convertible Term Decreasing Term

Convertible Term

The purpose of the Period clause is to avoid an unintentional lapse of a life insurance policy. Grace Incontestable Conversion Reinstatement

Grace

Which of these is NOT a reason for purchasing life insurance on the life of a minor? A)If both parents were to die, it would provide death benefits to the child B)Provides funds for final expenses if the child were to die C)Provides living benefits for the child's college education D)Provides child with insurance now, in case the child becomes uninsurable later

If both parents were to die, it would provide death benefits to the child

The type of annuity that must be purchased with one monetary deposit is called a(n): Single Deposit annuity Variable annuity Fixed annuity Immediate annuity

Immediate annuity

All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT A)Income derived from the TSA is received income tax-free B)TSA's are available to public school employees C)Contributions to the TSA are tax-deductible D)Interest earned by TSA is tax deferred

Income derived from the TSA is received income tax-free

Information obtained from a phone conversation to the proposed insured can be found in which of these reports? Agent's report MIB report Inspection report Attending physician's report

Inspection report

All of these statements about the Waiver of Premium provision are correct, EXCEPT: A)A waiting period must pass before becoming eligible for benefits B)Waiver of Premium is available on both permanent and term insurance policies C)Insured must be eligible for Social Security disability for claim to be accepted D)Insured must be totally disabled to qualify

Insured must be eligible for Social Security disability for claim to be accepted

D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed? Limited-pay life Graded Premium Level term Endowment

Level term

Thas an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this? Fixed Certain Joint and Full Survivor Life Annuity with Period Certain Installment Refund

Life Annuity with Period Certain

Life insurance that covers an insured's whole life with level premiums paid over a limited time is called: Adjustable Life Renewable Term Limited Pay Life Joint Life

Limited Pay Life

The entity whose sole purpose is sharing medical data among its member companies is called the A)National Association of Insurance Commissioners (NAIC) B)Medical Information Bureau (MIB) C)State government D)State Underwriting Association

Medical Information Bureau (MIB)

Which of these is NOT considered to be a right given to a policyowner? A)Surrendering the policy's cash value B)Modify a provision in the insurance contract C)Assignment of ownership D)Change the beneficiary, if revocable

Modify a provision in the insurance contract

The has the right to change a life insurance policy's beneficiary. insurer insured policyowner beneficiary

Policyowner

The is authorized to assign a Life Insurance policy as collateral for a loan. beneficiary insured policyowner lender

Policyowner

Who has the right to change a revocable beneficiary? Beneficiary Agent Insurance agency Policyowner

Policyowner

What is the purpose of the Life and Health Insurance Guaranty Association? A)Enforces Georgia's insurance regulations B)Underwrites high-risk insurance applicants C)Protects policyowners against insolvent insurance companies D)Establishes underwriting guidelines for admitted insurers

Protects policyowners against insolvent insurance companies

What type of life insurance incorporates flexible premiums and an adjustable death benefit? Endowment Policy Modified Whole Life Decreasing Term Universal Life

Universal Life

S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? Accelerated death benefit rider Return of premium rider Family income rider Term rider

Return of premium rider

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? A)Deposit the applicant's check into his account and make a personal check out to the insurance company from his personal account B)Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company C)Cross off his name on the "pay to" portion of the check, write the name of the insurance company, and send the check back to the insurance company D)Deposit the check in to his personal account, use the funds to purchase a cashiers check, and send the new cashiers check back to the insurance company

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? Irrevocable Contingent Primary Revocable

Revocable

K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and starts receiving payments August 1. These payments will continue for as long as she and her spouse lives. Which type of annuity did K purchase? A)Single Premium Deferred Annuity with Period Certain B)Flexible Premium with Survivor Annuity C)Flexible Premium with Period Certain D)Single Premium Immediate Joint with Survivor Annuity

Single Premium Immediate Joint with Survivor Annuity

Which of these life insurance riders allows the applicant to have excess coverage? Automatic Premium Loan rider Waiver of Premium rider Guarantee Insurability rider Term rider

Term rider

An insurance company which engages in boycott, coercion, and intimidation that results in the unreasonable restraint of trade is committing a prohibited act under Georgia insurance laws covering sliding twisting discrimination unfair trade practices

Unfair trade practices

K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. I wenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is known as a(n) life policy. Whole Universal Graded Increasing

Universal

Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? Modified Whole Life Variable Life Universal Life Adjustable Life

Variable Life

When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? A)Void the policy if found during the Contestable period B)Void the policy, no matter when it is discovered C)Void the policy at any time only if it is found to be material D)Void the policy only if it is discovered during the Contestable period and proven to be material

Void the policy only if it is discovered during the Contestable period and proven to be material

A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached? Accelerated Benefits Waiver of Premium Cost of Living Return of Premium

Waiver of Premium

What does the ownership clause in a life insurance policy state? A)Who the policyowner is and what rights the policyowner is entitled to B)Who the beneficiary is and what rights the beneficiary is entitled to C)Ownership cannot be assigned after the incontestable period D)Allows the policyowner to adjust the death benefit and premium amount at anytime

Who the policyowner is and what rights the policyowner is entitled to

Group life insurance policies are generally written as: a term rider annually renewable term increasing term group whole life

annually renewable term

Under a Graded Premium policy, the premiums: A)are higher during the policy's early years B)are lower during the policy's early years C)are constant throughout the length of the policy D)can be adjusted by the insured

are lower during the policy's early years

Under an Interest Sensitive Whole Life policy, A)premiums are determined by the policyowner B)no cash value ever accrues C)the policy normally renews every 10 years D)cash values are determined by interest rates

cash values are determined by interest rates

A Whole Life insurance policyowner does NOT have the right to A)designate a beneficiary B)take out a policy loan C)change the grace period D)assign the policy

change the grace period

The incontestable clause allows an insurer to: A)disallow a change of ownership throughout the Contestable period B)disallow a change of beneficiary during the Contestable period C)contest a claim at anytime if the cause of death was accidental D)contest a claim during the Contestable Period

contest a claim at anytime if the cause of death was accidental

Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy? A)increase face amount B)decrease face amount C)increase premium-paying period D)decrease premium payment

increase face amount

Who has the option to renew a Renewable Term policy? Agency Agent Insured Beneficiary

insured

Credit Life insurance is: A)issued in any amount at the discretion of the applicant B)used in the event of loss of income C)issued in an amount not to exceed the amount of the loan D)coverage that waives the premiums on a loan payment in the event of total disability

issued in an amount not to exceed the amount of the loan

B recently died and was insured with a life insurance policy for over five years. During the claims process, the insurer discovered that B had understated his age by 5 years at the time of application. In this situation, the insurer will A)pay the amount of premiums paid plus interest B)pay the amount that the premium would have purchased at the correct age C)pay half of the face amount D)pay the full face amount

pay the amount that the premium would have purchased at the correct age

M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the: cash value estate of the insured policy proceeds nonforfeiture value

policy proceeds

A contract owner terminates an annuity before the income payment period begins. The owner will then receive A)half of the current surrender value B)the current contract surrender value C)the premiums paid to date D)nothing

the current contract surrender value

J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? Coercion Sliding Twisting Rebating

twisting

When is the face amount paid under a Joint Life and Survivor policy? A)when policy reaches maturation B)upon death of the first insured C)upon death of the last insured D)when one of the insureds becomes disabled and no longer able to make premium payments

upon death of the last insured

The free-look provision begins A)upon the date of the sales presentation B)upon receipt of the policy by the producer C)upon receipt of the policy by the policyowner D)upon the completion of the application

upon receipt of the policy by the policyowner

A policy that becomes a Modified Endowment Contract (MEC): A)will no longer allow for policy loans B)must be placed in an irrevocable trust C)can never be reinstated after a lapse D)will lose many of its tax advantages

will lose many of its tax advantages