The missed question Simulator

Certain groups of employees only.

A tax-sheltered annuity is a special tax-favored retirement plan available to

5 years

Authorized insurance companies are examined by the Commissioner at least once every

Only for the life of the annuitant.

Under a pure life annuity, an income is payable by the company

Installments for a fixed period

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

It does not guarantee that the entire principal amount will be paid out.

Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option?

Premium amounts and surrender values

Which of the following will be included in a policy summary?

Help buyers choose most qualified insurance producers

Which of the following would NOT be considered a purpose of life insurance solicitation regulations in Georgia?

Joint life

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?

Costs of training a replacement

A key person insurance policy can pay for which of the following?

Cost of Living Rider

A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?

Immediate annuity

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?

Level term

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Revocable Beneficiary

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Survivor protection.

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

Other-insured rider.

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Cost of living rider.

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called

Twisting

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

Change any incorrect statement on the application by personally initialing next to the corrected statement.

All of the following are duties and responsibilities of producers at the time of application EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

The plan must provide an offset for social security benefits.

All of the following are general requirements of a qualified plan EXCEPT

The premiums are invested in the insurer's general account.

All of the following are true about variable products EXCEPT

Dividends from a mutual insurer.

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

The policy is owned by the company.

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

The insured may choose to convert to term or permanent individual coverage.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

Profit sharing plan

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

Guaranteed insurability option

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While 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?

Common Disaster Clause

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

Cash option

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

Insurer

As defined by the Georgia Insurance Code, all of the following entities may have an insurable interest in the insured EXCEPT

"Paid endorsement"

If a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement?

30 days

If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?

The policy will be interpreted as if the insurer waived its right to have an answer on the application.

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

The agent knew that replacement was intended in connection with the sale and intentionally violated the replacement regulation.

If policyowners repeatedly replace policies from the same agent, this is most likely evidence that

The beneficiary

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

The owner

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

$1,000

In this state, what is the maximum fine for transacting insurance without a license?

It is never legal to limit coverage based on marital status.

In which of the following situations is it legal to limit coverage based on marital status?

Does not include the word "annuity" unless accompanied by other clear language indicating it is an annuity.

Insurers must screen all marketing plans to ensure that an advertisement does NOT use as the name of any kind of an annuity contract any phrase that

Any form of life insurance

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Incontestability clause.

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

Interest only option

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

The insured's estate.

The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to

Must be informed of the source of the report

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

Material misrepresentations.

Untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company, are called

The beneficiary will only receive payments of the interest earned on the death benefit.

Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

Ownership

What is the major difference between a stock company and a mutual company?

To help consumers compare life insurance products in regard to their relative cost

What is the purpose of Life Insurance Solicitation regulation?

Mode

What is the term for how frequently a policyowner is required to pay the policy premium?

Discrimination

When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered

The beneficiary must have insurable interest in the insured.

Which is NOT true about beneficiary designations?

The annuitant cannot be the same person as the annuity owner.

Which of the following is NOT true regarding the annuitant?

They are required by state law to be included in the policy

Which of the following is TRUE about nonforfeiture values?

It is a period during which the payments into the annuity grow tax deferred.

Which of the following is TRUE regarding the accumulation period of an annuity?

Annuity certain

Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated?

Premiums are not tax-deductible as a business expense

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?

Payor Benefit Rider

Which of the following riders would NOT cause the Death Benefit to increase?

SEPs are suitable for large companies.

Which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT?

Replacing insurance policies for the purpose of making commissions is legal

Which of the following statements is INCORRECT?

Transacting insurance

Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract?

Medical Information Bureau (MIB)

Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?

Twisting

Which type of misrepresentation persuades an insured, to their detriment, to cancel, lapse, or switch policies from one to another?

Straight life.

Your client is planning to retire. She has accumulated $100,000 in a retirement annuity, and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives. As her agent, you should recommend