Unit 27

In an advertisement, a premium must not refer to as which of the following?

A Deposit B Cost C Rate D penalty Answer- A

All of the following statements are correct about group life insurance except;

A A member may sign her incidents of ownership B certificate holders need not to be notified if the policy expires C rates are typically more favorable than for individual policies D it is typically written as one year renewable term plan Correct: B

Who has the right to assign a life insurance policy?

A Beneficiary B Insured C Insurer D Policy owner Answer; D

All of the following are correct insurance agent marketing responsibilities except

A an agent must inform a prospect, prior to the presentation, that she is a life insurance agent and provide her the name of her insurer B any reference to policy dividends must include a statement that such dividends are not guaranteed C A presentation comparing two or more life policies must recognize the time value of money using interest adjustments D A presentation may not include references to life insurance policy cost indexes Answer d

Any transaction in which a new life is to be purchased causes existing insurance to be conceded to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits is known as which term?

A conversion B replacement C reinstatement D discontinuance Answer- B

Which of the following rules would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

A conversion rule B disclosure rule C replacement rule D reinstatement rule Answer: C

All of the following groups are eligible for group life insurance EXCEPT

A employer and employee groups B labor unions C trustee groups D social clubs Correct: D

For an individual life contract on an insured 64 years of age or older, of what must the insurer advise the applicant?

A their right to a large print copy of the policy if required B their right to designate a secondary addressee to receive a copy of any policy lapse notice C an extend free look period D their right to name a trustee to exercise ownership rights under the policy Correct: D

Which of the following is the correct number of lives required in Florida for a group insurance policy?

A 3 B 8 C 19 D no minimum Answer: D

An annuity contract that is issued to a senior consumer 65 or older may not contain a surrender or deferred sales charge for a withdrawal from an annuity exceeding what percentage of the amount withdrawn?

A 5% B 10% C 59.60% D 70.50% Correct: b

For a policy summary that includes dividends, a statement indicating which of the following must be included ?

A Dividends a guaranteed and based on the company's current dividend scale B dividends are based on the company's future dividend scale and they are guaranteed C Dividends are not guaranteed and based on the company's past dividend scale D dividends are based on the company's current dividend scale and are not guaranteed Answer - D

Replacement regulations do NOT apply to all of the following except;

A Group life credit B Tax sheltered annuities C Individual credit life policies D industrial insurance Correct: B

Which of the following must be given to an insured when a replacement occurs?

A notice regarding replacement B valued policy provision C termination notice D Notice regarding insurer solvency Correct A

To comply with disclosure requirements, producers must deliver which of the following documents to all insurance applicants?

A policy guidelines and proposal form B policy summary and policy receipt C buyers guide and policy summary D proposal form and buyers guide Answer c

An insurer must establish a suitability supervision system including all of the following except:

A reasonable procedures to inform agents of suitability requirements B product-specific training for agents explaining all material annuity features C limiting annuity replacements to agents with two or more years' field experience D reasonable procedures to detect unsuitable recommendations Correct- C

An insurer must establish a suitability supervision system including all of the following EXCEPT:

A Reasonable procedures to inform agents of suitability requirements B product-specific training for agents explaining all material annuity features C limiting annuity replacements to agents with two or more years' field experience D reasonable procedures to detect unsuitable recommendations Correct: C

Which of the following it's not considered to be an element of replacement?

A The agent knows a new policy will take place of an existing policy B An existing policy is subjected to a loan of 10% of its value C An existing policy is allowed to lapse D An existing policy is re-issued with a reduced cash value Correct B

How will a beneficiary designation naming a former spouse on a pre-existing insurance contract be changed by the divorce?

A The beneficiary designation is voided by the divorce B there will be no change allowed under Florida law C The beneficiary change requires a court decree D insurer policy rules will determine the result Answer: a

Which of the following is correct about the replacement rule?

A The replacement rule only applies to health insurance B The agent has 90 days from the effective date to deliver a buyers guide C The agent must leave a copy of all sales proposals used in the presentation with the applicant D Up to 30 days is allowed for a full refund of premium Correct: C

During what period is a new life insurance policy owner entitled to renew a policy and return it for a full refund?

A during the 14 days prior to its effective date B within 14 days after delivery of the policy C within 30 days of purchase D After receipt but only with the prior approval of the agent Correct: b

All of the following are considered reasonably appropriate when discussing suitability information with a consumer except

A financial time horizon B liquidity needs C risk tolerance D criminal history Correct- d

All of the following information and much more must be gathered from an annuity applicant in order to determine the suitability of the sale EXCEPT:

A general financial information, including income, assets, and net worth of the applicant B tax status of the applicant C personal information, including age and sex of the annuitants and dependents D membership in any civic clubs or organizations by the applicant Answer- D

Except for nonpayment of premiums, the validity of the policy shall not be contested after which of the following occurs?

A it has been in force for two years from its date of application B it has been in force for one year from its date of claim C it has been in force for 24 months from its date of issuance D it has been in force for 31 days from its date of application Correct: C

Which of the following statements is correct about group life insurance?

A it is written with a master policy for the benefit of qualified groups B a group me ever is prohibited from assigning incidents of ownership C group life rates are generally higher than those for individual policies D all of the above Answer: A

Which of the following is a written statement that describes the elements of the policy?

A policy summary B buyers guide C advertisement D replacement form Answer- A

The purpose of the buyers guide is to provide the buyer with all of the following except

A the ability to select the most appropriate plan of the life insurance for their needs B An understanding of the basic features of the policy that has been purchased or that is under consideration C improve the ability of the buyer to evaluate the relative costs of similar plans of lime insurance D a written statement describing the elements of the policy including, but not limited to, a statement of policy cost and benefit information answer- D

Who is responsible for notifying each certificate holder when the master policy has expired or has been cancelled?

A the member B the insurer C the agent D the OIR Answer: B

What is the minimum number of lives required for a group policy in Florida, so long as the organization is one that is eligible for group insurance?

A two B ten C no minimum D five Answer- C

Which of the following actions accurately portrays the limit Florida insurance regulations set for the combining of advertising for insurance policies with an association membership?

A. By bidding these two to be advertised together B. By requiring the insurance solicitation to come at least 30 days after the association membership C By requiring separate applications and separate signatures D I requiring a signed statement of understanding by the applicant Correct: C

In which of the following ways beneficiary protected from the creditors of the deceased insured?

A. The proceeds of a policy can always be claimed by the deceased insured's creditors? B. When the policy is made payable to the estate, the proceeds are protected from the creditors C If the policy is made payable to a named beneficiary, then the creditors can make no claim on the proceeds D the cash surrender value of a life insurance policy can be attached by an ordinary creditor Correct: c

Any reference to policy dividends must include a statement that the dividends are NOT which of the following?

A implied B optional C guaranteed D required Answer: C

Kendra, a 20 year old employs of XYZ enterprises, receives an employee benefits term life insurance policy valued at $50,000. She separates from her and decides to convert her policy to $300,000 whole life insurance policy. During the conversion period and before and individual policy has become effective, Kendra died in an accident. What amount of life insurance will her beneficiaries be entitled to?

A 300,000 B 50,000 C $0 D cash value of the original policy Answer: B

All of the following are duties of a replacing insurer except;

A. Maintain copies of every notice regarding replacement, all sales proposals, and a register crossed-indexed by replacing agent and existing insurer for three years B. Immediately send a copy of the notice regarding replacement to the existing insurer C. An existing policy is allowed to lapse D. An existing policy is re-issued with a reduced cash value Answer: d

Which of the following is NOT required when a group insurance policy is cancelled?

A. The insurance company must notify the group policy owner B. The policy owner must not fort the department of the cancellation C. The insurance company must notify the group members (but may request this to be done by the policyowner) D. The policy owner must notify the group members Correct: B

All of the following are nonforfeiture values except?

A cash surrender value B reduced paid-up life insurance C extended term life insurance D level industrial insurance Correct; d

Which of the following applies when an insured wishes to convert industrial insurance policies into an ordinary policy?

A this is not permitted under Florida law B it is possible to convert $3000 or more of industrial insurance C any such conversion requires a physical examination D The multiple policies can be re-issued as one industrial policy Correct: B

Suitability information gathered from consumers must be retained for review by the department for how long and by whom?

A three years by agents only B four years by insurers only C by neither agents nor insurers D by both agents and insurers for five years Answer- D

All of the following are correct about the policy loan interest rate except:

A. An adjustable rate of interest may be charge B an insurance company may charge a fixed rate fixed of up to 10% C adjustable rates are based on a published index D there are no restrictions or limitations on policy loan rates Correct: C

All of the following statements regarding the life insurance policy summary are correct except

A it must illustrate all guaranteed cash surrender values B It must illustrate all guaranteed policy dividend values. C It must present the generic name of the policy as well as the companies name for it. D It must be given to each new policy owner no later than at policy delivery Answer - b

What is the purpose of establishing standards and procedures for making recommendations to consumers that result in transactions involving annuity products?

A minimum standards B suitability C risk looking D utilization review Answer- B