WV Life Law
A group life insurance policy must cover at least: a. 2 people b. 10 people c. 20 people d. 50 people
A
A woman wants to purchase a life insurance policy. Her agent asks if the transaction will involve replacing any existing life insurance policies or annuity contracts. When she replies, "No," what further duties does the agent have with regard to replacement rules? a. The agent has no further duties. b. The agent must read a replacement notice to her. c. The agent must read a disclosure to her. d. The agent must ask her to Sign a disclosure notice.
A
In which of the following situations does a producer have an obligation to ensure that an annuity purchase is suitable? a. The customer is apprehensive about providing personal financial information. b. The customer refuses to provide relevant information requested. c. The customer decides to enter into a transaction not based on recommendation d. The customer fails to provide complete information.
A
Raye wants to take out a loan against her life insurance policy. What 1s the minimum amountavailable to her? a. The policy' s cash surrender value b. The amount of premiums paid in c. The face amount of the policy d. 90 percent of the policy's cash value
A
Ron is a union member and is covered under the union's group life insurance policy. He responsible for the entire premium. What is the maximum amount of coverage Ron may have? a. S1,000 b. $5,000 c. $10,000 $50,000
A
When a person is laid off from his job, all of the following are correct statements about converting group coverage to an individual policy EXCEPT: a. Evidence of insurability must be provided. b. Evidence of insurability is not required. c. Application for coverage must be made within 31 days. d. The first premium must be paid within 31 days.
A
When a producer recommends that a customer buy or sell a particular annuity product, the producer must have a reasonable basis for believing that the recommendation: a. Is suitable b. Will generate sufficient commissions c. Is fair for all parties d. Will help the company's bottom line
A
Which of the following in West Virginia is governed by annuity suitability regulations? a. Group annuities b. Direct response insurers c. Pension plans covered by ERISA d. Prepaid funeral contracts
A
A West Virginia producer makes a life insurance presentation and visits the prospective insured several times to close the sale. When must he leave a copy or the sales materials used in the presentation? a. At their first meeting b. When the applicant completes the application c. When collecting the first premium d. Anytime before the policy is delivered
B
A man wants to purchase a life insurance policy. His agent asks if the transaction will involve replacing any existing life insurance policies or annuity contracts. When the customer replies, "Yes," which of the following best describes the producer's next step? a. The producer has no further duties. b. The producer must read a replacement notice. c. The producer must collect the existing policies and/or contracts and turn them over to the replacing insurer. d. The producer must get his supervisor involved in the transaction.
B
A producer submits an application for Iife insurance where a replacement is involved. The application does not comply with the state's replacement regulations. Which of the following best describes the insurer's duty? a. Simply reject the application b. Notify the producer and applicant and fulfill the requirements of the regulation c. Report the issue to the Commissioner d. Send the producer for additional training in replacement regulations
B
A small company decides it can no longer afford to offer group life insurance to its employees. Are employees entitled to convert their coverage to individual policies? a. Yes, all insureds are entitled to convert to individual policies without evidence ofinsurability. b. Yes, but only if they have been insured for at least three years. c. No, employees are not entitled to covert to individual coverage. d. It depends on the terms of the group contract.
B
An insurance solicitation effected through mass media is termed: a. Direct solicitationb. Direct response solicitationc. Nonproducer solicitationd. Mass media solicitation
B
When are cash values in an individual life insurance policy available to the named beneficiary's creditors? a. Cash values are always subject to a legitimate creditor's demand. b. Only in the case of fraud c. Only with the insured's knowledge and permission Cash values are not available to creditors.
B
Which of the following is a correct statement about the beneficiary under a life insurance policy? a. The beneficiary must authorize any policy loans. b. A policy loan may be effected without the beneficiary's permission. c. The beneficiary's rights prevail over the rights of the insured. The beneficiary's rights prevail over the rights of any assignee.
B
Who of the following is least likely to be eligible for coverage under a group policy? a. A company employee b. A corporate director c. An employee of a subsidiary d. A retired employee
B
A group life insurance policy issued to a labor union must cover at least how many members when the policy is issued? a. 2 b. 10 c. 25 d. 100
C
A man is covered under his group policy at work and is laid off due to the company's downsizing. He is entitled to have issued an individual policy as long as he makes the application within: A. 2 weeks B. 15 days C. 31 days D. 60 days
C
A woman with a life insurance policy tells her agent that she wants to purchase another policy and that she is not replacing her existing policy. She changes her mind and wants to use her existing policy values toward a new policy. How will her agent respond'? a. He will say that she cannot use existing policy values toward the new policy. b. He will explain that the only way to accomplish this now is to go directly to his insurance company for the replacement. c. He will perform the usual duties required when a replacement contract is involved. d. He will conveniently "forget" her original intent $o that the replacement policy can be issued.
C
For how long must insurers be able to produce copies of replacement contract documentation? a. l year b. 2 years c. 5 years d. 10 years
C
Insurers in West Virginia must be able to provide the Commissioner with all of the following EXCEPT: a. A producer's life insurance replacement policies as a percentage of his or her total life insurance sales b. A producer's lapsed policies relative to his or her total life insurance sales c. Annuity transactions that should have been life insurance policies d. Transactions discovered as replacements but not so reported by a producer
C
Which of the following is a correct statement about assignment under a group life insurance policy? a. The policy cannot be assigned. b. Some incidents of ownership in the policy can be assigned. c. All incidents of ownership in the policy can be assigned. d. The insurer will decide whether the policy can be assigned.
C
Which of the following is governed by West Virginia's rules regarding replacement? a. 401(k) plans b. 403(b) plans c. Individual life insurance d. Contractual changes
C
All of the following are required of insurers with respect to replacement policies EXCEPT: a. Maintaining a system of supervision and control to ensure compliance with West Virginia law b. Monitoring producers' replacement transactions c. Ascertaining that sales materials are complete and accurate d. Educating insurance consumers of their legal requirements
D
An agent provides a prospective insured the Important Notice: Replacement of Life Insurance or Annuities because a replacement life insurance policy is being considered and the customer has an existing policy. All of the following must be identified in the notice EXCEPT: a. The name of the insurer b. The name of the insured or annuitant c. The policy or contract number, if available d. The cash values of all policies or contracts
D
Annuities are regulated: a. By the issuers that offer them b. At only the state level c. At only the federal level d. At both state and federal levels
D
Can trustees be covered under a group life insurance policy when the trustees are policyholders? a. No, trustees cannot be covered. b. Yes, trustees must be covered. c. Trustees may be covered if the insurer so permits. d. Trustees may be covered if their duties are principally connected with the trustees
D
How long must West Virginia insurers maintain information used in making annuity recommendations? a. 1 year b. 2 years c. 5 years 10 years
D
In order for a group life policy to be issued covering the lives of debtors with the creditor asthe policyholder, how many new entrants are required annually? a. 10 people b. 20 people c. 50 people d. 100 people
D
What is the maximum rate of interest an insurer may charge against a life insurance policyloan? a. 3 percent b. 4 percent c. 5 percent 8 percent
D
When are cash values under a group life insurance policy subject to the claims of creditors? a. Cash values are always subject to the claims of a creditor b. When no beneficiary has been named c. When the debt can be supported by proof to the issuer d. Cash values are not available to creditors under group life insurance policies.
D
When must an insurance producer inform prospective purchasers of life insurance that he is acting as a life insurance producer? a. At their first meeting b. When the applicant completes the application c. When collecting the first premium Prior to beginning the presentation
D
Which of the following is NOT relevant when determining whether an annuity is suitable fora particular consumer? a. The customer's agee b. The customer's annual income c. The customer's financial experience d. The producer's commission
D
Which of the following transactions is governed by West Virginia's rules regarding replacement? a. A woman purchases credit life insurance to pay off her auto loan if she dies. b. A worker decides to purchase life insurance under coverage offered by his employ c. A man enters into a structured settlement agreement to dispose of his life insurance a contract. d. A woman surrenders an old life insurance policy and uses the proceeds to purchase another policy with better features.
D
Who of the following would NOT be covered under a group life insurance policy as a debtorwith the creditor as the policyholder? a. Frank whose debt is payable in installments b. Philip whose debt is payable in a lump sum within 18 months c. Dan who does not contribute toward the premiums Bill whose coverage exceeds his debt
D