A

The provision which states that both the policy and a copy of the application form the contact between the policy owner and the insurer is called the

Entire contract

An agent selling variable annuities must be registered with

FINRA

What protects consumers against the circulation of inaccurate or obsolete personal or financial information

Fair Credit Reporting Act

What is not an act considered to constitute an act of transacting insurance

Filling forms with the department

What type of premium do both Universal Life and Variable Universal Life policies have?

Flexible

If a policy owner returned the life insurance policy to the insurer within 10 days of policy delivery, the policy owner is entitled to

Full refund

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost

Indemnity

An insurer receives a report regarding a potential insured that include the insured's financial status, hobbies, and habits. What type of a report is that?

Inspection report

An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)

Inspection report

What are two components of a universal policy

Insurance and cash account

Death benefits payable to a beneficiary under a life insurance policy are generally

Not subject to income taxation by the federal government

Once a producers appointment is filed, within how many days will the commissioner verify the appointment (for eligible producers)

30 days

Within how many days after receive ink proof of death are group life insurers required to pay the policy proceeds to the beneficiary

30 days

Within how many days from a pre trial hearing must insurance producers report to the commissioner any criminal prosecutions

30 days

For how long is an insurance company allowed to defer policy loan request

6 months

What is the permitted maximum interest rate on policy loans?

8%

How long does any person receiving written notification of the commissioner's order have to respond and request a hearing

90 days

Within how many days of receipt of proof of death must the insurer pay the death benefit to the beneficiary to avoid paying an interest penalty

90 days

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible

Collateral assignment

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?

Common Disaster

The automatic premium loan provision is activated at the end of the

Grace period

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

Guaranteed insurability rider

Which provision presets the insurer from denying a claim due to statements on the application after a certain period of time

Incontestability

The medical information bureau was created to protect

Insurance companies from adverse selection by high risk persons.

An insurer must pay interest on death benefits payable under the terms of a life insurance policy

Insuring the life of any person who was a resident of this state at the time of death

The policy owner 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 policy owner choose?

Interest only option

If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?

It is a percentage of the cash value and decreases over time

What is the purpose of a conditional receipt

It is intended to provide coverage on a date prior to the policy issue

What best describes annually renewable term insurance

It is level term insurance

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and survivor

Variable whole life insurance is based on what type of premium

Level fixed

The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called

Life income with period certain

What riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home

Long-term care

The reduction, decrease, or disappearance of value of the person or property insured in a policy by a peril insured against is known as

Loss

The insurance commissioner is not impowered by Washington insurance code to preformed the duties of

Make revisions to the insurance code

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

Material misrepresentations

What part of an insurance application would contain information regarding the cause of death of the applicants deceased relatives

Medical information

A producer is selling a client a variable life insurance policy and as an inducement shows the client a projection based upon shares or dividends paid on a similar policy. This is

Misrepresentation

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

Must be informed of the source report

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive

Nothing; the payments will cease.

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

A producer did not do his research an placed insurance converter gave through an unauthorized insurer. When this becomes known, what may the commissioner do?

Order a policy replacement

What allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Pay or benefit

What rider would not cause the death benefit to increase

Pay or benefit rider

Most agents try to collect the initial premium for submission with the application. When an against collects the initial premium from the applicant, the agent should issue the applicant a

Premium receipt

What is correct concerning the taxation of premiums in a key person life insurance policy

Premiums are not tax deductible as a business expense

The insurance company underwriter could find information concerning the personal activities and character of an applicant from which report

Producers report

Where would the underwriter find relevant information not presented by the applicant but communicated by the producer?

Producers report

The purpose of insurance regulation is to

Promote the public welfare.

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for reduced face amount

Another name for a substandard risk classification is

Rated

Which nonforfeiture option provides coverage for the longest period of time?

Reduced Paid-Up

In adjustable life policy all of the following can be changed by the policy owner except - the length of coverage - the premium - the amount of insurance - the type of investment

The type of investment

Which employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated

Those who have been insured under the plan for at least 5 years

Why should the producer personally deliver the policy when the first premium has already been paid

To help the insured understand all aspects of the contact

What is the purpose of establishing target premium for a universal life policy

To keep the policy in force

The paid up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

What type of policy allows for a flexible premium and a variable investment component

Variable universal life insurance

What is a key distinction between variable whole life and variable universal life products

Variable whole life has a guaranteed death benefit

An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?

$3,000

Every licensed person in this state must reply to an inquiry by the commissioner regarding the business of insurance within what time period

15 business days

Upon reinstatement or renewal of a policy, a written request by the insured, how soon must an insurer provide a copy of the policy application

15 days

When an individual insurance policy is being replaced by an insurer using an agent, the policy owner must be given unconditional right to a full refund of premiums if the policy is returned within

20 days

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained

3 days

How many hours of ethics education are producers required to complete every licensing period

3 hours

When a policy is replace, replacing insurers must maintain a replacement register regarding that policy for

3 years

When a policy is replaced, replacing insurers must maintain a replacement register regrading that policy for

3 years

What is a short term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated

Annuity certain

Upon written request, the records of the insurance commissioner may be inspected by who

Any member of the public

What is the basic source of information used by the company in the risk selection process

Application

How many eligible employees must elect coverage before a policy can be placed for a public employee association

At least 75%

An employee quits his job and converts his group policy to an individual policy, the premium for the individual policy will be based on his

Attained age

Which of the following is true about a class designation - beneficiaries must be part of the insured's immediate family - it is not allowed - it determines the succession of beneficiaries - beneficiaries are not identified by name

Beneficiaries are not identified by name

If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to

Charge a higher premium

If an applicant for a life insurance procure is found to be a substandard risk, the insurance company is most likely to

Charge a higher premium

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which insurance principle has the insurer violated?

Consideration

An insurer pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original application

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?

Cost of Living Rider

What comment increases in the increasing term insurance

Death benefit

Which component increases in the increasing term insurance

Death benefit

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT - the payments are not guaranteed for life - the insurer determines the amount for each payment - its a life contingency option - it will pay the benefit only for a designated period of time

Its a life contingency option

The type of settlement option which pays through the lifetimes of two or more beneficiaries is called

Joint and survivor

Under a group plan for an Association, the term "employee" may include

Retired employees of the association.

To sell variable life insurance policies, an agent must receive all of the following except - a life insurance license - sec registration - finra registration - a securities license

Sec registration

What determines the length of time that benefits will be received under the fixed amount settlement option

Size of each installment

What riders is often used in business life insurance polices when the policy owner needs to change their insured under the policy

Substitute insured rider

What would help prevent a universal life policy from lapsing?

Target premium

What information will be stated in the consideration clause of a life insurance policy

The amount of premium payment

What is not true regarding the annuitant

The annuitant cannot be the same person as the annuity owner

What is not true about beneficiary designations

The beneficiary must have insurance interest in the insured

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date

The date of medical exam

An individual applies for a life policy. Two years ago he suffered head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance, the insurer issues the policy and learns if his history one year later. What will probably happen?

The policy will not be affected

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

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

If a licensee whose license has been temporarily suspended demands a hearing, the commissioner must hold the hearing demanded as according to all the following statements except

Within 30 days of the license effective date

When J. applied for a life insurance policy, the agent informed him that a medical exam would be required. The exam may be completed by

a paramedic or examining physician at the insurer's expense

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?

collateral assignment

Which of the following is not typically excluded from life policies - self-inflicted death - death that occurs while a person is committing a felony - death due to war or military service - death due to plane crash for a fare-paying passenger

death due to plane crash for a fare-paying passenger

Life income joint and survivor settlement option guarantees

income for 2 or more recipients until they die

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

twisting