completing the application, underwriting, and delivering the policy

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than: a) with the policy b) upon issuance of the policy c) within 30 days after the first premium payment was collected d) prior to filling out an application for insurance

a

which type of life insurance policy generates immediate cash value? a) decreasing term b) continuous premium c) single premium d) level term

c

within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? a) 3 days b) 5 days c) 10 days d) 14 days

a

the type of policy that can be changed from one that does not accumulate cash value to the one that does is a a) Whole life Policy b) convertible term policy c) renewable term policy d) decreasing term policy

b

which of the following is NOT the consideration in a policy? a) the application given to a prospective insured b) something of value exchanged between parties c) the premium amount paid in the time of application d) the promise to pay covered losses

a

Equity indexed annuities a) invest conservatively b) seek higher returns c) are more risky than variable annuities d) are security instruments

b

in a survivorship life policy, when does the insurer pay the death benefit? a) half at the first death, and half at the second death b) if the insured survives to age 100 c) upon the last death d) upon the first death

c

which is TRUE regarding the accumulation period of an annuity? a) its a period of time during which the beneficiary receives income b) it is limited to 10 years c) its a period during which the payments into the annuity grow tax deferred d) also referred to as the annuity period

c

which policy would be classified as a traditional level premium contract? a) adjustable life b) universal life c) variable universal life d) straight life

d

an insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called: a) modified endowment contract (MEC) b) level term life c) graded premium whole life d) single premium whole life

d

in forming an insurance contract, when does acceptance usually occur? a) when an insured submits an application b) when an insurer's underwriter approves coverage c) when an insurer delivers the policy d) when an insurer receives an application

b

the premium of a survivorship life policy compared with that of a joint life policy would be a) half the amount b) lower c) higher d) as high

b

The term "fixed" in a fixed annuity refers to all of the following EXCEPT a) equal annuity payments b) amount and length of payments c) death benefit d) guaranteed rate of interest

c

if an agent fails to obtain an applicant's signature on the application, the agent must: a) sign the application stating it was by the agent b) send the application to the insurer with a note explaining the absence of signature c) return the application to the applicant for a signature d) sign the application for the applicant

c

which best describes annually renewable term insurance? a) it requires proof of insurability at each renewal b) neither the premium nor the death benefit is affected by the insured's age c) it provides an annually increasing death benefit d) it is level term insurance

d; its a form that offers the most insurance at the lowest cost