Exam 1 48% Exam 2 64%
When would a 20-pay whole life policy endow?
When the insured reaches age 100
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is
conditional
For purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with Nevada law, the Commissioner will examine the affairs of each insurer as often as deemed necessary. Each domestic insurer must be examined at least every _____ years.
every 5 years
If a settlement option is not chosen by the beneficiary or policyowner, which option will be used?
lump sum
In a life settlement contract, whom does the life settlement broker represent?
owner
Which of the following riders would NOT cause the Death benefit to increase?
payor benefit rider
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
Every insurance administrator must file a surety bond with the commissioner which is written for an amount of at least
$100,000
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
$50,000
The initial amount of credit life insurance may NOT exceed
The amount to be repaid under the contract
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
What is the minimum number of persons that can be covered by a group insurance plan?
2
In Nevada, how long must producers keep records of insurance transactions under their license?
3 years after the policy expires
Bev is insured under her employer's group life insurance policy. She dies while the policy is still in force. The benefits must be paid within how many days?
30
What is the number of credits required for fully insured status for social security disability benefits?
40
Which of the following will NOT be considered a limited lines producer license?
A producer selling only life insurance
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
The minimum interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500
What is foreign insurer?
An insurer with a home office in another state
Employee contributions made to a qualified plan
Are subject to vesting requirements
Which of the following must an insurer obtain in order to transact insurance within a given state?
Certificate of authority
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
Which policy component decreases in decreasing term insurance?
Face amount
The type of insurance that provides increasing death benefits as the insured ages is called
Increasing term
The medical information bureau was created to protect
Insurance companies from adverse selection by high risk persons.
Which of the following is true about the mandatory free look in a life insurance policy?
It commences when the policy is delivered
Which of the following best describes annually renewable term insurance?
It is level term insurance
Which of the following best describes the unfair trade practice of defamation?
Making derogatory oral statements about another insurer's financial condition
During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes?
Misrepresentation
An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
Paid-up additions
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
If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?
The death benefit will be smaller
Who is responsible for the cost of examinations conducted by the commissioner?
The insurer being examined
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary.
What is the advantage of reinstating policy instead of applying for a new one?
The original age is used for premium determination
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
What is the name of the insured who enters into a viatical statement?
Viator
Each insurer must maintain a complete file containing a copy of each document used in solicitation and sale of life insurance products for how long following the date of its last authorized use?
3 years
The requirement that agents must account for all insurance funds collected, and without the expressed consent of the insurance company(Iesha) are not permitted to commingle those funds with their own funds, is known as
Fiduciary responsibility
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the
Other-insured rider
Which of the following, when attached to a permanent life insurance policy, allows the policy owner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?
Term rider
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?
100% participation of members is required in noncontributory plans.
An insured purchased a life insurance policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?
Pay the death benefit
Which of the following allows the insurer to relieve a minor insured from premium payments if the minors parents have died or become disabled?
Payor benefit
In which of the following instances would the premium be tax deductible?
Premiums paid by an employer on a $30,000 group term life insurance plan for employees
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Proof of insurability is not required.
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
consideration
Which provision of a life insurance policy states the insurers duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
Insuring clause
Which of the following is correct regarding credit life insurance?
It insures the life of a debtor