EXAM FX: Life and Health Stimulate Exam

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident.

$100,000

The maximum penalty that may be assessed for a single nonwillful violation of the Insurance Code is

$1000

The policyowner of a whole life insurance policy is also the insured. What age must the insured attain in order to receive the policy's face amount?

100

What is the minimum age for purchasing a life insurance policy in GA?

15

What is the maximum period of time a temporary license can be in force?

15 months

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

all accident and health insurance policies issued in ga must include a grace period of at least

30 days

Insurers must keep files of all advertisements used in Georgia for the minimum of how many years?

5

Authorized insurance companies are examined by the commissioner at least once every

5 years

The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower echelon employees. this plan would be funded with before tax corporate dollars, and it does not meet government approval standards. This annuity plan is

A nonqualified annuity plan

All of the following are correct about the required provisions of health insurance policy EXCEPT

A reinstate policy provides immediate coverage for an illness

Which of the following is another term for an authorized insurer?

Admitted

A 63 year old man is planning to be employed until age 68. When will he be eligible for medicare?

Age 65, regardless of his employment status

The term "fixed" in a fixed annuity refers to all of the following EXCEPT

Amount and lenth of payments

What document describes an insured's medical history, including diagnoses and treaments?

An Attending Physician's Statement

If an insurance company wishes to order a consumer report on an applicant ot assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's

Ancestry

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely

Any form of life insurance

In classifying a risk the home office underwriting department will look at all of the following except?

Applicant's past income

What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application?

As long as the policy is in force

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

In a replacement situation, all of the following must be considered EXCEPT?

Assets

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

Automatic premium loan

Which of the following statements concerning buy-sell agreements is true?

Buy sell agreements are normally funded with a life insurance policy

Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?

Buyer's Guide

What type of policy allows the insurance company to cancel a policy at any time?

Cancellable

The act of trying to discourage a policyholder from dropping his/her existing policy is called

Conservation effort

Which of the following positions is responsible solely for offering advice on insurance policies (for a fee)?

Counselor

All of the following are true about group disability income insurance EXCEPT

Coverage applies both on and off the job

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing term

Which of the following entities has the power to issue certificates of authority?

Department of Insurance

A producer agent must do all of the following when delivering a new policy to the insured EXCEPT

Disclose commissions earned from the sale of the policy

The provision that states that both the printed contract and a copy of the application form the contract between the policyowner and the insurer is called the

Entire contract

All of the following actions can be described as twisting EXCEPT

Explaining to client the advantages of permanent insurance over term and suggesting changing policies

Which policy component decreases in decreasing term insurance?

Face amount

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

For 20 years or until the insured's death, whichever occurs first.

Which is TRUE about the cast surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income.

A Medicare supplement plan must have at least which of the following renewal provisions?

Guaranteed renewable

An insured becomes disabled at age 22 and can no longer work. She meets the definition of total disability under Social Security. What other requirement must the insured have met to receive Social Security disability benefits?

Have accumulated 6 work credits in the past 3 years

Which of the following is an eligibility requirement for all Social Security Disability Income benefits?

Have attained fully insured status

Which of the following would NOT be considered a purpose of life insurance solicitation regulations in Georgia?

Help buyers choose most qualified insurance producers

When would a misrepresentation on the insurance application be considered fraud?

If it is intentional and material

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium

If the father is disabled for more than 6 months

In which of the following cases will the insured be able to receive the full face amount from a whole life policy?

If the insured lives to age 100

State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT

Inviting prospective clients to the grand opening of the company's new office

Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option?

It is a life contingency option

Which of the following best describes the MIB?

It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

Which of the following is TRUE regarding the accumulation period of an annuity?

It is a period during which the payments into the annuity grow tax deferred.

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date earlier than the date of the issuance of the policy.

Which of the following is NOT true regarding a Certificate of Authority?

It is issued to group insurance participants

In which of the following situations is it legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status

Which of the following is true about the premium on the children's rider in a life insurance policy?

It remains the same no matter how many children are added to the policy

Which of the following statements is NOT correct concerning the COBRA Act of 1985?

It requires all employers, regardless of the number or age of employees, to provide extended group health coverage

Which two terms are associated directly with the premium?

Level or flexible

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practies?

Making comparisons between different policies.

Which of the following best describes the unfair trade practice of defamation?

Making derogatory oral statements about another insurers financial condition.

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

The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called

Nonoccupational coverage

What allows the insurer to relieve a minor insured from premium payments is the minors parents have dies or become disabled?

Payor Benefit

Who might receive dividends from a mutual insurer?

Policyholders

If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?

Policyowner

Which of the following will be included in a policy summary?

Premium amounts and surrender values application

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 a reduced face amount

A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact insurance business in it. This is known as a/n

Reciprocity agreement

Who may contribute to a keogh (hr-10) plan?

Self employed plumber

Which of the following special policies covers unusual risks that are NOT normally included under Accidental Death and Dismemberment coverage?

Special Risk Policy

Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?

Standard risk is representative of the majority of people

Children's riders attached to whole life policies are usually issued as what type of insurance?

Term

Any references to policy dividends must include a statement of what?

That the dividends are not guaranteed

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

If the annuitant dies during the accumulation period who will receive the annuity benefits?

The beneficiary

Which of the following describes the tax advantage of a qualified retirement plan?

The earnings in the plan accumulate tax deferred.

Which of the following is INCORRECT concerning a noncontributory group plan?

The employees receive individual policies

In which of the following situations would Social Security Disability benefits NOT cease?

The individual's son gets a part-time job to help support the family

An insured purchased a 10 year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10 year term?

The insured may renew the policy for another 10 years, but at a higher premium rate.

A father owns a life insurance policy on his 15 year old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The insured's premiums will be waived until she is 21

All of the following statements are true regarding installments for a fixed amount EXCEPT

The payments will stop when the annuitant dies

Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

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

To keep the policy in force

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Universal Life - Option A

What is the timeframe for filing relevant Suspicious Activity Reports?

Within 30 days of initial discovery

A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1000 will be considered

a felony

which of the following is not covered under a long-term care policy

acute care in a hospital

The premium charged for new policies obtained by exercising the Guaranteed Insurability Rider is based upon the insured's

attained age

the act of trying to discourage a policyholder from dropping his/her existing policy is called

conservation effort

When would a misrepresentation on an insurance application be considered fraud?

if it is intentional and material

All of the following are examples of transacting insurance in Georgia EXCEPT

placing advertisements for an insurer

The Federal Fair Credit Reporting Act

regulartes consumer reports

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the info contained in his or her report, the reporting agency must

respond to the consumer's complaint