Guarantee Exam

Which of the following is required in order for a plan to be qualified?

The plan must be formally written and communicated to the employees

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will

continue to increase

How does insurance distribute the financial consequences of individual loses?

It transfers the risk to all persons insured

Guaranteeing future dividends is considered to be an unfair of deceptive act known as

Misrepresentation

Where are premiums from fixed annuities invested?

A general account

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan

immediately

Which dividend option will increase the death benefit?

paid-up additions

According to the life insurance replacecment regulations, which of the following would be an example of policy replacement?

A policy reissued with a reduction in cash value

What guarantees that the information explained in the insurance contract is true?

a warranty

According to the terms of the policy or an agreement between the insured, the group policyholder, and the insurer, the insured person may NOT do which of the following?

Assign an appropriate premium based on preference

Life insurance can provide which of the following

Survivor protection

All of the expenses of an examination must be paid for by the insurer being examined. to which fund are payments remitted?

insurance regulation fund

An insurer decided to terminate a producer. The insurerr just notified the Commissioner of this decision. How long does the insurer have to mail a copy of the notification to the producer

15 days

When a whole life policy is surrender for its nonforfeiture value, what is the automatic option?

Extended term

Which of the following will NOT be included in the buyers guide?

specific information about the policy

In order to get a nonresident license in this state a producer must

Apply and pay a fee to a non resident state that reciprocates

When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as

Estate Conservation

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?

Misrepresentation

All of the following are true of survivorship life policy EXCEPT

The premium is based on the age of each insured

A temporary producer license could be issued, without examination to all of the following EXCEPT

The spouse of a retiring insurance producer

a viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?

a percentage of the face amount of the policy

If the commissioner of insurance believes that a person is about to violate a provision of the hawaii insurance code, what may be issued in order to prevent the violation from occcuring?

cease and desist order

Anna Has been working for her current employer for 4 years. The company's group whole life insurance policy is terminated. What will she need to do in order to obtain a new, individual policy?

She will need to apply and provide proof of insurability

J is receiving fixed amount benefit from his late wife's insurance policy . He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. which settlement option did J choose?

fixed amount

policies written on a third- party ownership basis are usually written to cover which of the following?

Policyowner's minor children or business associates

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be a

Representation

How long is the grace period for an individual life insurance policy?

1 month

Which of the following is required in order for a plan to be aualified?

The plan must be formally written and communicated to the employees

Which statements best describes agreement as it relates to insurance contracts?

One party accepts the exact terms of the other party's offer

Key person insurance can provide for all of the following economic losses to a business EXCET

pay the death benefit to the estate of the insured

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select?

Joint and survivor

All of the following are true of the survivorship life policy EXCEPT

the premium is based on the age of each insured

An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?

3 days

Which of the following would not trigger the payment of accelerated death benefits?

Being permanently disabled

An adjustable life policy can assume the form of

Either term insurance or permanent insurance

Which of the following types of life insurance policies include a conversion of termination provision?

Whole life

Which of the following is NOT a duty of the existing insurer when replacement involved?

Provide notice to the policy owner the right to return the policy within 30 days of delivery and receive a full refund

which of the following indicates the person upon whose life the annuity income amount is determined?

annuitant

If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

prior to performance of the test

Among people in the same class and life expectancy, which of the following factors can be used to influence premium rates?

Occupation

A whole life is surrendered for a reduced-paid up policy. The cash value in the new policy will

continue to increase

Which of the following reduces opportunity for misrepresentation, protects the interest of the policyholders by establishing minimum standards, and establishes penalties for failure to comply with requirements?

replacement

insured bought an insurance policy that requires him to pay $150 in premium on the 15th of each month. He then takes an extended vacation and forgets to pay the premium Ten days later, his policy is still in effect and has not lapsed. which provision allowed for this?

Grace period

Partners in a business want to make sure that if one of them were to pass away their surviving family will receive a fair value for their portion in the business. What life insurance arrangement would be most suited for transitioning the business?

buy-sell agreement