GUARANTEED TEST

while completing a life insurance application the applicant realizes that she should have answered an earlier question differently. What should the agent fo to make the necessary change

cross out the incorrect information, write in the correct answer, and have the applicant initial the change

the guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT

purchase of a new home

how long is the grace period for an individual life insurance policy

1 month

An IRA owner who is 57 years old want to make a withdrawal form her traditional IRA. What penalty will be imposed

10%

within how long of completing an approved relicensing education course must a candidate submit a license application

2 years

Decreasing term insurance is often used to

Cover a mortgage

an agency wants to obtain license statistics on one of its new producers. It requests a document that the Insurance Department can produce, which lists the producer's license status, lines of license that the producer can transact and other information. This report is called a

certification of license status

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

continue to increase

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

specific info about the policy

what is the purpose of the Agent's Report in the application process?

to provide additional information about the applicant to the underwriters

which of the following types of insurance is investment based, has a level fixed premium, and a non guaranteed cash value?

variable whole life

an adjustable life policy can assume the form of

either term insurance or permanent insurance

an insured bought an insurance policy that requires him to pay $150 in premiums 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 policy allowed for this?

grace period

Under what circumstances will the contingent receive the death benefit

if the primary beneficiary dies before the insured

The reduction of premium option uses the dividend to reduce

next years premium

producer licenses will NOT be issued to business entities in which of the following cases?

one partner's license was revoked in the previous 5 years

Key person insurance can provide protection for all the following economic losses to a business EXCEPT

pay the death benefit to the estate of the insured

in which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer

if there are no authorized insurers for a specific type of coverage in this state

all of the following statements are true regarding an Ordinary (straight) life policy EXCEPT

it does not have a guaranteed death benefit

guaranteeing future dividends is considered to be an unfair or deceptive act known as

misrepresentation

if an insurance company issues a policy even though some questions on the applications were unanswered, when can the insurer get the answers to those questions?

never; the insurer has waived its right to those answers by issuing the policy

which of the following acts stated that the federal govt would not regulate insurance as long as the states did an adequate job

McCarran Ferguson Act