Insurance 0.0

A producer who has allowed his or her license to lapse may reinstate the license without retaking the examination within what maximum time period?

12 months

Which of the following settlement options in insurance is known as straight life?

Life income

Which component increases in the increasing term insurance?

death benefit

All of the following statements are true regarding tax qualified annuities EXCEPT

employer contributions are not tax deductible

In a direct transfer how is money transferred from one retirement plan tit a traditional IRA

from trustee to trustee

What provision in an insurance policy extends coverage beyond the premium due date?

grace period

All of the following are true regarding a decreasing term policy except?

the payable premium amount steadily declines throughout the duration of the contract

What is the maximum amount that the Nevada Life and Health Insurance Guaranty Association may be obligated to pay with respect to life insurance death benefits for one life?

$300,000

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.

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?

2 years

How many days does a nonresident producer have to file a change of address when the agent moves to Nebraska from another state?

30

If a consumer request additional information concerning an investigative consumer report, how long does the insurer or reporting shameful have to comply?

5 days to comply

Which of the following statements is TRUE about policy assignment?

It transfers rights of ownership from the owner to another person.

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?

Joint Life

Which of the following is NOT a type of whole life insurance?

Level term

which of the following is an example of a limited pay life policy?

Life Paid-up at Age 65

Which part of an insurance application would contain information regarding the cause of death of the applicants deceased relatives?

Medical information

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

Must be informed of the source of the report

Death benefits payable to a beneficiary under a life insurance policy are generally

Not subject to income taxation by the Federal Government

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

$100,000 20 year level term policy!

Policy will expire at the end of 20 pay period Premiums remain level for 20 years If insured dies he will get the 100,000

Which nonforfeiture option provides coverage for the longest period of time?

Reduced Paid-Up

The federal fair credit reporting act

Regulates consumer reports

The interest earned on policy dividends is

Taxable. Dividends are a return of unused premiums on which the insured has already paid taxes. Any interest earned is taxable as ordinary income.

All of the following would be different between qualified and non qualified retirement plans except?

Taxation on accumulation

When a producers appointment with the insurer is terminated, who notifies the commissioner?

The appointing insurer

Which is NOT true regarding beneficiary designations?

The beneficiary must have Insurable interest in the insured.

To which of the following would the rule prohibiting a viatical settlement contract within 5 years of a policy issue date apply?

The owner needs money for downpayment on the first home

All of the following are true about variable products except

The premiums are invested in the insurer's general account. Insurers selling variable products invest their customer's monies in a separate account, which is very similar to a mutual fund. Since there is no guaranteed rate of return, customers must bear the investment risk.

Which of the following is true about nonforfeiture values?

They are required by state law to be included in the policy.

What is the purpose of a disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

The paid up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

paid up option

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

Buy-sell agreements are normally funded with a life insurance policy

I'm insurance, an offer is usually made when

An applicant submits an application to the insurer

Who can make a fully deductible contribution to a traditional IRA?

An individual not covered by an employer-sponsored plan who has earned income

All of the following are examples of third party ownership of a life insurance policy EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

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

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

What type of insurance would you recommend for someone who want me to insure the life of a debtor in connection to a specific loan?

Credit life

What type of insurance would you recommend for someone who wants to insure the life of a debtor in connection to a specific loan?

Credit life insurance

All of the following statements concerning dividends are true EXCEPT

Dividend amounts are guaranteed in the policy

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)

Inspection report

Who makes up the Medical Information Bureau?

Insurers

When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income?

Interest only

The premium of a survivorship life policy compared with that of a joint life policy would be

Lower (Survivorship Life is much the same as joint life in that it insures two or more lives for a premium that is based on a joint age. The major difference is that survivorship life pays on the last death rather than upon the first death. Since the death benefit is not paid until the last death, the joint life expectancy in a sense is extended, resulting in a lower premium than that which is typically charged for joint life.)

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

Making comparisons between different policies

Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?

Universal Life

All of the following life insurance policies allows a policy owner to take out a loan from the policy's cash value?

Variable universal life

Which of the following would be the beneficiary in credit life insurance?

creditor