Insurance agent exam
What kind of arrangement gives the policyowner the right to change the beneficiary
Revocable designation
What does a 401(k) plan generally Provide its participant
Salary-defferal distributions
Which is a role of the replacing insurer during life insurance replacement transaction
Send notice of the proposed replacement transaction to the existing insurer
Assets that back the non-guaranteed values of variable life insurance products are held in which account
Separate account set up by the insurer
All of these statements concerning group credit life insurance are false except
The face amount is based on the outstanding loan balance
Which of the following is true regarding a person regarding a person receiving a waiver of premium benefit
The insured must be disable for a period of time
The Virginia life, accident, and sickness insurance Guaranty Association protects an insured in the event of
The insurer's insolvency
Which of the following statements about the installment for a fixed period settlement option in life insurance policies is not true
The periodic payment amount is determined by the beneficiary's age
Under an adjustable life insurance policy, which of the following may not be changed without further underwriting
The person insured
Taxable income may be the result from all of these modified endowment contract (MEC) transactions expect for
The policy is surrendered for less than what was paid into it
A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of
10%
After passing the state exam, an applicant is required to obtain the appropriate license within ___ calendar day
183
If an agent holds 2 license types, the continuing education requirement is ___ credit by December 31 in even numbered years
24
Insurance transaction MUST be maintained by an agent for at least ___ calendar years
3
Upon meeting company requirements, a lapsed life insurance policy may be reinstated for up to __ year(s)
3
An insurance company or agent must respond within ___ days to an insured's request to access personal information collected on him/her by the insurer
30
If an insurance agency has moved its office to a new location, the bureau of insurance MUST be notified within ____calendar days of the move
30
Greg had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy
31 days
An agent must maintain customers records for ___ year(s) following the completion date of the insurance transaction
5
One becomes eligible for social security disability benefits after having being disabled for
5 months
Which of the following combinations best describes a universal life insurance policy
A flexible premium deposit fund and monthly renewable term insurance policy
Which of the co- annuitants listed below would receive the largest monthly benefit payments in a joint and 100% survivor annuity
Ages 71 and 73
Which of these is an example of twisting
An agent misrepresents a policy to induce a policyowner to surrender an existing policy
The surrender charge on many deferred annuity contracts are waived when the
Annuitant dies or become disabled
Traditional individual retirement annuity (IRA) distributions must start by
April 1st of the year following the year the participant attains age 70 ½
Which statement regarding the cash value of a whole life insurance policy is correct
Available to the policyowner when policy has been surrendered
Which of these is NOT considered to be a cost connected with the individuals death
Business expenses
Which of the these is not a true statement of the war exclusion
Civil insurrections apply
A prospective client was intimidated by an agent to purchase an insurance contract. The agent could be found guilty of
Coercion
An agent who attempts to intimidate is engaging in
Coercion
An agent MUST notify the Bureau of insurance for
Conducting business under an assumed name
Which report contains information regarding an individual's general reputation and credit standing
Consumer report
The courts will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. This is because an insurance policy is a(n)
Contract of adhesion
Which statement about group life insurance is INCORRECT
Each participant requires evidence of insurability
A group life insurance policy can be converted to an individual whole life policy under which circumstance
Employment termination
Scott has life insurance policy In which the dividends are left with the insurance company.this particular policy may be paid up when the cash value plus accumulated dividends
Equal the net single premium for the same face amount at the insured's attained age
Which life insurance policy option allows the policy owner to have coverage equal to the net death benefit of the lapsed policy
Extended term Nonforfeiture option
Which of the following is considered an unfair claims settlement practice
Failure to investigate or pay legitimate claims
When an individual is planning to protect his family with life insurance, one method of doing so is called need analysis. What exactly does need analysis involve
Identifies the needs of an individual and the individual's dependents
A single premium deferred annuity sometimes contains a bailout feature. Which statement regarding this feature is correct
If the interest rate falls below a specific level, the surrender charge is waived
Premium collected by an insurance agent must be maintained in a fiduciary capacity. At what point MUST these premiums be remitted to the insurer
In the ordinary course of business
Defamation can be best defined as
Making a statement that is false or maliciously critical of the financial condition of an insurer
Which of these would likely be considered an unfair claims settlement practice
Offering settlements that are less than the fair value to offset insurer expenses
Which of these is NOT an unfair claims settlement practice
Offering to settle a claim by arbitration
Which of the following would be a valid reason for suspending or revoking an insurance agent's license
Participating in the acts of twisting
What effect can a long-term care benefit rider have on a life insurance policy
Reduced death benefit
What could be the potential result of taking out a cash value loan under a life insurance policy
Reduces the amount receivable upon surrender of the contract
A life insurance policy owner would like a dividend option that results in a limited current outlay of funds. Which dividend option would be chosen
Reduction of premium payment
All of these are unfair trade practices except
Reinsurance
Which situation does not require an agent to provide a suitability statement to the annuity company
When an agent discusses annuities in general with a client, but no specific recommendations is made
An insurance company can be liable for producers unauthorized acts
When the agency contract is unclear concerning the authority given
A policy is permitted to take out a policy loan on a whole life policy at what point
When the policy has a value
The conversions option for group term insurance may be exercised by an employee
Within 31 days of terminated employment
Which of these is NOT an underwriting responsibility of life insurance agent
Determining the final rate classification
A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originated from
Fair credit reporting act
Which benefit supplement added to a life insurance policy insures an entire family
Family term rider
Rick owns a variable universal life policy and chooses a variable death benefit option. What will typically happen to the death benefit as a result of this selection
Fluctuate with changes in the cash account
An annuity contract may be returned for a full refund during the
Free look period
Which life insurance policy provision allows a policyowner to cancel the policy and receive a full refund within a limited time period after policy delivery
Free look period
The rule governing advertisement of life insurance and annuities were created to provide
Full disclosure to the public of all material and relevant information
Insurable interest in one's own life is legally considered as
Generally unlimited
When the disclosure of an insured nonpublic information is involved, what is the insurer obligated to do
Give notice, explain, and allow opting out
What is the name of the rider that provides an additional purchase option in a life insurance policy
Guaranteed insurability rider
An agents license may on be suspended or revoked if the agent
Has been afforded a right to a hearing
All of these are considered features of whole life insurance except
Initial premium is lower than for an equivalent amount of term insurance
The medical information Bureau consists of members from which group
Insurance companies
Which of the following situations would qualify an insured to receive funds from an accelerated (living) benefit rider
Insured is expected to remain in a nursing home for life
The ____ is required to notify the state corporation commission in the event of appointment termination
Insurer
Which of these statements is NOT true regarding a cash value loan against a life insurance policy
Interest payments made by policyowner are deductible
When the policy loan is requested by a policyowner and it requires the consent of beneficiary designation is this
Irrevocable beneficiary
All of these are duties that a producer may be required to perform when delivering an insurance policy except
Leave a conditional receipt with client
Which of these is Not a common life insurance Nonforfeiture option
Life income annuity
An agent who informs an applicant that there are no exclusions in an insurance policy has engaged in
Misrepresentation
In Virginia, false advertising is an example of
Misrepresentation
J the agent makes false statements to a prospective client about the projected dividends for a policy. J may be found guilty of
Misrepresentation
Life insurance premiums are computed on what three factors
Mortality, interest, expenses
The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called
Nonforfeiture option
When an issuer discovers (during the claim process) that the insured's age was accidentally misstated on the life insurance application, the insurer will likely
Pay an amount premiums would have purchased at the insured's actual age
In Virginia, any person acting as an agent for unlicensed insurer is
Permissible only if acting as a licensed surplus lines broker
A signed good health statement may be requested by a life producer at the time of
Policy delivery
Which statement regarding an adjustable life insurance policy is NOT true
Policy loans are not permitted
What happens to a life insurance policy loan balance exceeds the cash value
Policy will no longer be in forced
Which of the following does the commissioner of insurance NOT have the authority to examine its business records
Policyholders
The beneficiary of a life insurance policy is normally selected by whom
Policyowner
Which of the following would NOT be a reason for purchasing life insurance on a child's life
Provide benefits for the child if the parents die
The automatic premium loan provision can be accurately described as a
Provision that provides a policy loan to pay any premium by the end of the grace period
An insured is entitled to coverage under a policy that a prudent person would expect it to Provide. This principle is called
Reasonable expectations
Which of the following would NOT have a restricted ability to enter into a contract
Small employer
Licensed agent in Virginia are authorized to
Solicit, receive, and forward applications to the insurer
Which of the following approves continuing education courses for credit in Virginia
State continuing education board
Which of the following has the power to suspend or revoke an agent's license
State corporation commission
Which statement regarding the joint and survivor life insurance settlement option is not true
The amount of each installment is larger than the single life income option
K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective
The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured
Which of these is not a reason to buy a term life insurance
To accumulate savings All of these are unfair trade practices except
What is the effect of the market value adjustment in a market value adjustment annuity
Transfers some of the investment risk to the policyowner
How long does protection normally extend to under a limited pay whole life policy
Until age 100
An agent's insurance records must be provided to the state corporation commission
Upon the requests of the state corporation commission
The reason for backdating a policy is
to obtain a premium rate based on an earlier age
