Insurance license exam
What is the penalty for the IRA distributions that are below the required minimum for the year?
10%
During policy replacement, the replacing insurer must notify existing insurers within how many business days?
2-5 business days
Is 100, 000 of life insurance proceeds were used in a settlement option, which paid 13,000 per year for ten years, which of the following would be taxable annually?
3,000
What is included in the general information section on the application for insurance?
Age, sex, gender, name, birth date, income, marital status, and occupation
Which of the following is TRUE about the 10 day free look period in life insurance policy?
Begins when policy is delivered
Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the Policyowner?
Cash surrender value
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
Credit life
Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?
DEPRECIATION PERIOD
Which of the following is TRUE about credit life insurance?
Debtor is the annuitant
All of the following information about the applicant is identified in the general information section of life insurance application EXCEPT
Education, medical exam
Another name for a substandard risk classification is
Elevated
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)
Executive Bonus. (When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called Executive Bonus.)
An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurers classification in Wyoming?
Foreign
What provisions in a life insurance policy extend coverage beyond the premium due date?
Grace period
An insured has a MEC. He wants to withdraw some money in order to pay medical bills. Which of the following is true
He will have to pay a penalty is he is younger than 59 1/2
Who makes up the medical information bureau?
Insurers
Which of the following statements regarding HIV testing for life insurance purposes in NOT true?
Insurers are barred from requesting HIV testing
During partial withdrawal from a universal life policy, which portion will be taxed?
Intrest
Which of the following best describes annually renewable term insurance?
It is a level term insurance
Which of the following statements is TRUE concerning the accidental death rider?
It will pay double or triple the face amount
Which statement is NOT true regarding straight life policy?
Its premiums steadily decreases over time, in response to its growing cash value
A married couple owns a permanent policy which covers both of tier lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Joint life policy
Which of the following is an example of a limited pay life policy?
Life paid up to age 65
A rider attached to a life insurance policy that provides coverage on the insureds family members is called
Other-insured rider
A couple owns a life insurance policy with children's term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide proof of insurability?
Proof of insurability in not required
Which of the following would be a violation of life policy illustration regulation in Oregon?
Providing a customer with an incomplete illustration
An agent offers his client free tickets too. Sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
Rebating
21. Installing deadbolt locks on the doors of a home is an example of which method of handling risk?
Reduction
Following a career change, an insured is no longer required to preform many physical activities, so he has implemented a program where he walks and jogs for 45 minutes each morning. The insured has also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario describe?
Reduction
The ownership provision entitles the Policyowner to do all of the following EXCEPT
Set premium rates
Which of the following statements about a suicide clause in a life insurance policy is TRUE?
Suicide is excluded for a specified period of years and covered thereafter
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor protection
A 60 yearly participating in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
The amount of the distributions is reduced by the amount of a 20% withholding tax
Which of the following is TRUE regarding variable annuities?
The annuitant assumes the risk on investment
Which of the following Is an example of liquidity in a life insurance contract?
The cash value available to the Policyowner
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
The date of medical exam
J transferred his life insurance policy to his son two years before his death. Which of the following is true?
The entire face value of the policy will be included in J's taxable estate
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 premium?
The insureds premiums will be waived until she is 21
Which of the following are generally not considered when underwriting group insurance?
The insureds' medical history
The owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. What will the solicit sting insurance producer say?
The owner can specify the way proceeds are split
What is the main purpose of the regulation on life insurance policy illustrations?
To help the customer make educated decisions in buying life insurance
Which of the following products require a securities license?
Variable annuity
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage and issues a policy
When would a 20 pay whole life policy endow?
When the insured reaches age 100
Which of the following life insurance policies would be considered interest sensitive?
Whole life
A man decided to purchase a 100,000 ART policy to provide additional protection until his children finished college. He discovered that his policy required
a premium increase each renewal
The requirement that agents not commingle insurance monies with their own funds is know as
fiduciary responsibility
ART policies provide a level death benefit for a premium that
increases annually
An insured had a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
paid up additions
All of the following are characteristics of group life insurance EXCEPT
premiums are determined by the age, sex and occupation of each individual certificate holder
The term "illustration" in a life insurance policy refers to a
presentation of non guaranteed elements of policy
All of the following ire true regarding rebate EXCEPT
rebates are allowed if it is in the best interest of the client
Under the fair credit reporting act, is a consumer challenges the accuracy. The information contained in a consumer or investigative report, the reporting agency must
respond to the consumers complaint
Upon policy delivery, the producer may require to obtain any of the following EXCEPT
signed waiver of premium
Which of the following types of insurers is owned by stockholders?
stock
The death benefit in a variable universal life policy always equals
the face amount stated in the policy
The mode of premium payment is defined as
the frequency and the amount of the premium payment
If a life policy allows the Policyowner to make periodic additions to the face amount at standard rates, without proving insurability
the policy includes a guaranteed insurability rider
If an insured continually uses the automatic premium loan option to pay the policy premium
the policy will terminate when the cash value is reduced to nothing
Under an extended term nonforfeiture option, the policy cash value is converted to
the same face amount as in the whole life policy
In an adjustable life policy all of the following can be changed by the policy owner EXCEPT
the type of investment
A universal life insurance policy is best described as a/an
variable life with a cash value account
