Life 10
Which of the following is NOT true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity.
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims . The company is guilty of
Misrepresentation.
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor Benefit
All of the following are unfair claims settlement practices EXCEPT
Suggesting negotiations in settling the claim.
Which of the following is an example of an unfair claims settlement practice?
Attempting settlement for the amount less than the insured is entitled to
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is
Conditional
Traditional IRA contributions are tax deductible based on which of the following?
Owner's income
What is the purpose of key person insurance?
To lessen the risk of financial loss because of the death of a key employee
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers of that time that the insured had misstated information about her insurance history on the application. What will the insurer do?
Pay the death benefit
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
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
Survivor protection.
Which of the following is INCORRECT concerning a non contributory group plan?
The employees receive individual policies
An employee is insured under her employer's group Lionel plan. If she terminates her group coverage, which of the following statements INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
Which of the following products requires a securities license?
Variable annuity
All of the following are duties and responsibilities of producers at the time of application EXCEPT?
Change any incorrect statement on the application by personally initialing next to the corrected statement.
Which is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
Illegal
Which of the following is an example of a limited-pay life policy?
Life Paid-up at Age 65
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 insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. What must the insurer do with the application?
Return to the applicant for completion
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of premium
The LEAST expensive first-year premium is found in which of the following policies?
Annually Renewable Term
Which of the following statement options in life insurance is known as straight life?
Life income
When appointing a producer, and insurer must file a notice of appointment to the Department of Insurance within
15 days
After a policy form has been submitted and accepted for review by the Department, within how many days must the determination be given to the insurer?
90 days
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by an employer-sponsored plan who has earned income
What does "liquidity" refer to in a life insurance policy?
Cash values can be borrowed at any time.
Which of the following would be considered an illegal inducement to purchase insurance?
Confirming future dividends in a life insurance proposal
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to erm or permanent individual coverage.
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
When the policy owner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
Fixed amount
If a life policy allows the policy owner to make periodic additions to the face amount at standard rate, without proving insurability, the policy includes a
Guaranteed insurability rider
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium.
