Life 3

Within how many days after the receipt of the proceeds may the owner remind the life settlement contract?

15 days

The dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as the

One-year term option

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

Deferred

The provision which states that both the policy and a copy of the application form the contract between the policy owner and the insurer is called the

Entire contract

How many continuing education hours related to regulation or ethics are producers required to complete per reporting period?

3 hours

What is the maximum amount of controlled business allowed, in relation to the total premiums written to the general public?

9 times

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

In which of the following situations has replacement occurred?

A policy owner borrows 25% of their cash value to by a new policy

Which of the following in NOT a duty of the Commissioner

Act as a director, officer, or agent of an insurance company

A tax-sheltered annuity is a special tax-favored retirement plan available to

Certain groups of employees only

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

Coercion

The proposed insured makes the premium payment on a new insurance policy. If the insured should do, the insurer will pay the death benefit to the beneficiary if the policy is approve. This is an example of what kind of contract?

Conditional

Which of the following is a characteristic of a Reciprocal Insurance Exchange?

The chief administrator of the insurer is called an "attorney-in-fact"

An insurance producer has not been appointed by an insurance company. Who is the producer considered to represent>

The client

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?

If the father is disabled for more than 6 months

Life income joint and survivor settlement option guarantees

Income for 2 or more recipients until the die

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider

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

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

Life income

On a participating insurance policy issued by a mutual insurance company, dividends paid to policy holders are

Not taxable since the IRS treats them as return of a portion of the premium paid

Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must

Respond to the consumer's complaint

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all of the premiums paid. Which rider is attached to the policy?

Return of premium

Who may contribute to a Keaogh (HR-10) plan?

Self-employed plumber

All of the following are the duties of the replacing producer where replacement is involved EXCEPT

Send a letter to the policy owner of the right to receive information regarding the existing policy

A producer will be receiving compensation directly from a customer for an issued policy. The producer discloses to the applicant the fact that he will receive a commission; however, he does not have the exact amount at this time. What else should the producer disclose?

The method for compensation calculation and a reasonable estimate

All of the following are Nonforfeiture options EXCEPT

Interest only

Which of the following is NOT true regarding a Certificate of Authority?

It is issued to group insurance participants

All of the following are considered unfair trade practices in the business of insurance EXCEPT

Sharing commissions

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

An attempt by the existing insurer to dissuade a current policy owner from the replacement of existing life insurance is know as

Conservation

The medical information Bureau(MIB) was created to protect

Insurance companies from adverse selection by high risk persons

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration

Annually renewable term policies provide a level death benefit for a premium that

Increases annually

All of the following statements concerning an employer sponsored non qualified retirement plan are true EXCEPT

The employer can receiver a current tax deduction...

A completed Notice to Applicants Regarding Replacement of Life insurance, signed and dated by the applicant, must be given o the applicant

When the application is accepted