Life exam part 2

Who acts on behalf of the principle

Agent

Which of the following best define the unfair trade practice of rebating?

Offering an inducement of something of value not specifies in the policy.

With Adjustable Life, the owner can change all of the following EXCEPT

The insured

Agents may be found guilty of defamation if they make false statements that are intended to

maliciously criticize another insurance company

All of the following statements about indexed whole life insurance are correct EXCPET

the death benefit is not guaranteed

All of the following are advantages of a qualified retirement plan EXCEPT

Th income at retirement is tax free

Considering the principles of liquidity, how would the policy owner use today's csh values in a life insurance policy?

Use it for emergency expenses

A typical grace period last for

30 days

Which statements below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs?

Applicants whimsy require a larger death benefit in the future should buy convertible term insurance.

Which of the following is NOT a standard exclusion in life insurance policy?

Disability

Which of the following policies would NOT offer a policy loan option?

Term life

Which of the following is not a duty of the Commissioner?

Develop insurance rates

The Commissioner receives complaints from several policyholders a particular insured. She needs to examine information included in their insurance contracts. Where will she find this information?

Licensee's principal place of business

Regarding credit life insurance, how long after the maturity date will termination occur?

Termination will occur no more than 15 days beyond the maturity date

A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal

Family term

According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who dies first, which of the following will be assumed?

The primary beneficiary died before the insured

Your client wants to provide a retirement plan income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guearenteed an income for life. Which settlement option should this policy owner select?

Joint and Survivor

Because of an injury, an insured has been unable to work for 7 months. When his life insurance premium came due, he was unable to pay, yet the policy remained in force. The policy includes

Waiver of premium rider

When is the company responsible for actions of its agents?

Whenever the agent is acting within the conditions of the contract

An Equity Indexed Annuity will grow based upon

Performance of a recognized index

Which of the following would NOT trigger the payment of Accelerated Death Benefits

Being permanently disabled

A stock insurer is defined as an insurer

Owned by its stockholders

Which of the following statements regarding HIV testing is NOT true?

Test results must be sent to the Department of Insurance

Which statement best describes agreement as it relates to insurance contracts

One party accepts the exact terms of the other party's offer

All of the following are consideration in an insurance policy EXCPET

The cash value in the policy

which of the following is included on the certificate for credit life insurance?

The effective date and termination date

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in cash value

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

Universal life

What is the maximum death benefit that the Delaware Life and Health Insurance Guaranty Association will pay for an insolvent insurer

$300,000

An IRA owner who is 57 years old wants to make a withdrawal from traditional IRA. What penalty will be imposed

10%

In a noncontributory group policy

100% of eligible employees must participate

A vatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?

A percentage of the face amount of the policy

Which type of authority is based on appearances or assumptions?

Apparent

An insured accidentally omits a pre-existing condition on the application. The insurer doesn't find out until 3 years later, what happens?

Benefits will be paid as if the condition were not pre-existing

Which of the following outlines the features of various policies abbd outlines the advantages and disadvantages to both?

Buyer's Guide

A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of

Coercion

Decreasing Term insurance is often used to

Cover a mortgage

An insured bought an insurance policy that requires him to pay $150 in premiums each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?

Grace period

According to the Fair Credit Reporting Act, All of the following statements are true EXCEPT

If an applicant is declined for an insurance policy, he or she has no right to know what was in the report

Which of the following is NOT true regarding a deferred annuity

Income payments begin within 1 year from the date of purchase

What does an annuity protect the annuitant against?

Living longer then expected

All of the following are true regarding a producers fiduciary responsibilities EXCEPT

Producers may comping personal funds with company funds

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be a

Representation

Which of the following authorities is able to reinstate a license after it was suspended?

The Commissioner

Which of the following is TRUE regarding premium in a 10-year level premium policy?

The premium will remain level for 10 years

If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty

$2500

The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT

Purchase a new home

How many days is the free-look period in most life insurance policies?

10 days

Under which of the following conditions would life insurance, proceeds be taxable by the federal government

If there is a transfer for value

Which of the following is an accurate description if insurance fraud?

Conspiring with another person to prepare statements that contain false info for submitting a claim for insurance benefits

What is the purpose of the Agent's Report in the application process

To provide additional information about the applicant to the underwriters

An annuity owner receives the same guaranteed payment every month. What type of annuity is it?

Fixed

As it relates to life settlements, the term "owner" means

The owner of the original life policy

J is receiving fixed amount benefit payment from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

Fixed amount

Which of the following statements is true regarding advertisement of the fact that the insurance Guaranty Association would assure payment of benefits in the event of Insurer insolvency?

It is illegal to mention the Association in advertisements

When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?

Paid-up additions

Which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application?

The application contains material misstatements

In a life insurance application, all of the following signatures will be required EXCEPT

The home office underwriter

The purpose of the Fair Credit Reporting Act is to

Protect consumers against the the circulation of inaccurate or obsolete personal or financial information

All of the following are true regarding the reinstatement of life insurance EXCEPT

Reinstatement may occur within 2 years from the default in making payments

Variable insurance and variable annuities are regulated by

SEC, FINRA and Departments of Insurance

The renewable provision allows the policy owner to renew the coverage at the expiration date

Without evidence of insurability

The maximum interest charged during the grace period of an annuity is

6%

When an insured terminates membership in the sured group, the insured can convert to

Whole life without proof of insurability

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will

Continue to increase

In a variable life insurance policy. All of the following assets are held in the life insurance company's general account EXCEPT

Cast surrender values

Which of the following authorities determines whether a prospective producer will receive his or her producers license?

Commissioner

The provision that sets forth the basic agreement between the insurer and the insured and states that the insurer has to pay the death benefit is called the

Insuring clause

What is the purpose of requiring licenses for persons who transact insurance?

Protect the general public

Which of the following is true of level term insurance

It is temporary protection

An applicant may challenge information discovered as a result of an investigative consumer report under which of the following Acts?

Fair Credit Reporting Act

Which of the following is NOT an indicator of a competent party?

Business profession

An insured may borrow the cash value of a whole life insurance policy if it has sufficient cash value after

3 years

All of the following are true of a non qualified deferred compensation plan EXCEPT

Contributions are tax deductible

Which of the following statements is TRUE regarding an Agent's Report during the policy application process?

It provides the agents personal observations concerning the proposed insured

A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either of them were unable to continue making the premium payments due to death or disability. Which policy rider should there agent recommend?

Payor benefit

An individual purchases a life insurance policy and lists his parents as the beneficiaries. He is able to change beneficiaries any time. What type of beneficiary designation dies the policy have?

Revocable