Life exam pt 2
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
controlled
Which of the following would NOT be a violation of state insurance regulations?
Agent C uses her license to write only business other than controlled.
What license or licenses are required to sell variable annuities?
Both a life insurance license and a securities license
Who appoints individuals to an advisory board to oversee the examinations of insurance company records in Hawaii?
Commissioner
All of the following statements concerning dividends are true EXCEPT
Dividend amounts are guaranteed in the policy
Items stipulated in the contract that the insurer will not provide coverage for are found in the
Exclusions clause
Which of the following applicants would NOT qualify for a Keogh Plan?
Someone who works 400 hours per year
nonadmitted insurer who provides insurance coverages that are not available from an admitted insurer is called
Surplus lines insurer
Which of the following individuals could qualify for a temporary insurance license?
The designee of a producer that is called to active service with the Navy
The following are all requirements for an insurer to qualify for a certificate of authority EXCEPT
Transact any type of insurance, whether authorized or not.
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
a fixed amount
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
coercion
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
conditions
In life insurance policy replacement, which of the following entities is responsible for sending a letter notifying the policyowner of the right to receive information regarding the values of the existing policy?
existing insurer
A Return of Premium term life policy is written as what type of term coverage?
increasing
What type of insurance would be used for a Return of Premium rider?
Increasing Term
The Medical Information Bureau (MIB) was created to protect
Insurance companies from adverse selection by high risk persons.
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
Which of the following is NOT true regarding a nonqualified retirement plan?
It needs IRS approval
Which of the following individuals must have insurable interest in the insured?
Policyowner
n which of the following instances would the premium be tax deductible?
Premiums paid by an employer on a $30,000 group term life insurance plan for employees
purpose of the Insurance Guaranty Association is to
Protect policyowners if an insurance company becomes insolvent.
Which nonforfeiture option provides coverage for the longest period of time?
Reduced Paid-Up
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
An agent did not give the annuity applicant the disclosure document and the buyer's guide at the time of annuity application. When the annuity contract is issued, how long will the free-look period be?
10 days
An insurer must appoint a licensee before he/she is authorized to transact insurance business. The insurer must file a notice of appointment within
15 days from the date of the first insurance application is submitted.
If an insurer terminates the appointment, employment, contract or other insurance business relationship with a producer, he/she must notify the Commissioner within
30 days
For how long are insurers and producers required to keep the records related to replacement transactions
5 years
Life insurance policies issued in this state must provide for maximum policy loan interest rate of NOT more than
8%
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 premiums?
the insured's premiums will be waived until she is 21.
