Life insurance
SIMPLE plans require all of the following except:
At least 1,000 employees
When must insurable interest exist in a life insurance policy?
At the time of application.
The life insurance policy clause that prevents an insurance company from denying payment of a death claim agter a specified period of time is known as the
Incontestability clause
Which of the following is the basis for a claim against an insurance policy?
Loss
An insured had paid only part of her total number of IRA premiums before she died. What effect will this have on the insured's estate?
Only the premiums paid will be included in the estate
What type of policy provides permanent protection?
Whole life.
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is
a modified endowment contact
When must insurable interest exist in a life insurance policy?
at the time of application
The life insurance policy clause that prevents an insurance compnay from denying payment of a death claim after a specified period of time is known as the
incontestability clause
When agents are acting within the scope of their contract, their actions will be assumed to be the acts of the
insurer
Which of the following determines the cash value of a variable life policy?
...
An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information>
The application
In insurance, an offer is usually made when
The application is submitted
An agent offers his client free tickets to a sporting event in exchange for the purchase of aninsurance policy. The agent is guilty of
Rebating
What type of life insurance is most commonly used for group plans?
Annually renewable term
The form of life annuity which pays benefits throughout the liffetime of the annuitant and also guarantees payment for a minimum number of years is called
Life income with period certain
Representations are statements made ny the applicatnt for insurace that are
Considered true to the best of the applicant's knowlege
What does "renewable" mean in a term insurance policy?
Continue coverage for another term without evidence of insurability
What type of policy shorten the premium paying period but allows the coverage to continue to age 100?
Limited Pay
If the beneficiary wants a guarantee that police proceeds will be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
Fixed period
When doing business in this state an insurance company that is formed under the laws of another state is known as which type of insurer?
Foreign
A week after an insured receives a new life policy, he decides to return it and requests a refund of the premium. What provision gives the insured the right to return the policy?
Free look
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards
All advertisments, regardless of their source, are the responsibility of the
Insurer
If a retirement plan or annuity is "qualified," this means
It has favorable tax treatment
In a single employer group plan, what is the name of the policy issued to the group sponsor?
Master contract
Which of the following premium modes would result in the highest annual cost for a life insurance policy?
Monthly
An agent offers his client free tickets to a sporting event inexchange for the purchase of an insurance policy. The agent is guilty of
Rebating
If an agent fails to obtain an applicant' signature on the application, the agent must...
Return the application to the applicant for a signature
Which type of life insurance policy generates immediate cash value?
Single premium
Which type of life insurnce policy generates immediate cash value?
Single premium
A 403(b) tax-sheltered annuity is available for
Teachers and nonprofit organizations
Which of the following is a generic consumer publication that explains life insurance policies in general terms to help the applicants make educated decisions?
The buyer's guide
Peril is most easily defined as
The cause of loss insured against
For the purpose of insurance, risk is defined as
The chance of loss
If an insured died during the grace period, what is the insurance company obligated to pay?
The face amount minus any owed premium
Which of the following is not the consideration in an insurance policy?
The promise to pay covered losses
Which of the following life inusrance policies has two death benefits options?
Universal life
Employer contribution made to a qualified plan are...
subject to vesting requirements
An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?
Application
What type of policy provides permanent protection?
Whole life
What type of life inusrance is most commonly used for group plans?
Annually renewable term
The sole beneficiary of a life insurance policy dies before the insured. If the policy owner fails to change the beneficiary gefore the insured's death, the policy proceeds will got to
The insureds estate
Which of the following is NOT a characteristic of an insurable risk?
The loss must be catastrophic
Which of the following is not a characteristic of an insurable risk?
The loss must be catastrophic
The accelerated benefits provision will provide for early payment of the death benefit when the insured
Becomes termanilly ill
When agents are acting within the scope of their contract, their actions will be assumed to be the acts of the
Insurer.
Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?
They are received tax free.
