life insurance exam

what is the maximum fine for violating the commissioners cease and desist order

$10,000

If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?

$3,000

an insurance company sends frequent email advertisements and coupons to its customers. one customer does not. want to receive these emails anymore and requests to. be excluded from the mailing listthe emails. to. the customer must stop within how many days

10

a consumer receives spam email. from an insurance company he requests to be removed from the company's list within what period of. time. must the insurer comply with the request

10 days

Once a claim is processed, and all claim investigations are completed, within how many days must the insurer mail or deliver a claim check?

10 working days

if an insurance producer allows his license to lapse within how many months of the due date of the continuation fee may the producer reinstate the License without having to pass a written examination

12 moths

a disabled producers spouce was issued a temporary liscence 30 days ago how much longer can the souse legally serve under this license

150 days (180. days total)

an insurance company forwards fixed annuity premiums to their general account, where the money is invested. the guaranteed minimum interest is set at 2.5%. during an economic downswing, the the. Investments only drew 2%. what interest rate will the insurer pay to its policy holders?

2.5%

when an employee terminates coverage under a group insurance policy coverage continues in force for

31 days

for how long is an insurance company allowed to defer policy loan request

6 months

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?

9,800

An insured misstates her age at the time the life insurance application is taken. This misstatement may result in

Adjustment in the amount of death benefit

an underwriter is reviewing the medical questions in the application and needs further information due to. a medical situation the applicant had in the past what will the underwriter require

Attending physician statement

what is TRUE about class designation

Beneficiaries are not identified by name

An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of

Concealment

which of the following terms describes making false statements about the Financial condition of any insurer are intended to injure any person engaged in the buisness of insurance

Defamation

an individual is purchasing a permanent life insurance policy with a face value of $25,000 while this is all the. insurance that he can afford at this time he wants to be sure that additional coverage will be available in the future. which of the following options should be included in the policy

Guaranteed insurability option

what are the two components of a universal policy

Insurance and cash account

what is the main purpose of the seven-pay test

It determines if the insurance policy is an MEC.

what best describes a MIB

It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

If a life insurance policy develops cash value faster than a 7 pay whole life contract, it becomes an?

Modified endowment contract

Using a class designation for beneficiaries means

Naming beneficiaries as a group

to sell variable life insurance policies, an agent must recieve all of the following EXCEPT - a securities license - a life insurace license - SEC registration - FINRA registration

SEC registration

when is the earliest a policy may go into affect

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

When would a 20-pay whole life policy endow?

When the insured reaches age 100

According to the Entire Contract provision, a policy must contain

a copy of the original application for insurance

all of the following could own a group life insurance EXEPT? a debtor group a group needing low cost life insurance a group sponsored by an employer an alumni group

a group needing low-cost life insurance

a tornado that destroys property would be an example of which of the following

a peril

an individual has been diagnosed with Alzheimers he. is. insured under a. life. insurance policy with. the accelerated benefits rider which of. the following. is true regarding taxation of the. Accelerated benefits

a portion of the benefit up to a. limit is tax. free. the. rest is taxable. income

which of the following is an example of a producers fiduciary responsibilities

a producer promptly forwarding premiums to the insurance company

which of. the. Following is another term for an authorized insurer

admitted

partners in a buissiness enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. what type of insurance policy may be used to fund this agreement.

any form of life insurance

what are the types of agent authority is also called "perceptive authority"

apparent

the full premium was submitted with the application for ilife insurance, and the policy was issued two weeks later as requested, when does the policy coverage become affective

as of. the application date.

what is the time period called during which the surviving spouse of the insured does not recieve social security income benefits

blackout period

what best describes the fixed-period settlement option

both principal and intrest will be liquidated over a selected period of time

which of the. following statements concerning buy-sell agreements is true

buy-sell agreements are normally funded with a life insurance policy

what is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident

common disaster clause

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

According to the entire contract provision, what document must be made part of the insurance policy?

copy of original application

what characteristic makes whole life permanent protection

coverage until death or age 100

the type of. insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called

credit life

which. of the following. is not allowed in credit life insurance

creditor requiring that a debtor buys insurance from a certain insurer

which of the following is not fundable by annuities

death benefits

what is NOT typically excluded from life policies

death due to plain crash for a fare-paying passenger

which of the following is not an example of a valid insurable interest

debtor in the life of the creditor

which of the following terms is used to name the non-taxed return of unused premiums

dividend

when an employer offers to give an employee a. wage increase in the amount of the premium on a new life. insurance policy this is called

executive bonus

The authority granted to an agent through the agent's contract is referred to as

express authority

an insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy what is this and example of

false advertising

all of the following are buisness uses of life inurance EXCEPT -funding against financial loss caused by the death of a key employee -funding business continuation agreements -funding against company's general financial loss -compensating executives

funding against company's general financial loss

in which of the following cases will the insured be able to receive the full face amount from a whole life policy

if the insured lives to age 100

the medical Information bureau (MIB) was created to protect

insurance companies from adverse selection by high risk persons

which of the following is true about the 10-day free-look period in a life insurance policy

it begins when the policy is delivered

all of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT -the payments are not guaranteed for life -the insured determines the amount for each payment -it is a life contingency option -it will pay the benefit only for a designated period of time

it is a life contingency option

if a differed annuity is surrendered prematurely a surrender charge is imposed how is the surrender charge determined

it is a percentage of the cash value and decreases over time

which of the following best describes annually renewable term insurance

it is level term insurance

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 statements is true concerning the accidental death rider

it will pay double or triple the face amount

the type of settlement option which pays throughout the lifetimes of. two or more beneficiarys is

joint and survivor

a couple receives a set amount of annuity. when the wife dies the husband no longer receives annuity payments what type of annuity did the couple buy

joint life.

which of the following is an example of a limited-pay life policy

life paid-up at age 65

what is the other term for the cash payment settlement option

lump sum

which of the following information about the applicant is not included in the general information section of the application for insurance

medical background

which part of an insurance application would contain information regarding the cause of death of the applicants deceased relatives

medical information

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?

monthly premium waiver and monthly income

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

must be informed of the source of the report

which of the following is not true regarding the needs approach method of determining the value of an individuals life

need is predicated using the number of years until the insureds retirement

attempting to determine how much insurance a family would require based on their fanatical objectives is known as

needs approach

death benifits payable to a benificiary under a life insurance policy are generally

not subject to income taxation by the federal government

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 can surrender a deferred annuity contract

only the annuity owner can

an insured purchased an individual life insurance policy with a face amount of $15,000. the insured pays a premium each month directly to the insurance company. what type of policy is that

ordinary life

a rider attached to a life insurance policy that provides coverage on the insured's family members is called the

other-insured rider

all of the following statements are true regarding group insurance EXCEPT -participants in a group insurance plan are issued cartifcates of insurance -small groups such as labor unions are eligible for group insurance -participants in the policy each recieve a policy -the group sponsor is the policy leader

participants in the policy each recieve a policy

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

pay reduced death benefit

Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?

predicted needs of the family after the insureds death

which of the following is correct concerning the taxation of. Premiums in a key-person life insurance policy

premiums are not tax deductible as a business expense

An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information?

present the insured with with a disclosure authorization Notice

the gramm-leach-billey act was passed to

protect private customer information filed with a financial institution

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

rebating

an insurance policy that only requires a payment of premium at its inception provides insurance protection for the life of the insured and matures at the. insureds age 100 is called.

single premium whole life

which of the following policies would be classified as a traditional level premium contract

straight life

which of the following is called a second to die policy

survivorship life

which of the following. is not true regarding the annuitant

the annuitant cannot be the same person as the annuity owner

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true? -the annuitant must be a natural person -a corporation can be an annuitant as long as it is also the owner -a corporation can be an annuitant as long as the beneficary is a natural person -the contract can be issued without an annuitant

the annuitant must be a natural person

which of the in NOT the consideration in a policy

the application given to a. prospective insured

An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant dies the next day, which of the following is TRUE

the beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy

in comparison to. consumer reports. which of the following describes a unique characteristic of investigative consumer reports

the customers associates friends and neighbors provide the reports data

all of the following entities regulate variable life policies EXCEPT?

the guaranty association

Large Group Life Insurance underwriting takes all of the following into consideration EXCEPT

the health of each individual in the group

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

how is it determined whether an insurer is allowed to. write. buisness. in. a state

the insurers domicile or location of. Incorporation will determine whether a company is domestic foreign or alien.

what statement is NOT TRUE regarding teh accumulation at interest option

the intrest is not taxable since it remains inside the insurance policy

all of the following are true of key person insurance EXCEPT - the plan is funded by permanent insurance only - there is no limitation on the number of key employee plans in force at any one time - the employer is the owner, payor and benifenciary of the policy - the key employee is the insured

the plan is funded by permanent insurance only

all of the following statements concerning the use of life insuance as an executive bonus are correct. EXCEPT -any type of insurance policy may be use -the employer pays a bonus to a selected employee to fund the policy -it is considered a nonqualified employee benefit -the policy is owned by the company

the policy is owned by the company

in the replacement of a policy who notifies the existing insurer that a policy is being replaced

the replacing company

Under an extended term nonforfeiture option, the policy cash value is converted to

the same face amount as in the whole life policy

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

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

without receiving written consent from an insurance regulatory authority