life insurance exam
During policy replacement, the policyowner is entitled to a free look period of how many days
20
If a person whose license has been temporarily suspended demands a hearing, the Commissioner must hold the hearing within ____ after receipt of the demand
30
your client wants to provide a retirement income for his elderly parents in case something happens to him. he wants to make sure that both beneficiaries are guaranteed an income for life. which settlement option should this policyowner select
joint and survivor
an example of an alien insurer doing business in this state is one formed under the laws of
mexico
In order to reinstate a life insurance policy the insured must do all of the following EXCEPT
pay next years premium in advance
a married couple purchase a life insurance policy on their newborn baby. they are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. which policy rider should their agent recommend
payor benefit
the needs approach to calculating the amount of life insurance needed is based on
predicted needs of a family after the premature death of the insured
how do premiums in variable universal life policies vary from those in variable whole life policies
premiums are flexible
which of the following is a provision found in life insurance policies
reinstatement
who is responsible for verifying that an insurer is authorized to sell insurance policies in this state
solicitating producer
which of the following individuals would be a likely candidate to purchase a deferred annuity
someone who wants to grow retirement funds tax deferred
which risk classification is representative of the majority of people in a certain age group and with similar lifestyles
standard
when an agent delivered an insurance policy to the insured, he collected the initial premium, as well as a document verifying that the insured had not had any injuries or illness since the application date. what is this document called
statement of good health
all of the following are unfair claims settlement practices EXCEPT
suggesting negotiations in settling the claim
life insurance creates an immediate estate. which of the following best explains this statement
the face value of the policy is payable to the beneficiary upon the death of the insured
which of the following has the right to change a settlement option in a life insurance policy
the policyowner at any time during the life of the insured
How are policy loans calculated?
the policys cash value minus unpaid loans and accrued interest
when a producer is making recommendations for a purchase of an annuity, the producer must consider product suitability for the consumer. if the consumer decides to enter into a transaction not based on the producers recommendations, which of the following is true under the suitability provision
the producer has no obligation to the consumer
an agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as
twisting
considering the principal of liquidity, how would the policyowner use todays cash value in life insurance policy
use it for emergency expenses
which of the following types of insurance is investment based, has a level fixed premium and a nonguaranteed cash value
variable whole life
life insurance disclosure rules would apply to which of the following types of coverage
whole life
all of the following are examples of a policy replacement EXCEPT
a term policy is being converted to a whole life
what is the maximum loan amount a policyowner may withdrawal from a variable universal life insurance policy
an amount not exceeding the cash value
What is a prerequisite for receiving a commission from an insurance transaction
an appropriate license
which of the following is NOT an indicator of a competent party
business profession
which of the following terms refers to the nontaxable portion of each annuity benefit payment
cost base
What would the insurance company do if an insured under a whole life policy with an accidental death rider intentionally kills himself a couple of months after purchasing the policy?
deny the death benefit, but refund the premium
An annuity owner receives the same guaranteed payment every month. What type of annuity is it?
fixed
during the accumulation phase of a fixed annuity, the annuitant interest rate is based on a minimum rate as specified in the contract, or the current interest rate, whichever is
higher
If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?
immediately
As an insurer's field underwriter, a producer has all of the following responsibilities EXCEPT
issuing policies on behalf of the insurer
which of the following is true regarding pure life annuity settlement option
it provides the highest monthly benefit
If a retirement plan or annuity is "qualified", this means
it satisfies IRS requirements for favorable tax treatment
which of the following statements is CORRECT regarding the commissioner of insurance in this state
the commissioner is elected to the office
all of the following are true about key person insurance EXCEPT
the death benefit is taxable to the business
what happens to the face amount of a whole life policy if the insured reaches the age of 100
the face amount is paid to the insured
With Adjustable Life, the owner can change all of the following EXCEPT
the insured
producer licenses are valid from the initial licensing or reinstatement period until
the last day of the licensees birth month plus one year