Life Insurance PT 2
A producer failed to complete the required continuing education credit hours for this compliance period, and allowed his license to lapse. Within what time period after the deadline may the license be reinstated?
12 months
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
Temporary producer license can be issued to all of the following EXCEPT
A spouse of disabled licensed producer before and after the sale of the business.
All of the following are true about license denial, suspension or revocation EXCEPT
An agent may still sell insurance on a suspended license for 180 days.
All other factors being equal, the least expensive first-year premium payment is found in
Annually Renewable Term.
The necessary qualifications for obtaining a producer's license in Illinois include all of the following EXCEPT
Be at least 21 years of age.
Which of the following is NOT typically excluded from life policies?
Death due to plane crash for a fare-paying passenger
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer.
All of the following information about the applicant is identified in the General Information section of a life insurance application EXCEPT
Education.
Which of the following is an example of an unfair claims settlement practice?
Failure to promptly settle a claim when liability has been clearly established
Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?
Family term rider
Life insurance death proceeds are
Generally not taxed as income.
What type of license does an individual need to obtain in order to solicit and sell insurance?
Producer's license
Which regulation helps to minimize misrepresentation?
Replacement Regulation
Which of the following is true regarding taxation of accelerated benefits under a life insurance policy?
They are tax free to terminally ill insured.
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
All policy applications must identify which of the following?
Licensee which solicited the applicant's business
Variable life, group life, and annuities are EXEMPT under which rule?
Life Solicitation
Ronald is buying life insurance policies. He is unclear which one to buy, and his insurer explains the costs of similar plans, in addition to their basic features. Which rule requires the insurer to disclose such information?
Life Solicitation Rule
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
Paid-up additions.
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Proof of insurability is not required.
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
Size of each installment
Which of the following would be considered a nonqualified retirement plan?
Split-dollar plan
The Director must find all of the following to be true of a viatical supplement provider applicant before a license will be issued EXCEPT
The applicant posts a bond with the Department of Insurance.
All of the following are Nonforfeiture options EXCEPT
Interest only
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
Interest only option
A nonresident producer in Illinois just relocated to Indiana and became a resident producer in that state. What must the producer do to satisfy one of Illinois' requirements for nonresident producers?
File a change of address within 30 days
The Director notifies a producer of license termination on March 1. On April 15, the Director receives a request to review the charges in a court of law. What is the latest possible court date that can be set for the hearing?
The court date will not be established.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability.
When a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?
The insured's contingent beneficiary
Which of the following is TRUE regarding the annuity period?
It may last for the lifetime of the annuitant.