Life insurance questions 11/24
What percentage of continuing education hours must be in a classroom setting?
50
For how long is an insurance company allowed to defer policy loan requests?
6 months
Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?
A debtor has an insurable interest in the life of a lender.
An individual has been diagnosed with Alzheimer's disease. 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.
To which of the following situations does the Replacement Regulation apply?
A whole life policy reissued with reduction in cash value
All of the following are considered unfair or deceptive acts in connection with the sale of insurance EXCEPT
Attempting to settle a claim in which liability is clear.
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be
Authorized.
Which of the following is TRUE about a class designation?
Beneficiaries are not identified by name.
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
Equity Indexed Annuity.
What does "level" refer to in level term insurance?
Face amount
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?
Inspection Report
Which of the following is NOT a type of whole life insurance?
Level term
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
Misrepresentation
Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive
Nothing; the payments will cease.
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by the age, sex and occupation of each individual certificate holder.
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.
What form of the annuity settlement options provides payments to an annuitant for the rest of the annuitant's life and ceases at the annuitant's death?
Pure life
Another name for a substandard risk classification is
Rated.
All of the following are true regarding rebates EXCEPT
Rebates are allowed if it is in the best interest of the client.
For which of the following actions can an agent's license be suspended or revoked?
Rebates of premiums
The regulations regarding replacement apply to which of the following?
Renewable term
All of the following are considered unfair trade practices in the business of insurance EXCEPT
Sharing commissions.
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium.
A license may NOT be denied, suspended, or revoked if the licensee
Submits an unsigned insurance policy application.
Which of the following information will be stated in the consideration clause of a life insurance policy?
The amount of premium payment
Which is NOT true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
Which of the following is NOT a licensing requirement for a corporation in the state of Texas?
The business must be able to pay up to $50,000 in the event that it is proven to be negligent.
Which of the following best describes the tax advantage of a qualified retirement plan?
The earnings in a qualified plan accumulate tax deferred.
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract.
An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?
The policy will not be affected.
Which of the following is TRUE regarding the premium in term policies?
The premium is level for the term of the policy.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
What kind of policy allows withdrawals or partial surrenders?
Universal life
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
Upon the submission of a death claim under a life insurance policy, when must the insurer pay the policy benefit?
Within 2 months
