Life insurance test

Which policy feature would require underwriting

Conversion Renewal Reinstatement Nonforfeiture

Which of the following is a statement that is guaranteed to be true and if any untrue may breach an insurance contract

Indemnity Representation Warranty Concealment

What best describes the surrender charge in a deferred annuity?

It is a rear end load

The amount paid to the policy owner when a life insurance policy is surrendered, is called the

Premium value Cash value Loan value Face value

All of the following are true about universal life, except

The insurance company deduct the cost of insurance on a monthly basis Loans are not permitted The contract will specify the deductions for policy expenses Premiums are flexible within certain guidelines

Misrepresenting a policy to convince someone to replace it is called

Twisting

Klinger has a $5000 life insurance policy issued by life of Toledo in 1948. Klinger is drafted into the army and sent to Korea where he dies in a helicopter crash in 1954. His policy does not contain the war, clause, exclusion, or the accidental death benefit. How much will be paid by the insurer?

$5,000 Zero dollars but the premiums will be refunded to the owner or a state $10,000 $15,000

K and B have a family plan K is insured for $50,000 whole life and B is insured for $25,000 with a level spouse rider to age 65 B dies at age 67. How much money is paid out by the insurer

0 $25,000 $50,000 $75,000

Is self-employed pension HR - 10 has maximum contribution limits of approximately

100% up to $5000 100% up to $50,000 25% up to $5000 25% up to $50,000

A minor can buy life insurance on himself at age 15. to purchase a policy on a third-party one must be 18 but how old is one have to be to name a third-party beneficiary?

15 16 18 21

R. has a 20 year family income plan. He dies after 15 years how many years of income benefits would go to the beneficiary

5

Before any action against an agent's license may be taken the agent must

Be given the opportunity to be heard

If an agent has one insurance license, continue education must be completed in the following manner

Biennially 24 hours

An agent license may be issued to which of the following

Corporation Individual LLC all of the above

All of the following statements concerning dividends are true, except

Dividend amounts are guaranteed in the policy Lower insurance company called generate higher dividends The stem from favorable underwriting experience Favorable investments, results generate higher dividends

If an insured changes, his payment plan from monthly moved to annual mode what happens to the total premiums paid?

Doubles Increases Decreases Stays the same

The commissioner teachers can do all of the following, except

Examine insurers in person or through a representative Suspend and agents license, while an investigation is pending Wave policy provisions, in favor of an insured And shoot administrative orders to carry out the insurance laws

The commissioner of insurance can do all of the following, except

Hold hearings Revoke a producer license prior to a hearing Subpoena a witness Regulate the business practices of an insurer

G is on the way to the office to turn in an insurance application that he completed last night he suddenly discovers that the applicant made out the check to the agent which of the agent do?

Immediately return the check to the applicant

Under which of the following types of receipts, is it that coverage begins immediately for a specified length of time, even if the applicant is found later to be uninsurable

Insured ability, conditional receipt Premium receipt Unconditional binding receipt Approval conditional receipt

If an agent is guilty of commingling, the first thing, the DOI will probably do is

Issue a cease and desist order

Which of the following is not an essential element of an insurance contract?

Legal purpose Incompetent parties Consideration Agreement (offer and acceptance)

In order to sell in equity indexed life policy, what is required by the agent

Life license only Securities license only Life and securities license Life or securities license

An annuity that provides a lifetime income with a guaranteed return of principal, regardless of whether the annuitant lives or dies, is known as

Life with refund

All of the following are true for resident North Carolina agents EXCEPT :

Maintain an office in North Carolina

A licensee decides to terminate his residency in this state, which of the following would be an appropriate action

No action, the license will administratively expire Notifying the NAIC within 60 days Notifying the commissioner within 10 days Delivering the license to the commissioner within 30 days

Which of the following would obtain a temporary license

Nonresident agent who recently moved to North Carolina

A Keogh HR-10 is a type of retirement plan for

Self employed professionals

Which of the following types of risk will result in the highest premium

SubStandard risk

The responsibility of making certain that an application for insurance is filled out completely correctly in to the best of his or her knowledge is the responsibility of

The agent or producer The beneficiary of the applicant The insurance company The applicant

An insurer is attempting to determine insured ability of an applicant and decides to obtain medical information from several different sources which entity must be notified of this investigation

The applicant The commissioner of insurance The medical examiner The state department of insurance

The purpose of reinstatement provision is

To determine the process for reactivating coverage once a policy has lapsed

A long-term disability policy provides benefits for

Two years Five years To age 65 The time specified in the contract

An individual has just borrow $10,000 from his bank. On a five-year note. The note is due in installments what type of life insurance policy would be best suited to the situation

Universal life Whole life Decreasing term Level term

Agent Z takes an application for a policy and accept a check for the first premium application and check our mail to the insurer who discovers the check is not signed when will coverage for this policy go into effect

When that policy is issued delivered, and premium is paid

Once a life insurance policy is reinstated the contestability period

Will apply for two years

Gilligan has a $10,000 whole life policy with $1300 of cash value when he disappears in a storm is insure switch is the policy to reduced paid up insurance of $3400. 5 years later he parishes in the rescue attempt how much life insurance benefit will go to his family

Zero dollars $1300 $3400 $10,000

An issue or has just made the news because it is insolvent Chris has had a $1 million policy with the company for five years if Chris were to die what is the most that would be paid out by the guaranty association?

$300,000

Be purchased a $50,000 20 pay life policy with the AD&D the rider in 1999. He died of cancer 10 years later how much benefit was paid to the beneficiary

$50,000

If someone dies as a result of military activity, the claim is settled in the following manner

A return of all unearned premiums

All of the following might be issued on a group basis, except

Accidental death and dismemberment Disability Key person Medical expense

Which of the following is a dividend option?

Increasing term Cash surrender Paid-up additions Vanishing premiums

Kim owns a 20 pay life policy that was purchased at age 45. The cash value in the face value will be equal at age.

100

When considering the purchase of a whole life policy, the applicant as the difference in cash accumulation between a 20 pay life policy and a straight life policy which of the following statements is correct

20 pay will accumulate faster

A life insurance policy was originally issued at age 35 as a double protection policy. If the initial death benefit was $90,000 how much of the death benefit is permanent

45,000

What qualifies an individual to contribute to an IRA

Any income Earned income Investment income Retirement income

Which of the following is not included on part one of the application for life insurance

Applicants address Applicants medical history Applicants gender Applicants occupation

The administrator of a reciprocal insurer who tracks membership and collects premiums from the members is the

Attorney in fact

All of the following statements are true about a credit life program, except

Benefits are paid to the borrowers beneficiary The amount of insurance permissible is limited per borrower Premiums are usually paid by the borrower Benefits are paid directly to the creditor

The provision that prohibit to ensure from refusing to pay claim after a specified time, is the

Incontestability clause

An agent has just learned that his client is five years older than indicated on the policy application the agent should

Notify the home office, so the policy may be adjusted

With a juvenile life policy which provision waves premiums temporarily, should the owner die, or become disabled

Payor provision

Annuities may be classified in the following ways, except

Premium mode Number of annuitants Face amount Settlement options

Discrimination between individuals of the same class in the amount of premiums or rates charge for any policy of insurance or in the benefits payable there on, or in any of the terms or conditions of such policy, or in any manner whatsoever is

Prohibited by law

Which of the following types of insurance covers the whole family in a single contract?

Survivorship policy Whole life policy Family protection policy Family income policy

In insurance transactions, who does the broker represent

The agent The applicant The agency The insurer

All of the following are true about universal life, except

The insurance company to ducks the cost of insurance on a monthly basis Lump sum death benefits are taxable income to the beneficiary The contract will specify the deductions for policy expenses No premium would be required as long as there is enough to cover the monthly deductions

Which of the following is true about examination of agent records by the DOI

They may be disclosed at any time

Please ensure has made all of the decisions regarding the provisions included in her policy. She finds an object of all provision, and wants to negotiate it with her insurer, but is not allowed to do so. Her only options are to reject the policy because the policy is written on a take it or leave it bases which contract element does this describe?

Unilateral Conditional Dictatorial Adhesion