Life producer gauranty exam
Which of the following losses would likely be covered under the Accidental Death rider?
death caused by head on collision
An insurer decided to terminate a producer. The insurer just notified the Commissioner of this decision. How long does the insurer have to mail a copy of the notification to the producer?
15 days
An insurer decided to terminate a producer. The insurer just notified the Commissioner of this decision. How long does the insurer have to mail a copy of the notification to the producer
15 days - After notifying the Commissioner, the insurer must mail a copy of that notification to the producer within 15 days
The entire contract includes all of the following EXCEPT
A buyer's guide
A producer licensed in only one group of insurance (such as life or accident and health or sickness) is required to complete 24 hours of continuing education every licensing period. Out of those hours, how many must be in the area of the insurance laws and rules?
3
An annuity would normally be purchased by an individual who wants to....
A Provide income for retirement.
Which of the following will NOT be included in the buyer's guide?
A Specific information about the policy
What is the purpose of key-person insurance?
A To cover decreased business revenues as a result of the death of a key employee
If a company that issues variable contracts is a subsidiary of another life insurance company already authorized to do variable business,
-The company is automatically authorized to do variable business
A loss resulting from which of the following would qualify for the accidental death rider coverage?
-an automobile accident
An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed
10 percent (before 59 1/2 = 10 percent penalty)
In order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least how much of the business?
10%
Which of the following would NOT trigger the payment of Accelerated Death Benefits?..
A Being permanently disabled
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
A policy is reissued with a reduction in cash value. -Replacement refers to any transaction in which new life insurance or an annuity is purchased, resulting in reduced paid-up insurance, continuation of extended term insurance or otherwise reduced in value by the use of nonforfeiture benefits or other policy values
If an applicant's health is poorer than that of an average applicant, the policy may be issued..
A substandard
What guarantees that the information explained in the insurance contract is true?
A warranty
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy?
Accidental death rider
An Equity Indexed Annuity will grow based upon- performance of a recognized index -
An Equity Indexed Annuity grows based upon a specific recognized index such as the Dow Jones or the Standard and Poor's 500
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy?
An accidental rider
What is the maximum loan amount a policy owner may withdrawal from a variable universal life insurance policy
An amount not exceeding cash value
What is the maximum loan amount a policyowner may withdrawal from a variable universal life insurance policy?
An amount not exceeding the cash value
Contributions to Roth IRA..
Are not tax deductible
In whole life insurance, when is the policy cash value scheduled to equal the face amount?
At the insured's age 100
Which of the following would be TRUE of both the fixed-period and fixed-amount settlement options?
Both gurentee interest and principal will be paid
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be
Decreasing term
During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. This is an example of an unfair trade practice of
Defamation
Which of the following is NOT a standard exclusion in life insurance policies?
Disability
When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as..
Estate conservation
What happens to the face amount of a whole life policy if the insured reaches the age of 100?
Face amount paid to insured
An applicant may challenge information discovered as a result of an investigative consumer report under which of the following Acts?...
Fair credit reporting
Which of the following is a correct statement about annuities?
Fixed annuities do not provide protection against inflation.
At what point would an automatic premium loan be generated?
Following grace period
According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT...
If an applicant is declined for an insurance policy, he or she has no right to know what was in the report
All of the expenses of an examination must be paid for by the insurer being examined. To which fund are payments remitted
Insurance regulation fund
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 agreement that is enforceable by law is known as what kind of contract?
Legal
Guaranteeing future dividends is considered to be an unfair or deceptive act known as
Misrepresentation
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party's offer
When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?
Paid up addition
Which dividend option will increase the death benefit?
Paid up additions
If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?
Prior to performance of test
Which of the following is NOT a duty of the existing insurer when replacement is involved?
Provide notice to the policy owner the right to return the policy within 30 days of delivery and receive a full refund
J's retirement plan meets all federal requirements and entitles him to certain tax benefits as the owner of the plan. What term best describes J's retirement plan?
Qaulified
What effect will the long-term care (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured?
Reduce the death benefit
Which of the following are characteristics of term life insurance?
Renewable,low cost
Anna has been working for her current employer for 4 years. The company's group whole life insurance policy is terminated. What will she need to do in order to obtain a new, individual policy?
She will need to apply and provide proof of insurability—-The conversion on termination of a policy is offered to insured individuals when the master contract is terminated. Then the contract must allow every person insured for at least 5 years prior to the termination to convert to an individual policy. In this case, Anna had only been insured for four years prior to the policy's termination, so she is not covered by this provision.
A temporary producer license could be issued, without examination, to all of the following, EXCEPt
Spouse of retiring producer—There is no provision in the insurance code that allows for a temporary license to be issued on behalf of a retired producer.
In contrasting stock insurers with mutual insurers, which statement is true?
Stock insurers are owned by the shareholders and issue nonparticipating policies.
Which of the following statements regarding HIV testing is NOT true?
Test results must be sent to the Department of Insurance
All the following are true regarding qualifications for licensing in Hawaii EXCEPT
The applicant can apply if he or she has been convicted of a felony
What can happen if a person who has been served a subpoena refuses to testify in an insurance case?
The individual can be found in contempt of court
With Adjustable Life, the owner can change all of the following EXCEPT
The insured
With Adjustable Life, the owner can change all of the following EXCEPT..
The insured
Which of the following bears the investment risk in a variable life insurance policy?
The policy owner
All of the following are true of the Survivorship Life policy EXCEPT...-
The premium is based on the age of each insured
Because of an injury, an insured has been unable to work for 7 months. When his life insurance premium came due, he was unable to pay, yet the policy remained in force. The policy includes
Waiver of premium
Which of the following types of life insurance policies include a conversion of termination provision?
Whole life
An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?
Within 3 days
All of the following are true of a nonqualified deferred compensation plan EXCEPT...
contributions are tax deductible
If an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?
Never; the insurer has waived its right to those answers by issuing the policy
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will...
continue to increase
What does the application of contract of adhesion mean?
Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured— The insurer prepares the policy and submits it to the insured on a take-it-or-leave-it basis. Because the insured does not have input in drafting the policy but simply adheres to the terms of the policy, the policy is classified as a contract of adhesion. Any uncertain terms in the policy will be interpreted in favor of the insured.
Which of the following types of insurance is investment based, has a level fixed premium, and a nonguaranteed cash value?
variable whole life
Which of the following policies would NOT offer a policy loan option?
Term life
Which of the following would NOT be eligible for coverage under key person?
The owner of a shop
Cash Value guarantees in a whole life policy are called..
nonforfeiture values
A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?
Family term
Under which of the following conditions would life insurance proceeds be taxable by the federal government?
If there is transfer if value
Cash Value guarantees in a whole life policy are called
Nonforfeiture Values
Which of the following would NOT be eligible for coverage under key person?
owner of a shop
Which of the following is NOT a duty of the existing insurer when replacement is involved
Provide notice to the policy owner the right to return the policy within 30 days of delivery and receive a full refund. —The existing insurer must retain all replacement notifications received by the replacing insurer for at 5 years or until the next examination, whichever is later; send a letter to the policy owner of the right to receive information regarding the values of the existing policy within 5 business days; and if the policy owner requests to borrow, surrender or withdraw any policy values, the insurer must send a notice advising the effect of policy values
If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?
Immediately
All of the following are true of credit life EXCEPt
The insured names the beneficiary. With Credit Life the lending institution is the owner and names the beneficiary.
S set up an individual retirement account that her employer is now contributing to. Her employer's contributions are not included in her gross income. What kind of retirement plan does S have?
Simplified employee plan
Which of the following are characteristics of term life insurance?...
Temporary protection, renewability, no cash value
The provision that sets forth the basic agreement between the insurer and the insured and states the insurer's promise to pay the death benefit upon the insured's death is called the
Insuring clause
An aleatory contract is based on what kind of exchange?..
A Unequal exchange of values
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
policy is reissued with a reduction in cash value.
In order to reinstate a life insurance policy the insured must do all of the following EXCEPT...
pay nexts years premium in advance
All of the following statements about mutual insurance companies are correct EXCEPT...
Policy dividends issued by mutual companies are guaranteed and not taxable. -Insurance policy dividends are not guaranteed and are not taxable.
Policy loan requests, except for loan requests for payment of due premiums, may be deferred for a period of up to.
6 months
An example of an alien insurer doing business in this state is one formed under the laws of..
MEXICO— An alien insurer is a company chartered outside the United States. Insurance companies incorporated in territorial possessions, such as Puerto Rico, are considered foreign.
The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT
Purchase of a new home
According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed
The primary beneficiary died before the insured
According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?-
The primary beneficiary died before the insured
A viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?
a percentage of the face amount of the policy
What is the maximum loan amount a policyowner may withdrawal from a variable universal life insurance policy?
an amount not exceeding the cash value
Which of the following reduces opportunity for misrepresentation, protects the interests of the policyholders by establishing minimum standards, and establishes penalties for failure to comply with requirements?
Replacement— Replacement rules reduce opportunity for misrepresentation, protect the interests of the policyholders by establishing minimum standards, and establish penalties for failure to comply with requirements
Who would be allowed catch-up contributions?
50 years ' older
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
An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?
3 days
Under which of the following conditions would life insurance proceeds be taxable by the federal government?
If taken in lump sum
Which dividend option will increase the death benefit?...
Paid up additions
An Equity Indexed Annuity will grow based upon
Performance of a recognized index.
Which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application?
The application contains material misstatements.
All of the following are consideration in an insurance policy EXCEPT
The cash value in the policy
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
all of the following are true of credit life EXCEPT
The insured names the beneficiary
Which of the following types of life insurance policies include a conversion of termination provision?
Whole life The conversion of termination provision only applies to whole life policies. This allows the insured to obtain an individual life insurance policy without needing to provide proof of insurability, should a group's insurance policy be terminated
Where are premiums from fixed annuities invested?
general acct
In a life insurance application, all of the following signatures will be required EXCEPT....
home office underwriter
Which of the following is guaranteed under a variable whole life insurance policy?
min death benefit
