life study
what is the maxium life insurance coverage available to the state residents through the wi state life insurance fund
$10,000
if a person does not comply with an order issues within 2 weeks after the commissoner has given notice, for each day the violation contiuner the commisioner may issue a fine up to
$5000
insurance regulations in this state require prompt initiation and completion of claims investigators, and delivery of necessary claims forms and assistance to the insured and claimants. what consitutes prompt action
10 consecutive days
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
10 years
an individual purchased a $100,000 joint life policy on himself and his wife. 8 years later he died in a car accident. how much will his wife receive
100,000
how long must a life insurance policy be in force before the owner can enter into a viatical settlement contract
2 years
how many hours of prelicensing education approved by the commissioner must each applicant compelete
20 hours
within how many days of requesting an investigative consumer report must an insurer notifuy the consumer in writing that the report will be obtained
3 days
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained
3 days
During a life insurance policy replacement, the insurer is required to provide the policyowner a free-look period of at least a) 10 days b) 20 days c) 30 days d) 90 days
30 days
a claim is considered overdue if NOT paid within how many days after the insurer receives written notices
30 days
what is the minimum duration of the grace period in a group life insurance policy in this state
31 days
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
according to the rule of readibility of insurance policies in this state, what is a required minimum score on the Flesch reading ease test for medicare supplement policies
50
for how long is an insurance company allowed to defer policy loan requests
6 months
what is the waiting period on a waiver of premium rider in life insurance policies
6 months
the commsisioner issues an order without holding a hearing. the person aggrieved by this order demands a hearing shortly after receiving the order. the hearing must be held within a maximum of how many days
60
An insurer decides to renew a policy but at a higher premium rate, starting on the renewal date. How many days in advance must the insured be notified?
60 days
an insurance policy is considered a new policy if it has been in effect for what max time period
60 days
when must an insurer provide a policy summary
When the policy is delivered
which of the following persons is not required to complete CE
a limitied lines intermediary with 40 years of contious licence LIMITED LICENSE ARE EXEPMT FROM CE
which of the following would not be a violation of state insurance regulations
agent c uses her license to write only business other than controlled
the interest earned on policy dividends
are taxable
which of the following protects the insured from and unintentioanal policy lapse due to a nonpayment of premium
automatic premium loan
What limits the amount that a policyowner may borrow from a whole life insurance policy?
cash value the amount available to the policyowner for a loan is the policys cash value.
what does liquiditiy refer to in an life insurance policy
cash values can be borrowed at any times
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?
common disaster
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
consideration
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?
cost of living rider
which of the following is not fundable by annunities
death benefits
all of the following statements concerning dividends are true execpt
dividend amounts are guaranteed in the policy
which of the following best describes the aleatory nature of an insurance contract
exchange of unequal values
in the executive bonus plan, who is the owner and who pays the premium
executive is the owner and pays the premium
Which policy component decreases in decreasing term insurance?
face amount decreasing term policies have a level premium and a death benefit that decreases each year over the duration of the policy term
What type of premium do both Universal Life and Variable Universal Life policies have?
flexible
a universal life insurance policy has two types of interest rates that are called
guaranteed and current
an individual is purchasing a permanent life insurance policy with a face value of $25,000. while this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. which of the following options should be included in the policy
guaranteed insurability option
if a life plicy allows the policy owner to make periodic additions to the face amount at standard rates without proving insurability the policy includes a
guaranteed insurability rider
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?
guaranteed surrender value
what type of insurance would be used for a return of premium rider
increasing term when added to a whole life policy it provides that at death prior to a given age, not only is the original face amount payable, but also all premiums previously paid are payable to the beneficiary
what is the benefit of choosing extended term as a nonforfeiture option
it has the higherst amount of insurance protection
which of the following is true regarding a risk retention group
it is a liability insurance company owned by its own memebers
what is true of a childrens rider added to an insureds permanent life insurance policy
it is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age
which of the following is true of a childrens rider added to an insureds permanent life insurance policy
it is term covereage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age
which of the following is true regarding the annunity period
it may last for the lifetime of the annuitant
Which of the following is true regarding a single life settlement option?
it provides income a ben cannot outlive
which of the following settlement options in life insurance is known as stright life
life income
an illustration used to sell a life insurance policy must be labeled as
life insurance illustratation
the insurance company markets standard accident and health policy as a medicare supplement policy. the company is guilty of
misrepresentation
which of the following is not true regarding policy loans
money borrowed from the cash value is taxable
After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?
montly premium waiver and montly income
During replacement of life insurance, a replacing insurer must do which of the following?
obtain a list of all life insurance policies that will be replaced
which of the following can surrender a deferred annuity contract
only the annuity owner
under what circumstance may an insurer cancel or refuse to renew an insurance policy based upon the past crimminal record of the insured
only upon conviction of an offense directly related to the risk insured
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the
other insured rider
all of the following are dividend options
paid up additions accumulated at interest reduction of premium
an insured has a continuous premium whole life policy. she would like to use the policy dividends to pay off her policy sooner than would have been otherwise possible. what dividend option could she use
paid up option
which option is being utilized when the insurer accumulates dividends at interest and then uses the acculamted dividends plus interest and the policy cash value to pay the policy early
paid up option
which of the following is another term for the accumulation period of an annuity
pay in period
which of the following riders would not cause the death benefit to increase
payor beneift rider
the gramm-leach-bililey act was passed to
protect private customer information filed with a financial institution
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
purchase a single premium policy for a reduced face amount
If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept?
reasonable expectations if the insured can reasonbly expect the coverage, the courts have held that the insurer must provide that coverage
Which nonforfeiture option provides coverage for the longest period of time?
reduced paid up
an insured pays $1200 annually for her life insurance premium. the insured applies this years $300 worth of accumlated dividends to the next years premium thus reducing it to $900 what does this describe
reduction of premium
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
replacement rule
a mad decided to purchase a $100,000 annually renewable term life policy to provide additional protection until his children finished college. he descovered that his policy
required a premium increase each renewal
Methods used to pay the death benefits to a beneficiary upon the insured's death are called
settlement options
which type of life insurance policy generates immediate cash value,
single premium
which of the following insurers are owned by stockholders
stock
which of the following policies would be classified as a traditional level premium contract
straight life
the intrest earned on a policy dividends is
taxable
all of the following would be different between qualified and nonqualified retirement plans execpt
taxation on accumlation
childrens riders attached to a whole life policies are usually issued as what type of insurance
term
nonforfeiture values gaurantee which of the following for the policyowner
that the cash value will not be lost
which of the following would qualify as a comptetent party in an insurance contract
the applicant has a prior felony conviction
a buyers guide must be presented when
the application is taken
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
the beneficiary
If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur?
the change must be reported to the department
An adjustable life policyowner can change what?
the coverage period
an individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. 5 days later the applicant had to submit a medical exam. if the policy is issued, what would be the policys effective date
the date of the medical exam
When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?
the insurance companies general account
what happens to policy coverage during the grace period
the insured is covered as he or she was before the grace period
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?
the insured may choose to convert to term or permanent indiv coverage the insuer normally decides
all of the following are true statements regarding the accumaltion at interest option execpt
the interest is not taxable since it remains inside the insurance policy
an insurer refuses to renew an insured's policy written by an intermediary whose contract has been terminated. this is allowed if
the notice contains an offer to renew the policy by written request
all of the following are true of key person insurance execpt
the plan is funded by permanent insurance only
which of the following best defines the owner as it pertains to life selttlement contracts q
the policyowner of the life insurance policy
which is true about a spouse rider
the rider is usually level term insurance
Under an extended term nonforfeiture option, the policy cash value is converted to
the same face amount as in the whole life policy
all of the following are characteristics of a group life insurance plan execpt
there is a requirement to prove insurability on the part of the participants
what is the purpose of a fixed period settlement option
to provide a guaranteed income for a certain amount of time
social security was created to provide all of the following benefits execpt
unemployement income
The Waiver of Cost of Insurance rider is found in what type of insurance?
universal life
the waiver of cost of insurance rider is found in what type of insurance
universal life
what kind of policy allows withdrawls and partial surrenders
universal life
which of the following life insurance policies would be considered interest sensitive
universal life uni life is a flex premium policy and interest sensitive policy.
which of the following is a key distinction between whole life and variable universal life products
variable whole life has a guaranteed death benefit
all of the following benefits are available under social security exect
welfare benefits
In forming an insurance contract, when does acceptance usually occur?
when an insurer's underwriter approves coverage
