Massachusetts laws and rules

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Which of the following is a potential punishment given to a producer found guilty of an unfear method of competition

License suspension or revocation

Who is required to notify the superintendent of a licensees change of address,?

Licensee

What determines how much an annuitant is paid for a variable annuity?

The market value variations of the securities backing it

Which of the following describes the act of insuring a risk against possible loss

Risk transfer

Assets that back to nonguaranteed values of variable life insurance products are held in which account?

Separate account set up by the insurer

After the first three years of licensure, a producer must complete ....credit hours of a continuing education for each licensing.

45

Which of the following is an example of Defamation?

A producer who publicly and erroneously announces that an insurance company is insolvent

Life insurance replacement can be best

A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered

Proceeds of a life settlement contract could be subject to the claims of

Creditors

Death proceeds from the life insurance policy or typically included any disease insured gross estate

For federal income tax reasons

An accelerated (living) benefit rider in a life insurance policy may provide funds to an insured who

Is expected to remain in a nursing home for life

According to ERISA regulations, a summary plan description must be provided to a new plan member within... Days of the members eligibility date.

90

In order for a prohibited person to sell insurance in Massachusetts, he or she must have a

A letter signed by the superintendent

All of the following are unfair claims settlement practices except

An attempt to settle a claim by arbitration

Group life plan sold in Massachusetts typically contain a conversion option. If the insured elects the option, the new policy

Does not require evidence of insurability

Which benefit supplement added to a life insurance policy insures an entire family

Family term rider

A business may purchase annuity for all the following reasons except

Informally funding a non-qualified deferred compensation plan

When compared to a fix annuity , a variable annuity has what distinguishing feature

Investment risk is assume by the purchaser

An insurable interest in each other's lives may exist in absence of an economic interest when the individuals are

Marriage partners

Why do insurers require a minimum number of employees participate in a group insurance plan?

Minimize adverse selection

Which of the following is considered to be an unfair claim settlement practice?

Misrepresenting pertinent policy provisions relating to coverage after loss

Which statement regarding the joint and survivor life insurance settlement option is not true?

The amount of each installment is larger than the single life income option

A life insurance policy can be reinstated upon meeting company requirements within a maximum of

Three years

A producers license in Massachusetts must be renewed every;

Three years

If an individual violates a cease and desist order issued by the Superintendent, he will be subject to a fie of

$10,000

A Massachusetts producer has violated an unfair trade practice law. This producer must be fine up to you... Per violation

$1000

An insured has a $25,000 whole life insurance policy with $6000 cash value available. Under the extended term nonforfeiture option, what is the amount of insurance available to the insured

$25,000

In Massachusetts, a producer must be at least how many years if age?

18

How many days notice must a producer be given prior to a scheduled hearing?

21 days

What is juvenile life insurance policy?

A life policy that covers the life of a minor

Life settlements between a policyowner and a life settlement provider are negotiated through

A life settlement broker

Which of these is not considered to be an example of a misrepresentation?

A producer comparing the benefits of competing insurance policies

Which statement is true regarding Massachusetts continuing education requirements for license producers?

A producer must meet specified course requirements within a three-year period

A life insurance policy provision that has the ability to reduce the death benefit is called the

Accelerated live in benefit

An insurer operating in the US but headquarter outside the US is

An alien insurer

Which of the following is not a valid contract exchange

An annuity exchange for life insurance policy

Which of the following individuals is eligible to receive a temporary producer license?

An appointed employee who is replacing a deceased producer

An individual purchases a modified life insurance policy expects

An improvement in future income.

In what situation could insurance policies coverage be modified?

Applicant is a substandard rest

Before an individual is permitted to act as an insurance agent he must hold a valid insurance license and be... By an authorized insurer

Appointed

Which of the following is NOT the responsibility of an insurer?

Assuming liability for a producer's unauthorized acts

Which would be described as a beneficiary designation by class,?

Children of the insured

Which of these is not a punishment for committing an unfair and deceptive insurance practice?

Community service

When the Massachusetts superintendent of insurance examines it produces insurance records, the purpose will primarily be to determine;

Compliance with state insurance laws and regulations

Which report contains information regarding an individuals general reputation and credit standing?

Consumer report

Which of the following does not involve a life settlement transaction?

Converting term life coverage to whole life insurance.

Which of the following is considered an activity of a daily living when determining an accelerated life insurance benefit?

Eating. To qualify for an accelerated insurance benefit, An individual must be unable to perform at least two activities of daily living.

Christopher is issued in insurance policy that contains an attached agreement which alters the terms of the policy. The attached agreement is called a

Endorsement

Which provision makes the application part of the annuity contract?

Entire contract clause

Which of these may not be deducted from premium payments or the cash value of a variable life insurance policy?

Federal premium taxes

When an annuity contract has been fully surrendered. How will the surrender charges affect the final contract settlement?

Final contract settlement will be reduced

An annuitant is paid for $494 per month untillnthe contract value is exhausted at some undetermined date in the future. Which type of annuity payout option is this

Fixed amount

John has a criminal record in which he was convicted of a felony that involve dishonesty. Under federal law, how would Jon be able to engage in insurance transactions?

Given written consent by the state insurance regulatory agency

A producers license may only be suspended or revoked if the producer

Has been afforded a right to a hearing

Agreements made by terminally Ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called

Life settlements

Tim is confined to a nursing home but doesn't have a terminal illness. Which life insurance rider is designed to help pay for this type of expense?

Long-term care benefit rider

An insurer may contest the validity of a life insurance policy during the policies first two years for all of these reasons except

Misstatement of age

If the commissioner request access to a producers business records, the producer

Must provide access to the records upon request

Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional benefit payments will be derived primarily from funds that were

Not distribute to life annuitants who have died before life expectancy

A life insurance producer is required to give a disclosure notice about information practices to an applicant

Prior to or at the time of signing the application

What is considered interstate travel and is a federal fraud and false statements act?

Puerto Rico

Splitting the commission with the buyer on a sale of insurance is known as

Rebating

Ron recently purchased an immediate, straight life fixed annuity. His benefit payments will

Remain a constant dollar amount for the duration of the annuity period

Which of the following would prevent a person from obtaining a Massachusetts resident producer license?

Residing in a state outside of Massachusetts

TWhat does your 401(k) plan generally provide it's participants?

Salary deferral option

Which of these is not considered the responsibility of a producer during the underwriting process?

Selecting the final approval date

A life insurance policy can be backdated before the application date for up to

Six months

A life insurance producer license in their state is authorized to

Solicit, receive, and forward applications to the insurer

Which entity is responsible for regulating claim settlement practices of insurers?

Stace insurance lol department

Which entity is responsible for regulating claim settlement practices of insurers?

State insurance department

What is payable to the policy owner if a whole life policy is surrendered prior to maturity date?

The cash value

K is an agent who takes an application for individual life insurance in accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

The date the agent deliver the policy, collected the initial premium, and obtain a good health statement from the insured

Which of the following is true regarding a person receiving a waiver of premium benefit?

The insured must be disabled for a period of time

In advantage of owning a flexible premium life insurance policy would be

The policy owner can make policy changes without difficulty

Notice of information practices must be given to a policyholder at LEAST every _____years(s)

Three

A life insurance policy that includes a return of premium rider will pay the beneficiary how much a point to the insured's death?

Total premiums paid plus the policy face amount

A survivorship life insurance policy usually covers how many lives?

Two

A life insurance policy can be contested by the insurer only during the first... Years of the contract

Two years unless fraud was involved

Insurance crimes which affect interstate commerce are persecuted by them

US Attorney General. A violation of code 1033

Which of the following is not considered to be an expense for surviving family members of a deceased wage earner?

Unemployment tax expenses

The producers insurance records must be provided to the superintendent

Upon request by the superintendent

A policy owner is permitted to take out a policy loan on a whole life policy at what point?

When the policy has a cash value

According to federal fraud and false statements regulation, what is required for a prohibited person to transact insurance business in this state?

Written consent from the state insurance regulatory agency

Before an individual is permitted to act as an insurance agent, he/she must hold a valid insurance license and be ......by and authorized insurer

appointed

All of these are considered to be a violation of the federal fraud and false statement act except

Claims reimbursement

Which of the following combinations best described a universal life insurance policy

A flexible premium deposit find any monthly renewable term insurance policy

A life insurance policy holder has been diagnosed with a terminal illness. Which of the following is off doing payable to a policy owner who is life expectancy is substantially reduced due to illness?

Accelerated (living) benefit. It's often payable to a life insurance policy holder when a medical condition drastically limit is the insured's life expectancy

Tim is retired and has recently separated from his wife. He receives benefits from a qualified retirement plan through his former employer. The plane stressed you have decided to split this benefit payments between Tim and his extreme wife. This decision is likely in violation of which IRS rule?

Alienation of benefits

Which statement is incorrect concerning a tax shelter annuity (tsa)

Annual investment games are included in participants gross

In the event of premium default, which life insurance provision will use the cash value to keep the policy in force?

Automatic premium loan

If the superintendent has reason to believe a producer has violated Massachusetts insurance law, the superintend it may issue a

Cease and desist order

A foreign insurer wishing to conduct business in Massachusetts must obtain a

Certificate of authority from the Superintendent of insurance

Which of these is true regarding the exchange of consideration among parties involved in an insurance contract ?

Can be an unequal

Which of the following is not a condition that must be met for an accidental death benefit to be paid?

Cause of death must be a job related injury

And employee requested that the balance of a 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately And employee requested that the balance of a 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately had the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?

Distribution is subject to federal income tax withholding

Group life plan sold in Massachusetts typically contain a conversion option. If the insured Elects this option, the new policy

Does not require evidence of insurability

An annuity contract maybe return for a full refund during the

Free look period

An annuity contract maybe return for full refund during

Free look period.

An annuity which starts paying monthly benefits within a month after issuance is called a

Immediate annuity

All of these are considered features of whole life insurance except

Initial premium is lower for Equivalent amount of term insurance

When a producer is appointed, the... is considered the principal

Insurer

Which of these would not be a valid reason to add a waiver of premium rider to a life insurance policy?

It allows the policy loan to cover premium payments if the policy becomes totally disabled

Which of the these is not a true statement of the ward exclusion?

It applies to civil insurrections

Which life insurance settlement option pace lifetime benefits to two or more people?

Joint and survivor

Laura added a children's rider to her life insurance policy. What type of coverage was added?

Level term

When must a producer provide a replacement notice on life insurance?

No later then at the time of taken an application

Who typically makes to purchase payments to an individual annuity

Owner

Employers often purchase life insurance on the key employee in order to

Pay for finding a replacement if the employee died prematurely

These are all accurate statement regarding universal life insurance except

Policy loans are not permitted

Which statement regarding an adjustable life insurance policy is not true?

Policy loans are not permitted

According to the law of large numbers, how would losses be affected if the number of similar insured units increases?

Predictability of losses will be improved

Which of these policies is considered a whole life policy?

Single premium life

A material change in the modify endowment contract (MEC) results in

The 7 paid test adjusted for cash value applies again

And premiums are determined? One factor would be the expenses of

The insurer

What would be considered an advantage purchasing term life insurance

They initial premium is lower compared to an equivalent amount of whole life

The producer originating an insurance application

Usually is the major personal contact with the insured

Insurance policy that can also be classified as a securities product is called

Variable life

Which event triggers a deferred annuity to start making benefit payments to the Annuitant?

When the contract is annuituzed

A prospective client was intimidated by a producer to purchase an insurance contract. The producer could be found guilty of

coercion


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