missed life insurance Q

Required a premium increase each renewal.

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Decreasing term

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

An unfair trade practice.

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

It is intended to provide coverage on a date prior to the policy issue.

What is the purpose of a conditional receipt?

Commissioner

What is the title of the chief officer of the Department of Insurance?

6 months

What is the waiting period on a Waiver of Premium rider in life insurance policies?

Consideration

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

Transacting insurance

Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract?

A salaried employee who advertises and solicits insurance

Which of the following would be required to be licensed as an insurance producer?

Self-employed plumber

Who may contribute to a Keogh (HR-10) plan?

Joint and survivor

A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?

Rebates are allowed if it is in the best interest of the client.

All of the following are true regarding rebates EXCEPT

When an insurer's underwriter approves coverage

In forming an insurance contract, when does acceptance usually occur?

3 years

It is level term insurance.

$50,000

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

The insured may renew the policy for another 10 years, but at a higher premium rate.

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

$200,000

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

Increases annually.

Annually renewable term policies provide a level death benefit for a premium that

Sexual orientation

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?

12

How many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state?

Guaranteed insurability rider.

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

The owner

In a life settlement contract, whom does the life settlement broker represent?

The Fair Credit Reporting Act

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

Taxation on accumulation

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health

An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?

The insured may choose to convert to term or permanent individual coverage.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

Signed waiver of premium

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Ownership

What is the major difference between a stock company and a mutual company?

When the application is signed and a check is given to the agent

When is the earliest a policy may go into effect?

Issuing sales material with exaggerated statements about policy benefits

Which of the following best describes a misrepresentation?

It is level term insurance.

Which of the following best describes annually renewable term insurance?

Commissioner of Insurance

Which of the following entities has the power to issue certificates of authority?

Stock

Which of the following insurers are owned by stockholders?

Underwriting the contract

Which of the following is NOT a responsibility of an insurance agent?

It begins when the policy is delivered.

Which of the following is TRUE about the 10-day free-look period in a Life Insurance policy?

Have attained fully insured status

Which of the following is an eligibility requirement for all Social Security Disability Income benefits?

To create an estate

Which of the following is the best reason to purchase life insurance rather than annuities?

Certificate of authority

Which of the following must an insurer obtain in order to transact insurance within a given state?

It will increase because the insured will be 5 years older than when the policy was originally purchased.

An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?

Not taxable since the IRS treats them as a return of a portion of the premium paid.

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Death benefit

The term "fixed" in a fixed annuity refers to all of the following EXCEPT

Joint and survivor.

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Misdemeanor.

Transacting insurance without a license in this state is considered a(n)

For 20 years or until death, whichever occurs first.

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

Life income

Which of the following settlement options in life insurance is known as straight life?

Pay dividends to the policyowner

A participating insurance policy may do which of the following?

Revocable beneficiary.

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Face amount

What does "level" refer to in level term insurance?

Suicide is excluded for a specific period of years and covered thereafter.

Which of the following statements about a suicide clause in a life insurance policy is TRUE?