more life
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrower's beneficiary.
Which of the following must an insurer obtain in order to transact insurance within a given state?
Certificate of authority
Which of the following is the closest term to an authorized insurer?
Admitted
All of the following are examples of third-party ownership of a life insurance policy EXCEPT
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
Respond to the consumer's complaint.
Nonforfeiture values guarantee which of the following for the policyowner?
That the cash value will not be lost
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
By how many days does the discontinuance of a group insurance policy reduce the time limit for providing notice of claim or proof of loss?
0 days
Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?
100% participation of members is required in noncontributory plans.
If a producer has been convicted of a crime, he or she must notify the Commissioner within
30 days.
Which of the following are NOT fundable by annuities?
Death benefits
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
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor Benefit
Who can request changes in premium payments, face value, loans, and policy plans?
Policyowner
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by the age, sex and occupation of each individual certificate holder.
Which of the following entities is held responsible for the contents of an insurer's advertisement on local TV station?
The insurance company
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 TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%.
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of
Coercion
Which is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
A nonresident licensed producer decides to conduct business under an assumed name. Which of the following is true?
Nonresident producers may not conduct business under any name besides legal names.
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating.
If a life insurance policy has an irrevocable beneficiary designation,
The beneficiary can only be changed with written permission of the beneficiary.
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
The producer must provide the applicant with a Notice Regarding Replacement.
The Waiver of Cost of Insurance rider is found in what type of insurance?
Universal Life
A producer's appointment lasts for how long?
Until it is terminated
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of premium.
When an insurance producer negotiates for an insurance contract on behalf of a client, the producer is acting as a(n)
Broker.
An applicant for a producer's license has successfully completed all of the steps necessary to obtain the license. The soon-to-be producer does not want to wait until he receives his license in order to begin working. Which of the following is possible?
The person can obtain a temporary work authority.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
Warranty
An insurance company and insured are settling a lawsuit involving a life insurance policy. The insurer believes that the application would help to establish material facts in the case. Which of the following is true?
Applications can only be used in court cases if they are attached to or endorsed upon the issued policy.
The premiums paid by the employer in a business life insurance policy are
Tax deductible by the employer.