My Missed Questions (IA Life Ins)

The premium is based on the age of each insured

All of the following are true of the Survivorship Life policy EXCEPT

Purchase of a new home

The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT

Spouse term and children's term

The family term rider incorporates

Income payments begin within 1 year from the date of purchase

Which of the following is not true regarding a deferred annuity?

Mexico

An example of an alien insurer doing business in this state is formed under the laws of

Policyowner's minor children or business associates

Policies written on a third-party ownership basis are usually written to cover which of the following?

The creditor

Under a Debtor Group insurance policy, who must be the beneficiary of the proceeds?

SEC, FINRA, and Departments of Insurance

Variable insurance and Variable annuities are regulated by

The policyowner at any time during the life of the insured

Which of the following has the right to change a settlement option in a life insurance policy?

Being permanently disabled

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

Multiple wire transfers from the account in the amount of $5000

Which of the following would qualify as a suspicious transaction and would require the filing of an SAR?

Proof of insurability must be provided at each renewal

All of the following are true of annually renewable term insurance EXCEPT

4 years

For how long must producer maintain records of completing education?

Cash values grow tax deferred

Which of the following is true of the taxation of cash values in a business life insurance policy?

An Accidental Death Rider

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?

Cross out the incorrect information, write in the correct answer, and have the applicant initial the change

While completing a life insurance application the applicant realizes that she should have answered an earlier question differently. What should the agent do to make the necessary change?

Children's Term Rider

An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount?

Void coverage in the event that the insolvent insurer committed fraud

Which of the following is NOT among the actions that could be taken by the Iowa Life and Health Guaranty Association in the event of an insurer's insolvency?

Contributions are tax deductible

All of the following are true of a nonqualified deferred compensation plan EXCEPT

Someone who wants to grow retirement funds tax deferred

Which of the following individuals would be a likely candidate to purchase a deferred annuity?

The premium can be paid solely from the insured's funds

With regard to a Labor Union Group life insurance policy, which of the following statements is NOT correct?

The cash value in a policy

All of the following are consideration in an insurance policy EXCEPT

The death benefit is taxable to the business

All of the following are true about key-person insurance EXCEPT

The published monthly average for the calendar month 2 months before the rate is determined

Adjustable maximum interest rates for policy loans taken out on life insurance policies may not exceed

Yes, proceeds in excess of face amount are taxable as interest

An insured has a life insurance policy in the amount of $250,000 naming his wife as beneficiary. Upon his death, his beneficiary decides not to receive the death benefit for some time. When she finally receives the death benefit check, it's in the amount of $250,530. Is any portion of the proceeds that the beneficiary receives taxable?

They are received tax free

Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?

AN MEC must always pass the 7-pay test

Which of the following statements is INCORRECT concerning Modified Endowment Contracts (MECs)?

Legal and not against public policy

For a contract to be enforceable by law, the purpose of the contract must be

immediately

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

Prior to performance of the test

If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

The underwriters approve the application

If am applicant submits the initial premium with an application, which action constitutes acceptance?

The plan must be temporary

All of the following are general requirements of a qualified plan EXCEPT

Convert to a whole life policy for the same face amount without proof of insurability

An individual has a $200,000 convertible term life insurance policy. If he chooses, he can

Paid-up Additions

Which dividend option will increase the death benefit?

Automatic Premium Loan option

Which provision may be added to a permanent life policy, at no cost, that insures that the policy will not lapse so long as there is cash value?

The home office underwriter

In a life insurance application, all of the following signatures will be required EXCEPT

100% of eligible employees must participate

In a noncontributory group policy

Borrower only

In credit life insurance, who is responsible for paying the policy premiums?

Pass a written exam

Before submitting your application for a resident producer license, you must first

Pay next year's premium in advance

In order to reinstate a life insurance policy the insured must do all of the following EXCEPT

Fixed Amount

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

The face amount is paid to the insured

What happens to the face amount of a whole life policy if the insured reaches the age of 100?

Extended Term

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Delivered

An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered

The policy face amount remains level throughout the life of the policy

All of the following statements about indexed whole life insurance are correct EXCEPT

Use it for emergency expenses

Considering the principles of liquidity, how would the policyowner use today's cash values in a life insurance policy?

Next year's premium

The reduction of premium option uses the dividend to reduce

whole life without proof of insurability

When an insured terminates membership in the insured group, the insured can convert to

Decreasing Term

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

3 Days

An insurer must notify the consumer in writing than an investigative consumer report has been requested, within how many days of the initial request?

The Insurance Commissioner

Who supervises the Iowa Life and Health Guaranty Association?

Pay the death benefit to the estate of the insured

Key person insurance can provide protection for all of the economic losses to a business EXCEPT