Part II

If an agent's appointment is terminated, suspended or revoked, the agent must cease selling or soliciting on behalf of the insurer within

10 calendar days.

Who can make a fully deductible contribution to a traditional IRA?

An individual not covered by an employer-sponsored plan who has earned income

Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?

Apparent

At what time may the Insurance Commissioner inspect records pertaining to insurance transactions?

At any business time in the 3 years immediately following the relevant transaction

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?

Automatic premium loan

When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called

Class designation.

A key person insurance policy can pay for which of the following?

Costs of training a replacement

Which nonforfeiture option has the highest amount of insurance protection?

Extended Term

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

False advertising

J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent was vacationing at the time the policy was issued, so J did not receive the policy until February 18. J decides that he does not want the policy. When would J need to return the policy to the insurer in order to receive a full refund of premium paid?

February 28th, or 10 days after the time the policy is delivered.

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level term

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

#30. If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an

Modified endowment contract.

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider.

Which type of retirement account does not require the owner to start taking distributions at age 72?

Roth IRA

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

Taxation on accumulation

Which of the following would provide an underwriter with information concerning an applicant's health history?

The Medical Information Bureau

The Waiver of Cost of Insurance rider is found in what type of insurance?

The Waiver of Cost of Insurance rider is found in what type of insurance?

In a group life insurance policy, the employer may select all of the following EXCEPT

The beneficiary.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy.

What is the purpose of the regulations on life and annuity marketing practices?

To establish minimum standards for advertisement, solicitations and replacement of policies

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

Universal life

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant

With the policy

Which of the following is NOT a duty of the Commission of Insurance?

Examining each domestic insurer at least once a year

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?

The employer is the owner and beneficiary.

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract.

Which component increases in the increasing term insurance?

Death benefit

An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)

Inspection report.

Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?

Insurer's guaranteed minimum rate of interest

When a consumer refuses to provide the information necessary for the agent to make a suitable recommendation for a life insurance product for that consumer, which of the following is true?

Neither the agent nor the insurer has any further obligation to the consumer regarding suitability.