Pre licensing exam pt.2

How many hours per year do you have to work to be insured in a keogh plan?

1,000hrs

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained ?

3 days

How long is a company allowed to defer policy loan requests?

6 months

In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. What is the maximum annual interest rate?

8%

Guaranteed Insurability Rider

Allows insured to make periodic additions to the face amount at standard rates without proving insurability

Employer contributions made to a qualified plan

Are subject to vesting requirements

What best describes fixed period settlement ?

Both interest and principal will be liquidated over a selected period of time

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

What information is excluded from the application?

Credit history report

Who grants and revokes licenses ?

Department of financial services

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

What describes the coverage provided by term policies, as compared to any other form of protection?

Greatest

What type of insurance would be used for a Return of Premium rider?

Increasing Term

Which provision of a life insurance policy states the insurers duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring clause

Why is an equity indexed annuity considered to be a fixed annuity?

It has a guaranteed minimum interest rate.

What is true of a qualified plan?

It has a tax benefit for both employer and employee.

What is the official name for social security?

Old Age Survivors disability insurance

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

Other-insured rider

Which option is being utilized when the insurer accumulates dividends at interest plus interest and cash value to pay policy up early?

Paid up option

What allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor benefit

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount

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

Revocable beneficiary

The ownership provision entitles the policy owner to do all the following except

Set premium rates

What determines the length of time that benefits will be received under the fixed amount settlement option?

Size of each installment

An agent's appointment has been denied. Which of the following is true?

State taxes may be refunded upon a written request.

Which of the following would help prevent a universal life policy from lapsing?

Target premium

Qualified and non qualified plans have this in common?

Tax action on accumulation

The premiums paid by an employer in a business life insurance policy are ?

Tax deductible by the employer

The primary beneficiary of her life policy found that no settlement option was stated in the policy on the date of her husbands death. Who will select the settlement option in this case?

The beneficiary

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

The same face amount as in the whole life policy

Under what circumstances can an agents appointment be transferred to another persons?

Under no circumstances

An insured submits a proof of loss form within 10 days of a loss. The insurer, however, does not acknowledge the form for 3 months. Which of the following violations has the insurer committed ?

Unfair claims settlement

What is not an available benefit under Social Security?

Welfare benefits

What is the time frame for filing relevant suspicious activity reports?

Within 30 days of INITIAL DISCOVERY

The death protection component of Universal Life Insurance is always

annually renewable term

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

profit-sharing plan

An insured committed suicide 6 months after his life insurance policy was issued. The insurer will

refund the premiums paid

All of the following statements are true regarding installments for a fixed period annuity settlement option except?

It is a life contingency option.

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

It is only taxable if the cash value exceeds the amount paid for premiums.

Which is not true regarding a policy summary?

It must be combined with a sale's illustration

What's true about a buy sell agreement?

It's usually paid with life insurance policy

Variable whole life insurance is based on what type of premium?

Level fixed

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

Life income with period certain

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Limited pay whole life

Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescence home?

Long term care