Primerca

The ownership provision entitles the policy owner to do all of the following EXCEPT

Set premium rates

Life settlement brokers or providers are required to give the owner a separate disclosure document no later than what date?

The date of application

In order for an insured to legally transact Inshurance it must obtain which of the following?

Certificate of authority

Which lot is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?

Law of large numbers

Under SIMPLE plans, participating employees may defer up to a specified amount each year, and the employer then makes a matching contribution up to an amount equal to what percent of the employee's annual wages?

3

The insurance company underwriter could find information concerning the personal activities in character of an application from which of the following reports?

Producers report

All the following entities regulate variable life policies EXCEPT

The guaranty Association

An absolute assignment is a

Transfer of all ownership rights in a policy

When an annuity is written, whose life expectancy is taken into account?

Annuitant

A policy owner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

Automatic premium loan

All the following are duties and responsibilities of producers at the time of the application EXCEPT

Change any incorrect statement on the application by personally initialing next to the corrected statement.

When an employee is terminated coverage under in group insurance policy, coverage continues in force

For 31 days

Paul is a producer in VermontAnd wants to become a producer in Massachusetts.The department will waive certain examination requirements,Provided that Vermont would waive the same requirements if a Massachusetts producer sought licensure in Vermont. What term is to describe this phenomenon?

Reciprocity

A producer is helping a married couple determining the financial needs of their children in the event of one or both should die prematurely. This is a personal use of life insurance known as

Survivor protection

When would a 20-pay whole life policy endow?

When the insured reaches age 100

Which of the following is true regarding a single life Settlement option?

it provides income the beneficiary cannot outlive

What is the penalty for IRA distributions that are below the required minimum for the year?

50%

An IRA Uses immediate annuity's to pay out benefits the IRA owner is nearly 75 years old when he decides to collect distributions. what kind of penalty with the IRA owner pay?

50% tax on the amount not distributed as required

Which of the following will NOT be an appropriate use of a deferred annuity?

Creating an estate

And insured has a life insurance policy that requires him to only pay premiums for a specified numbers of years until the policy is paid up. What kind of policy is it?

Limited pay life

Which of the following is the basis for a claim against an insurance policy?

Loss

If a settlement option is not chosen by the beneficiary or policy owner, which option will be used?

Lump sum

Which of the following explains the policy owners right to change Beneficiaries, choose options, and receive proceeds of a policy?

Owner's Rights

An insured purchase a life policy in 2010 and died in 2017.The insurance company discovers at the time that the insurer had concealed information during The application process. What can they do?

Pay the death benefit

The commissioner may delay the effective date of an insurers rate plan which has been duly filled for not more than 30 additional days in order to

Properly exam in the filling and any supporting information filed as requested or to permits a related hearing

All of the following statements concerning the use of life insurance and Executive Bonus are correct EXCEPT

The policy is owned by the company

Under which of the following circumstances would an insurer pay accelerated benefits?

And insured is diagnosed with cancer and needs help paying for her medical treatment

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

The beneficiary

The annuity owner dies while the annuity is still in accumulation stage which of the following is TRUE?

The beneficiary Well receive the greater of the money paid into the annuity or the cash value

All of the following are true of key person Insurance EXCEPT

The plan is funded by permanent insurance only.

If a policy includes a free look of at least 10 days,The buyers guide may be delivered to the applicant

With the policy

What is true about a spouse term rider?

The rider is usually level term insurance

When Jay applied for life insurance policy, The agent informed him that A medical exam would be required. The exam may be completed by

A paramedic or examining physician at the insurers expense

If an applicant for a life insurance policy in person to be insured by the policy are two different people, the underwriter would be concerned about

Weather in insurable interest exist between the individuals

When is the earliest a policy may go into effect?

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

A non-resident person can receive a nonresident producer license if all of the following are true, EXCEPT

The person's home state awards resident producer license says to non-residents of the state on the limited basis

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

When an insurance underwriter approves coverage

Which of the following types of insurance policies would perform the function of cash accumulation?

Whole life

What is the waiting period on a waiver of premium rider in life insurance policies?

6 months

Which of the following is another term for the accumulation period of the annuity?

Pay-in period

The commissioner may require the temporary license to have a suitable sponsor who is a licensed producer or insurer and

Who assumes responsibility for all acts of the temporary license

At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change. He wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?

Adjustable life

What documentation grants express authority to an agent?

Agent's contract with the principal

Who can make changes to the policy once it's in effect?

An executive officer of the insurer

When must insurable interest exist in a life insurance policy?

At the time of application

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

Cash option

If an insured changes his payment plan for monthly to annually, what happens to the total premium?

Decreases

Which of the following is true regarding taxation of dividends in participating policies?

Dividends are not taxable.

The authority granted to an agent through the agents contract is referred to as

Express authority

Which nonforfeiture option has the highest amount of insurance protection?

Extended term

When a reduced-paid up nonforfeiture option is chosen, What happens to the face amount of the policy?

It is reduced the amount of what the cash value would buy as a single premium

A couple owns a life insurance policy with a children's term rider. Their daughter is reaching the maximum age of dependence coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurance?

Proof of insurability is not required

When a life insurance policy stipulates that the beneficiary will receive payments In specified installments or for a specified number of years, what provision prevents The beneficiary from changing for borrowing from the planned installments?

Spendthrift provision

Corporation is the owner and beneficiaryOf the key person life policy. If the corporation collects thePolicy benefit, then

The benefit is received tax free

A 40-year-old man buys a whole life policy and names his wife as the only beneficiary. his wife dies 10 years later. he never remarries and dies at age 61, leaving to grown-up children. assuming he never change the beneficiary, the policy proceeds will go to

The insured's estate

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

The payable premium amounts that steadily declines throughout the duration of the contract

Partners in a business enter into a buy sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. Which type of insurance policy may be used to fund this agreement?

Any form of life insurance

Which of the following is a feature of a variable annuity?

Benefit payment amounts are not guaranteed

In Inshurance transactions, fiduciary responsibilities means

Handling insurer fundsIn a trust capacity

At the Time of the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called

Guaranteed insurability

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

Purchase a single premium policy for a reduced face amount

And insured pays $1200 annually for her life insurance premium. The insured applies this year $300 worth of accumulated dividends to the next year's premium, does reducing it to $900. What option does this describe?

Reduction of premium

Which of the following types of risk will result in the highest premium?

Substandard risk

What is the purpose of the buyers guide?

To allow the consumer to compare the costs of different policies

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

Guaranteed insurability rider

Which statement is NOT true regarding a straight life policy?

It's premium steadily decreases over time,In response to it's growing cash value

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint life

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

Taxation on accumulation

Connor, a license producer, paid Brandon, a fellow producer, a commission on a life sale that results from a referral from Brandon. Brandon, however, is only licensed as a health producer. Which of the following statements is true?

Brandon was not licensed in the line of insurance that results from the commission therefore, Brandon will not be paid

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the consumer price index, is called

Cost of living rider

What insurance concepts is associated with the names Weiss and Fitch?

Guides describing company financial integrity

Which kind of policy allows withdrawals or partial surrenders?

Universal life

The writer and a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Waiver of premium

A hearing may not occur sooner than how many days after the notice of hearing is served?

21

An insurance producer license will remain in effect unless revoked or suspended as long as the licensing fee prescribed is paid and

Continuing education requirements for resident individual producers are met by the due date

Who makes up the medical information bureau?

Insurers

During partial withdrawal from a universal life policy which portion will be taxed?

Interest

If a retirement plan or an annuity is "qualified," this means

It is approved by the IRS

Which of the following is NOT true regarding The accumulation period of an annuity?

It would not occur in a deferred annuity.