Quiz

Funds exceeding the premium paid are taxable as ordinary income

Which is true about the cash surrender nonforfeiture option?

Which of the following is NOT true regarding Equity indexed annuities

They earn lower interest rates than fixed annuities

At the time the insured purchased her life insurance policy she added a rider that will allow her to purchase additional insurance...

Guaranteed insurability

Which of the following documents delivered to the policyowner includes information....

A policy summary

Which of the following best describes the concept that the insured pays a small amout of premium....

Aleatory

In which of the following circumstances is an active producer license NOT requried ?

A retiree receives renewal commission for policies written when he was active producer?

Which of the following of life insurance policy guarantees immediate cash value

Single premium

Suicide is excluded for a specific period of years and covered thereafter

Which of the follow statement about a suicide clause in a life insurance policy us TRUE?

All of the factors beig equal the least expensive first-year premium payment is found in

Annually renewable term

An insured owns a $50,000 whole life policy at age 47 the insured decides to cancel...

$50,000

Under SIMPLE plans participating....

3

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

Automatic premium loan

If the annuitant dies during the accumulation period who will recieve the annuity benefits

Beneficary

Which of the followinf is a feature of a variable annuity

Benefit payment amouts are not guaranteed

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a sp.....

Incontestability clause

Which provision of a life insurance policy states the insures duty to pay benefits upon...

Insuring clause

When Y applied for insurance and paid the initial premium on august 14....

Issue the policy anyway and pay the face value to the beneficiary

What is the purpose of a conditional receipt

It is intended to provide conversge on a date eariler thn the date of the issuance of the policy

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

It would not occur in a deferred annuity

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and survivor

Twin brothers are starting a bew business they know it will take serveral years to bulid ......

Joint life

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

Life income with period certain

Which unicersal life option has a gradually increasing cash value and level death benefits

Option A

Which of the following explains the policyowners right to change beneficiaries choose option..

Owner's rights

Which of the following allows the insurer to relieve a minor insured from premium payments if the...

Payor benefit

Which of the following riders would NOT cause the death benefit ti increase

Payor benefit rider

Paul is a producer in kansas abd wants to become a producer in iowa the department will waiver certain examination....

Reciprocity

Which of the following is true if an insurer bases a life insurance policy loan interest rate on a publised monthly avarage

The avarage must not exceed the monthly average of the month ending 2 months before the date the rate is detemined

A corporation is the owner and beneficiary of the key person life policy....

The benefit is received tax free

Which of the following is INCORRECT concering a nonconteibutory group plan

The employees receive individual policies

What is the purpose of a disclosure statement in life insurance policies

To Explain features and beneficts of a proposed police to the consumer

What is the purpose of life insurance solicitation regulations

To help consumers compare life insurance products in regard to their relative cost

An insurered been diagnosed with a life threatening disease and his given approx six month....

Viatical settlement

Which of the following would be considered an unfair claims settlement practice

A claims adjuster advises the insured that if the claim goes to arbitration the insured eould probably receive less than what us currently being offered

An insured receives ab annual life insurance dividend check what term best describes this arrangement

Cash option

Under which nonforfeiture option does the company pay the surrender value and have no further obligation.....

Cash surrender

If an applicant for a life insurance policy is found to be a substandard risk the insurance company is most likely to

Charge a high premium

When a producer was reviewing a potential customers coverage written by another company....

Defamation

Which of the following information will be stated in the consideration clause of a life insurance policy

The amount of premium payment

The president of a company is starting an annuity and decides that his....

The annuitant must be a natural person

The information in the buyers guide

The information in the buyers guiide

Which of the following would provide an underwriting with information concering an applicants health history

The medical information bureau

What is the advantage of reinstating a policy if applying for a new one ?

The original age is used for premium determination

All of the following are true of an annuity owner EXCEPT?

The owner must be the party to receive benefits

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Universal life-option A

If an applicant for a life insurance policy and person to be insured by the policy.....

Whether an insurable interest exists between the individuals

If a consumer request additional information concering an investigative consumer report, how long does the insure or the reporting agency have to comply??

5 days

If an insurer believes that it has received a fraudulent claim it must notify the bureau and request an investigation...

60 days

Periodic payments of accumulated funds best describes

An Annuity

The life and health guaranty association maintains all of the following accounts EXCEPT

An Unallocated life insurance account

Which of the following terms is used to name the nontaxed return of unused premiums?

Dividend

All of the following statements concering dividends are true EXCEPT

Dividend amounts are guaranteed in the policy

Items stipulated in the contract that the insure will not provide coverage for are found in the ??

Exclusion clause

Which is the appropriate action by the insurer if prospective insured submitted an incompelets application

Return the application to the applicant for completion

Which of the following statement is NOT accurate regarding commissions and referrals

Serivce fees are acceptable as long as they policyholder is licensed

If an insure issued a policy based on the application that had unanswerd questions ...

The policy will be interpreted as if the insure waived its right to have an answer on the application

To lessen the risk of financial loss because of the death of a key employee.

What is the purpose of key person insurance

How long is a commissioners term

4 years

Life insurance death proceeds are

Generally not taxed as income

A policyowner who also the insured want to name her husband as the beneficary of her life policy. She also wishes ti retain all of the rights of ownership. The policyowner should have her husband named as the?

Revocable Beneficary

Which of the following statement about a suicide clause ina life insuarance policy is TRUE?

Suicide is excluded for a specific period of years and covered thereafter

The death protection component of universal life insurance is always

Annually renewable term

In an annuity the accumulated money is converted into a stream of income during which time period?

Annuitization period

The buyers guide and a life insurance cost index

The policy summary and the buyers guide

An individual is purchasing a permanent life insurance policy with a face value of $25,000 while thus us all the insurance that he can afford ....,

Guaranteed insurability option

A women has a whole life policy in force for $300,000 she is terminally ill she want to get an advance...

She probably met with a viarical settlement company