random
An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his
Attained age
which of the following settlement options in life insurance is known as straight life
Life Income
which of the following is correct regarding the premium funds received by a producer in the fiduciary capacity
Funds may be kept in a separate account
in life insurance policies, cash value increases
Grow tax deferred.
when a policy is replaced, replacing insurers must maintain a replacement register regarding that policy for
3 years
In insurance, an offer is usually made when
An applicant submits an application to the insurer
under which of the following circumstances would an insurer pay accelerated benefits
An insured is diagnosed with cancer and needs help paying for her medical treatment
which of the following is incorrect regarding a $100,000 20 year level term policy
At the end of 20 years, the policy's cash value will equal $100,000.
What license or licenses are required to sell variable annuities?
Both a life insurance license and a securities license
all of the following statements concerning dividends are true except
Dividend amounts are guaranteed in the policy
all of the following actions can be described as twisting except
Explaining to client the advantages of permanent insurance over term and suggesting changing policies
The type of term insurance that provides increasing death benefits as the insured ages is called
Increasing Term
which of the following best describes a misrepresentation
Issuing sales material with exaggerated statements about policy benefits
what is the benefit of choosing extended term as a nonforfeiture option
It has the highest amount of insurance protection
in which of the following situations is it legal to limit coverage based on marital status
It is never legal to limit coverage based on marital status
which of the following statements is true concerning the accidental death rider
It will pay double or triple the face amount
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
which is not true about beneficiary designations
The beneficiary must have insurable interest in the insured.
which of the following is an example of liquidity in a life insurance contract
The cash value available to the policyowner
which of the following products requires a securities license
Variable annuity
If an insured under a variable life insurance policy dies, how will the insurer respond to outstanding policy loans?
The loan amounts are deducted from the death benefit.
if a producer has procured insurance coverage for a policyowner through an unauthorized insurer which of the following could happen
The producer may be held personally liable for policy claims
which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated
Those who have been insured under the plan for at least 5 years
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
If a licensee whose license has been temporarily suspended demands a hearing, the commissioner must hold the hearing demanded as according to all the following statements except
Within 30 days of the license effective date
when an agent is soliciting a policy through an insurer whose responsibility is it to determine that the insurer is authorized to transact business in this state
agents
the least expensive first year premium is found in which of the following policies
annually renewable term
all of the following information about a customer must be used in determining annuity suitability except
beneficiary's age
The authority granted to an agent through the agent contract is referred to as
express authority
Following a career change, an insured is no longer required to perform many physical activities, so he has implemented a program where he walks and jogs for 45 minutes each morning. The insured has also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario describe?
reduction
the commissioner of insurance does not have the authority to
set rates
insurance producers must ensure that contracts they recommend are in the best interest of the insured. this is called
suitability
if during a sales process, a producer gives special favors or advantages such as money or prizes to a prospective client the producer is guilty of
why should t
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called
Life income with period certain
which part of an insurance application would contain information regarding the cause of death of the applicants deceased relatives
Medical information
which of the following statements about group life is correct
The cost of coverage is based on the ratio of men and women in the group.