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An insured receives an annual life insurance dividend check. What term best describes this arrangement? 1. Cash Option 2. Reduction on premium 3. Annual dividend provision 4. Accumulation at intrest

1 or A

A deceptive act or practice committed by a person with the intent to secure an unfair advantage or unlawful gain is known as 1. Fraud 2. transacting without a license 3. misinformation 4. misrepresentation

1 or A

A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy? 1. Family Protection Policy 2. Universal life policy 3. Family Income policy 4. Level Term policy

1 or A

All of the following are requirements for life insurance illustrations EXCEPT 1. they must identify non guaranteed values 2. they must differentiate between guaranteed and projected amounts 3. they must be part of the contract 4. they may only be used if approved

3 or C

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? 1, representation 2,.adhesion 3. consideration 4. good faith

3 or C

In addition to additional penalties, fines, and imprisonment for violating the provision relating to misrepresentation, the commissioner may suspend the license of such person for a period of 1. 6 months 2. 1 year 3. 3 years 4. 5 years

3 or C

In an accidental death and dismemberment which of the is not covered? 1. Loss of limb 2. loss of finger 3. loss of life 4. loss of sight

3 or C

The price of insurance for each exposure unit is known as 1. insurable interest 2. Premium 3. Rate 4. Consideration

3 or C

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? 1. Policy loans are taxable at distribution 2. Accumulations are tax deferred 3. Withdrawls are not taxable 4. Distributions before age 59 1/2 incur at a 10% penalty on policy gains

3 or C

the title page of the policy provides a summary of the benefits provided and coverages provided by the policy. All of the following information is included in the title page EXCEPT 1. the premium amount and modal 2. the effective date and the termination date of the policy 3. the insureds beneficiaries 4. type of policy, type of coverage provided

3 or C

All of the following statements are true of a nonqualified retirement plan EXCEPT 1. Increases in funds are not taxed until recieved 2. Contributions grow tax deferred 3.They do not qualify for special tax treatment from the IRS 4. Contributions are tax exempt

4 or D

The waiver of cost insurance rider is found in what type of insurance? 1. Whole life 2. Joint and Survivor 3. Juvenile Life 4. Universal Life

4 or D

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive 1. Guaranteed minimum benefit 2. the amount paid into the annuity 3. the remainder of the principal 4. Nothing; the payments will cease

4 or D

What do you not need a license for?

Administrative officer

What happens to an employee that gets onto the group life policy later than everyone else?

must go through a check and show proof of insurance

Rescind

when you make a mistake that makes the contract voided

How many days must an insurer notify the policyholder in advance to terminate it? 1. 1 week 2. 31 days 3. 30 days 4. 60 days

C or 3

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? 1. 10 days 2. 3 days 3. 5 days 4. 7 days

C or 3

An insurer who engages in the insurance business and violates the code with respect to insurance replacement shall on the first violation 1. be fined a sum of $10,000 2. be fined a sum no less of $30,000 and no more than $300,000 3. have his/her license revoked 4. be fined a sum $1,000

1 or A

Why is the amount called that pays for an accidental death? 1. Policy Sum 2. Stated Sum 3. Policy limit 4. amount value

1 or A

all of the following statements are correct regarding credit life insurance EXCEPT 1. benefits are paid to the borrowers beneficiary 2. the amount of insurance permissible is limited per borrower 3. premiums are usually paid by the borrower 4. benefits are paid to the creditor

1 or A

the protection of the insurer from adverse selection is provided in part by 1. a profitable distribution of exposure 2. reduction costs 3. a drop in applicants 4. a reduction in coverage

1 or A

what non forfeiture option would cover you for a life time? 1. Paid up 2. Extended Term 3. Lump Sum 4. Fixed amount

1 or A

Which of the following best describes what the annuity period is? 1. the period of time from the effective date of the contract to the date of its termination 2. the period of time during which accumulated money is converted into income payments 3. the period of time from the accumulation period to the annuitization period 4.The period of time which money is accumulated into an annuity

2 or B

Which of the following is NOT true regarding the accumulation period of an annuity? 1. It is also known as the pay-in period 2. it would not occur in a deferred annuity 3. it is the period during which the annuity payments earn interest 4. it is the period over which the owner makes payments into an annuity

2 or B

Which of the following riders would NOT cause the death benefit to increase? 1. Accidental Death Rider 2. Payor Benefit Rider 3. Guaranteed insurability Rider 4. Cost of living rider

2 or B

Employer contributions made to a qualified plan 1. may discriminate in favor of highly paid employees 2. are after tax-distributions 3. are taxed annually as salary 4. are subject to vesting requirements

4 or D

What type of insurance would be used for a Return of Premium rider? 1. level term 2. decreasing term 3. annually renewable term 4. increasing term

4 or D

Which of the following is true regarding taxation of dividends in participating policies? 1. Dividends are taxable only after a certain amount is accumulated annually 2. Dividends are taxable in some life insurance policies and non taxable in others 3. Dividends are considered income for tax purposes 4. Dividends are not taxable

4 or D

Which of the following maternity cares are NOT covered? 1. Maternity care prenatal 2. Child Births 3. Post natal care 4. Well baby care

4 or D

Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly? 1. the beneficiary of the applicant 2. the insurance company 3. the applicant 4. the producer

4 or D

7 day elimination period but you are sick for 15 days. How many days would you get the benefits for

8 DAYS

an Insurer received a claim on May 1st. On May 31st, the claim was approved in its entirety. By what date can the claimant expect the payment? 1. June 30 2. July 10 3. June 3 4.June 10

A or 1

Which of the following documents delivered to the policy owner includes information about premium accounts, cash values, surrender values and death benefits for specific policy years? 1. A privacy notice 2. Buyers guide 3. Policy Summary 4. a Notice regarding replacement

C or 3

What happens if a deferred annuity is surrendered before the annuitization period? 1. The owner will only receive a refund of premium 2. the insurer can only apply the surrender value toward another annuity 3. deferred annuities cannot be surrendered prior to the annuitization period 4. The owner will receive the surrender value of the annuity

D or 4

Which of the following is NOT fundable by annuties? 1. Cash accumulation for any reason 2. a persons retirement 3. estate liquidation 4. Death Benefits

D or 4

Instantly enrolled for Medicare part B?

Juvenile rider option

What gives an instant estate?

Life insurance