Simulated Life Exam -- Questions that were troublesome

Each person licensed as an agent or solicitor is required to complete continuing education instruction every:

3 years

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insured's death?

A MINOR son of the insured

In reference to fixed annuities, what comprises most of a life insurance company's general account?

Conservative Investments like bonds

In insurance transactions, fiduciary responsibility means:

Handling insurer funds in a trust capacity

When must an IRA be completely distributed when a beneficiary is not named?

December 31 of the year that contains the fifth anniversary of the owner's death.

Who assume control over an insurance company's funds and management if they become insolvent?

Department of Insurance

Which is true about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income

Your client's employer does not offer a company-wide annuity contract. What type of annuity contract could your client obtain?

Individual (NOT SINGLE)

Which of the following best describes annually renewable term insurance?

It is level term insurance

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

It provides income the beneficiary cannot outlive

Which of the following is NOT true regarding a temporary license in this state?

It will continue for 180 days even if the owner disposes of the business

Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT:

Other insurance coverages

Julie pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. Julie has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of Premium option

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a:

Settlement Option

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

Survivor Protection

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased only by providing evidence of insurability

The Superintendent issues a cease and desist order. A hearing is held and the SI decides to continue the order. The agent wants to appeal the decision, which is true:

The order can be appealed

A prospective deferred annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. The agent most likely explained which of the following?

The owner will receive some of the money back, which will depend on the surrender value established by the insurer at the time that the contract is terminated

What must happen when an individual policy or annuity has been personally delivered to the policyowner?

The policyowner must sign a delivery receipt

All of the following are characteristics of a group life insurance plan EXCEPT:

There is a requirement to prove insurability on the part of the participants