Stimulate your exam pt2

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?

60

Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application?

A good health statement

Who is a third-party owner?

A policyowner who is not the insured

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

Aleatory

Employer contributions made to a qualified plan

Are subject to vesting requirements

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Cash surrender

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

Common Disaster

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration. "Consideration" is the value offered by the insured to the insurer, and vice versa. The insured makes accurate statements in the application and remits premium payments. In exchange, the insurer provides benefits as stipulated in the contract.

Representations are written or oral statements made by the applicant that are

Considered true to the best of the applicant's knowledge

Which of the following is not typically excluded from life policies?

Death due to plane crash for a fare-paying passenger

Which of the following best describes the allegory of nature of an insurance contract?

Exchange of unequal values

An insurance company is domiciled in Montana and transacts insurance inWyoming. Which term best describes the insurer's classification in Wyoming

Foreign

Under what conditions will proof of insurability not be required of an employee wanting to enroll in a group insurance plan?

If the employee enrolls within a certain time period

A return or premium term life policy is written as what type of term coverage?

Increasing

What are the two components of universal policy?

Insurance and cash account

Which of the following best describes annually renewable term insurance?

It is level term insurance

The sole beneficiary of a life insurance policy dies before the insured. If the policyowner does not amend the beneficiary designation, what will happen to the policy's death benefit?

It will be paid to the insured's estate.

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level term A 20-year term policy is written to provide a level death benefit for 20 years.

Which of the following is an example of a limited-pay life policy?

Life Paid-up at Age 65

Which of the following documents must be provided to the policy or applicant during policy replacement?

Notice regarding replacement

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Paid-up option With the paid-up option, the insurer can accumulate dividends at interest and then use them, in addition to interest and the policy's cash value, to pay the policy earlier than planned. This is different from paid-up additions, in which the dividends are used to buy additional policies that increase the face amount of the original policy.

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor benefit

Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a

Premium receipt

Which of the following is among the regulations set forth by Florida replacement rule?

Providing a written comparison and summary statement

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

Rebating

When an insured under a life insurance policy died, the designated beneficiary received the face amount the policy, as well as a refund of all of the premiums paid. Which rider is attached to the policy?

Return of premium

If an agent fails to obtain an applicant's signature on the application, the agent must

Return the application to the applicant for a signature

What are the 2 offices of the Financial Services Commission?

The Office of Financial Regulation and the Office of Insurance Regulation

Which of the following would qualify as a competent party in an insurance contract?

The applicant has a prior felony conviction

Which of following is not the consideration in a policy?

The application given to a prospective insured

Which is not true about beneficiary designations?

The beneficiary must have insurable interest in the insured.

The annuitant dies while the annuity is still in the accumulation stage? Which of the following is true?

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

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

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

An absolute assignment is a

Transfer of all ownership rights in a policy: the new policy owner does not need to have an insurable interest in the insured.

Social security was created to provide all of the following benefits except

Unemployment income

When transacting business in this state an insurer formed under the laws of another country is known as a/an

alien insurer

which of the following terms describes false statements about the financial condition of any insurer that are intended to injure any engaged in business of insurance?

defamation

The main difference between immediate and deferred annuities is

when the income payments begin