sye

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

unemployment income

what is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?

$3,000

if a licensed producer dies, the Director may issue a temporary license to the producers representative for an i risk period of

180 days

producer licenses are good for what period of time before renewal is required?

2 years

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$50,000

a producer failed to complete the required continuing education credit hours for this compliance period, and allowed his license to lapse. within what time period after the deadline may the license be reinstated?

12 months

the settlement option is not chosen by the policyowner or the beneficiary, which option will be used?

Lump sum

which of the following will be included in a policy summary?

Premium amounts and surrender values

all of the following are characteristics of group life insurance except

Premiums are determined by the age, sex and occupation of each individual certificate holder.

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

An insured buys a 5-year level premium term policy with a face amount of $100,000. The policy also contains renewability and convertibility options. When the insured renews the policy in five years, what will happen to the premium?

The premium will increase because the insured will be 5 years older than when the policy was originally purchased.

which is true about a spouse term rider?

The rider is usually level term insurance

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?

consideration

the purpose of the Illinois Guaranty Association is to

help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company

which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?

long term care

if an actuary would like to sell life insurance policies, what license is needed?

producer's license for life insurance

which of the following is not a duty of the Director of Insurance?

settling premium rates

in order for a firm to maintain its registration as a legal insurance company, what must it do?

submit a biennial fee to the Director

which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

which of the following would provide an underwriter with information concerning an applicants health history?

Medical Information Bureau

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider

an insured has a life insurance policy from participating company and receives quarterly dividends. he has instructed the company to apply the policy dividends to increase the death benefit. the dividend option that the insured has chosen is called

Paid-up additions

what describes the specific information about a policy?

Policy summary

which of the following is correct concerning the taxation of premiums in a key person life insurance policy?

Premiums are not tax deductible as a business expense.

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each renewal.

which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

which of the following is true regarding variable annuities?

The annuitant assumes the risks on investment

which of the following best defines the owner as it pertains to life settlement contracts?

The policy owner of the life insurance policy

How are contributions to a tax-sheltered annuity treated with regards to taxation?

They are not included as income for the employee, but are taxable upon distribution.

what is the purpose of a fixed-period settlement option?

To provide a guaranteed income for a certain amount of time

in a survivorship life policy, when does the insurer pay the death benefit?

Upon the last death

when both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

conditional

which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy?

owner's rights

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original application

the director may refuse to issue a license if a licensee's aggregate amount of premiums on controlled business exceeded the aggregate amount of premiums on all other insurance business during

2 calendar years immediately preceding the extension date of the license

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration

which of the following is true about the 10-day free-look period in a life insurance policy?

it begins when the policy is delivered

the premium of a survivorship life policy compared with that of a joint life policy would be

lower

in insurance, an offer is usually made when

the application is submitted

for how long is an insurance company allowed to defer policy loan requests?

6 months

how long must an insurer keep books and records of insurance transactions in the Premium Fund Trust Account?

7 years

The term "illustration" in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy.

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

An agent selling variable annuities must be registered with

FINRA

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

It is only taxable if the cash value exceeds the amount paid for premiums.

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew the policy for another 10 years, but at a higher premium rate.

the validity of coverage under a life insurance policy may not be conteste, except for nonpayment of premium, after the policy has been in force for at least how many years?

2 years

the director informs a producer that its license has been terminated and immediately receives a request for the charges to be reviewed in court. within what maximum number of days must the hearing be held?

30 days

Which policy component decreases in decreasing term insurance?

Face amount

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

which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policy owner?

Third-party ownership

which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

Universal Life

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

the term "illustration" in a life insurance policy refers to

a presentation of nonguaranteed elements of a policy

the death protection component of universal life insurance is always

annually renewable term

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

charge a higher premium

Which of the following type of discrimination by the company underwriters would be considered legal?

in policy benefits on the basis of life expectancies

Life income joint and survivor settlement option guarantees

income for 2 or more recipients until they die

if a nonresident if applying for a license in illinois and his home state does not require continuing education for illinois residents,

the continuing education requirement will be waived in illinois

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

Death due to plane crash for a fare-paying passenger

how often is a resident insurance producer required to pay license fees?

every 2 years

which of the following applies to the 10-day free-look privilege?

it permits the insured to return the policy for a full refund of premiums paid

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Pay the policy proceeds only if it would have issued the policy.

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

an insured has been diagnosed with a life threatening disease and is given approximately 6 months to live. the insured is in a hard financial situation which will worsen with the upcoming medical expenses. which of the following options could the insured utilize right away?

Viatrical Settlement

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 indicated that the life insurance policy had what provision?

common disaster

when the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

equal to the original policy for as long as the cash values will purchase

an insurer creates the advertisement in January of 2015 and keeps a record of its contents on file. it's next regular examination will occur in December of 2018. how long must the insurer keep its advertisement on file?

January 2019

if an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information except the applicants

ancestry

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.

which of the following statements regarding the taxation of Modified Endowment Contracts is false?

Withdrawals are not taxable

An insurance contract requires that both the insured and the insured meet certain conditions in order for the contract to be enforceable. what contract characteristics does this describe?

conditional

The type of policy that can be changed from one that does not accumulate cash value to the one that does, is a

convertible term policy

j applied for a life insurance policy one January. the policy was issued January 31. j's agent was vacationing at the time the policy was issued, so j did not receive the policy until February 18. j decides that he does not want the policy. when would j need to return to the insurer in order to receive a full refund of premium paid?

february 28th, or 10 days after the time the policy is delivered

who must inform the Director of a producer's felony conviction?

the producer

When twin brothers applied for life insurance from company A, the company found that while neither of them smoked and both had a similar lifestyle, one of the twins was in a much stronger financial position than the other. because of this the company charged him a higher rate for his insurance. this practice is considered

Discrimination

which of the following defines the term controlled business?

insurance written in the interests of the producer who solicits a policy

all of the following would be considered rebating except

an agent misrepresents policy benefits to convince a policy owner to replace policies

A producer conducts business ethically and receives high praise from most customers. the producer pays all of the required license renewal fees, but receives a notice that it's license has been terminated. what is the most likely reason for this?

lack of continuing education

which of the following is true regarding the annuity period?

It may last for the lifetime of the annuitant

In terms of parties to a contract, which of the following does NOT describe a competent party?

The person must have at least completed secondary education.

which of the following is true about the premium on the children's rider in a life insurance policy?

it remains the same no matter how many children are added to the policy

a group insurance policy was solicited by a limited insurance representative. which of the following is true according to the disclosure regulation?

the representatives name and signature must appear on the master policy