TLIE part 6

#7. Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT? a) 100% participation of members is required in noncontributory plans. b) Each member covered receives a policy. c) Coverage cannot be converted when an individual leaves the group. d) Premiums are determined by age, occupation, and individual underwriting.

a) 100% participation of members is required in noncontributory plans.

#11. If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a) 5 days b) 7 days c) 10 days d) 3 days

a) 5 days

#64. Which of the following will NOT be considered unfair discrimination by insurers? a) Discriminating in benefits and coverages based on the insured's habits and lifestyle b) Charging applicants with similar health histories different premiums based on their ethnicity c) Cancelling individual coverage based on the insured's marital status d) Assigning different risk classifications to applicants based on gender identity

a) Discriminating in benefits and coverages based on the insured's habits and lifestyle

#78. According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT a) Reduction of premium b) Reduced paid-up c) Extended term d) Shortened benefit period

a) Reduction of premium

#34. The Federal Fair Credit Reporting Act a) Regulates consumer reports. b) Protects customer privacy. c) Regulates telemarketing. d) Prevents money laundering.

a) Regulates consumer reports.

#39. The minimum number of credits required for partially insured status for Social Security disability benefits is a) 4 credits. b) 6 credits. c) 10 credits. d) 40 credits.

b) 6 credits.

#58. Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe? a) Personal b) Adhesion c) Unilateral d) Conditional

b) Adhesion

#56. Another name for a substandard risk classification is a) Elevated. b) Rated. c) Controlled. d) Declined.

b) Rated.

#6. The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this? a) Cash option b) Reduction of premium c) Paid-up addition d) Accumulation at interest

b) Reduction of premium

#27. For how long is an insurance company allowed to defer policy loan requests? a) 30 days b) 60 days c) 6 months d) 1 year

c) 6 months

#57. Which of the following is a feature of a variable annuity? a) Interest rate is guaranteed. b) Securities license is not required. c) Benefit payment amounts are not guaranteed. d) Payments into the annuity are kept in the company's general account.

c) Benefit payment amounts are not guaranteed.

#8. Which of the following components must a life insurance policy have to allow policy loans? a) Flexible premiums b) Face amount c) Cash value d) Dividends

c) Cash value

#59. Fixed annuities provide all of the following EXCEPT a) Minimum guaranteed rate of interest. b) Future income payments. c) Hedge against inflation. d) Equal monthly payments for life.

c) Hedge against inflation.

#13. When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy? a) It decreases over the term of the policy. b) It remains the same as the original policy, regardless of any differences in value. c) It is reduced to the amount of what the cash value would buy as a single premium. d) It is increased when extra premiums are paid.

c) It is reduced to the amount of what the cash value would buy as a single premium

#52. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT a) Payment of premium. b) Delivery receipt. c) Signed waiver of premium. d) Statement of good health.

c) Signed waiver of premium.

#23. If an insurer requires a medical examination of an applicant in connection with the application for life insurance, who is responsible for paying the cost of the examination? a) The examiner b) The applicant c) The insurer d) The cost of the examination will be waived.

c) The insurer

#61. All of the following would be eligible to establish a Keogh retirement plan EXCEPT a) A sole proprietor of film development store with no employees. b) A hair dresser who operates her business at her house. c) The president and employee of a family corporation. d) A sole proprietor of a service station who employs four employees.

c) The president and employee of a family corporation

#69. How must a replacing producer respond to an applicant wishing to replace existing life insurance? a) The producer must request the permission of the existing insurer. b) The producer has no specific duties. c) The producer must provide the applicant with a Notice Regarding Replacement. d) The producer must collect the existing policies and turn them over to the replacing insurer.

c) The producer must provide the applicant with a Notice Regarding Replacement

#92. The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called a) Credit health. b) Decreasing whole life. c) Multiple Protection insurance. d) Credit life.

d) Credit life.

#71. Which of the following types of insurance policies is most commonly used in credit life insurance? a) Increasing term b) Whole life c) Equity indexed life d) Decreasing term

d) Decreasing term

#70. Which of the following actions is NOT in violation of the Unfair Claims Settlement Practices Act? a) Refusing to pay claims without conducting a reasonable investigation b) Failure to respond promptly on claims communications c) Delaying a settlement because there is an additional insurance policy on a loss d) Denying an unsubstantiated claim

d) Denying an unsubstantiated claim

#51. If an annuitant dies before annuitization occurs, what will the beneficiary receive? a) Either the amount paid into the plan or the cash value of the plan, whichever is the lesser amount b) Amount paid into the plan c) Cash value of the plan d) Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

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

#94. On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of a) Concealment. b) Unfair claim practice. c) Rebating. d) Misrepresentation.

d) Misrepresentation.

#82. For which of the following actions can an agent's license be suspended or revoked? a) Misdemeanors b) Unintentional violations of state laws c) Misstatements on the application d) Rebates of premiums

d) Rebates of premiums

#19. Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must a) Defend the report if the agency feels it is accurate. b) Change the report. c) Send an actual certified copy of the entire report to the consumer. d) Respond to the consumer's complaint.

d) Respond to the consumer's complaint.

#21. What is the name of the insured who enters into a viatical settlement? a) Third party b) Contingent c) Viatical broker d) Viator

d) Viator