2-15 LHVA cards

An insurer must notify its current customers of its privacy policies or practices at least once every how often?

12 months

Stanley is licensed as a life insurance agent and also sells variable annuities in Florida. He is taking several continuing education courses to renew his license. How many hours must he complete in courses covering suitability in annuity and life insurance transactions?

3 hours

James is a licensed agent who lives in Florida. He moves to Georgia. When must he notify the Department of Financial Services of his move?

30 days

Delta Insurers typically affirms or denies claims within 120 days after it receives proof of loss statements. Which statement is correct?

Delta is engaged in unfair claims settlement practices.

A family income policy combines whole life insurance with decreasing term, while a family maintenance policy combines whole life and level term insurance.

How does a family income policy differ from a family maintenance policy?

Among the variety of life insurance products, what of the following is a unique advantage of an annuity?

Its purpose is to liquidate a fund and protect against outliving one's income

Question 25 of 66 Jason bought a $100,000 graded premium whole life policy while Dana bought a $100,000 ordinary life policy. All other factors being equal, which of the following statements is most correct?

Jason's cash value will be much lower than Dana's during the policy's grade-in period

Arianna owns several industrial life insurance policies and wishes to convert them into an ordinary life insurance policy. Which of the following is required to convert the policies?

The combined face value of Arianna's policies must exceed $3,000.

To be classified as terminally ill and thus qualify for accelerated benefits from a life insurance policy on a tax-free basis, an insured must meet all of the following qualifications:

The person must be certified by a doctor as having a condition that can be expected to result in death within five years. (A qualified viatical settlement provider pays the accelerated benefits.This type of provider buys the policy from the insured for part of the policy's face amount.)

Which statement regarding defined contribution qualified plans is NOT correct?

The retirement benefit from defined contribution plans typically does not include contributions from the participant. When the retirement benefits from defined contribution plans are paid out, they are usually fully taxable.

Which of the following penalties may the Office of Insurance Regulation impose if an agent intentionally represents an unauthorized insurer in Florida?

a 10,000 fine

Jeremy and his brothers each purchased individual health insurance policies at a young age, and have kept their policies in force over the years, because of their family history of cancer . Which of the following describes the tendency of Jeremy and his brothers to seek insurance?

adverse selection

Due to a significant drop in sales this year, Agent Smith has been soliciting current clients and encouraging them to use the policy values in their existing life insurance policies to purchase new policies in order to increase his commissions. Which unfair trade practice has Agent Smith committed?

churning

gives the policyowner the option to increase the face amount on his or her policy to fight inflation.

cost of living rider

Oscar has saved $250,000. He is 67 and working part time, and would like to fully retire now and receive monthly payments for life. What type of annuity is the best choice for Oscar?

fixed immediate annuity

Hannah participates in her company's retirement plan, which provides for 100 percent vesting after four years with no vesting prior to that. What is this type of vesting schedule called?

full vesting

Which action must a life insurance policyowner take to assign his or her rights in a policy to a third party?

give written notice to the insurer of the assignment

For a misrepresentation to affect the validity of an insurance policy, it must be which of the following?

material

When asked about the payment of dividends by a prospect, Agent Maloney states that policy dividends are always guaranteed, even though they are not. Which unfair trade practice has the agent committed?

misrepresentation

From an insurance risk perspective, a person who smokes heavily and drinks alcohol to excess exhibits which of the following traits?

moral hazard

Art is interested in purchasing an immediate annuity. What is the maximum number of premium payments he can make towards its purchase?

one

Sandra is a single mom and takes out a life insurance policy on newborn Deandra. Sandra dies unexpectedly, but the premiums on the policy insuring Deandra's life continue to be paid. What rider did Sandra purchase?

payor benefit rider

Gina owns a $200,000 five-year renewable term insurance policy and wants to renew the policy at the end of the term. In this case, all the following statements are correct, except:

rention

Variable life and variable universal life insurance policies are regulated by whom?

the Office of Insurance Regulation and the Securities and Exchange Commission

Transacting insurance includes all of the following EXCEPT:

underwriting