Another One

Any inducement offered to the insured in the sale of an insured policy that is not specified in the policy is an unlawful practice known as: - False advertisement - Coercion - Rebating - Twisting

- Rebating

Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives? - Agent's report - General Information - Medical information - Inspection report

- Medical Information

If an annuitant dies during the accumulation period, what benefits (if any) will be included in the annuitant's estate? - Accumulated cash value - Fully annuity benefits - No benefits - Policy loans

- Accumulated cash value

Which of the following can surrender a deferred annuity contract? - Only the insurance company for nonpayment of premiums - The beneficiary after the owner's death - A deferred annuity cannot be surrendered - Only the annuity owner

- Only the annuity owner

The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket in at least what type of print? - 12- point standard print - 12- point bold print - 14- point standard print - 14- point bold print

- 12- point bold print

The legal definition of "person" would NOT include which of the following? - A family - An individual human being - A business entity - A corporation

- A family

Which of the following is TRUE about a class designation? - It is not allowed - It determines the succession of beneficiaries - Beneficiaries are not identified by name - Beneficiaries must be part of the insured's immediate family

- Beneficiaries are not identified by name

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit for the beneficiary if the policy is approved. This is an example of what kind of contract? - Conditional - Adhension - Personal - Unilateral

- Conditional

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: - Acceptance - Consideration - Conditions - Utmost Good Faith

- Consideration

Which of the following includes information regarding a person's credit, character, reputation, and habits? - Consumers history - Insurability report - Agent's report - Consumer report

- Consumer report

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits? - Deferred interest annuity - Immediate annuity - Variable annuity - Flexible payment annuity

- Immediate annuity

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die? - Joint Life - Decreasing Term - Whole Life - Ordinary Life

- Joint Life

Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated? - Law of masses - Law of averages - Law of group evaluation - Law of large numbers

- Law of large numbers

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will: - Automatically pay the policy proceeds - Pay the policy proceeds only if it would have issued the policy - Pay the policy proceeds up to an establishment limit - Not pay the policy proceeds under any circumstance

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

The main difference between immediate and deferred annuities is: - How the annuity is purchased - The number of insureds - The amount of each payment - When the income payment begins

- When the income payment begins

Joe, Larry, and Curly own a small business. They have made a legal arrangement which states that if one of them dies or become disabled, the other two will be able to buy the partners shares. Which term best describes this arrangement? - Business Contribution - Shares Distribution - Business Partner Disability Provision - Buy-Up Distribution

- Business Contribution

Which of the following is an eligibility requirement for all Social Security Disability Income benefits? - Have attained fully insured status - Be disabled for at least 1 year - Have permanent kidney failure - Be at least age 50

- Have attained fully insured status

An individual purchased a life insurance policy on his life naming his wife as primary beneficiary and their daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit? - The primary and contingent beneficiary share death benefits equally - With the primary beneficiary written consent - If the insured dies from an accident - If the primary beneficiary predeceases the insured

- If the primary beneficiary predeceases the insured

Which of the following policy components contain the company's promise to pay? - Premium mode - Owner's right - Entire contract provision - Insuring clause

- Insuring clause

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? - Jumping juvenile - Juvenile Premium Provision - Waiver of Premium - Payor Benefit

- Payor Benefit

Which of the following is the most common way to transfer risk? - Increase control of claims - Lessen the possibility of loss - Name a beneficiary - Purchase insurance

- Purchase insurance

The risk of loss may be classified as - Pure risk and speculative risk - Certain risk and uncertain risk - Named risk and un-named risk - High risk and low risk

- Pure risk and speculative risk

Which of the following insurance option would be considered a risk-sharing arrangement? - Surplus lines - Reciprocal - Stock - Mutual

- Reciprocal

Which type of life insurance policy generates immediate cash value? - Single Premium - Level Term - Decreasing Term - Continuous Premium

- Single Premium

Which of the following feature of the Indexed Whole Life policy is NOT fixed? - Death Benefit - Policy Period - Cash Value Growth - Premium

- Cash Value Growth

If a change is needed to be made to the application for insurance, the agent may do all of the following EXCEPT - Note on the application the reason for the change - Destroy the application and complete a new one - Erase the incorrect answer and record the correct answer - Draw a line through the first answer, record the correct answer, and have the applicant initial change

- Erase the incorrect answer and record the correct answer

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT - Have a constitution - Holds annual meetings - Is contributory - Has at least 50 members

- Has at least 50 members

What is an advantage of the Temporary Insuring Agreement to the applicant? - It gives the applicant immediate coverage - It locks in the rate quoted by the agent - It provides immediate coverage even if no money was paid with the application - It guarantees that the insurance company will issue the policy as applied for

- It gives the applicant immediate coverage

Which of the following is true regarding taxation of accelerated benefits under a life insurance policy? - There is a 10% penalty for early distribution of the death benefit - They are tax free to terminally ill insured - They are always taxable to chronically ill insured - They are always taxed

- They are tax free to terminally ill insured

An agent has completed 30 hours of continuing education by the end of a license period instead of the required 24 hour. What will happen to the 6 hours in excess? - The outcome will depend upon whether it is the agent's first license period or not - They will be lost - They will be carried over into the next licensing period - They will be credited toward the agent's commission

- They will be carried over into the next licensing period