CanPass
Which of the following information will be stated in the consideration clause of a life insurance policy?
The amount of premium payment
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
Which is NOT true about beneficiary designation?
The beneficiary must have insurable interest in insured.
An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?
$9,800
THe insured had a wife named as the beneficiary o his life insurance policy. To ensure that his wife had income for life afer the insured's death, he chose the life income settlement options. The am
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What characteristic makes whole life permanent protections/
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Which of the following, when attached to a permanent life insurance policy, allows the policy owner to customize the policy to provide an additional
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Which option of Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
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How many credit hours of excess continuing education are producers allowed to carry over to the next renewal cycle?
12 hours
A temporary license may be issued by the Commissioner for a period NOT to exceed how many days?
180
How soon mus the insurer pay a death benefit claim after receiving he proof of death
2 months
A producer intentionally violated insurance statutes. Ultimately, the Commissioner determined there were a total of 25 separate violations. What is the total, monetary penalty this producer can expect to receive?
250,000
Within how many days must insurance producers reports changes of
90
Insurance producers licensed in another state who move to Tennessee may apply for a resident license, as long as they do so within how many days of obtaining legal residence?
90 days
Within how many days must insurance producer reports changes of address to the Commissioner?
90 days
According to the Entire Contract provision, a policy must contain
A copy of the original application for insurance
Which of the following persons is required to hold a producer license?
A person who negotiates insurance contracts. Persons who perform clerical tasks that are not related to soliciting or negotiating insurance contracts are not required to be licensed.
Which of the following products provides income for a specified period of years or for life, and protects a person against outliving their money?
A survivorship life policy
In insurance, an offer is usually made when a. an applicant submits an application to the insurer b. the insurer approves the application and receives the initial premium c. the agent hands the policy to the policyholder d. an agent explains a policy to a potential applicant
A. an applicant submits an application to the insurer in insurance, the offer is usually made by the applicant in the form of an application. acceptance takes place when an insurer's underwriter approves the application and issues a policy
The tow types of assignments are?
Absolute and collateral
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
Adjusted to the insured's age at the time of renewal
All of the following are examples of third-party ownership of a life insurance policy EXCEPt?
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.
Partner in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to found this agreement.
Any form of life insurance
Which is the primary source of information used for insurance underwriting?
Application (The application contains most of the information used for underwriting purposes. This is why its completeness and accuracy are so crucial.)
Which of the following best describes annually renewable term insurance
It is level term insurance
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer
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 he dealt benefit to the estate of the insured. This indicates that the life insurance policy had what provision?
C. Common disaster
All of the following are duties and responsibilities of producers at the time of applications EXCEPT?
Change any incorrect statement of the application by personally initialing next to the corrected statement.
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is
Conditional. The contract is formed on the basis that certain conditions are met.
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
Consdi
A policy owner who is also the insured wants to name her husband as the beneficiary of her policy. She also wishes to retain all of the rights of ownership. The policy owner should have have her husband named as the
Contingent beneficiary
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
An individual has just borrowed $10,000 from his bank on a 5 year installment loan requiring monthly payments. What type o life insurance policy would be best suited to this situation?
Decreasing term
All of the following could be considered rebates if offered to an insured in the sale of insurance Except?
Dividends from a mutual insurer.
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
Equity indexed annuity
The requirement that a agent not co mingle insurance monies with their won funds is known as?
Fiduciary responsibility
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid?
For 20 years or until the insured's death, whichever occurs first.
All of the following are business uses of life insurance EXCEPT
Funding against company's general financial loss.
Concerning insurance, the definition of a fiduciary responsibility is
Handling insurer funds in a trust capacity
A return of premium term life policy is written as what type of term coverage?
Increasing- pays an additional death benefit to the beneficiary equally to the amount of the premiums paid
Which of the following is an example of a producer being in an unfair trade practice of rebating?
Inducting the insured to drop a policy in favor of another one when it is not in the insure's best interest.
Which of the following policy components contains the company's promise to pay?
Insuring clause
Which of the following is true about the mandatory free look in a Life Insurance policy?
It commences when the policy is delivered
Which statement is Not true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value.
Which is the primary source of information used for insurance underwriting?
Medical
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Traditional IRA contributions are tax deductible based on which of the following?
Owner's income
An insured has a life insurance policy from a 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
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Pay a reduced death benefit
All of the following are true regarding rebates EXCEPT?
Rebates are allowed if it's in the best interest of the client.
The Federal fair Credit reporting act
Regulates consumer reports
A domestic insurer issuing variable contracts must establish one or more
Separate accounts
Which of the following policies would be classified as a traditional level premium contract?
Straight life
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Survivorship life policy
All of the following are true statements regarding the accumulation at interest options except?
The interest is not taxable since it remains inside the insurance policy.
If an insured under a variable life insurance policy dies, how will the insurer respond to outstanding policy loans?
The loan amounts are deducted from the death benefit.
All of the following are true of key person insurance EXCEPt?
The plan is funded by permanent insurance only.
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans
Which is true about a spouse term rider?
The rider is usually level term insurance expires at age 65
Which of the following is not rue of life settlements?
The sellers must be terminally ill.
Which of the following is TRUE about nonforfeiture values?
They are required by state law to be included in the policy.
What is the purpose of key person insurance?
To lessen the risk of financial loss because of the death of a key employee
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant
With the policy If a life insurance policy contains a free-look period of at least 10 days, the buyer's guide can be delivered with the policy. If it doesn't, the buyer's guide must be delivered prior to accepting the initial premium.
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
a) Contract of adhesion b) Acceptance c) Consideration ***** d) Legal purpose Consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application.
Insurance is a contract by which one seeks to protect another from
a) Uncertainty. b) Hazards. c) Loss.**** d) Exposure. Insurance will protect a person, business or entity from loss.
Which of the following is another term for an authorized insurer?
admitted
A universal life insurance policy is best described as a/an?
annually renewable term policy with a cash value account
What is the purpose of a conditional receipt?
b) It is intended to provide coverage on a date earlier than the date of the issuance of the policy
Contracts that are prepared by one party and submitted to the other part on a tike it or leave it basis are classified as?
contracts of adhesion
Which of the following is an example of an agent's fiduciary responsibilities?
forwarding premiums to the insurance company
What provision in an insurance policy extends coverage beyond the premium due date?
grace period
in order to enforce the insurance Code the commissioner has the power to conduct which of the following
investigations
An absolute assignment is a
transfer of all ownership rights in a policy
Which of the following types of policies will provide permanent protection?
whole life
