Dad's Test
the Illinois Life and Health Insurance Guaranty Association is obligated to pay covered claims only if under the amount of
$300,000
the director issued a written notice about a hearing for a business entity. the hearing is scheduled for May 1st. the affected business entity should receive the notice no later than...
April 20th
what must an insurer present to a prospective policy purchaser before the initial premium is paid?
Buyer's Guide
All of the following are prohibited practices EXCEPT..
Denial of claim after an investigation
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 employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
an employee is insured under her employer's group life plan. if she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
A father owns a life insurance policy on his 15 year old daughter. the policy contains the optional payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
The insured's premiums will be waived until she is 21
which of the following would be considered an unfair claims settlement practice?
a claims adjuster advises the insured that is the claim goes to arbitration, the insured would probably receive less than what is currently being offered.
temporary producer license can be issued to all of the following EXCEPT...
a spouse of disabled licensed producer before and after the sale of the business
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
which of the following would be considered a non medical insurance application?
an application on which the medical information is completed by the applicant and the agent only.
if an insurance company makes a statement that its policies are guaranteed by the existence of the insurance Guaranty Association, that would be considered
an unfair trade practice
Each year a license viatical settlement provider must file with the Director a(n)...
annual statement
Partners 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 fund this agreement?
any form of life insurance
A producer obtaining a license for the purpose of selling 20% to his or herself and his or her spouse, 80% to the public
anytime more than 50% of the total premiums collected by a producer comes from themselves, his or her spouse, employer, or own business
the policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, bu that the principal will be paid to their children when they reach a certain age. which settlement option should the policy owner choose?
interest only option
which of the following best describes a misrepresentation?
issuing sales material with exaggerated statements about policy benefits
why is an equity indexed annuity considered to be a fixed annuity?
it has a guaranteed minimum interest rate.
which of the following is TRUE regarding the annuity period?
it may last for the lifetime of the annuitant
Variable Life insurance is based on what kind of premium?
level fixed
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
The Replacement Regulation minimizes
misrepresentation
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
In which of the following instances would the premium be tax deductible?
premiums paid be an employer on a $30,000 group term life insurance plan fo remployees
An insured had a $10,000 term life policy. The annual premium of $200 was due on Feb. 1; however, the insured failed to pay the premium. He died on Feb. 28. How much would the beneficiary receive from the policy?
$9,800
The policy loans provision states that the insurer must advance to the policy owner a sum up to the policy's cash value after the full amount of premiums have been paid for how long?
3 years
Within how many days may a person who is being examined be the director for a non financial business practices request a hearing receiving the examination report?
10 days
within how many days may a person who is being examined by the director for non financial business practices request a hearing after receiving the examination report?
10 days
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
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
Ron's application to become an insurance producer has been denied. What is the soonest possible time that he can apply again?
3 years
the policy loans provision states that the insurer must advance to the policy owner a sum up to the policy's cash value after the full amount of premiums have been paid for how long?
3 years
A producer receives notice that his license has been terminated. if the producer wants to have the charges reviewed in court, within what time period must the request be made?
30 days
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
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
in order to qualify for conversion form a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5 years
to attain currently insured status under social security, a worker must have earned at least how many credits during the last 13 quarters?
6 credits
To sell variable life insurance policies, an agent must receive all of the following EXCEPT...
A SEC registration
what is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
To which of the following policies would the state regulation on illustrations NOT apply?
An individual variable life policy
to which of the following policies would the state regulation on illustrations NOT apply?
An individual variable life policy
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.
the death protection component of Universal Life Insurance is always...
Annually Renewable Term
a universal life insurance policy is best described as a/an
Annually Renewable Term policy with a cash value account
A universal Life Insurance policy is best described as a/an
Annually Renewable Term policy with a cash value account.
all other factors being equal, the least expensive first-year premium payment is found in...
Annually renewable Term
Who makes up the Medical Information Bureau?
Insurers
Ronald is buying life insurance policies. He is unclear which one to buy, and his insurer explains the costs of similar plans, in addition to their basic features. which rule requires the insurer to disclose such information?
Life Solicitation Rule
which of the following riders would NOT cause the death benefit to increase?
Payor Benefit rider
Under standard circumstances, at what point should a Buyer's Guide be distributed to a prospective buyer?
Prior to the initial premium
which regulation helps to minimize misrepresentation?
Replacement regulation
which of the following information will be stated in the consideration clause of a life insurance policy?
The amount of premium payment
All of the following are correct regarding misrepresentation EXCEPT...
The fines for misrepresentation range from $50 to $1000
the two types of assignments are...
absolute and collateral
which of the following correctly describes controlled business?
anytime more than 50% of the total premiums collected by a producer comes from themselves, his or her spouse, employer, or own business.
A legally acceptable attempt by an existing insurer to dissuade a current policy owner from the replacement of existing life insurance is called..
conservation
According to the entire contract provision, what document must be made part of the insurance policy?
copy of the original application
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very 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
all of the following statements are true regarding tax-qualified annuities EXCEPT...
employer contributions are not tax deductible
how often does a viatical settlement provider's license expire?
every year
which of the following is an example of an unfair claims settlement practice?
failure to promptly settle a claim when liability has been clearly established
Which of the following is NOT a type of whole life insurance?
increasing term
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?
insuring clause
all of the following are Nonforfeiture options EXCEPT
interest only
An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?
profit sharing plan
Which nonforfeiture option provides coverage for the longest period of time?
reduced paid-up
the policy owner pays for her life insurance annually. until now, she has collected a nontaxable divided check each year. she has decided that she would rather use the dividends to help pay for her next premium. which option would allow her to do this?
reduction of premium
A new life insurance policy is derived from a policy that was recently terminated. Which of the following terms best describes this policy?
replacement
Equity Indexed annuities...
seek higher returns
The Ownership provision entitles the policyowner to do all of the following EXCEPT
set 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 may NOT be included in an insurance company's advertisement?
that its policies are covered by a state Guaranty Association
all of the following are correct regarding misrepresentation EXCEPT
the fines for misrepresentation range from $50 to $1000
which of the following best describes what the annuity period is?
the period of time during which accumulated money is converted into income payments
all of the following are true of key person insurance EXCEPT...
the plan is funded by permanent insurance only.
which of the following is NOT true of life settlements?
the seller must be terminally ill
which of the following is NOT true regarding Equity Indexed Annuities
they earn lower interest rates than fixed annuities
what is the purpose of establishing the target premium for a universal life policy?
to keep the policy in force
all of the following benefits are available under social security EXCEPT...
welfare benefits
Under what conditions must an insured sign a Notice Regarding Replacement of Life a Insurance or Annuity form?
when replacing a policy with a different insurer that is under different ownership than the current company.
