Exam

In a life settlement transaction, how many days does the owner have to terminate the contract after the date is executed?

15 days

every insurer must file rates, rating plans, and modifications to its plans with the commissioner at least how many days prior to the effective date of us?

15 days

Whenever the commissioner has reason to believe that any person has engaged in any unfair method of competition or any unfair or deceptive act. The commissioner will serve the notice of hearing. the time and place which can not be sooner than

21 days after the date such notice was served

Licensees must inform the commissioner of a change of address within

30 days of the change

Up to how many months can an agent date an application prior when purchased

6 months

Which of the following is the basic source of inflation used by company in risk selection process

Application

Which of the following statements concerning buy-sell agreements is true

Buy-sell agreements are normally founded with a life insurance

In an Adjustable Life policy all of the following can be changed by the policy owner

Coverage period

when must an IRA be completely distributed when a beneficiary is not named?

December 31 of the year that contains the fifth advisory of the owners death

Which of the following will NOT be considered unfair discrimination by insurers

Discriminating in benefits and coverages based on the insured's habitats and lifestyle

If an individual insurance producer allows his license to lapse , with in 12 months from the due date of the renewal fee, reinstate the same license

No written test needed, but penalty fee of double, renewal fee must be paid

another name for a substandard risk classification is

Rated

which nonfeiture option provides coverage for the longest period of time

Reduced paid up

To sell variable life insurance policies, one must receive all of the following EXCEPT

SEC registration

A producer is helping a married couple determine the finical needs of there children in the event one or both die. This is called what

Survivor Protection

All of the following are true regarding group life insurance plan EXCEPT

There is a requirement to prove insurability on the part of the participants

If the applicant for a life insurance policy and the person to be insured by the policy are two different people. The underwriter would be concerned about?

Wether an insurable exists between the two

What does peril mean

a serious and immediate danger

in an annuity, the accumulated money is converted into a stream of income during which time periods

annualization period

The LEAST expensive first-year premium is found in which of the following polices

annually renewable

When an annuity is written, whose life expectancy is taken into account

annuitant

which of the following best describes fixed period settlement option

both the principal and interest will be liquidated over a selected period of time

an insured recieves an annual life insurance dividend check. what term best describes this arrangement?

cash option

According to the entire contract provision, what document must be made part of the insurance policy?

copy of the original application

a long stretch of national economic hardship causes a 7% inflation. A policy owner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this hardship

cost of living rider

Which of the following is NOT typically excluded from life polices

death due to plane crash for a fare-paying passenger

which of the following types of insurance is not an example of insurable interest

debtor in creditor

which of the following types of insurance polices is most commonly used in credit life insurance

decreasing term

which of the following best describes the aleatory nature of an insurance contract

exchange of unequal values

What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary?

income tax on distributions and no penalty

If an insured changes his payment plan from monthly to annually, what happens to the total premium?

it decreases

Which of the following best describes annually renewable term insurance

its level term insurance

When an applicant purchases a life insurance policy, the agent dated the application 4 months prior. Why did he do this

lower the insured premium

If a life insurance policy develops cash value faster than a 7 pay whole life contract, it becomes a

modified endowment contract

Which of the following is NOT true regarding policy loans

money borrowed from the cash avleu is taxable

the commissioner may issue a temporary insurance producer license without requiring an examination for a period

not to exceed 180 days

a rider attached to a life insurance policy that provides coverage on the insured's family members is?

other insured rider

A rider attached to a policy that provides coverages on the insured family members is called

other-insured rider

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

Willie. a private investigator was hired by an insurer to undercover interview

pretext interviewing

annuities can used to found which of the following pans

retirement plans

What part of the internal revenue code allows an owner of a life insurance policy or annuity to exchange or replace there current contract with another contract without creating adverse tax consequences

section 1035 policy exchange

all of the following would be different between qualified and non-qualified retirement plans EXCEPT

taxation on accumulation

in a group life insurance policy, the employer may select of the following EXCEPT

the beneficiary

life settlement brokers or providers are required to give the owner a seperate disclosure document no later than what date?

the date of application

all of the following statements are true regarding installments for a fixed amount except

the payment will stop when the annuitant dies

which of the following is best describes what the annuity period is

the period of time during which accumulated money is converted into income payments

Which of the following is an example of a producer's fiduciary duty?

the trust that a client places in the producer in regard to handling premiums

Are insurance company underwriters allowed to discriminate?

yes, but not unfair