F

An Equity Indexed Annuity will grow based upon

Performance of a recognized index

What is the purpose of the insurability provision in group life policies

To allow the insurer to require proof of insurability from individual applicants

As an insurers field underwriter a producer has all of the following responsibilities except

Issuing policies on behalf of the insurer

With Adjustable Life, the owner can change all of the following EXCEPT

The insured

Which is true regarding a joint life annuity

The payments stop at the first death

All of the following are true of the survivorship life policy except

The premium is based on the age of each insured

What guaranteed that the information explained in the insurance contract is true

A warranty

What type of interest rate is guaranteed in universal life policies

Contract interest rate

Which of the following would be exempt from the policy replacement regulations for insurers

Credit life insurance

Example of alien insurer doing business in this state would be

Mexico

How are policy loans calculated

The policy's cash value minus unpaid loans and accrued interest

Which of the following types of insurance policies would perform the function of cash accumulation

Whole life

What happens to the face amount of a whole life policy if the insured reaches 100

Face amount paid to insured

Which of the following is correct about annuities

Fixed annuities do not provide protection against inflation

Who is responsible for verifying that an insurer is authorized to sell insurance policies in this state

Soliciting producer

Under which of the following conditions would life insurance proceeds be taxable by the federal government

If there is a transfer for value

Which of the following is not a component of an insurance policy premium

Number of beneficiaries

Restoring an insured financially after a claim is known as

Indemnity

The policy owner must face the possibility of losing money or something of value in the event of loss. What is this concept called?

Insurable interest

Life insurance can provide which of the following

Survivor protection

What is the cost of coverage based on for group life insurance

The average age and the ratio of men to women

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

Fixed amount

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

IMMEDIATELY

Regulations regarding policy replacement of life insurance protect the interest of which of the following

Policy purchasers

According to the common disaster clause if the insured and primary beneficiary are killed in the same accident and cannot be determined who died first what is assumed

Primary beneficiary died first before insured

What type of insurer uses a formal sharing agreement

Reciprocal Insurers

What is a provision found in life insurance policies

Replacement

If an insured purchases an insurance policy with a large deductible what risk management technique is the insured exercising

Retention

How long must insurers maintain a copy of each disclosure document used in insurance transactions!

3 years

What is a prerequisite for receiving a commission from an insurance transaction

An appropriate license

Life insurance disclosure rules would apply to which of the following types of coverage

Whole life

All of the following are considerations under the needs approach for life insurance except

Insureds income tax

Who bears risk in fixed products

Insurance company

An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive

$70,000

during policy replacement the policy owner is entitled to a free look period of how long

20 days

How many days notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans

30 days

If a person whose license has been temporarily suspended demands a hearing the commissioner must hold the hearing within how many days after receipt of the demand

30 days

What is the maximum loan amount a policy owner may withdrawal from a variable universal life policy

An amount not exceeding the cash value

In a variable life insurance policy all of the following assets are held in the insurance company's general account EXCEPT

Cash surrender values

The policy owner has an option to pledge the life insurance policy as collateral for a bank loan this is called

Collateral assignment

When a whole life policy is surrendered for its nonforfeiture value what is the automatic option

Extended term

Which of the following is NOT a standard exclusion in life insurance policies

Disability

Which of the following would be true of both the fixed period and fixed amount settlement options

Both guarantee that the principal and interest will be fully paid out

An agent tells an insured that if he replaces his current policy with a newer one his dividends will be higher and his premiums will be slightly lower.the policy however would not offer either one of those things. What type of misrepresentation is being committed

Twisting

When life insurance proceeds are used to pay inheritance taxes and federal estate taxes it is known as

Estate conservation

All of the following are examples of a policy replacement EXCEPT

A Term policy is being converted to whole life

Twisting

A misrepresentation that persuades an insured or owner to his detriment

What type of group covers employees of the United States government or of any state or of any political subdivision or instrumentality of any of them

Public employee associations