Insurance

Which of the following is NOT true regarding straight life policy?

It's premium steadily declines over time

Which statement is NOT true regarding a straight life policy?

Its premium steadily decreases over time, in response to its growing cash value.

The commissioner must give reasonable notice to all interested parties as to the time, place and purpose of a hearing within the minimum of how many days of the hearing?

20 days

For purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with Nevada law, the Commissioner will examine the affairs of each insurer as often as deemed necessary. Each domestic insurer must be examined at least every _____ years.

5

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6months

Which of the following is required for a producer to transact business on behalf of an insurer?

An agent appointment

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

Annuitant

SIMPLE Plans require all of the following EXCEPT

At least 1,000 employees.

Which nonforfeiture option has the highest amount of insurance protection?

Extended term

Which part of an insurance application would contain information regarding the cause of death of the applicants deceased relatives?

Medical information

Which of the following is NOT true regarding policy loans

Money borrowed from the cash value is taxable.

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

An insured will be allowed to reactivate her lapsed life insurance policy l if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?

Reinstatement provision

If an insured continually uses the automatic premium loan option to pay the policy premium,

The policy will terminate when the cash value is reduced to nothing

Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?

Universal life

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?

Withdrawals are not taxable

All of the following statements are true regarding tax qualified annuities EXCEPT:

employer contributions are not tax deductible

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

During partial withdrawal from a universal life policy, which portion will be taxed?

Interest

When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will

Issue the policy anyway and pay the face value to the beneficiary

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?

Premiums are not tax deductible as a business expense.

All of the following are true regarding rebates except:

Rebates are allowed if it's in the best interest of the client

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid up

Which of the following is NOT true regarding the annuitant

The annuitant cannot be the same person as the annuity owner.

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

Which of the following is NOT true regarding Equity Indexed Annuities?

They earn lower interest rates than fixed annuities.

All of the following are true regarding the guaranteed insurability rider EXCEPT

This rider is available to all insureds with no additional premium.

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?

sexual orientation

Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?

$50,000

An insured pays premiums to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration

Which of the following is NOT true regarding the accumulation period of an annuity?

It would not occur in a deferred annuity.

All of the following are required provisions in all group life insurance policies issued in this state EXCEPT: Misstatement of age Grace p nonforfeiture benefits Incontestability

Nonforfeiture benefits

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

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

Which of the following is an example of a producer being involved in a unfair trade practice of rebating?

Telling a client that his first premiums will be waived if he buys the policy today

Which of the insurance policy allows for the owner to pay more or less than the planned premium

Universal life

All of the following employees may use a 403(b) plan for the wit retirement EXCEPT:

The CEO of a private corp

The annuitant does while the annuity is still in the accumulation stage. What of the following are true?

The beneficiary will receive the greater of the money paid into the annuity of the cash value

The annuitant dies while the annuity is still in the accumulation stage. Which of the following is true?

The beneficiary will receive the greater of the money paid into the annuity or the cash value.

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies