insurance

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Without receiving written consent from an insurance regulatory authority.

Every company possessing a certificate of authority must notify the Commissioner of the election or appointment of every new director or principal officer within

30 days

Under which circumstance can a producer receive a commission and a consultant's fee for the same transaction?

A producer makes a disclosure about the compensation arrangements prior to the transaction.

What is a foreign insurer?

An insurer with a home office in another state

The death benefit under the Universal Life Option B

Gradually increases each year by the amount that the cash value increases.

Which part of an insurance application would contain information regarding the applicant's medical history?

part 2

Which of the following conditions is NOT necessary for becoming a non-resident producer in Indiana?

passing the proper examination

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

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

respond to the consumers complaint

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?

immediate annuity

All of the following may be exempt from the whole or part of the Indiana licensing examination EXCEPT

A candidate applying for a surplus lines producer license

All of the following could qualify as a group for the purpose of purchasing group life insurance EXCEPT

An association formed 1 year ago.

Who makes up the Medical Information Bureau?

Insurers

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

It is reduced to the amount of what the cash value would buy as a single premium.

If a settlement option is not chosen by the beneficiary or policyowner, which option will be used?

Lump sum

All of the following are qualifications of a resident producer EXCEPT

Obtaining a sponsorship of an admitted insurance company.

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

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider

Which of the following is true about the Commissioner of Insurance?

The Commissioner is authorized to participate in the NAIC.

Which of the following is NOT correct regarding examination of companies?

The Commissioner must examine all alien companies.

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

The annuitant must be a natural person.

Which of the following determines the cash value of a variable life policy?

The performance of the policy portfolio

Under the Replacement Regulation, Rule 16.1, which of the following statements would best describe the producer's duties?

The producer must conduct a reasonable investigation to determine if a replacement will take place.

Which of the following premium payment modes will incur the lowest overall payment?

annual

Employer contributions made to a qualified plan

Are subject to vesting requirements

A producer licensed in another state wants to become a non-resident producer in Indiana. The other state gives the same privileges to Indiana producers as it does to its own producers. Indiana, therefore, extends the licensing privileges to the prospective producer of the other state. What is this called?

Reciprocity

A domestic insurer issuing variable contracts must establish one or more

Separate accounts

The accelerated benefits provision will provide for an early payment of the death benefit when the insured

Becomes terminally ill.

Which of the following best describes fixed-period settlement option?

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

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT

the insured's age at death

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

universal life

What is the name of the insured who enters into a viatical settlement?

Viator

A temporary license may be obtained for all of the following situations EXCEPT

a prodcer's retirement

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

Cash option

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by the age, sex and occupation of each individual certificate holder.