Insurance Agent Test questions

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max fine for violating a cease and desist order

5,000

How long must insurers keep record's of claims

6 years

Policies not drawn up to negotiate

Adhesion

What's not true about section 1035 policy exchange?

Any exchange made under 1035 must be completed within 30 days

What is the following feature of variable annuity?

Benefit payments amount is not guaranteed.

sold insurance to family

Controlled

Level

Face amount

Independent adjuster may include which of the following?

Firm who acts on behalf of the insurer

Which statement is true about buy-sell agreements ....

Funded by life insurance policy

Automatic Premium Loan Provision is activated at the end of

Grace Period

Universal life insurance policy has two types of interest rates.

Guaranteed and Current

Why should producer deliver policy?

Help insured understand contract

Annually Renewable Term policies provide a level death benefit for a premium that.

Increase Annually

what type of insurance would be used for a return of premium rider?

Increasing Term

As a field underwriter, producer is responsible for all the following Except?

Issue the policy requested

What describes annually renewable term insurance?

It is Level term insurance

Which statement is not true regarding straight life policy?

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

Married couple owns permanent policy which pays death benefit upon first insured. What policy is this.

Joint Life

husband died wife still receives money, then wife dies, payments stop

Joint and survivor

Which of the following terms means a result in calculation based on the average number of months the insured is projected to live due to medical history and mortality factor?

Life Expectancy

Pay premium for specific number of years until the policy is paid up....

Limited pay life

In a single employer group plan, what is the name of the policy issued to the employer?

Master Contract

What describes Gross annual premium

Net premium plus expenses

Traditional IRA contributions are tax deductible based on...

Owners' income

Relieve a minor insured from premium payments if minor's parents died or have become disabled......

Payor Benefit

Which of the following riders would not increase the death benefit

Payor Benefit Rider

Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?

Predicted need of family after insured's death

Which of the following would be included in policy summary?

Premium amounts and surrendered value

Which two terms are associated with the way annuity is funded?

Single and periodic payment

Producers must ensure that the contracts they recommend are in the best interest of the insured. This is called.

Suitable

What is not considered when underwriting group insurance?

The insured's medical history

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

One side made promise

Unilateral

Which of the following would have an IRS required corridor or gap between the cash value and death benefit?

Universal life Option A

Not example of business use...

Wokers Comp

Two types of assignments

absolute and collateral

Who can make a fully deductible contribution to a traditional IRA?

any induvial not covered by an employer

In Order for a nonresident licensee to become a resident producer in New York they must....

apply within 90 days of becoming a resident

IRA Completed when beneficiary not named

dec 31st fifth anniversary owners' death

Benefits paid before being exhausted

fixed period

Two components of universal policy

insurance and cash account

Which of the following is not a whole life insurance?

level term

Whole life

live to 100 to retain face amount

Receive full face amount in whole life policy

live up to 100

The premium of Survivorship compared to Joint life would be

lower

Ridder attached to life insurance policy that provides coverage on insured's family is called

other insured rider

Not a requirement for qualified plan

plan must provide an offset for social security benefits

Spendrift Clause in life insurance policies

protects the policy proceeds from creditors of the beneficiary

Pure life settlement option

pure life provides payments for as long as annuitant lives

which annuities generally provide highest monthly income

straight life

Under extended term of nonforfeiture option the policy cash value is converted to

the same face amount as in whole life policy


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