Insurance Review before test

an insurer must notify the consumer in writting that an investigative consumer report has been requested within how many days

3

the entire contract includes all of the following except?

A buyers guide

which of the following indicates the person upon whose life the annuity income amount is determined?

Annuitant

the reductions of premium option usese the dividends to reduce?

Next Year Premium

an insured falls down a flight of stairs and sustains a neck injury that renders him severly disabled. The insurer owns a whole life policy. Is it possible for the policy to include a waiver of cost insurance rider, and if so what insurance cost be waived?

No, it not possible for this waiver to be included in a whole life policy.

all of the following are true regarding the federal credit reporting act except?

Reports may be sent to anyone who request it

which of the following is not a example of the company location of incorporations?

authorized

If an agent follows the rules and terms of his agent contract his is exercisinf his?

express auhtority

where are premiums from fixed annuities invested?

general account

slippery, floors, reckless driving, or providing false information are examples of?

hazards

beacuse of the imposed blackout period the surviving spouse will not recieve social sercuity benefit untill

he or she qualifies retirement benefits

all of the following are true regarding a cash refund annuity settlement option except?

it provides cash payement to the annuitant at annuitization

agents may be found guilty of defamation if they make false statements are intended to?

maliciously critized another insurance company

an example of an alien insurer doing business in this state is one formed under law of?

mexico

in a variable life insurace policy all of the followig assest are held into insurance company general account except?

mortailty reserves

cash value gurantees in a whole life policy are called?

nonforieture

contributions to roth IRa are?

not tax deductible

what is true regarding joint life annunity?

payments stop at first death

An equity indexed annuity will grow based upon?

performance of reconigzed index

the frequency and the amount of premium payment are known as what?

premium mode

what is the difference between a straight life policy and a 20 pay whole life policy?

premium payment period

which of the following is not included in buyers guide?

specific information about the policy

life insurance can provide which of the following?

survivor protection

upon surrender of a life insurance policy, any cash value accumulated in excess of the premium payment is?

taxed as ordinary income

which of the following is permissable reason for an insurance company to contest payment of a claim based on statements in the application?

the application contain material misstatements

all of the following are true about key-person insurance except?

the death benefit is taxable to the business

all of the following are advantages of a qualifed retirement plans except?

the income at retirement is tax free

which of the following is required in order for a plan to be qualified?

the plan must be formally written and communicated to the employees

according to common disaster clause, if the insured and primary beneficary are killed in same accident and it cannot be determined who died first, which of the following will be assumed?

the primary beneficary died before the insured

an agents suspects that his insurer is committing insurance fraud. Within how many days of that discovery must the agent report the fraud to the department of insurance?

60 days

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

if there is a transfer of value

who would be allowed catch up contribution?

individuals age 50 or older

all of the following is true of annually renewable term insurance except?

proof of insurability must be provided at each renewal

what type of interest rate is guaranteed in universal life policy

contract interest rate

what types of an interest rate is guaranteed in universal life policies?

contract interest rate

when an agent obtains an license for the primary purpose of writing insurance for himself, his spouse, his own business this is called?

controlled business

which of the following statements describes one of the reason individual purchase life insurance?

it creates a immediate estate

set up indivual retirement account that her employee is now contributing to. Her employee contributors are not intended in gross income. What kind of retirement plan does s have

simplified employment pension

If annuity has guranteed mimium interest rate, this means

the interest will never drop below the guaranteed minium

which of the following best describe life annuity with period certain option?

It guarantee benefit payment for life of thr annuitant for a specific period of the beneficary.

which of the following is permissiable reason for an insurance company to contest payment of a claim based on statements in the application?

application contain material misstatements

when a life policy is surrendered for nonforfeiture value, what is the automatic option?

extended term

which of the following could reduce the amount of the death benefit?

failure to repay a policy loan

a married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?

family term

if a retirement plan is qualified this means

it statisfies its requirements for favorable tax treatment

which of the following would not be eligible for coverage under key person?

the owner of a shop

In life insurace underwritting all of the following are true regarding HIV testing except?

the person may be denied coverage based solely on presence of HIv

In a policy summary for life insurance policy is not given when the application is taken when must the policy summary be given to the policyowner?

when the policy is delivered

an insured has life policy in the amount of 250,000 naming wife as beneficary. Upon his death, his beneficary decides not recieve the death benefit for sometime. When she finally receive the death benefit check, it is the amount of 250,530. Is any portion of the proceeds that the beneciary recieves taxable?

Yes, proceeds in excess of face amount are taxable as interest.

In a variable life insurance policy, all of the following items is used to define the period of time during which an annuitant makes payments into an annuity?

accumlation period

which of the following is not a personal use of life insurance?

an individual buys insurance to a buy sell agreement

which settlement options best describes agreement as it relates to insurance contract?

one party accepts the exact term of the others party offer

which of the following best describes pure life annuity?

it provides highest monthly benefits

which of the following best describes pure life annuity?

it provides the highest monthly income