Insurance test missed 1
Monthly premium waiver and monthly income
After back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider.
Explaining to client the advantages of permanent insurance over term and suggesting changing policies
All of the following actions can be described as twisting EXCEPT
At distribution, all amounts received by the employee are tax free
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT
Consideration
An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called
$200,000
An insured purchased a 15-year level term life insurance policy with a face about of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?
Cash option
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
The insured will need a written consent of the insurer
An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?
Present the insured with a Disclosure Authorization Notice
An insurer wants to obtain information from investigators regarding an application for insurance. What must the insurer do in order to legally acquire this information?
Conditions
Because an insurance policy is legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Fixed period
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
With the policy
If a policy includes a free-look period pf at least 10 days, the Buyer's guide may be delivered to the applicant no later than
5 days
If a producer's appointment is denied by the Commissioner, the Commissioner must notify the appointing agency within
Unilateral
If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?
The beneficiary
The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husband's death. Who will select the settlement option in this case?
Single Premium
Which type of life insurance policy generates immediate cash value?
A policyowner
Who is a third-party owner?
The benefit is received tax free
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefits, then
Proof of insurability is not required
A couple owns a life insurance policy witha Children's Term rider. Their daughter is reaching the maximum age of dependent ocverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Rebates are allowed if it is in the best interest of the client
All of the following are true regarding rebates EXCEPT
It is a life contingency option
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
Fair Credit Reporting Act
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?
She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan
An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. how can she obtain an individual policy?
The insurer will pay the full death benefit form the group policy to the beneficiary
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
A presentation of nonguaranteed elements of a policy
The term "illustration" in a life insurance policy refers to
$2,500
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
Universal life
What kind of policy allows withdrawals or partial surrenders?
Issue the policy anyway and pay the face value to the beneficiary
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
It is reduced to the amount of what the cash value would buy as a single premium
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
The rider is usually level term insurance
Which is true about a spouse term rider?
Reduced paid-up
Which nonforfeiture option provides coverage for the longest period of time?
Exchange of unequal values
Which of the following best describes the aleatory nature of an insurance contract?
A policy summary
Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?
At the end of 20 years, the policy cash value will equal $100,000
Which of the following is INCORRECT regarding a $100,000 20 year level term policy?
Variable whole life has a guaranteed death benefit
Which of the following is a key distinction between variable whole life and variable universal life products?
3 days
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
