Insurance Test Questions
Signed waiver of premium
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Payor benefit rider
Which of the following rider not cause the death benefit to increase
the policy owner is entitled to policy loans.
Which of the following statements is correct following a whole life policy?
B
(54) Something of value given in exchange for between the insurer and the insured is considered an
The survivor benefiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
E
14). All of the following are requirements for life insurance illustrations EXCEPT?
Copy of the original application
According to the entire contract provision, what document must be made part of the insurance policy?
They must be part of the contract
All of the following are requirements for life insurance illustrations EXCEPT
The plan is funded by Permanent Insurance Only
All of the following are true of Key Person Ins. EXCEPT
The plan is funded by permanent insurance only
All of the following are true of key person insurance EXCEPT
The Guaranty Association
All of the following entities regulate variable life policies EXCEPT
False Advertising
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
Seek higher returns
Equity Indexed Annuities
The insurer's domicile or locations of incorporation will determine whether a company is domestic, foreign, or alien.
How is it determined whether an insurer is allowed to write business in a state?
Guaranteed insurability rider
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
Insurance companies from adverse selection by high risk persons.
Medical Information Bureau (MIB) was created to protect
Non taxable sincea the IRS treats them as a return of a portion of the premium paid.
On a participating insurance policy issued by a mutual company, dividends paid to a policy holder are...
Not taxable since the IRS treats them as a return of a portion of the premium paid
On a participating insurance policy issued by a mutual company, dividends paid to policyholders are
Not taxable since the IRS treats them as a return of a portion of the premium paid
On a participating insurance policy issued by a mutual insurance company,dividends paid to policyholders are
Considerations
Something of value is exchanged between the insurer and the insured is considered a
To purchase a smaller amount of the same type of insurance as the original policy.
The paid-up addition option uses the dividend
Annually Renewable Term
The death protection component of Universal Life Insurance is always
Interest-sensitive Whole Life
The insured purchased a whole life policy. The agent told him that depending upon the company's investments and expense factors, the cash value could change from those shown in the policy at issue time. The policy is a/an
The death benefit can be increased by providing evidence of insurability.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
Reduction of Premium
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
Guaranteed Insurability Option
An individual is purchasing a permanent life insurance policy with a face value of $25,000 while this 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?
Unfair trade practice
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
Autorized
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?
From Trustee to Trustee
In direct role over how is the money transferred from one plan to the new one?
The existing and replacing insured are the same and The truncation involves credit life insurance (A&B)
The protocol for replacement does not apply to which of the following situations?
The State
The regulation of The insurance industry primarily rests with
The State
The regulation of the insurance industry primarily rests with
The producer
The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom?
A presentation of no guranteed elements of a policy.
The term "illustration" in a life insurance policy refers to.
15 days
To appoint a producer as its agent, the appointing nsurer must file a notice of appointment with the Commissioner within how many days from the date the agency contract is executed?
Joint Life
Two brothers are starting a new business, They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
For 20 years or until death, whichever comes first
Under a 20 year whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
Insurance
What do individuals use to transfer their risk of loss to a larger group?
The original age is used for premium determination.
What is the advantage of reinstating a policy instead of applying for a new one
Admitted
Which of the following is the closest term to an authorized insurer
Insurers
Who makes up the Medical Information Bureau?
transfer of all ownership rights in a policy
An Absolute Assignment is a
Appointed
An insurance producer may not act as an agent for an insurer unless he/she has become which of the following?
$50,000
An insurer owns a $50,000 life insurance policy, at age 47 the insured decides to cancel his policy and exercise the extended term option for the Policy's cash value, which is currently $20,000. What would the face amount of the new term policy be?
Day
If a producer continues to violate the Insurance Code, a new civil penalty will be assessed every
Unilateral
If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?
The original age is used for premium determination.
What is the advantage of reinstating a policy instead of applying for a new one?
When the insured reaches age 100
When would 20 pay life policy endow
Pay the death benefit
An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?
30 days
An insurer is going to terminate the appointment of an insurance producer, within how many days following termination must the insurer notify the Commissioner of the termination?
3 years
An insurer must keep a copy fo each authorized form it uses until---year(s) after the date of its last authorized use.
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?
Conditional
When both parties of a contract must perform certain duties and follow rules of conduct to make the contract enforceable the contract is
When the insured reaches age 100
When would a 20 pay whole life policy endow?
Payor Benefit
Which of the following allows the insurer to relieve a minor insured from the premium payments if the minor's parents have died or become disabled?
Size of each installment
Which of the following determines the length of time that benefits will be received under the Fixed-Amount Settlement Option?
Size of each installment
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
Notice Regarding Replacement
Which of the following documents must be provided to the policyowner or applicant during a policy replacement?
Automobile physical damage ins.
A Limited Insurance Representative is an individual, other than an insurance producer, who may solicit or negotiate contracts for certain types of insurance which includes all of the following EXCEPT
This rider is available to all insured with no additional premium.
All of the following are true regarding guaranteed insurability rider EXCEPT
The annuitant must be a natural person
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
30 days
Upon receipt of notice of appointment, the Commissioner must verify the insurance producer is eligible for appointment within how many days?
Insurance and Cash Account
What are the components of a Universal Policy?
It has the highest amount of insurance protection
What is the benefit of choosing extended term as a nonforfeiture option?
It is intended to provide coverage on a date earlier than the date of the issuance of the policy.
What is the purpose of conditional receipt
To keep the policy in force.
What is the purpose of establishing the target premium for a universal life policy?
The seller must be terminally ill
Which of the following is NOT true of life settlements?
The annuitant cannot be the same person as the annuity owner (This statement is true of an annuity)
Which of the following is NOT true regarding an Annuitant?
Stock
Which of the following insurers are owned by stockholders, who have the usual rights of ownership, including the right of voting?
Warranty
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
Application
Which of the following is the basic source of information used by the company in the risk selection process?
It will pay double or triple the face amount.
Which of the following is true of an accidental death rider
A Buisness Entity
Which of the following may obtain a producer's license, but may NOT sell, solicit, or negotiate a contract of insurance in Tennessee?
A business entity
Which of the following may obtain a producer's license, but may NOT sell, solicit, or negotiate a contract of insurance in Tennessee?
The policyowner is entitled to policy loans
Which of the following statements is correct regarding a whole life policy
It transfers rights of ownership from the owner to another person.
Which of the following statements is true about the policy assignment
Amount paid with the accelerated, plus the earnings lost by the insurance company in interest income from the accelerated benefit
Which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive
Level or Flexible
Which two terms are associated directly with the premium
An individual not coved by an employer-sponsored plan who has earned income.
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by a employee sponsored plan who has earned income.
Who can make a fully deductible contribution to a traditional IRA?
Proof of insurability is not required
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, 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?
The insurance premium will be waived until she is 21
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
The rider is available to all insured with no additional premium.
All of the following are true regarding the guaranteed insurability rider EXCEPT
Dividend from a mutual insurer
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT?
transfer of all ownership rights in a policy
An absolute assignment is a
The date of the medical exam
An individual applies for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. What would be the policy's effective date?
Beneficiary's consent
An insurance contract must contain all of the following to be considered legally binding EXCEPT
Automobile Physical Damage Insurance
A Limited Insurance Representative is an individual, other than an insurance producer, who may solicit or negotiate contracts for certain types of insurance which includes all of the following EXCEPT
$50,000
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
