Lex 3
All of the following are considerations in an insurance policy except
The promise to pay covered losses
A married couple purchased a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. What loan should the agent recommend
Waiver of premium
In the event an annuitant dies during the accumulation period, and there is a beneficiary named in the annuity, annuity benefits would be paid to the
Annuitants estate
An insured suffered a loss and notified her insurance company. The insurer must provide a claim from to the insured within
15 days
A temporary license in this state is valid for how many days?
180 days
An insurer must notify the consumer in writing that an investigation consumer repost has been requested, within how many days of the initial request?
3 days
Which provision may be added to a permanent life policy, at no cost, that insurers that the policy will not lapse so long as there is cash value?
Automatic Premium Loan option
If, after a hearing, it is determined that an insurer or producer is violating Minnesota insurance laws, the commissioner will issue
Cease and desist order
Which of the following losses would likely be covered under the accidental death rider?
Death caused by a head-on collision
The owner of a whole life policy with an accent also death rider intentionally kills himself after having the policy for 18 months. What is the insurance company's course of action?
Deny any payment of death benefit
An adjustable life policy can assume the form of
Either term insurance or permanent insurance
How often must producers in this state fulfill their continuing education requirement?
Every 2 years
All of the following information needs to be included on an application for life insurance except
Health insurance policies in force
Insurers are forbidden to do all of the following with their advertisements, except
Promote interest in insurance coverage
An annuity would normally be purchased by an individual who wants to
Provide income for retirement
All of the following are true of credit life except
The insured names the beneficiary
All of the following are general requirements of a qualified plan except
The plan must be temporary
Which of the following is true regarding premium in a 10 year level premium policy
The premium will remain level for 10 years
Life insurance and annuity replacement regulations applies to all of the following types of life products except
Whole life
If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?
immediately
If a retirement plan or annuity is "qualified", this means
it satisfies IRS requirements for favorable tax treatment
When a producers change the address of their residence or office, the commissioner must be notified within
30 days
The entire contract includes all of the following except
Buyer's Guide
A group life insurance policy is issued to
Every eligible member of the group
An applicant may challenge information discovered as a result of an investigative consumer report under which of the following acts?
Fair Credit Reporting Act
If a soliciting producer suspects that there could be misrepresentation on the part of the applicant for insurance, what must the producer do?
Inform the insurance company
Which of the following provisions is usually found In Homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance?
Insurance to value
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
A policy is reissued with a reduction in cash value
Which of the following best describes a rebate?
A producer returning part of her commission to her client, as an inducement to buy
Where are premiums from fixed annuities invested?
A general account A fixed annuity is characterized by a general account into which the purchase payments (premiums) are invested
Partners in a business want to make sure that if one of them were to pass away, their surviving family will recieve a fair value for their portion in the business. What a life insurance arrangement would be most suited for transitioning the business?
Buy-sell agreement
In a commercial auto coverage policy, which of the following coverage froms applies to automobiles transporting property for a commercial enterprise?
Motor Carrier
All of the following are advantages of a qualified retirement plan except
the income at retirement is tax free