Life and Annuity License
Applications to the insurer must include all the following except: a.license identification number of agent b.name of insurer. c.name of agent d.credit history report
credit history report
The provision that states that both policy and copy of application form contract between policy owner and insurer is called the
entire contract
Ann is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the standard and poor's 500 index. she would purchase a
equity indexed annuity
An agent's client needs additional insurance in which the agent's own insurer cannot provide. The agent has to solicit additional coverage from another authorized insurer. This coverage is know as
excess
Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in
expiration of the license
Which policy component decreases in decreasing term insurance?
face amount
Which of the following would be an example of unfair claims settlement practice
failing to acknowledge a claim within 30 days
the following are legitimate uses of insurance in business setting except
funding against general company financial loss
All of the following are general qualifications for an agent's license except: a.be a state resident b.pass a criminal background check c.have a high school diploma d.be found competent and worthy
have a high school diploma
A father purchases a life insurance policy on his teenage daughter and adds the payor benefits rider. In which of the following scenarios will the rider void the payment of premiums?
if the father is disabled for more than 6 months
A return of premium term life policy is written as what type of term coverage
increasing
All the advertisements, regardless of their source of creation are the responsibility of
insurer
Insurance contracts are agreements between which 2 parties?
insurer and insured
When a reduced paid up nonforfeiture option is chosen what happens to face amount of the policy?
it is reduced to the amount of what cash value would buy as a single premium
which apply to free look privilege
it permits the insured to reject the policy with full refund
An applicant who receives preferred risk classification qualifies for
lower premiums than a person who receives a standard risk
death benefits payable to a beneficiary under a life insurance policy are generally
not subject to income taxation by the federal government
Which option for universal life allows beneficiary to collect both the death benefit and the cash value upon the death of the insured
option b
Which explains policy owner's rights to change beneficiaries, choose options and receives proceeds of a policy
owner's rights
which of the following is an example of an agent's fiduciary responsibilities?
promptly forwarding premiums to the insurance company
One of applicants for life insurance missed a couple of questions on the application. What should insurer do with application?
return to applicant for completion
Bonnie wants to name her husband beneficiary of life policy. She also wishes to retain all rights of ownership.Bonnie should have her husband named as
revocable beneficiary
Which of the following best details the underwriting process for life insurance?
selection, classification and rating of risks
an insurance policy that only requires a payment of premium at its inception, and in addition to providing insurance protection for the life of the insured, matures at the insured's age 100, is called
single premium whole life
What type of risk results in highest premium
substandard risk
Which of the following will be included in policy summary? a. surrender values and premiums b.copies of illustration and application c.comparisons with similar policies d.primary and secondary beneficiary desginations
surrender values and premiums
What are personal uses of life insurance
survivor protection, estate creation, and conservation, cash accumulation and liquidity
Children's riders attached to whole life policies are usually issued as what type of insurance?
term
The primary beneficiary of her husband's life policy found 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?
the beneficiary
What are liquid resources in a life insurance contract?
the cash value available to the insured
what's not true about variable universal life policy
the death benefit is fixed
Under a group plan, certificates of insurance must include all the following except
the name of the writing agent
What is not true regarding a decreasing term policy
the payable premium amount steadily declines throughout the duration of the contract
All true of key person insurance except
the plan is funded by permanent insurance only
In an adjustable life policy what cannot be changed by the owner
the type of investment
What is the purpose of buyer's guide?
to allow the consumer to compare the costs of different policies
What is the purpose of a disclosure statement in life insurance policies?
to explain features and benefits of a proposed policy to the consumer
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse switch policies from one to another?
twisting
An insured owns a life insurance policy. In order to pay some of medical bills, she withdraws a portion of policy's cash value.There is a limit for withdrawal and insurer charges a fee. What type of policy does insured most likely have?
universal life
Which of the following types of policies allow policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
universal life
the waiver of cost of insurance rider is found in what type of insurance
universal life
when would a 20 pay whole life policy endow?
when the insured reaches age 100
For individual not covered by employer sponsored plan, ira contributions
will be tax deductible
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
$ 50,000
An annuity contract is issued to consumer over age 65. What is maximum surrender charge for withdrawal of money allowed on this annuity?
10%
The minimum age for purchasing life insurance policy in Florida is
15
A paid up nonforfeiture benefit will become effective as specified in the policy unless person entitled elects another available option within how many days after the due date of premium is in default?
60
Which of the following is true regarding the agent's appointments?
A person may hold several appointments at one time
An insured misstates her age at the time the life insurance application is taken. This misstatement may result in
Adjustment in the amount of death benefit
Which of the following would NOT be a violation of state insurance regulations?
Agent C uses her license to write only business other than controlled
Licensed Life insurance agents are expected to be familiar with what rules and regulations?
All of the insurance laws and regulations
Assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible for a Health Savings Account?
Amanda is 67 and covered by a basic medical expense policy
A Universal Life Insurance policy is best described as a/an
Annually renewable term policy with a cash value account
When an annuity is written, whose life expectancy is taken into account?
Annuitant
When must insurable interest exist in a life insurance policy?
At the time of application
Which of the following is NOT required to be stated in the outline of coverage provided with a long-term care policy?
Basic information about supplementary policy
A producer who fails to segregate premium monies from his own personal funds is guilty of
Commingling
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?
Consumer report
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
In a basic expense policy, after the limits of the basic policy are exhausted, the insured must pay what kind of deductible?
Corridor
All of the following are true about group disability Income insurance EXCEPT
Coverage applies both on and off the job
Which of the following is true regarding taxation of dividends in participating policies?
Dividends are not taxable
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer
Which of the following is NOT covered by Health Maintenance Organizations (HMOs)?
Elective services
Which of the following statements is correct concerning taxation of long-term care insurance?
Excessive benefits may be taxable.
What kind of policy does not require proof of insurability?
Group insurance
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is 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?
Guaranteed insurability option
The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
Insuring clause
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
Insuring clause
Which of the following statements concerning Medicare Part B is correct?
It pays for physician services, diagnostic tests, and physical therapy
Which of the following does NOT describe hospice care?
It provides care to people with life expectancies of 1 - 2 years
During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes
Misrepresentation
All of the following are required provisions in all individual health insurance policies delivered in this state EXCEPT
Misstatement of age
Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is
Monthly
In a long-term care policy, pre-existing condition limitations
Must appear on a separate paragraph and be clearly labled
On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
Not taxable since the IRS treats them as a return of portion of premium paid
Which of the following documents must be provided to policy owner or applicant during policy replacement?
Notice regarding replacement
All of the following are the most common variations in a Long-Term Care policy EXCEPT
Number of family dependents
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?
Principal sum
In what way can an agent demonstrate a high standard of ethics?
Putting client's best interest before their own
Insurers may change which of the following on a guaranteed renewable health insurance policy?
Rates by class
All of the following are true regarding rebates EXCEPT
Rebates are allowed if it's in the best interest of the client
Todd has been informed that he has a hernia which requires repair. When Todd researches the cost, he learns that his insurance plan will cover 200 points worth of surgical expenses. Each point represents $10, which means that $2000 of his surgery will be covered by his insurance plan. What system is Todd's insurance company using?
Relative value
What type of care is Respite care?
Relief for major care giver
Which health insurance provision describes the insured's right to cancel coverage?
Renewal provision
If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised?
Replacement regulations will not apply in this situation
An insured has endured multiple surgeries and hospitalizations for an illness during the summer months. Her insurer no longer bills her for medical expenses. What term best describes the condition she has met?
Stop-loss limit
Which of the following groups would most likely be covered under a blanket accident policy?
Students at a public school
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The Fair Credit Reporting Act
All of the following entities regulate variable life policies EXCEPT
The Guaranty Association
Which of the following is incorrect concerning a noncontributory group plan
The employees receive individual policies
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
All of the following are true regarding the guaranteed insurability rider EXCEPT
This rider is available to all insureds with no additional premium.
An agent transacts business for Insurer A and Insurer B, both selling life insurance, and for Insurer C, selling health insurance. How many appointments must the agent hold?
Three - one for each insurer
An insured notifies the insurance company that he has become disabled. What provision states that claims must be paid immediately upon written proof of loss?
Time of Payment Claims
Which provision states that the insurance company must pay Medical Expense claims immediately?
Time of Payment Claims
Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?
Unlimited
When does free look period begin on a life insurance policy?
When the policy is delivered to the insured.
Which would not receive death benefit immediately after insured dies?
a minor son of the insured
Who is a third party owner?
a policyowner who is not insured
What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?
application
Employer contributions made to a qualified plan
are subject to vesting requirements
which of the following accurately compares business and personal life insurance
both create immediate payment upon death of insured
Which of the following best describes fixed-period settlement option?
both the principal and interest will be liquidated over a selected period of time
A small hardware store owner is involved in a car accident that renders him totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during the time of his disability?
business overhead expense policy
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
cash option
The gatekeeper of an HMO helps
control specialist costs
Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?
disability buy-sell
Tim and Tom are twins. When they applied fo life insurance in company a, the insurance company found that while neither of them smoked and both had similar life style, tim was in a much stronger financial position than Tom. Because of this the company charged tim a higher rate for his insurance. This practice is
discrimination
Which of the following is not a responsibility of the office of insurance regulation?
enacting new insurance laws
Under what conditions will proof of insurability not required of an employee wanting to enroll in group insurance?
if employee enrolls within certain time period
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as
legal actions
What's not a requirement for life insurance illustrations
must be part of the contract
An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?
the policy will not be affected
A person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership conferred on the insured by the policy or by law, to any of the following EXCEPT
the policyholder
In accordance with the Code of Ethics, agents must provide a completed application to
the prospective insured and the insurer
What is true about a spouse term rider
the rider is usually level term insurance
Under an extended term nonforfeiture option, the policy cash value is converted to
the same face amount as in the whole life policy
Which of the following products requires a securities license?
variable annuity
Which of the following is a statement guaranteed to be true and if untrue may breach an insurance contract?
warranty
A brain surgeon has an accident and develops tremors in her right arm. Which disability income policy definition of total disability will cover her for all losses?
"Own Occupation" - less restrictive than other definitions
An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?
$100,000
The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?
$100,000 insured contributed to his own death
If Fair Credit reporting Act is violated what is the penalty?
$2,500
Walter purchased a 15 year level term life insurance with a face amount of 100,000$. The policy contained an accidental death rider, offering a double indemnity benefit. He was severely injured in auto accident and after 10 weeks of hospitalization he dies from injuries. What amount would beneficiary receive as settlement?
$200,000
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?
$50,000
The sole proprietor of a business makes a total salary of $50,000 a year. This year, his medical expenses have reached a total of $75,000. What amount may the sole proprietor deduct in regards to his medical expenses?
$50,000
An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax-free rollover?
$8,000, 60 days
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity?
10%
Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income?
10%
In order for debtor group to qualify for group life insurance what is the minimum number of participants joining the plan each year be?
100
For group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?
100%
An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?
102% of premium = $102
The Florida Health Insurance Coverage Continuation Act requires insurers that sell health plans to small employers to offer in those plans a right to elect to continue coverage, without providing evidence of insurability, to employees who lose their coverage and are unable to replace it. The premium rate for this coverage may NOT exceed
115% of regular group rate
Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
An agent delivers a life insurance policy to the proposed insured. The insured makes a decision not to accept the policy. The insured may return the policy for a full refund of premium within how many days?
14
Which of the following disability income policies would have the highest premium?
15 day waiting period / 10 year benefit period
A client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. Ten days later, the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay?
15 days
At what age are individuals become INELIGIBLE for Florida Healthy Kids coverage?
19
COBRA applies to employers with at least
20 employees
What is a penalty tax for nonqualified distributions from a health savings account?
20%
If a parent would like to enroll a child over the age of 5 into the Florida Healthy Kids program, their family income must be under a certain percentage of the federal poverty level. What percentage?
200%
The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last
24 months
The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last
24 months / 2 years
In order for an employee to be considered eligible for small group insurance, he/she must work at least how many hours per week?
25
Under SIMPLE plans, participating employees may defer up to a specified amount each year, and the employer then makes a matching contribution up to an amount equal to what percent of the employee's annual wages?
3
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
How long must an insurer retain an advertisement for its long-term care policies?
3 years
If a licensee changes his or her residence address, within how many days must the department be notified?
30
Medicare supplement policies, by law, must provide a free-look provision of
30 days
If a consumer requests additional information concerning an investigative consumer report, how long does insurer or reporting agency have to comply?
5 days
What is the statute of limitation on lawsuits for health insurance policies?
5 years
When a group policy terminates, each individual insured under the policy will be entitled to have an individual policy if insured has been insured under group policy for at least how many years prior to policy termination?
5 years
A corporation can be considered a "small group employer" if it has at least one and a maximum of how many employees?
50
In the state of Florida, it is illegal for a licensee's commissions from controlled business to exceed what percentage of the total in a given year?
50%
Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
50/50
To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?
6 credits
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60
According to the PPACA rules, what percentage of health care costs will be covered under a bronze plan?
60%
At what age may an individual make withdrawals from an HSA for non-health purposes without being penalized?
65
Regulations for annuity recommendations would apply when a consumer is at least what age?
65 years old
If claim made on policy during grace period, an insurer is allowed to deduct overdue premium and to charge interest. What is maximum allowed interest?
8%
Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within
90 days
Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within
90 days of a loss
If an insurance company offers Medicare supplement policies, it must offer which of the following plans?
A
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
A SEC registration
The term "illustration" in a life insurance policy refers to
A presentation of non-guaranteed elements of a policy
All of the following are correct about the required provisions of a health insurance policy EXCEPT
A reinstated policy provides immediate coverage for an illness
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain
A statement that is sufficiently clear to identify the insured and the nature of the claim
Which of the following insurance products will be subject to the regulation on life insurance solicitation?
A term life policy
Which of the following Medicare supplement plans would be available to a reasonably healthy 91-year-old female?
A-N
When the insured purchased his health policy he was a window washer. He has since changed occupations and now manages a library. If the insurer is notified of the insured's change of occupation, the insurer should
Adjust the benefit in accordance with the decreased risk
An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?
Adjust the claim benefit to reflect the insured's true age
Which of the following is the closest term to an authorized insurer?
Admitted
Group health insurance is characterized by all of the following EXCEPT
Adverse Selection
How can a new physician be added to the PPO's approved list?
Agree to follow the PPO standards and charge the appropriate fees.
An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?
Aleatory
When transacting business in this state an insurer formed under the laws of another country is known as a/an
Alien insurer
Which of the following individuals is eligible for a Health Savings Account?
Allison is insured by a High Deductible Plan (HDHP)
Long-term care insurance policies must cover which of the following?
Alzheimer's Disease
What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application?
As long as the policy is in force
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
In a replacement situation, all of the following must be considered EXCEPT
Assets
How often must domestic insurance companies be examined by the Chief Financial Officer in Florida?
At least every 5 years
Which of the following is INCORRECT regarding a $100,000 20-year level term policy?
At the end of 20 years, the policies cash value will equal $100,000
When must the Medicare Supplement Buyer's Guide be presented?
At the time of application
When must an insurance company present an outline of coverage to an applicant for a Medicare supplement policy?
At the time of the application
At what point must an Outline of Coverage be delivered?
At the time of the application or upon delivery of the policy
The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's
Attained age
Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?
Attending Physician
What document describes an insured's medical history, including diagnoses and treatments?
Attending Physician's Statement
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer
Which of the following would NOT be considered a misrepresentation on the part of the insurer?
Backdating policies to secure a lower premium for the insured.
Social security was created to protect against all the following except a.disability b.sickness in old age c.bad investment choice d.premature death
Bad investment choice
Which of the following provides coverage on a first-dollar basis?
Basic expense
All of the following information about a customer must be used in determining annuity suitability EXCEPT
Beneficiary's age
All of the following are true of the Key Person disability income policy EXCEPT
Benefits are considered taxable income to the business
In terms of Social Security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse turns age 60 called?
Blackout period
What license or licenses are required to sell variable annuities?
Both a life insurance license and securities license
In comparison to a policy that uses the accidental means definition, a policy that uses the accidental bodily injury definition would provide a coverage that is
Broader in general
If an agent is in the military, which of the following is true?
Cannot sell to any other active military member of lower rank
Which of the following features of the Indexed Whole Life policy is NOT fixed?
Cash value growth
An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the
Consideration clause
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
Controlled
What happens when a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated
Which of the following is NOT an exclusion in medical expense insurance policies?
Coverage for dependents
Which of the following is NOT typically excluded from life policies?
Death due to plane crash of fare-paying passenger
Which of the following authorities grants and revokes licenses?
Department of financial services
An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30-day
Elimination period
The provision that states that both the printed contract and a copy of the application form the contract between the policyowner and the insurer is called the
Entire contract
An agent selling variable annuities must be registered with
FINRA
An applicant is denied insurance because of information found on consumer report. Which of the following requires that an insurance company supply the applicant with the name and address of the consumer reporting company?
Fair Credit Reporting Act
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?
Fixed period
All of the following are dividend options EXCEPT
Fixed-period installments
How long must insurers maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions?
For 5 years after the insurance transaction is completed by the insurer
Which of the following insurance providers must be nonprofit and sell insurance only to its members?
Fraternal
Which of the following is another name for a primary care physician in an HMO?
Gatekeeper
You did not enroll in Medicare Part B when you first became eligible. Which of the following would allow you another opportunity to enroll?
General enrollment period
The agent in charge of an agency must hold which of the following licenses?
General lines
The death benefit under the Universal Life Option B
Gradually increases each year by the amount that the cash value increases
All of following are the general qualifications for an agent's license EXCEPT
Have a high school diploma
What are the 2 types of Flexible Spending Accounts?
Health Care Accounts and Dependent Care Accounts
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
Immediate annuity
Life income joint and survivor settlement option guarantees
Income for two or more recipients until they die
What type of insurance would be used for a Return of Premium rider?
Increasing term
All of the following are differences between individual and group health insurance EXCEPT
Individual insurance does not require medical examinations, while group insurance DOES require medical examinations.
What are the two components of a universal policy?
Insurance and cash account
Which of the following entities must approve all Medicare supplement advertisements?
Insurance commissioner or Director
When a person applies for Medicare supplement insurance, whose responsibility is it to confirm that the applicant does not already have accident or sickness insurance in force?
Insurer
Which of the following entities can legally bind coverage?
Insurer
In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party?
Insurer to the insured
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an
Interest sensitive whole life
The mode of premium payment
Is identified as the frequency and the amount of payment
What is the main purpose of the seven pay test?
It determines if the insurance policy is an MEC
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection
Concerning Medicare Part B, which statement is INCORRECT?
It is fully funded by Social Security taxes (FICA)
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date earlier than the date of the insurance policy.
Which of the following best describes annually renewable term insurance?
It is level term insurance
In which of the following situations is it legal to limit coverage based on marital status
It is never legal to limit coverage based on marital status
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium.
Which of the following is TRUE regarding the annuity period?
It may last for the lifetime of the annuitant
Which of the following describes hospice care?
It provides short-term, continuous care in a home-like setting to terminally-ill people with life expectancies of 6 months or less
Which of the following best describes the MIB?
It's a non-profit organization that maintains underwriting information for life and health insurance
In a group health policy, a probationary period is intended for people who
Join the group after the effective date
Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT
LTC policies are marketed effectively to prospective insured's
Variable Life insurance is based on what kind of premium?
Level fixed
Which of the following is an example of a limited-pay life policy?
Life Paid-up at Age 65
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life
In a Disability Income policy, all of the following are considered presumptive disabilities EXCEPT
Loss of one eye
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
Lower
When replacing life insurance, the duties of the replacing insurance company include all of the following
Maintaining a copy of the Notice Regarding Replacement and all sales proposals used for at least 3 years.
When replacing life insurance, the duties of the replacing insurance company include all of the following EXCEPT
Maintaining a copy of the Notice Regarding Replacement and all sales proposals used for at least 5 years.
Which of the following would NOT be considered a limited coverage policy?
Major medical expense insurance
A state program of medical assistance for needy persons that is administered under federal guidelines is
Medicaid
Medicare Advantage is also known as
Medicare part C
A long-term care insurance shopper's guide must be provided in the format developed by which of the following?
NAIC
The primary eligibility requirement for Medicaid benefits is based upon
Need
An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?
Neither approved the application nor issued the policy
When may an insurer require an insured to provide genetic information?
Never
An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits?
No benefits
In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received?
No tax
Can a group that's formed for the sole purpose of obtaining group insurance qualify for group coverage?
No. The group must be formed for a purpose other than obtaining group insurance
What term describes the benefit of life insurance policy that the policyowner does not automatically relinquish if policy lapses
Nonforfeiture Values
What is another name for social security benefits?
Old age, Survivor, and Disability insurance (OASDI)
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
One-year term option
When does Medicare cover nursing home care?
Only if it's part of treatment for covered illness or injury
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?
Outline of coverage
If your health care plan has characteristics of an HMO and PPO, what type of plan do you have?
POS
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
Paid-up option
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Pay a reduced death benefit
Don has both a basic expense and a major medical policy. He is injured in an accident, which requires several major surgeries. This quickly exhausts Don's basic expense policy. What must Don do before his major medical policy can pick up where the basic expense policy left off?
Pay a special deductible on his medical policy
A participating insurance policy may do which of the following?
Pay dividends to the policy owner
Which of the following is another term for the accumulation period of an annuity?
Pay-in period
With respect to the Consideration Clause, which of the following would be considered consideration on the part of the applicant for insurance?
Payment of Premium
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor benefit
Which of the following riders would NOT cause the Death Benefit to increase?
Payor benefit rider
What describes specific information about a policy?
Policy Summary
All of the following are true regarding insurance policy loans EXCEPT
Policy loans can be made on policies that do not accumulate cash value
Which of the following is correct concerning the taxation of a key person life insurance policy premiums and death benefit?
Premiums are not deductible as a business expense and the death benefit is not taxable to the company
Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe?
Presumptive disability
A long-term care shopper's guide must be presented at what point?
Prior to the time of application
Pertaining to insurance, what is the definition of a fiduciary responsibility?
Promptly forwarding premiums to the insurance company
Which is among regulations set forth by Florida Replacement Rule?
Providing written comparison and summary statement
Which of the following is NOT specifically prohibited by state law as an unfair trade practice?
Reducing the premiums paid by employers for group insurance based on loss experience
Which rule would apply if an agent knew the applicant is going to cash in an old policy and use the funds to purchase new insurance?
Replacement Rule
Which is an incorrect statement?
Replacing insurance policies for purpose of making commissions is legal
Equity indexed annuities
Seek higher returns
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
Which of the following applicants would NOT qualify for a Keogh Plan?
Someone who works 400 hours per year
All of the following are activities of daily living EXCEPT
Speaking
Which of the following would be considered a nonqualified retirement plan?
Split-dollar plan
An agent's appointment has been denied. Which of the following is true?
State taxes may be refunded upon a written request.
The premiums paid by the employer in a business life insurance policy are
Tax deductible by the employer
All of the following would be different between qualified and nonqualified retirement plans EXCEPT
Taxation on accumulation
Which of the following would be a qualifying event as it relates to COBRA?
Termination of employment due to downsizing
A customer want to exchange an old contract for new one. What regulation should customer's insurance agent consult?
The Florida Replacement Rule
Which of the following is NOT covered under Plan A in Medigap insurance?
The Medicare Part A deductible
Before a customer's agent delivers his policy, the insurer makes a last-minute change to the policy. The agent informs the customer of this change, and he accepts it. What must the agent do now?
The agent should ask the customer to sign a statement acknowledging that they are aware of the change
Which of the following does NOT have to be disclosed in a long-term care (LTC) policy?
The aggregate amount of premiums due
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
The amount of distribution is reduced by the amount of a 20% withholding tax
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
How will a life insurance beneficiary designation naming a spouse be changed by divorce?
The beneficiary designation will be voided
A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid?
The benefits will be coordinated
In insurance, an offer is usually made when
The completed application is submitted
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The costumer's associates, friends, and neighbors provide the report's data
An individual applied 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. If the policy is issued, what would be the policy's effective date?
The date of medical exam
Which of the following dates must be contained in a policy summary?
The date the summary was prepared
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased providing evidence of insurability
Which statement accurately describes group disability income insurance?
The extent of benefits is determined by the insured's income.
An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?
The group plan will not pay because the employee was injured at work
In a group policy, who is issued a certificate of insurance?
The individual insured
Who chooses a primary care physician in an HMO?
The individual member
Which of the following is NOT a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis
When an insurer appoints an agent,
The insurer is bound by the agent's acts
Which of the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain conditions.
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?
The insurer will pay the full death benefit from the group policy to the beneficiary.
Which of the following definitions would make it easier to qualify for total disability benefits?
The more liberal "own occupation"
An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action?
The old policy should stay in force until the old policy is issued.
In a life settlement contract, whom does the life settlement broker represent?
The owner
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio
Which of the following best describes what the annuity period is?
The period of time in which accumulated money is converted in to income payments
Which of the following statements regarding the Change of Beneficiaries Provision is false?
The policyowner has the right to change beneficiaries in any case
An individual purchased a Medicare supplement policy in March and decided to replace it 2 months later. His history of coronary artery disease is considered a pre-existing condition. Which of the following is true?
The pre-existing waiting period fulfilled in the old policy will be transferred to the new policy, the new one picking up where the old one left off.
Which statement is NOT true regarding a Straight Life policy?
The premium steadily decreases over time, in response to its growing cash value
All of the following are true about variable products EXCEPT
The premiums are invested in the insurer's general account
If a life insurer holds proceeds of any policy it issues, which of the following is true.
The proceeds may be exempt from any creditor's claims against a beneficiary other than policy owner
If a life insurer holds the proceeds of any policy it issues, which of the following is true?
The proceeds may be exempt from any creditor's claims against a beneficiary other than the policyowner
Which of the following is NOT true of life settlements?
The seller must be terminally ill
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
The size of each installment
All of the following are correct about life insurance policy loan interest rate EXCEPT
There are no restrictions or limitations on policy loan rates
An HSA holder who is 65 years old decides to use the money in the account for a non-health expense. Which of the following is true?
There will be a tax.
Which of the following is true regarding METs?
They allow several small employers to purchase less expensive insurance together.
How are contributions to a tax-sheltered annuity treated with regards to taxation?
They are not included as taxable to the employee, but are taxable upon distribution.
Which of the following is TRUE about nonforfeiture values?
They are required by state law to be included in the policy.
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
They are tax deductible
Which of the following statements is most correct concerning the changing of an irrevocable beneficiary?
They can be changed only with written consent of the beneficiary
Which of the following is TRUE for both equity indexed annuities and fixed annuities?
They have a guaranteed minimum interest rate
What is the purpose of coinsurance provisions?
To help the insurance company to prevent over-utilization of the policy
Premiums paid by self-employed sole proprietors or partners for medical expense insurance are
Totally tax deductible
Under what circumstances can an agent's appointment be transferred to another person?
Under no circumstances
According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT
Unearned premiums are retained by the insurance company
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
Universal Life
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life
Which characteristic does NOT describe managed care?
Unlimited access to providers
An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?
Viatical Settlement
Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT
When the amount payable under Social Security is more than the amount payable under the rider
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
When does a free-look period begin on a life insurance policy?
When the policy is delivered to the insured
Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?
Withdrawals are not taxable
When do HMOs file reports of their activities to the Department?
Within 3 months of the end of each fiscal year
When can a Long-Term Care policy deny a claim for losses incurred because of a pre-existing condition?
Within 6 months of the effective date of coverage
How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?
Within 90 days or as soon as reasonably possible, but not exceeding one year
All of the following are basic types of health insurance plans EXCEPT
Worker's compensation
The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is
a nonqualified annuity plan
If a company has a Simplified Employee Pension plan, what type of plan is it?
a qualified plan for a small business
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
adjusted to the insured's age at the time of renewal
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?
amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit
All following are examples of third party ownership of life insurance policy except
an insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
an unfair trade practice
What is another term for the general enrollment period for Medicare Part B?
annual enrollment period
To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested?
at the time of the application
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be
authorized
How is the Insurance Guaranty association funded
by its members- authorized insurers
A small business owner is the insured under a disability policy that funds a buy-sell agreement. If the owner dies or becomes disabled, the policy would provide which of the following?
cash to the owner's business partner to accomplish a buy-out
All of the following are duties and responsibilities of producers at the time of application EXCEPT
change any incorrect statement by personally initialing next to the corrected statement
If an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of
churning
A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?
collateral assignment
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
conditions
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
consideration
Which of the following is NOT a characteristic or a service of an HMO plan?
contracting with insurance companies
Which of the following is the term for the specific dollar amount that must be paid by an HMO member for a service?
copayment
Which of the following is NOT true regarding Basic Surgical Expense coverage?
coverage is unlimited
a partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called
cross-purchase plan
the term fixed in fixed annuity does not refer to
death benefit
When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount
equal to the original policy as long a period of time that the cash values will purchase
What does "level" refer to in level term insurance?
face amount
Which of the following would be an example of an unfair claims settlement practice?
failing to acknowledge a claim within 30 days
Both Universal Life and Variable Universal Life have a
flexible premium
Under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan?
if the employee enrolls within a certain time period
Which of the following riders would NOT increase the premium for a policyowner?
impairment rider
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
indemnity
During partial withdrawal from a universal life policy, which portion will be taxed?
interest
A child is dependent upon her parents for support because of a physical disability. Coverage may be continued beyond the normal limiting age when the child
is incapable of self-sustaining employment
In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost
is not covered
Which of the following is NOT true regarding a flexible spending account?
it does not have limits on contributions
Which of the following is true regarding a risk retention group?
it is a liability insurance company owned by its members
Which of the following is NOT true of a major-medical health insurance policy?
it is designed to pay on a first dollar of expense basis
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
misrepresentation
Premium payments for personally-owned disability income policies are
not tax deductible
Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the
notice regarding replacement
During a replacement of life insurance, the replacing insurer must
obtain a list of all life insurance policies that will be replaced
All of the following would be considered an insurance transaction EXCEPT
obtaining an insurance license
Certificates of coverage are issued to
participants in a group plan
Which of the following provisions is mandatory for health insurance policies?
physical examination and autopsy
Regarding the taxation of Business Overhead policies,
premiums are deductible and benefits are taxed
all of the following are characteristics of group life insurance except
premiums are determined by age, sex, and occupation of each individual certificate holder
A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called
prepaid plan
Another name for a substandard risk classification is
rated
Which nonforfeiture option provides coverage for the longest period of time?
reduced paid-up
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?
reduction of premium
Which method insurers use to protect themselves against catastrophic losses?
reinsurance
Which health insurance provision describes the insured's right to cancel coverage?
renewal provision
An insurance agent B likes to add additional coverages to applicants' policies and charge them for such coverages without their knowledge. The agents is guilty of
sliding
The interest earned on policy dividends is
taxable
The annual contribution limit of a Dependent Care Flexible Spending Account is set by
the IRS
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?
the annuitant must be a natural person
Which of the following is true about the requirements regarding HIV exams?
the applicant must give prior informed written consent
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?
the beneficiary
An employer offers group coverage of 10,000 to employees. What is true about cost?
the cost of coverage is deductible expense by the employer
All of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT
the employer can receive a current tax deduction for any contributions made to the plan
Which statement regarding qualifications for Social Security disability benefits is NOT true?
the individual must be at least 65 years old
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to
the insured
Who does the secondary addressee provision protect?
the insured is over the age of 64
Who does the secondary notice provision protect?
the insured over the age of 64
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 insured's premiums will be waived until she is 21
Which of the following statements is true regarding coinsurance?
the larger the percentage that is paid, the lower the required premium will be
Which of the following is true regarding elimination periods and the cost of coverage?
the longer the elimination period the lower the cost of coverage
What is the advantage of reinstating a policy instead of applying for a new one?
the original age is used for premium determination
In terms of parties to a contract, which does not describe competent party
the person must have completed secondary education
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
the surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
What is the minimum number of participants in group life policies in this state?
there is no minimum
All of the following statements about Medicare supplement insurance policies are correct EXCEPT
they cover the cost of extended nursing home care
Which of the following is the best reason to purchase life insurance rather than annuities?
to creat an estate
Long-term care policies require that in addition to the applicant at least one person must be designated in the policy. What is the role of that designated person?
to receive notice of policy lapse or termination
An insured submits proof of loss form within 10 days of loss. The insurer however does not acknowledge the form for 3 months. Which of the following violations has the insurer committed?
unfair claims settlement
Which of the following is NOT a factor in determining qualifications for Social Security disability benefits?
worker's occupation
The insured is the is the policy owner of a whole life policy. what age must insured attain in order to receive the policy's face amount?
100
Under special circumstances, continuing education requirements may be extended beyond the 2 year period for a maximum period of
12 months
In order to maintain an insurance license an agent will need to satisfy florida's continuing education requirement of
24 hours of continuing education in every 2-year period
An applicant for a life agent's license may obtain a temporary license for a maximum period of
6 months
In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. What is the maximum annual interest rate?
8%
Which of the following describes the process of policy delivery?
After the insurer receives application, it is forwarded to the underwriting department. After the application is approved and the policy is issued the policy is then delivered by person or by mail
Which of the following entities is not an insurer but organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?
Fraternal Benefit Society
What type of policy issues certificates of insurance to insureds?
Group Insurance
When would a misrepresentation on an insurance be considered fraud?
If it is intentional and material
Which of the following entities protects policyowners, isureds and beneficiares under insurance contracts when insurer fails to perform contractual obligations due to financial impairment?
Insurance Guaranty Association
An insurer is helping a married couple determine their children's needs assets and liabilities, in the event the one or both spouses die. What term means that?
Survivor Protection
Who examines the books and records of insurance companies in florida?
The Chief Financial Officer
Which of the following would provide an underwriter with information concerning applicant's medical history?
The Medical Information Bureau
The annuity owner dies when annuity is still in accumulation stage. Which of the following is true?
The beneficiary will receive the greater of the money paid into the annuity or cash value.
If a person accumulates more continuing education hours than is necessary to fulfill the requirements of the 2 year period which of the following will occur?
The extra hours may be continued into the next period
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10 year term?
The insured may renew the policy for another 10 years, but at a higher premium rate
An insured is involved in car accident and disabled. If policy contains a waiver of premium rider which of the following is true regarding the policy premiums?
The insured will have to pay premium for 6 months, after which the premiums will be reimbursed and subsequent premiums will be waived.
Which of the following entities is responsible for agent licensing and administrative supervision?
The office of Insurance Regulation
the two types of assignments are
absolute and collateral
at age 30 a man wants to start an insurance program, but realizing his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
adjustable life
Which of the following is true regarding branch agency licensing
agent in charge must be licensed
Rebating is an unfair trade practice and it's regulated by law. All of the following are rebating except
an agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him
a universal life insurance policy is best described as
an annually renewable term policy with cash value account
Why should the agent personally deliver the policy when the first premium have been made?
To help insured understand all aspects of the contract
An agent and an applicant for a life insurance policy fill out and sign the application. However the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
When the agent delivers the policy, collects initial premium and the applicant completes and acceptable statement of good health
