Life and Health Exam
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 the initial premium, and the applicant completes an acceptable Statement of Good Health
The death benefit under the Universal Life Option B
Gradually increases each year by the amount that the cash value increases.
The purpose of insurance regulation is to
Promote the public welfare
If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about
Whether an insurable interest exists between the individuals.
Which of the following products requires a securities license?
variable annuity
In reference to fixed annuities, what comprises most of a life insurance company's general account?
Conservative investments like bonds
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
During partial withdrawal from a universal life policy, which portion will be taxed?
Interest
The Federal Fair Credit Reporting Act
Regulates consumer reports
Once a producer's appointment is filed, within how many days will the Commissioner verify the appointment (for eligible producers)?
15 days
The term "conservation effort" deals with
Discouraging policyholders from dropping existing policies.
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered
Discrimination
A prospective deferred annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. The agent most likely explained which of the following?
Nonforfeiture option guarantees that the owner will receive a surrender value of the contract.
What must happen when an individual policy or annuity has been personally delivered to the policyowner?
The policyowner must sign a delivery reciept
Credit Life insurance
insures the life of a debtor
When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. Which rider is attached to the policy?
Return of premium
All of the following situations would be considered rebating EXCEPT
a) An agent invites a prospective insured to a baseball game and pays $75 for admission for both of them. b) An agent gives out as a raffle prize to a prospective policyowner a new blender with a market retail value of $300. c) An agent offers a prospective insured a $150 dollar voucher for a restaurant. d) An agent provides a prospective policyowner with monthly cash payment of $20 for 6 consecutive months. A
An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
if the primary beneficiary predeceases the insured
If an insured continually uses the automatic premium loan option to pay the policy premium,
The policy will terminate when the cash value is reduced to nothing
What is the advantage of having a qualified annuity?
favorable tax treatment
Which statement regarding insurable risks is NOT correct?
insureds cannot be randomly selected
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
interest only option
Which of the following is issued by the state Department of Insurance to show that the insurer has power to write insurance contracts in that state?
Certificate of authority
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing term
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
The term "illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy.