Life Exam

all of the following are personal uses of life insurance EXCEPT

buy-sell agreement

which of the following is the basic source of information used by the company in the risk selection process

application

an unlicensed assistant works full time in an insurance agency. she may perform all the following activities except

collect premium for in-force policies

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision

common disaster

When an insured makes truthful statements on the application for insurance and pays the required premium, it is know as which of the following

consideration

the term "fixed" in a fixed annuity refers to all the following EXCEPT

death benefit

A policy owner plans to change insurance coverage from one insurer to another. if the insurer starts a conversation effort, the insurer is

discouraging policy holders from dropping existing policies

insurers must screen all marketing plans to assure that an advertisement does NOT use as the name or title of any kind of an annuity contract any phrase that

does not include the word "annuity" unless accompanied by other please language indicating it is an annuity

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

Another name for a substandard risk classification is

rated

which nonforfeiture option provides coverage for the longest period of time

reduced paid-up

a producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. this is a person use of life insurance known as

survivor protection

Offer

when app is submitted

An annuity owner 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 likely purchase

Equity Indexed Annuity

which of the following is NOT true regarding policy loans

money borrowed from the cash value is taxable

who bears all of the investment risk in the fixed annuity

the insurance company

if a government agency in this state files an administrative action against an insurance license, the report of the action to the commissioner must include all of the following except

the producers production records for the prior year

Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policy owner

third-party ownership

what is the purpose of establishing the target premium for a universal life policy

to keep the policy in force

Social Security was created to provide all the following benefits EXCEPT

unemployment income

which of the following terms will be permissible in describing a life insurance policy in company advertisement

variable plan

Acceptance

when UW approves the app and issues the policy