Life Guaranteed Exam

What effect will the long-term care (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured?

Reduce the death benefit

If an agent only sells annuities, the agent should be licensed as

A life insurance producer

How many days' notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans?

30 days

A viatical settlement is a transaction outside of the life insurance company where the owner sells the life insurance policy for which of the following?

A percentage of the face amount of the policy

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

In replacement of life insurance policies, who must signs the Notice Regarding Replacement?

Both the applicant and the producer

When a life insurance policy is surrendered for its Nonforfeiture value, what is the automatic option?

Extended term

Which of the following is a correct statement about annuities?

Fixed annuities do not provide protection against inflation

All of the following information needs to be included on an application for life insurance EXCEPT

Health insurance policies in force

All of the following are true of annually renewable term insurance EXCEPT

proof of insurability must be provided at each renewal

All of the following are consideration in an insurance policy EXCEPT

The cash value of the policy

All of the following are advantages of a qualified plan EXCEPT

The income at retirement is tax free

Which statement below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs?

Applicants who may require a larger death benefit in the future should buy convertible term insurance

Which statement best describes agreement as it relates to insurance contracts?

One party accepts the exact terms of the other party's offer

In life insurance, which of the following is NOT required to have an insurable interest in the insured?

beneficiary

Which of the following is NOT true regarding a deferred annuity?

Income payments begin within 1 year from the date of purchase

All group life insurance policies issued in Colorado must contain all of the following provisions EXCEPT

Incontestability after 1 year

If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

Prior to performance of the test