Life Insurance

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?

$80,000 60 days

To appoint a producer as its agent, the appointing insurer must file a notice of appointment with the Commissioner within how many days from the date the agency contract is executed?

15 days

how soon must the insurer pay a death benefit claim after receiving proof of death

2 months

How many accounts must the Tennessee Life and Health Insurance Guaranty Association maintain?

3 accounts: life insurance, annuities, and health insurance

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

3 days

No examination is required of a person licensed as an insurance producer in another state who moves to Tennessee as long as application is made within how many days of establishing legal residence?

90 days

An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe?

Adhesion

Which requires a securities license?

Annuity

A Limited Insurance Representative is an individual, other than an insurance producer, who may solicit or negotiate contracts for certain types of insurance which includes all of the following EXCEPT

Automobile physical damage insurance.

Assuming that a policy does not contain unconditional refund provision of at least 10 days, when should the buyers guide and policy summary be provided?

Before accepting the initial premium

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Considerations

An agent selling variable annuities must be registered with

FINRA

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

It is only taxable if the cash value exceeds the amount paid for premiums.

A producer authorized to offer insurance on personal effects carried as travel accident insurance sold in connection with transportation provided by a common carrier is known as which type of producer?

Limited lines producer

All of the following are true regarding insurance policy loans EXCEPT

Policy loans can be made on policies that do not accumulate cash value.

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE?

The beneficiary will receive the greater of the money paid into the annuity or the cash val

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 is NOT true regarding Equity Indexed Annuities?

They earn lower interest rate

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

Upon conversion, the death benefit of the permanent policy will be reduced by 50%.

Which of the following may obtain a producer's license, but may NOT sell, solicit, or negotiate a contract of insurance in Tennessee?

a business entity

why is extended term best as a nonforfeiture option?

allows for highest amount of insurance protection

Which of the following allows for lowest overall payment?

annual

Which of the following products will protect an individual from outliving his or her money?

annuity

When must insurable interest exist in a life insurance policy

at the time of application

n order to receive a commission, a person is required to

be licensed

Which of the following best describes fixed-period settlement option?

both the principal ad interest will be liquidated over time

All of the following are personal uses of life insurance except

buy-sell agreement

A tax-sheltered annuity is a special tax-favored retirement plan available to

certain groups of employees only

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?

depreciation period

all are considered rebates except:

dividends

Which nonforfeiture option has the highest amount of insurance protection?

extended term

What does "level" refer to in level term insurance?

face amount

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

family-term rider

All of the following are dividend options EXCEPT

fixed period installments

Rules of replacement apply to all of the following EXCEPT

group life insurance

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called

guarantee insurability

Why is an equity indexed annuity considered to be a fixed annuity?

guaranteed minimum interest rate

Concerning insurance, the definition of a fiduciary responsibility is

handling in trust capacity

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

incontestability clause

What type of insurance would be used for a Return of Premium rider?

increasing term

insurance producers do not perform:

issuing the policy

Premium in term policies is always _____

level

insurance producer is someone who is

licensed to sell insurance

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

life income with period certain

Which of the following is an example of a limited-pay life policy?

life paid up to 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

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

you can't give a temporary license to someone who hasnt

passed the exam

Which of the following riders would NOT cause the Death Benefit to increase?

payor benefit

Which nonforfeiture option provides coverage for the longest period of time?

reduced paid up

An insured committed suicide 6 months after his life insurance policy was issued. The insurer will

refund the premiums paid

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

signed waiver of premium

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

single premium policy for reduced face amount

a producer is helping a married couple determine the financial needs of their children in there premature death. this personal use of life insurance is known as

survivor protection

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

taxation on accumulation

Which of the following may NOT be included in an insurance company advertisement?

that its policies are covered by the state Guaranty Association

In any controversy between the insured or the insured's beneficiary and the insurer that arises from the application for insurance or any policy issued in connection with the application, the producer is considered to be the agent of which of the following?

the insurer

commissioners do not have the power to make information available to

the public

which of the following arrangements would be appropriate for a parent buying a life insurance policy for a child and the parent is the policy owner

third-party ownership

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

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant?

with the policy