Life Insurance basics exam simulator
Replacing insurers that use producers must provide applicants with the right to return their policy within a few days of its delivery. How many days?
30
An investor by the life policy on an elderly person in order to sell it for a life settlement. This is an example of.
A STOLI policy
Which of the following statements is an NOT true concerning insurable interest as it applies to LIFE INSURANCE
A debtor has an insurable interest in the life of a lender
The term "illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy.
If an insurance company makes a statement that it policies are guaranteed by the existence of the insurance guaranty association that would be considered
An unfair trade practice
Partners in a business, enter into a buy sell agreement to purchase life insurance, which state that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to find this agreement
Any form of life insurance
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 affective?
As of the application date
When must insurable interest exist in a life insurance policy?
At the time of application
In terms of Social Security, what is the name of the time. After the youngest child of a family turn 16 and before the surviving spouse me start receiving retirement benefits?
Blackout period
All of the following a personal uses of life insurance, except
Buy-sell agreement
What does " liquidy" refer to in a life insurance policy?
Cash values can we borrowed it anytime
If an insured changes the premium payment mode for monthly to annually, what happened to the total premium ?
Decreases
Which of the following is an NOT an example of a valid insurable interest?
Depth are in the life of the creditor
All of the following information about the applicant is identified in the general information section of a life insurance application EXCEPT
Education
Which of the following statements is an OT true concerning insurable interest as it applies to LIFE INSURANCE
Eight Apter has an insurable interest in the life of a lender
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called
Executive bonus
Which of the following methods of calculating the amount of life insurance needed, takes into account, the insured, wages, years until retirement and inflation?
Human life failure approach(HLVA)
An insured has a life insurance policy with a face amount of $500. She pays a premium each week to the agent who sold him the policy. What kind of policy does the insured have?
Industrial life
An insured has a life insurance policy with the face amount of 500. He pays a premium each week to the agent who sold him the policy. What kind of policy does insured have?
Industrial life
The mode of premium payment
Is defined as the frequency and the amount of the premium payment.
Which of the following is usually true of a participating life insurance policy?
It pays dividends to policyowners
Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insureds death?
Life insurance proceeds
Which of the following documents must be provided to the policy, owner or applicant during policy replacement?
Notice Regarding Replacement
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
APS (Attending Physician's Statement)
Obtain medical details about a specific condition which has shown up in the application
An applicant wants to buy a policy that has a cash value element. Which type should she buy?
Permanent
An applicant wants to buy a policy that has cash value element. What type should she buy?
Permanent
If someone wants to buy a life insurance policy that will provide lifetime protection against premature death, what type of life insurance policy should a person by?
Permanent
If someone wants to buy a life insurance policy, that will provide lifetime protection against premature death, what type of life insurance policy sure that person by?
Permanent
Which of the following individuals must have insurable interest in the insured?
Policyowner
Based on human life value approach, which of the following is NOT used to calculate an individual's life value
Predicted needs of the family after the insured's death
Which of the following will be included in a policy summary?
Premium amounts and surrender values
All of the following are characteristics of group life insurance except
Premiums are determined by the age, sex and occupation of each individual certificate holder.
Which of the following would be a violation of life policy illustration regulation in Oregon?
Providing a customer with incomplete illustration
Another name for a substandard risk classification is
Rated
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
Replacement rule
If an agent fails to obtain an applicant signature on the application, the agent must
Return the application to the applicant for a signature
Which of the following types of risk will result in the highest premium?
Substandard risk
Insurance producers must ensure that contracts they recommend are in the best interest of the insured. This is called
Suitability
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 personal use of life insurance known as a.
Survivor protection
An individual applied for an insurance policy and pay the initial premium. The insurer issued a conditional receipt. Five days later, the applicant had to submit to a medical exam. If the policy issued, what would be the policies effective date
The date of medical exam
Who is the owner and who is the beneficiary on a key person life insurance policy?
The employer is the owner and beneficiary
In a life settlement contract, whom does a life settlement broker represent?
The owner
All of the following statements concerning the use of life insurance as an executive bonus are correct EXCEPT
The policy is owned by the company
Which of the following is the best reason to purchase life insurance rather than an annuity
To create an estate
What is the main purpose of the regulation on life insurance policy illustrations?
To help customers make educated decisions in buying life insurance
Why should a producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
What is the purpose of key person insurance?
To lessen the risk of financial loss because of the death of a key employee
Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds?
Vacation travel expenses
If an applicant for a life insurance policy and and person to be insured by the policy or two different people, the underwriter would be concerned about
Weather in insurable interest exist between the individuals
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, I know conditional receipt is issued. When will coverage begin?
When the agent delivers a policy, collects the initial premium, and the applicant completes an acceptable statement of good health
Are insurance company underwriters allowed to discriminate?
Yes, but not unfairly
Which of the following terms means a result of calculation based on the average number of months, the insured is projected to live due to medical history and mortality factors
life expectancy
Which of the following premium modes would result in the highest annual cost for an insurance policy?
monthly
