Life Insurance Exam
The insured is also the policy owner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?
100
What is the minimum age for someone to purchase property insurance in this state?
16
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
Credit life accident and sickness insurance must be evidenced by an individual policy or a group certificate delivered to the debtor no later than how many days after the insurance term begins?
30 days
How many days does an insurer have to respond to a written communication from a claimant?
30 days
How many days from the issuance of an emergency cease and desist would the order be considered final?
31 days
The commissioner has a duty to examine each domestic insurer admitted to transact insurance in Oklahoma at least once every..
5 years
An insured purchased a variable life insurance policy with a face amount of 50,000 over the life of the policy stock performance declined and the cash value fell to 10,000 if the insured dies how much will be paid out
50,000
A person who knowingly attempts to obtain money goods or any other thing of value with intent to cheat and defraud is guilty of
A felony
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
Adjusted to the insured's age at the time of renewal
An applicant for insurance misstates her age at the time of her life insurance application is taken. This misstatement may result in?
Adjustment in the death benefit
Which of the following must be included with a group certificate of credit life insurance
All of the above
The duties (or duties) of an agent where replacement is involved include..
All of the above.
The death protection component of Universal Life Insurance is always
Annually Renewable Term
Which of the following is INCORRECT regarding a $100,000 20-year level term policy?
At the end of 20 years, the policy's cash value will equal $100,000.
The accelerated benefits provision will provide for an early payment of the death benefit when the insured
Becomes terminally ill
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?
Consumer report
Which of the following would NOT be considered an unfair nod deceptive practice?
Controlled business
What characteristic makes whole life permanent protection?
Coverage until death or age 100
Which of the following will not be an appropriate use of differed annuity?
Creating an estate
The type of insurance sold to a debtor and design to pay the amount due on a loan if the debtor dies before the loan is repaid is called?
Credit life
Which of the following is true regarding the insurance amount in a credit life policy
Creditor can only insure the debtor for the amount owed.
Which of the following is true about credit life insurance
Creditor is the policyowner.
Which of the following is not allowed in credit life insurance?
Creditor requiring that a debtor buys insurance from a certain insurer
The term "fixed" in a fixed annuity refers to all of the following EXCEPT
Death benefit
Which of the following is not an example of insurable interest
Debtor and creditor
When a producer was reviewing a potential customer's insurance coverage that is written by another company, the producer made several oral statements that were maliciously critical of that other insurer. The producer could be found guilty of
Defamation
In group life policies a certificate of insurance is given to?
Each insured person
All of the following are exempt from the licensing requirement except
Employee of insurance company involved in the effectuation of the insurance contract
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
Erase the incorrect answer and record the correct answer.
All of the following violations may result in an agent's imprisonment EXCEPT..
Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.
All of the following are dividend options except
Fixed period installments
When doing business in this state and insurance company that is formed under the laws of another state is known as which type of insurer
Foreign
An insurance company assures its new policyholders that their premium costs will not increase for a period of at least 5 years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?
Fraud
An insured purchased a life insurance policy on his wife as primary beneficiary, and his daughter as contingent beneficiary under hat circumstances could the daughter collect the death benefit?
If the primary beneficiary predeceased the insured.
A man purchased a 90,000 annuity with a single premium and began receiving payments two months after that what type of annuity is it
Immediate
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
Immediate annuity
Life income joint and survivor settlement option guarantee
Income for two or more recipients until they die
Who makes up the medical information bureau
Insurers
The policy owner 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 policy owner choose?
Interest only option
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
When a reduced paid up nonforfeiture option is chosen what happens to the face amount of the policy
It is reduced to the amount of what the cash value would buy as a single premium
Which of the following is TRUE regarding the annuity period?
It may last for the lifetime of the annuitant
Which of the following statements about the reinstatement provision is true
It requires the policy owner to pay all overdue premiums with interest before the policy is reinstated
Which of the following statements is true about a policy assignment?
It transfers rights of ownership from the owner to another person
An employee is joining a group insurance plan. In order to avoid proving insurability, what must the employee do?
Join during the open enrollment period.
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
What is the other term for cash payment settlement options?
Lump sum
An Individual or legal entity appointed by insurer to exercise supervision over the business of that insurer in Oklahoma is known as a/an ?
Managing General Agent
In a single employer group plan what is the name of the policy issued to the employer
Master contract
An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied?
Material misrepresentation
Which of the following information about the application is not included in the general information section of the application for insurance?
Medical Background
Which part of an insurance application would contain information regarding the cause of death of the applicants deceased relatives
Medical information
On its advertisement a company claims that it has funds and it's possession that are in fact not available for the payment of losses or claims the company is guilty of
Misrepresentation
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
If the policy owner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?
Policy owner
Which of the following has the right to convert the existing term coverage to permanent insurance?
Policy owner
Who might receive dividends from a mutual insurer?
Policyholders
The agent is known as the field underwriter because of the information he or she gathers for the insurer this helps the insurer
Pre-select applicants that would present the lowest risk of loss for the insurer
Which of the following will be included in a policy summary?
Premium amounts and surrender values
All of the following types of term policies have face amounts that change during the policy term EXCEPT
Renewable
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
Which of the following describes attachments made to policies that either add or modify coverage
Riders
If an agent wishes to sell variable life policies, what license must the agent obtain?
Securities
Methods used to pay the death benefits to a beneficiary upon the insured's death are called
Settlement options
It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability
Sexual orientation
For how long is an insurance company allowed to defer policy loan request
Six months
Which of the following policies would be classified as a traditional level premium contract
Straight life
Which of the following types of risk will result in the highest premium
Substandard risk
The interest earned on a policy dividend is?
Taxable
All of the following would be events that could trigger accelerated benefits provision in a life insurance policy EXCEPT..
Terminal illness of the beneficiary
In a case where the primary beneficiary predeceases the insured in the event of the insured's death the death benefit proceeds will be paid to
The Contingent beneficiary
Is it policy owner wants to take out a loan from a life insurance policy how much can he borrow
The amount equal the cash value
Which of the following information will be stated in the consideration clause of a life insurance policy?
The amount of premium payment
Which of the following is true regarding variable annuity?
The annuitants assumes the risk on investment
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
Upon the death of the insured the primary beneficiary discovers that the insured chose the interest only settlement option what does this mean
The beneficiary will only receive payments of the interest earned on the death benefit.
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 value.
Which of the following is included on the certificate for credit life insurance?
The effective date and termination date.
The insured had his wife named as the beneficiary of his life insurance policy to ensure that his wife had income first life after the insured's death he chose the life income settlement option the amount of payments will be determined by taking into account all of the following except
The insured's age at death
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for Premium determination.
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?
The policy will be interpreted as if the insurer waived its right to have an answer on the application
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
Which of the following is true about nonforfeiture values?
They are required by state law to be included in the policy.
What is the purpose of the buyers guide
To allow the consumer to compare the costs of different policies
Why should the 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 establishing the target premium for a universal life policy?
To keep the policy in force.
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
What kind of policy allows withdrawals or partial surrenders?
Universal life
When would a 20-pay whole life policy endow?
When the insured reaches age 100
If a policy includes a free look period At least 10 days the buyers guide may be delivered to the applicant no later than
With the policy
In the underwriting process it was determined that the applicant for life insurance is in poor health and has some dangerous habits which of the following is true concerning the policy premium
a. it will likely be higher because the applicant is a substandard risk
When transacting business in this state an insurer formed under the laws of another country is known as a/an
alien insurer
Two individuals are in the same risk and age class yet they are charged different rates for their insurance policies due to an insignificant factor. What is this called?
discrimination
Insurance is the transfer of
risk
Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources
term
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
twisting
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
twisting
Which of the following is a statement that is guaranteed to be true and if untrue may breach an insurance contract
warranty