LIFE INSURANCE EXAM

A broker requests a hearing with the Commissioner. Within how many days of the request must the hearing be held?

30

How many days after the completion of an examination must the commissioner prepare a final report of its results

60 days

Which of the following would authorize the commingle of premiums with the agents personal funds?

A letter of consent from the principal

which of the following persons is required to hold a producer license?

A person who negotiates insurance contracts

Those who give advice to clients about insurance exposures and coverages and make recommendations about change in coverage and limits are called

Advisers

The death protection component of Universal Life Insurance is always

Annually Renewable Term

Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific-fixed amount is liquidated?

Annuity Certain

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 effective?

As of the application date

When must insurable interest exist in a Life insurance policy

At the time of application

An Underwriter is reviewing the medical questions in the application and needs further information due to a medical situation the applicant had in the past. What will the underwriter require ?

Attending Physician Statement

An Insurer cannot transact insurance until it receives a certificate of

Authority

Which of the following is a feature of variable annuity ?

Benefits payment amounts are not guaranteed

Which of the following is NOT required to be appointed by an Insurer?

Broker

What limits the amount that a policyowner may borrow from a whole life insurance policy?

Cash value The amount available to the policyowner for a loan is the policy's cash value. If there are any outstanding loans, that amount will be reduced by the amount of the unpaid loans and interest.

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

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit ?

Consumer Report

When must an insurance producer provide a consumer with a notice of privacy policies and practices?

During the application process and every year after

Which nonforfeiture option has the highest amount of insurance protection?

Extended Term

A young Father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy ?

Family protection policy

What kind of policy issues certificates of insurance to insureds?

Group Insurance

In Insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

Insurance companies in Maryland must submit forms to the Insurance Commissioner in Duplicate. What is the one exception to this rule ?

If the forms are filed electronically

What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary?

Income tax on Distributions and no penalty

who is required to keep and maintain a register of appointed producers ?

Insurers

Which is the following is TRUE of a qualified plan?

It has a tax benefit for both employer and employee

What is the benefit of choosing extended term as a nonforfeiture option

It has the highest amount of insurance protection

In which of the following situations is it legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint Life

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

Which of the following best describes the unfair trade practice of defamation

Making derogatory oral statements about another insurer's financial condition

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-Insured-rider

What describes the specific information about a policy?

Policy summary

Which of the following individuals must have insurable interest in the insured ?

Policyowner

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

Who is a person other than a viator, that enters into a viatical Settlement contract

Provider

What method do insurers use to protect themselves against catastrophic losses?

Reinsurance

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

Signed waiver of premium

The interest earned on policy dividends is

Taxable. Dividends are a return of unused premiums on which the insured has already paid taxes. Any interest earned is taxable as ordinary income.

Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly ?

The Producer

Which of the following is true regarding variable annuities ?

The annuitant assumes the risk on investment

Which of the following is NOT the consideration in a policy

The application given to a prospective insured

When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?

The insurance company's general account

Licenses expire every 2 years on

The last day of the insurance producer's birth month

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract

All of the following would be eligible to establish a Keogh retirement plan EXCEPT

The president and employee of a family corporation

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

The surviving beneficiary will continue to receive 2/3 of the benefit paid when both beneficiaries were alive

All of the following are true regarding the guaranteed insurability rider EXCEPT

This rider is available to all Insureds with no additional premium

All of the following benefits are available under Social Security EXCEPT

Welfare Benefits

When is the earliest a policy may go into effect?

When the application is signed and a check Is given to the agent

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Without receiving written consent from an insured regulatory Authority

A 35-year-old spouse of the insured collects early distributions from her husband's retirement plan as a result of a divorce settlement. What penalties, if any, will she have to pay

no penalties

The interest earned on policy dividends is

taxable