Life insurance Exam things I keep getting wrong

Which of the following is NOT fundable by annuities?

Death benefits

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 a(n)

Executive bonus

Which policy component decreases in decreasing term insurance?

Face amount

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

$10,000, no tax consequence

The Commissioner may issue a temporary license for an intermediary for a period of up to

12 months

No individual life insurance policy may be contested after it has been in force for

2 years

Within how many days of the original hearing and final issuance of an order (regarding an order issued by the Commissioner) may an aggrieved person request a re-hearing?

20 Days

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

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Contracts of adhesion

What type of annuity can be purchased with a single premium and provides benefit payments immediately?

Immediate

Which of the following is true regarding a single life settlement option?

It provides income the beneficiary cannot outlive.

An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?

It will increase because the insured will be 5 years older than when the policy was originally purchased.

If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?

Jumping juvenile policy

An insurance organization that does not issue insurance policies but provides a meeting place for underwriters to conduct business is known as a

Lloyds association

An agent who includes a statement or omits a statement which, when taken in context of the whole presentation, may tend to mislead or deceive the persons addressed has committed

Misrepresentation

Which of the following stipulates that life insurance premiums can be paid in advance of policy issuance?

Payment of premium clause

A license applicant's trustworthiness and competence will be determined by all of the following EXCEPT

Personal testimonies from previous co-workers and managers.

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability.

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The producer must provide the applicant with a Notice Regarding Replacement.

What is the purpose of establishing the target premium for a universal life policy?

To keep the policy in force

All of the following are true regarding the guaranteed insurability rider EXCEPT a)The insured may purchase additional coverage at the attained age. b)The insured may purchase additional insurance up to the amount specified in the base policy. c)It allows the insured to purchase additional amounts of insurance without proving insurability only at specified dates or events. d)This rider is available to all insureds with no additional premium.

d)This rider is available to all insureds with no additional premium.

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

settlement option

A Buyer's Guide must be presented

when the application is taken

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than

with the policy