LIFE INSURANCE
which of the following is true abount the premium on the childrens rider in life insurance policy
- remains same reguardless of number of children
all of the following can be described as twisting except
-explaining to clients the advantages of perminant insurance over term and suggesting changing policies -twisting is a misrepresentation, incomplete or fraudulent comparison of insurance policies that persuades an insured/owner to his or her detriment, to cancel lapse or switch policies from one to another
100000 life policy killed in an accident that is his fault has triple indemity
-paid 100000 to benefeciary -triple indemnity would pay triple if the accident was not his fault
how long is a license suspension period for a second offense of violation rules
1 year
before the commisioner will issue a brokers license they must obtain a bond for at least
15000
what is the requirement for continuing education
3 hours every 2 years
if the commish denies application for an agent how long does an applicant have to request a review
30 days
how long is the NC commish term
4 years
what is the max benefits one contract holder may recieve in benefits
5 million
Payor Benefit
A rider or provision, usually found in Juvenile policies, under which premiums are waived if the Payor of the premium (usually a parent) becomes disabled or dies while the child is still a minor. also does not cause death benefit to increase
Material Misrepresentation
A statement that, if discovered, would alter the underwriting decision of the insurance company.
An insured recieves an annual life insurance dividend check. what term best describes this arrangement>
Cash option
An agent selling variable annuities must be registered with
FINRA
What does a Guaranty association guard against
Insurer insolvency
what type of policy would you suggest if a client wants protection and savings from insurance and is willing to pay premiums until retirement
Limited pay whole life
under what option does your death benefit gradually increase each year by the amount of cash value has increased
Option B
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
Equity Indexed Annuities
Seek higher returns, invest on an aggressive basis. equity indexed
fixed period installments
The annuitant selects the time period for the benefits, and the insurer determines how much each payment will be, based on the value of the account and future earnings projections. This option pays for a specified amount of time only, whether or not the annuitant is living. not dividend options
Nonforfeiture Options
Three options available by law to policyowners that enable them to recover a policy's cash-value upon surrender of that policy. (1) Cash (2) Reduced Paid-Up Insurance (3) Extended Term Insurance
Equity Indexed Annuity
a fixed, deferred annuity that allows the owner to participate in the growth of the stock market and provides downside protection against the loss of principal and prior interest earnings if the annuity is held to term. earn higher interst rates than fixed
the 2 types of assignments are
absolute(entire policy and collateral (part or all benefits
Children's riders attached to whole life policies are usually issued as what type of insurance?
adjustable life insurance
Replacement rule
agent knows an applicant is going to cash in on an old policy and use the funds to purchase new insurance
universal life policy is best describeds as
an annually renrewable term policy with a cash value account
The death protection component of Universal Life Insurance is always what type of insurance
annually renewable term
what is not true reguarding an annuitant
annuitant cant be the same person as the annuity owner
During what period in an annuity does the accumulated money turn into income
annuization period
If a life insurance policy has a 10 day free look period when is the latest that buyers guide and summary can be delivered
at the time of delivery
which of the following statements concerning buy-sell agreements is true
buy sell agreements are normally funded with life insurance policy, buy sell is simply a contract that establishs what will be done w a business if an owner dies
what is the punishment for an agent who obtains info under false pretenses
class 1 misdemeanor
what rider will adjust the face amount based on a specific index such as CPI
cost of living rider
what happens when a policy is surrendered for its cash value
coverage ends and policy cant be reinstated
which of the following types of insurance policies is most common in credit life insurance
decreasing term, credit insuracne is a special type of coverage written to insure the life of debitor and pay off balance
what policy is your customer doesnt mind paying higher premiums as long as his cash value can grow fast
endowment. builds cash the fastest because funds are intended to be used while you are alive
what do u need to recieve social disability income benefits
fully insured status
which of the following terms best describes coverage provided by term policies compared to others
greatest
all of the following entities regulate variable life except
guaranee association
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?
installments for a fixed period annuity
when entities protect policy owners, insured and benefeciaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment
insurance guaranty association
what happens to the benefits if an owner dies before a policy is insured
insureds estate
under which of the following circumstances would a pretext interview be permissable
insurer suspects criminal activity or fraud
Creditor requiring that a debtor buys insurance from a certain insurer
is not allowed in credit life insurance
which of the following statements is true regarding accidental death rider
it will pay double or triple the face amount if death is defined as an accident and in the first 90 days
if a life insurance policy increses significantly in the face amount when the insured reaches a specified age what type of policy is it
jumping juvenile policy
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
level term
which of the following is an example of a limited pay life policy
life paid up at age 65, policy endows when the insured turns 100. premium paying period taht is limited not the matuirty
life paid up at 65 is an example of a what type of policy
limited pay life policy
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, premium payments stop at 60 but coverage continues until death or 100
if an employee leaves her group life plan
may not choose to convert it to term or individual coverage
B just bought a new car and will be paid off in 4 years, wants to buy insurance but is cash strapped until car is paid, what policy is best
modified life, charges lower premium for the first few years than a higher premium for the remainder of the policy
A policyowner wants to name a loved one as the benefeciary of their policy but wants to retain all rights to policy, what should they do?
name loved one as revocable benefeciary
What is the official name of the social security program
old age survivors disability insurance
what happens if a deffered annuity is surrendered before annuizitation period?
owner will recieve the surrender value of the annuity
Incontestability Clause
policy clause that prevents an insurance company from denying payment of death claim after a specified period
what is not true regarding straight life policy
premium steadily decreases over time in responce to growing cash value
Key Person Insurance
protects against the loss of a key employee or key executive by making the business the beneficiary if a key person dies. The business is the owner, premium payor, and beneficiary.
Other Insured Rider
provides coverage for one or more family members other than the insured
policy owner pays life insuracne annually, collects nontaxable dividends check each year. she decides that she would rather use the dividend to hellp pay next premium, what option would allow her to do this
reduction of premium allows policy owner to apply dividend for next year
in a loss, indemnity provision in insurance policies
restores an insured person to the same financial status begfore the loss. indemnity is pretty much reimbursement. collect only the sate of the loss
what type of licensedoes a military sales agent need
restricted license
what are the 3 types of social security benefits
retirement, survivors, disability
what level of education is needed to be considered to be a competent party
sencondary education
what 2 terms are associated directly with the way an annuity is funded
single payment or periodic payments. periodic payments are level overtime other payments are flexable
which of the following would help prevent a universal life policy from lapsing
target premium, recommended amount that should be paid on a policy in order to cover cost
Extended Term Nonforfeiture Option
the default nonforfeigture option. The insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy
all of the following are true regarding a decreasing term policy except
the payable premium amount steadily declines throughout the duration of the contract. premiums remain level with a decreasing term
Under an extended term nonforfeiture option, the policy cash value is converted to
the same face amount
an agent may be suspended if
they dont pay state income tax
which of the following will not be appropriate use of a defered annuity
they grow tax defered, annuities do not create an estate but liquify if owner dies
Stating that an insurer's policies are guaranteed by the existence of the Life and Health Guaranty Association is
unfair trade practice
which of the following life insuracne policies would be considered interest sensitive
universal life, flexable premium and interest sensitive
Which has flexable premium and variable investments
variable universal life
which of the following is a key distinction between variable whole life and variable universal life
variable whole life has a guaranteed death benefit, universal may or may not have a minimum but whole life has a guaranteed min
Defamation
when a producer is reviewing potential customers coverage written by another company, the producer made several remarks that were critical of insurers.
how long may an annuity period last
whole life time