life insurance

The LEAST expensive first-year premium is found in which of the following policies?

Annually renewable term

How long does any person receiving written notification of the Commissioner's order have to respond and request a hearing?

90 days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

All of following are the general qualifications for a producer's license EXCEPT

Be at least 21 years of age

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated

Which of the following acts is NOT considered to constitute an act of transacting insurance?

Filing forms with the Department

Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?

Human life value approach (HLVA)

Life income joint and survivor settlement option guarantees

Income for 2 or more recipients until they die

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

Indemnity

A producer is selling a client a Variable Life Insurance policy and as an inducement shows the client a projection based upon shares or dividends paid on a similar policy. This is

Misrepresentation

What is the major difference between a stock company and a mutual company?

Ownership

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

Survivor protection

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.

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

What must happen when an individual policy or annuity has been personally delivered to the policyowner?

The policyowner must sign a delivery receipt

All of the following are characteristics of a group life insurance plan EXCEPT

There is a requirement to prove insurability on the part of the participants

An application for life insurance usually requires the agent to ask if the proposed insurance will replace an existing life insurance policy. All of the following are purposes for obtaining this information EXCEPT

To ensure that at least three companies are involved so the policyowner gets competitive prices

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider

Annuities can be used to fund which of the following?

Retirement plans