Life Insurance License Study Set (FULL) Indiana
FINRA must be registered here for variable annuities
(agent)
How many days from the delivery of a life insurance policy does an insured have to return the policy for a full refund?
10 days
face amount
100 years
if a consumer request additional information as investigative consumer report, how long does agency have to comply
5 days
poliy loan request, except for loan requests for payment of due premiums, may be deferred for a period of up to
6 months
A vatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?
A percentage of the face amount of the policy
What term is used for insurance companies that have a Certificate of Authority to transact insurance
Admitted
Which of the following individuals may act as a producer without a license?
An insurance company president who is solely responsible for the administration of the company
Which of the following would NOT trigger the payment of Accelerated Death Benefits?
Being permanently disabled
Chris works part-time in her father's insurance agency, but she does not have insurance producer license. She may perform all of the following activities EXCEPT:
Collect premiums for in-force policies and explain overages for existing policies written by her father
When an individual obtains an insurance license for the primary purpose of writing their own insurance or the insurance for members of their immediate family, or business, this is called
Controlled Business
Which of the following is NOT true regarding a producer's appt and termination?
Insurance producers may act as a agents of an insurer without an appointment
Which of the following is NOT true regarding a cease and desist order?
It applies only to individual producers
A producer may act as a consultant if he/she
Meets the compensation disclosure requirements
Which of the following is considerations on the part of an insurer?
Paying a claim
Which of the following would be likely to establish a SEP?
Small Employers
According to the Life Insurance Solicitation Rule 24, what would be defined as cost?
The difference between what the insured pays and what he gets in return
According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?
The primary beneficiary died before the insured
If a producer changes his or her email address, which of the following needs to happen?
The producer must notify the commissioner within 30 days
What do life insurance Replacement (Rule 16.1) Advertising (Rule 13) and Solicitation (Rule 24) rules have in common?
They are disclosure rules
Which of the following types of insurance is investment based, has a level fixed premium, and a non guaranteed cash value?
Variable Whole Life
All of the following statements regarding regulations for life policies in Indiana are true EXCEPT
a cash settlement benefit must be paid to the beneficiary no later than 6 months after the receipt of proof of death
Which of the following statements is not true?
a licensed consultant may hold a producer license
Which of the following terms is used to define the period of time during which an annuitant makes payments in an annuity?
accumulation period
the Current interest rate on an equity indexed annuity is often based on
an index like standard & poors 500
which of the following products will protect an individual from outliving their money?
annuity
in classifying a risk, the home office underwriting department will look at all of the following except
applicants past income
which statement below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs
applicants who may require a larger death benefit in the future should buy convertible term insurance
when must insurable interest exist in a life insurance policy?
at the time of application
which of the following is a feature of a variable annuity
benefit payment amounts are not guaranteed
license required to sell variable annuities
both a life insurance license/securities license
which of the following is true of the taxation of cash values in a business life insurance policy?
cash values grow tax deferred
all of the following are duties and responsibilities of producers at the time of application EXCEPT
change any incorrect statement on the application by personally initialing next to the correct statement
which of the following would be an example of an insurer participating in the unfair trade practice of discrimination
charging the insured higher premiums based on their race
Which of the following is not required in a report to the commissioner regarding an administrative action or criminal prosecution of a producer?
complaint following hearing
an insurance contract requires that both the insured and the insure meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?
conditional
which of the following includes information regarding a person's credit, character, reputation, and habits
consumer report
while completing a life insurance application the applicant realizes that she should have answered an earlier question differently. What should the agent do to make the necessary change?
cross out incorrect info and write correct info and have applicant initial change
In this state the owner gets a "free look" if a specified numbers of days from
delivery of the policy
in this state the owner gets a "free look" of a specified number of says from
delivery of the policy
all of the following information about the applicant is identified in the General Information section of a life insurance application EXCEPT
education
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
either the amount paid into the plan or the cash value of the plan, whichever is the greater amount
as the chief executive and administrative officer of the insurance department, what authority is the commissioner given under the executive branch?
enforcing laws
what does "level" refer to in level term insurance?
face amount
an insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies, and habits. What type of a report is that?
inspection report
stronger-originated life insurance policies are in direct opposition to the principle of f
insurable interest
what do individuals use to transfer their risk of loss to a larger group
insurance
During partial withdrawal from a universal life policy, which portion will be taxed?
interest
which of the following is TRUE regarding the accumulation period of an annuity
it is a period during which the payments into the annuity grow tax deferred
what is the purpose of a conditional receipt?
it is intended to provide coverage on a date prior to the policy issue
which of the following best describes pure life annuity?
it provides the highest monthly benefits
a couple requires a set amount of income from their annuity when the wife dies, the husband no longer receives annuity payments. what type of annuity did the couple buy?
joint life
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
a temporary insurance producer license
may be issued to the surviving spouse of a diseased producer
under the fair credit report act, individual rejected for insurance due to information contained in a consumer report
must be informed of the source of the report
depreciation
no income
dividends received on participating life insurance policies are
not taxable because they are a return of unused premiums
Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive
nothing; the payments will cease
Under a pure life annuity, an income is payable by the company
only for the life of the annuitant
under a pure life annuity, an income is payable by the company
only for the life of the annuitant
Which of the following is NOT true regarding a certificate of authority?
only foreign and alien insurers are required to obtain it
which of the following is NOT true regarding a certificate of authority?
only foreign and alien insurers are required to obtain it
which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
paid-up option
the guaranteed insurability rider allows the owner to purchase additional amounts of life insurance w/o proof of insurability at all of the following EXCEPT
purchase of a new home
what form of the annuity settlement option provides payments to an annuitant for the rest of the annuitant's life and ceases at the annuitant's death
pure life
What does the application of contract of adhesion mean?
since the insured doesn't participate in preparing the contract, any ambiguities would be resolved in favor of the insured
which of the following individuals would be a likely candidate to purchase a deferred annuity?
someone who wants to grow retirement funds tax deferred
Which of the following actions does NOT constitute false advertising?
stating that dividends are not guaranteed
which of the following types of annuities will generally provide the highest monthly income
straight life
the interest earned on policy dividends is
taxable
dividends received on participating life insurance policies are
taxable because they are a return of unused premiums
Which of the following are characteristics of term life insurance?
temporary protection, renewability no cash value
which of the following are characteristics of term life insurance
temporary protection, renewability, no cash value
which of the following types of insurance products would be appropriate for an individual with a low income and high insurance needs
term insurance
which of the following policies would not offer a policy loan option?
term life
which of the following is TRUE regarding variable annuities?
the annuitant assumes the risk on investment
in life insurance, which of the following is NOT required to have an insurable interest in the insured?
the beneficiary
the annuitant 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
all of the following are consideration in an insurance policy EXCEPT
the cash value in the policy
in a life insurance application, all of the following signatures will be required EXCEPT
the home office underwriter
who bears all of the investment risk in a filled annuity?
the insurance company
if insurer requires med exam who pays?
the insurer
if an insured under a variable life insurance policy dies, how will the insurer respond to outstanding policy loans?
the loan amounts are deducted from the death benefit
standard risk is representative of
the majority of people
the policyowner of a universal life policy may skip paying the premium and the policy will not lapse as long as
the policy contains sufficient cash value to cover the cost of insurance
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
all of the following are true of the survivorship life policy EXCEPT
the premium is based on the age of each insured
what is the purpose of establishing the target premium for a universal life policy?
to keep the policy in force
the annuitant assumes the risks on investments
true
which of the following types of insurance policies would perform the function of cash accumulation?
whole life
when an insured terminates membership in the insured group, the insured can convert to
whole life without proof of insurability
