Life insurance practice exam

Evidence of insurability is usually required

Each of the following is a typical characteristic of groups life insurance EXCEPT?

Each party relies upon the truthfulness of the other

For an insurance contract, the principle of utmost good faith means?

31 days

How long does an employee have to convert group policy coverage to an individual policy without evidence of insurability?

Adjusts the death benefit based on the premiums that were paid

If a misstatement of age is discovered during the processing of a life insurance claim what will the insurer do?

Either the cash value or the premiums paid, whichever is greater

If an annuitant dies during the accumulation period , what will the beneficiary receive?

The portion that exceeds the premiums paid is taxable

If the cash value exceeds the premiums paid in a whole life policy, what are the tax consequences if the policy is surrendered?

Not taxable

Money borrow from the policies cash value is...

Variable Annuities

Which of the following annuity products requires an agent to hold a security license?

Annuitant

Which of the following indicates the person upon whose life the annuity income amount is determined?

Accumulation at Interest

Which of the following is NOT a nonforfeiture option in whole life policies?

Agent's Report

Which of the following provides information about an applicant financial condition and character, as well as the purpose of sale and how long the Agent has known the applicant?

403(b) Tax-Sheltered Annuities (TSAs)

Which of the following retirement plants is a special text favorite plan for nonprofit terrible educational religious groups?

Bob's estate

Betty is the only beneficiary named on her husband Bob's policy which has a common disaster provision. They are in a car wreck, and Bob dies instantly. Betty lives for 29 days who receive the death benefit?

An alien insurer

London neutral life isn't insured Incorporated in England , and it's transacting business in the state. London mutual will be considered what type of insurer?

Representations

Statements in the application for insurance that are believed to be true to the best of the applicant knowledge are called?

Accumulation Period

The "pay in" phase of the annuity is known as what period?

Medical information on applicants for life and health insurance

The MIB is a nonprofit trade association that maintains?

As of the application date

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?

Assignment

The legal transfer of all or a part of a policy owners rights, title or interest is called an ?

Continuous Premium (Straight Life)

The most common type of whole life insurance were premiums are payable over the whole life of the insurance to age 100 is called?

Entire Contract

The policy and a copy of the applicants along with any riders and amendments , is called the?

Frequency with which the policy premium will be paid

The premium payment mode can be best describe as the?

Conditional Receipt

The receipt given to a life insurance applicant when the application is completed and the initial premium is proceded is called an ?

Insurance

The transfer of a possible financial loss to another party refers to?

Insurable Interest exists

To prevent people from profiting from a loss, insurers is the certain...

Policy Exclusions

Which of the following allows an insurance company to deny coverage of the insureds death occurs in war?

Joint and survivor

Which of the following types of annuities would be best suited for a retired couple who are seeking income for as long as either lives?

Variable Life Policy

Which of the following types of policy will accumulate cash value at the fastest rate?

Joint and Survivor

Which settlement option guarantees an income for 2 or more recipients for as long as they live?

The insurer may guarantee dividends

Which statements is INCORRECT concerning policy dividends?

Life income annuity

Which type of annuity settlement stops when the annuitant dies?

Adjustable life

Which type of policy allows the insurance change the amount of the death benefit , the amount of premium , or the type of coverage as there needs change?

Single premium immediate annuity

an annuity purchased with a lump sum payments, and the begins income payments within one year is a ?

Buy-Sell Agreement

Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interests?

Determining the company risks regarding a proposed insured

Underwriting is the process of?

Certificate of Insurance (COI)

What do employees cover under a group contract receive?

Premium payments for juvenile policy

What does the payor benefit rider protect?

To protect the policy owner against an unintentional lapse of the policy

What is the purpose of the grace period in life insurance policy?

Limited Payment

What type of permanent insurance allows The policy owner to pay for a policy in a specified period of time, and the policy owner does not have to make any more premium payments for the life of the policy?

Not subject to any taxes

A life insurance death benefit paid in a lump sum to a beneficiary is?

fixed amount installments

A life settlement option that pays out the death benefits incrementally , in specified amount unit all of the proceeds are exhausted, is called?

Joint Life

A whole life product that covers 2 lives and provides for payment or the death benefit on the death of the first insurer is called?

Free Look

An agent delivers a policy to an insured, and 9 days later the insured returns the policy and wants a complete refund. What provision covers this circumstance?

Equity Indexed Annuity

An annuity in which investment growth is dependent on the performance of an index such as the Standard and Poor's 500 is called a(n)?

Provides the annuitant with interest rate that's lesser of the guaranteed or current rate

An annuity is considered fixed when it does all of the following EXCEPT ?

Insurer

An insurance agent represents the...

Delivered

An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered?

Nonadmitted

Any insurer when is NOT approved to do business in the state is consider?

The coverage decreases but the premiums stay the same

At the age of 25 , an individual purchased a decreasing term policy. What happens to the coverage and the premiums as the insured gets older?

59 1/2

At what age can be participant receive distributions from a qualified plan without incurring a 10% penalty?