Life Insurance Test (Georgia)
Which of the following is another term for the accumulation period of an annuity? a)Pay-in period b)Premium period c)Liquidation period d)Annuity period
a)Pay-in period
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of a)Rebating. b)Coercion. c)Twisting. d)Controlled business.
a)Rebating.
Insurers must keep files of all advertisements used in Georgia for the minimum of how many years? a)2 b)4 c)5 d)7
b)4
An insurance contract must contain all of the following to be considered legally binding EXCEPT a)Competent parties. b)Beneficiary's consent. c)Offer and acceptance. d)Consideration.
b)Beneficiary's consent.
How long is the waiting period for benefits to be paid in a long-term care policy or rider? a)30 days b)60 days c)90 days d)120 days
c)90 days
What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident? a)Settlement Clause b)Nonforfeiture Clause c)Common Disaster Clause d)Spendthrift Clause
c)Common Disaster Clause
A life insurance policy has a legal purpose if both of which of the following elements exist? a)Offer and counteroffer b)Policyowners and named beneficiaries c)Insurable interest and consent d)Underwriting and reciprocity
c)Insurable interest and consent
Which of the following products requires a securities license?a)Equity Indexed annuity b)Deferred annuity c)Variable annuity d)Fixed annuity
c)Variable annuity
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? a)Consideration b)Legal purpose c)Contract of adhesion d)Acceptance
a) consideration
How many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state? a)12 b)24 c)36 d)6
a)12
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe? a)Unilateral b)Conditional c)Personal d)Adhesion
d)Adhesion
Which of the following riders would NOT cause the Death Benefit to increase? a)Cost of Living Rider b)Accidental Death Rider c)Payor Benefit Rider d)Guaranteed Insurability Rider
c)Payor Benefit Rider
All of the following are characteristics of group life insurance EXCEPT a)Individuals covered under the policy receive a certificate of insurance. b)Certificate holders may convert coverage to an individual policy without evidence of insurability. c)Premiums are determined by the age, sex and occupation of each individual certificate holder. d)Amount of coverage is determined according to nondiscriminatory rules.
c)Premiums are determined by the age, sex and occupation of each individual certificate holder.
Whenever agents submit applications to insurers, they must also submit statements, signed by the applicant and agent, disclosing the involvement or lack of involvement of a)An inducement. b)A change in policy amount. c)Replacement. d)A change of health.
c)Replacement.
Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract? a)Executing insurance b)Effectuating insurance c)Transacting insurance d)Conducting business
c)Transacting insurance
What is a material misrepresentation? a)Any misstatement made by an applicant for insurance b)Any misstatement by the producer c)Concealment d)A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
d)A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
What is the purpose of settlement options? a)They are guarantees built into the policy. b)They guarantee a return of excess premiums. c)They provide the beneficiary with the income he/she cannot outlive. d)They determine how death proceeds will be paid.
d)They determine how death proceeds will be paid.
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? a)Universal Life - Option B b)Equity Indexed Universal Life c)Variable Universal Life d)Universal Life - Option A
d)Universal Life - Option A
When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy for a)5 years. b)8 years. c)10 years. d)3 years.
d)3 years.
Nonforfeiture values guarantee which of the following for the policyowner? a)That the policy premiums will never increase b)That the cash value will not be lost c)That the dividends will be paid annually d)That the death benefit will be paid in a lump sum
b)That the cash value will not be lost
When an annuity is written, whose life expectancy is taken into account? a)Annuitant b)Beneficiary c)Life expectancy is not a factor when writing an annuity. d)Owner
a)Annuitant
For variable products, underlying assets must be kept in a)A revenue account. b)A money market account. c)A general account. d)A separate account.
d)A separate account.
Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium? a)Automatic premium loan b)Extended term c)Reinstatement d)Reduced paid-up option
a)Automatic premium loan
Which is TRUE about the cash surrender nonforfeiture option? a)After the cash surrender, the insured is covered for a grace period of one month. b)The policy remains active for some time after the policyholder opts for cash surrender. c)The policyholder receives the original cash value of the policy. d)Funds exceeding the premium paid are taxable as ordinary income.
d)Funds exceeding the premium paid are taxable as ordinary income.
Annually renewable term policies provide a level death benefit for a premium that a)Decreases annually. b)Remains level. c)Fluctuates. d)Increases annually.
d)Increases annually.
The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the a)Entire contract. b)Total contract. c)Aleatory contract. d)Complete contract.
a)Entire contract.
A participating insurance policy may do which of the following? a)Provide group coverage b)Pay dividends to the stockholder c)Require 80% participation d)Pay dividends to the policyowner
d)Pay dividends to the policyowner
When transacting business in this state an insurer formed under the laws of another country is known as a/an a)Admitted insurer. b)Alien insurer. c)Domestic insurer. d)Foreign insurer.
b)Alien insurer.
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an a)Adjustable Life. b)Interest-sensitive Whole Life. c)Credit Life. d)Annual Renewable Term.
b)Interest-sensitive Whole Life.
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident, and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do? a)Pay nothing; there was a misrepresentation on the application b)Pay the full death benefit and refund excess premium c)Pay a reduced death benefit d)Pay the full death benefit
c)Pay a reduced death benefit
The insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. What must the insurer do with the application? a)Acknowledge the missed questions with a signature and continue the policy issue process b)Proceed with issuing a policy c)Return to the applicant for completion d)Answer the missed questions for the applicant
c)Return to the applicant for completion
A Return of Premium term life policy is written as what type of term coverage? a)Increasing b)Decreasing c)Renewable d)Level
a)Increasing
In forming an insurance contract, when does acceptance usually occur? a)When an insurer's underwriter approves coverage b)When an insurer delivers the policy c)When an insurer receives an application d)When an insured submits an application
a)When an insurer's underwriter approves coverage
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an a)Self-insurer. b)Authorized insurer. c)Local insurer. d)Certified insurer.
b)Authorized insurer.
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? a)Adhesion b)Consideration c)Good faith d)Representation
b)Consideration
Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as a)Binding contracts. b)Contracts of adhesion. c)Unilateral contracts. d)Aleatory contracts.
b)Contracts of adhesion.
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? a)The amount distributed is subject to ordinary income tax. b)The amount of the distribution is reduced by the amount of a 20% withholding tax. c)No taxes are due since the plan participant is over age 59 1/2. d)There is a 10% early withdrawal penalty.
b)The amount of the distribution is reduced by the amount of a 20% withholding tax.
Which of the following is INCORRECT concerning a noncontributory group plan? a)The employer pays 100% of the premiums. b)The employees receive individual policies. c)They help to reduce adverse selection against the insurer. d)They require 100% employee participation.
b)The employees receive individual policies.
Which of the following statements is TRUE concerning irrevocable beneficiaries? a)They may be changed only on the anniversary date of the policy. b)They can be changed only with the written consent of that beneficiary. c)They may be changed at any time. d)They can never be changed.
b)They can be changed only with the written consent of that beneficiary.
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement? a)$0 b)$100,000 c)$200,000 d)$100,000 plus the total of paid premiums
c)$200,000
Which of the following is a feature of a variable annuity? a)Interest rate is guaranteed. b)Securities license is not required. c)Benefit payment amounts are not guaranteed. d)Payments into the annuity are kept in the company's general account.
c)Benefit payment amounts are not guaranteed.
Authorized insurance companies are examined by the Commissioner at least once every a)Year. b)2 years. c)3 years. d)5 years.
d) 5 years
What is the waiting period on a Waiver of Premium rider in life insurance policies? a)30 days b)3 months c)5 months d)6 months
d)6 months
The two types of assignments are a)Absolute and partial. b)Complete and partial. c)Complete and proportionate. d)Absolute and collateral.
d)Absolute and collateral.
Which of the following would be considered an illegal inducement to purchase insurance? a)Listing the insurance companies the agency represents in a letter b)Inviting prospective clients to the grand opening of the producer's new office c)Confirming future dividends in a life insurance proposal d)Mailing an agency brochure to a prospective client
c)Confirming future dividends in a life insurance proposal
All of the following are examples of transacting insurance in Georgia EXCEPT a)Preliminary insurance negotiations. b)Making an insurance contract go into effect. c)Placing advertisements for an insurer. d)Insurance solicitation.
c)Placing advertisements for an insurer.
Which of the following is NOT the consideration in a policy? a)The premium amount paid at the time of application b)The promise to pay covered losses c)The application given to a prospective insured d)Something of value exchanged between parties
c)The application given to a prospective insured
Which of the following determines the cash value of a variable life policy? a)The policy's guarantees. b)The premium mode c)The performance of the policy portfolio d)The company's general account
c)The performance of the policy portfolio
The automatic premium loan provision is activated at the end of the a)Free-look period b)Elimination period. c)Policy period. d)Grace period.
d)Grace period.
Who makes up the Medical Information Bureau? a)Hospitals b)Former insured c)Physicians and paramedics d)Insurers
d)Insurers
Transacting insurance without a license in this state is considered a(n) a)Felony. b)Insurance fraud. c)Coercion. d)Misdemeanor.
d)Misdemeanor.
Traditional IRA contributions are tax deductible based on which of the following? a)How long the plan has been in force b)Owner's age c)IRA limit d)Owner's income
d)Owner's income
All of the following would be excluded from the regulation on life insurance solicitation EXCEPT a)A term life policy b)A credit life policy c)A group life policy d)An annuity
a)A term life policy
All of the following employees may use a 403(b) plan for their retirement EXCEPT a)A part-time classroom aide. b)The vice president of a charitable organization. c)The CEO of a private corporation. d)A school bus driver.
c)The CEO of a private corporation.
All of the following entities regulate variable life policies EXCEPT a)The SEC. b)The Insurance Department. c)The Guaranty Association. d)Federal government.
c)The Guaranty Association.
Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium? a)Extended term b)Reinstatement c)Reduced paid-up option d)Automatic premium loan
d)Automatic premium loan
Which of the following would be considered a violation of life insurance advertising regulations? a)Informing the applicant that the sole subject of the sale is insurance b)Not guaranteeing dividends c)Making oral sales presentations d)Calling a variable insurance policy an investment plan
d)Calling a variable insurance policy an investment plan
Under an extended term nonforfeiture option, the policy cash value is converted to a)The same face amount as in the whole life policy. b)The face amount equal to the cash value. c)A lower face amount than the whole life policy. d)A higher face amount than the whole life policy.
a)The same face amount as in the whole life policy.
If an insured continually uses the automatic premium loan option to pay the policy premium, a)The insurer will increase the premium amount. b)The policy will terminate when the cash value is reduced to nothing. c)The face amount of the policy will be reduced by the automatic premium loan amount. d)The cash value will continue to increase.
b)The policy will terminate when the cash value is reduced to nothing.
As a field underwriter, a producer is responsible for all of the following tasks EXCEPT a)Obtain appropriate signatures on the application for insurance. b)Issue the policy that is requested. c)Help prevent adverse selection. d)Solicit business that will fall within the insurer's underwriting guidelines.
b)Issue the policy that is requested.
What is the purpose of establishing the target premium for a universal life policy? a)To cover all policy expenses b)To keep the policy in force c)To accumulate cash value faster d)To pay up the policy faster
b)To keep the policy in force
n which of the following instances would the premium be tax deductible? a)Premiums paid by a mother on her son's policy b)Premiums paid by an employer on the life of a key person c)Premiums paid by an employer on a $30,000 group term life insurance plan for employees d)Premiums paid by an individual on his/her own life insurance
c)Premiums paid by an employer on a $30,000 group term life insurance plan for employees
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as a)False advertising. b)Coercion. c)Rebating. d)Twisting.
c)Rebating.
Nonforfeiture values guarantee which of the following for the policyowner? a)That the dividends will be paid annually b)That the death benefit will be paid in a lump sum c)That the policy premiums will never increase d)That the cash value will not be lost
d)That the cash value will not be lost
Which of the following is TRUE regarding the annuity period? a)It may last for the lifetime of the annuitant. b)During this period of time the annuity payments grow interest tax deferred. c)It is also referred to as the accumulation period. d)It is the period of time during which the annuitant makes premium payments into the annuity.
a)It may last for the lifetime of the annuitant.
State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT a)Promising returns and profits from the purchase of insurance. b)Offering benefit certificates or securities in return for purchasing insurance. c)Inviting prospective clients to the grand opening of the company's new office. d)Issuing or delivering insurance company stock in return for purchasing insurance.
c)Inviting prospective clients to the grand opening of the company's new office.
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT a)An offer to share in commissions generated by the sale. b)Dividends from a mutual insurer. c)An offer of employment. d)Stocks, securities, or bonds.
b)Dividends from a mutual insurer.
Which two terms are associated directly with the premium? a)Term or permanent b)Renewable or convertible c)Level or flexible d)Fixed or variable
c)Level or flexible
Which of the following entities has the power to issue certificates of authority? a)Department of Insurance b)NAIC c)Federal Insurance Regulation Board d)Commissioner of Insurance
d)Commissioner of Insurance
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT a)Consideration. b)Legal purpose. c)Offer and acceptance. d)Conditions.
d)Conditions.
For how long are insurers required to maintain records pertaining to life insurance solicitation? a)2 years b)3 years c)4 years d)5 years
b)3 years
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe? a)Conditional b)Contingent c)Aleatory d)Unilateral
a)Conditional
An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called a)Consideration. b)Conditions. c)Utmost good faith. d)Acceptance.
a)Consideration.
In long-term care (LTC) policies, as the benefit period lengthens, the premium a)Increases. b)Remains unchanged. c)LTC premiums are not based on benefit periods. d)Decreases
a)Increases.
Which of the following applicants would NOT qualify for a Keogh Plan? a)Someone who works 400 hours per year b)Someone who has been employed for more than 12 months c)Someone who is over 25 years of age d)Someone who works for a self-employed individual
a)Someone who works 400 hours per year
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the a)Paid-up additions. b)One-year term option. c)Paid-up option. d)Accelerated endowment.
b)One-year term option.
Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must a)Send an actual certified copy of the entire report to the consumer. b)Respond to the consumer's complaint. c)Defend the report if the agency feels it is accurate. d)Change the report.
b)Respond to the consumer's complaint.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change? a)The death benefit can be increased only by exchanging the existing policy for a new one. b)The death benefit can be increased by providing evidence of insurability. c)The death benefit cannot be increased. d)The death benefit can be increased only when the policy has developed a cash value.
b)The death benefit can be increased by providing evidence of insurability.
Which of the following terms will be permissible in describing a life insurance policy in company advertisements? a)Retirement plan b)Variable plan c)Risk-free plan d)Investment plan
b)Variable plan
Which of the following would be required to be licensed as an insurance producer? a)A salaried full-time employee who furnishes information for group insurance b)An insurance company director who performs executive, administrative and managerial duties c)A salaried employee who advertises and solicits insurance d)A person whose activities are limited to producing insurance advertisements
c)A salaried employee who advertises and solicits insurance
All of the following would be excluded from the regulation on life insurance solicitation EXCEPT a)A group life policy b)An annuity c)A term life policy d)A credit life policy
c)A term life policy
When must insurable interest exist in a life insurance policy? a)At the time of policy delivery b)When there is a change of the beneficiary c)At the time of loss d)At the time of application
d)At the time of application
What required provision protects against unintentional lapse of the policy? a)Assignment b)Payment of premiums c)Reinstatement d)Grace period
d)Grace period
In insurance transactions, fiduciary responsibility means a)Handling insurer funds in a trust capacity. b)Maintaining a good credit record. c)Being liable with respect to payment of claims. d)Commingling premiums with agent's personal funds.
a)Handling insurer funds in a trust capacity.
Life income joint and survivor settlement option guarantees a)Income for 2 or more recipients until they die. b)Payment of interest on death proceeds. c)Payout of the entire death benefit. d)Equal payments to all recipients.
a)Income for 2 or more recipients until they die.
Which of the following positions is responsible solely for offering advice on insurance policies (for a fee)? a)Agent b)Sub-agent c)Broker d)Counselor
d)Counselor
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation? a)Variable life b)Universal life c)Whole life d)Decreasing term
d)Decreasing term
All of the following are true regarding insurance policy loans EXCEPT a)The amount of the outstanding loan and interest will be deducted from the policy proceeds when the insured dies. b)The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy. c)Policyowners can borrow up to the full amount of their whole life policy's cash value. d)Policy loans can be made on policies that do not accumulate cash value.
d)Policy loans can be made on policies that do not accumulate cash value.
A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact insurance business in it. This is known as a/n a)Nonresident arrangement. b)Overinsurance. c)Appointment. d)Reciprocity agreement.
d)Reciprocity agreement.
If an insured under a variable life insurance policy dies, how will the insurer respond to outstanding policy loans? a)The policy is withheld until payments are met. b)The loan amount is charged to the beneficiaries. c)The loans are waived. d)The loan amounts are deducted from the death benefit.
d)The loan amounts are deducted from the death benefit.
All of the following are true of key person insurance EXCEPT a)There is no limitation on the number of key employee plans in force at any one time. b)The employer is the owner, payor and beneficiary of the policy. c)The key employee is the insured. d)The plan is funded by permanent insurance only.
d)The plan is funded by permanent insurance only.
Which of the following statements is correct regarding a whole life policy? a)Cash values are not guaranteed. b)The policy premium is based on the attained age. c)The death benefit may increase or decrease during the policy period. d)The policyowner is entitled to policy loans.
d)The policyowner is entitled to policy loans.
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered a)An unfair trade practice. b)A misrepresentation. c)A required disclosure. d)A legal representation of the Association.
a)An unfair trade practice.
Which policy component decreases in decreasing term insurance? a)Face amount b)Cash value c)Dividend d)Premium
a)Face amount
The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years? a)1 year b)2 years c)5 years d)7 years
b)2 years
The term "conservation effort" deals with a)Charging the lowest possible premium for the highest possible benefit. b)Discouraging agents from terminating their appointments. c)Discouraging policyholders from dropping existing policies. d)Writing the least amount of policy provisions as possible in a given policy.
c)Discouraging policyholders from dropping existing policies.
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT a)Note on the application the reason for the change. b)Destroy the application and complete a new one. c)Erase the incorrect answer and record the correct answer. d)Draw a line through the first answer, record the correct answer, and have the applicant initial the change.
c)Erase the incorrect answer and record the correct answer.
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount? a)Universal life b)Flexible life c)Variable life d)Adjustable life
a)Universal life
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? a)The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid over time. b)The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first beneficiary dies. c)One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured dies. d)The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
d)The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? a)Estate liquidation b)Nonpayment of premium c)Change of beneficiary d)Viatical settlement
d)Viatical settlement
What do individuals use to transfer their risk of loss to a larger group? a)Insurance b)Insurable interest c)Exposure d)Indemnity
a)Insurance
An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use? a)Paid-up option b)One-year term c)Reduction of premium d)Accumulation at interest
a)Paid-up option
All of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT a)The plan is not approved for favorable tax treatment by the IRS. b)The employer can receive a current tax deduction for any contributions made to the plan. c)The plan is a legal method of accumulating money for retirement needs. d)The plan can discriminate as to who may participate.
b)The employer can receive a current tax deduction for any contributions made to the plan.
The entire contract is made up of all of the following EXCEPT a)Riders and endorsements. b)The insurance policy. c)The policy application. d)The buyer's guide.
d)The buyer's guide.
If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true? a)The policy will lapse since the premium was not received by the insurer. b)The policy will not lapse since payment to the agent is the same as a payment to the insurer. c)The premium will be taken out of the Guaranty Association funds. d)The agent's license will be automatically revoked.
b)The policy will not lapse since payment to the agent is the same as a payment to the insurer.
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision? a)Survivor Life b)Second-to-Die c)Common Disaster d)Accidental Death
c) Common disaster
According to the Entire Contract provision, a policy must contain a)Buyer's guide to life insurance. b)Listing of the insured's former insurer(s) for incontestability provisions. c)A copy of the original application for insurance. d)A declarations page with a summary of insureds.
c)A copy of the original application for insurance.
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be a)Qualified. b)Approved. c)Authorized. d)Certified.
c)Authorized.
Which of the following is TRUE regarding the accumulation period of an annuity? a)It is a period of time during which the beneficiary receives income b)It is limited to 10 years. c)It is a period during which the payments into the annuity grow tax deferred. d)It is also referred to as the annuity period.
c)It is a period during which the payments into the annuity grow tax deferred.
All of the following are true regarding insurance policy loans EXCEPT a)Policy loans can be made on policies that do not accumulate cash value. b)The amount of the outstanding loan and interest will be deducted from the policy proceeds when the insured dies. c)The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy. d)Policyowners can borrow up to the full amount of their whole life policy's cash value.
a)Policy loans can be made on policies that do not accumulate cash value.
The premium of a survivorship life policy compared with that of a joint life policy would be a)Lower. b)Higher. c)As high. d)Half the amount.
a)Lower.
f an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's a)Prior insurance. b)Ancestry. c)Credit history. d)Habits.
b)Ancestry.
Which of the following would be considered a violation of life insurance advertising regulations? a)Making oral sales presentations b)Calling a variable insurance policy an investment plan c)Informing the applicant that the sole subject of the sale is insurance d)Not guaranteeing dividends
b)Calling a variable insurance policy an investment plan
What happens when a policy is surrendered for its cash value? a)The policy can be converted to term coverage. b)Coverage ends and the policy cannot be reinstated. c)Coverage ends but the policy can be reinstated at any time. d)The policy can be reinstated by paying back all policy loans and premiums.
b)Coverage ends and the policy cannot be reinstated.
Which of the following would NOT be considered a purpose of life insurance solicitation regulations in Georgia? a)Provide buyers with information about policies that would best suit their needs b)Help buyers choose most qualified insurance producers c)Improve buyers' understanding of policy features d)Help buyers evaluate the relative costs of life insurance plans
b)Help buyers choose most qualified insurance producers
All of the following statements about equity index annuities are correct EXCEPT a)They invest on a more aggressive basis aiming for higher returns. b)The annuitant receives a fixed amount of return. c)They have a guaranteed minimum interest rate. d)The interest rate is tied to an index such as the Standard & Poor's 500.
b)The annuitant receives a fixed amount of return.
Which of the following statements is TRUE concerning the Accidental Death Rider? a)This rider is only available to insureds over the age of 65. b)It is only available in group insurance. c)It will pay double or triple the face amount. d)It is also known as a triple indemnity rider.
c)It will pay double or triple the face amount.