Life Insurance Tests
With a traditional whole life policy, the death benefit
remains constant over time
Representation are statements made by the applicant that are
Considered to be true to the best of the applicants knowledge
The insured is also the policy owner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?
100
If a licensee changes his or her residence address, within how many days must the department be notified?
30 days
What is the free look period on a replacement policy?
30 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
How long must records be kept for a replacement policy?
5 years
Which of the following includes information regarding a person's credit, character, reputation, and habits?
Fair credit report
The term "illustration" in a life insurance policy refers to
A presentation of no guaranteed elements of a policy
What is a material representation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
What is also an authorized insurer?
Admitted
If a producer's license was revoked for a violation of the Insurancd Code, when can the producer apply for a new license?
After 2 years
Over several years, a policy owner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristics of an insurance contract does this describe?
Aleatory
Who is considered a field underwriter?
An agent
What is an example of uninsurable interest?
An insured's best friend
Whose life expectancy is taken into consideration in an annuity contract?
Annuitant
What is the main source of underwriting information used by the company in the risk selection process?
Application
What is not fixed in a Indexed while life policy?
Cash value growth
What does the term "employer" with respects to group insurance policy coverage include
Counties, cities, incorporated towns,school districts, and other political subdivisions of this state
If an agent fails to obtain an applicant's signature of the insurance application, the agent must
Return the application to the applicant for signature
An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin?
Date of application
When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. Which of the following policies is best suitable for that need?
Decreasing term
An individual inherited a large sum of money at age 40 and wants to use it to provide a guaranteed income after his retirement at age 60. What type of annuity would best meet this need?
Deferred meaning later
In an insurance contract, consideration refers to
Exchange of something of value by both parties
What is an example of a producer's fiduciary responsibilities?
Forwarding premiums to the insurer
The regulation regarding replacement do not apply to which policies
Group life, group annuities, credit line, or non convertible term
What is considered a disadvantage of term insurance?
If the insured dies after the end if the term, there is no death benefit to the beneficiary
If the agent feels that there could be misrepresentation on the part of the applicant for insurance, what must the agent do?
Inform the insurance company
As a field writer, a producer DOES NOT
Issue the policy that is requested
Life Paid-Up at age 65 is an example of?
Limited-Pay life policy.
As a field underwriter, a producer is responsible for all of the following tasks..
Obtain appropriate signatures on the application for insurance, help prevent adverse selection, and solicit business that will fall within the insurer's underwriting guidelines
If no receipt is issued at the time of application, a statement of good health is usually required at the time of
Policy delivery
What is true regarding a joint life policy?
Premium is based on the average age of the insureds
When must a replacement notice be given
Prior to the application
An agent who offers a cash reward to a prospect for buying a policy if guilty of
Rebating
An annual renewable policy
Renews each year with an increased premium
What is the main responsibility of a company's underwriting unit?
Risk selection and classification
Commissioner of Insurance is not responsible for
Setting premium dates
Which type of life insurance policy generates immediate cash value?
Single premium
The time period during which an annuitant contributes to an annuity is called
The accumulation period
What is something that can be true about a universal life policy?
The premium can be decreed by the insured
The Medical Information Bureau
The source of medical information to alert insurers to adverse medical history
When must insurable interest exist?
Time of application or issue date
Which of the following best describes the purpose of the USA PATRIOT Act with regards to the insurance industry?
To prevent terrorism activities through monitoring of finacial transactions
What is the timeframe for filing relevant Sisoicious Activy Reports?
Within 30 days of the suspicious transaction
The renewable provision allows the policy owner to renew the coverage at the expiration date
Without evidence elf insurability
An insurer who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called..
defamation
On an annual renewable level term policy, the premium will increase
every year, although the face amount will remain the same.
An insured receives a monthly summary of his life insurance policy. The cash value this month is significantly lower than it was last month. What type of policy is it?
variable