Life missed test questions

What is the maximum penalty for habitual willful noncompliance with the fair credit reporting act?

$2,500

The term "illustration" in a life insurance policy refers to

a presentation of nonguaranteed elements of a policy

In which of the following circumstances is an active producer license NOT required?

a retiree receives commission for policies written when he was an active producer

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant a. with the policy b. upon issuance of the policy c. within 30 days d. prior to filling out an application

a. with the policy

Why should the producer personally deliver the policy when the first premium has already been paid?

to help the insured understand all aspects of the contract

The rider in a whole life policy that allows the company to forgot collecting the premium if the insured is disabled is called

waiver of premium

Which of the following premium payment modes will incur the lowest overall payment?

annual

Stranger-originated life insurance policies are in direct opposition to the principle of a. idemnity b. insurable interest c. law of large numbers d. good faith

b. insurable interest

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium? a. reinstatement b. reduced paid-up option c. automatic premium loan d. extended term

c. automatic premium loan

Which of the following riders would not case 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

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

cash option

All of the following are duties and responsibilities of producers at the time of the application EXCEPT

change an incorrected statement on the application by personally intialing next to the corrected statement

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

consideration

All of the following are nonforfeiture options EXCEPT a. cash surrender b. extended term c. reduced paid-up d. interest only

d. interest only

Another name for a substandard risk classification is a. controlled b. declined c. elevated d. rated

d. rated

Under an extended term nonforfeiture option, the policy cash value is converted to

the same face amount as in the whole life policy

Which of the following was designed to investigate and collect evidence relating to insurance fraud?

Insurance Fraud Bureau

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

equal to the original policy for as long as the cash values will purchase

Which nonforfeiture option has the highest amount of insurance protection?

extended term

she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called

guaranteed insurability

The life insurance policy clause that prevents an insurance company frim denying payment of a death claim after a specified period of time is known as the

incontestability clause

is true about the premium on the child's rider in a life insurance policy

it remains the same no matter how many children are added to the policy

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?

pay a reduced death benefit

If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?

policyowner

Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a a. statement of good health b. backdated receipt c. warranty d. premium receipt

premium receipt

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?

proof of insurability is not required

If an insurer becomes insolvent, the Iowa Life and Health Guaranty Association will do all of the following EXCEPT

purchase all existing contracts issued after the insurer

The ownership provision entitles the policyowner to do all of the following EXCEPT

set premium rates

which statement is correct about a standard risk classification in the same age group and with similar lifestyles?

standard risk is representative of the majority of people

Which of the following statements about a suicide clause in a life insurance policy is TRUE?

suicide is excluded for a specific period of years and covered thereafter

when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide additional amount of temporary insurance to cover family members

term rider