MD LIFE FINAL EXAM
In what part of an insurance policy are policy benefits found? 1.Declarations 2. Entire contract 3.Waivers 4.Conditions
1.Declarations *the insurance declaration page is like a quick guide to the insurance policy, providing all of the basic information the policyholder needs to know.
According to life insurance contract law, insurable interest exists 1.when any business relationship exists 2. at the time of application 3. at the time of death 4. only when determined by a judge
2.at the time of application *According to life insurance in contract law, a person most likely will have an insurable interest in insuring a person's life if at the time of application
What is the name of the provision which states that a copy of the application must be attached to the policy when issued? 1.Policy Summary 2. Buyer's Guide 3. Entire Contract 4. Entire Policy
3. Entire Contract
What makes an insurance policy a unilateral contract? 1. Only the insured pays the premium 2. Only the insured can change the provisions 3. Only the insurer is legally bound 4. Only the insured is legally bound
3. Only the insurer is legally bound
Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? 1.Risk reduction 2. Risk transference 3. Risk avoidance 4. Risk retention
3. Risk avoidance
A producer may begin to solicit insurance ONLY when 1.registered for the state insurance examination 2. licensed by the state 3. appointed by an insurer 4. none of these
3. appointed by an insurer *A producer may not sell, solicit, or negotiate insurance on behalf of an insurer unless the producer has an appointment from the insurer.
Term insurance is appropriate for someone who 1.seeks living benefits for themselves 2.seeks a policy that builds cash value 3. seeks temporary protection and lower premiums 4.seeks permanent protection and higher premiums
3. seeks temporary protection and lower premiums
A securities license is required for a life insurance producer to sell 1. modified life insurance 2. Modified Endowment Contracts (MEC) 3. variable life insurance 4. universal life insurance
3. variable life insurance
Who is responsible for assembling the policy forms for insureds? 1.State Insurance Departments 2.NAIC 3.Insurance carriers 4.Insurance producers
3.Insurance carriers
A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called 1.A self-derived plan 2. A multiple-employer plan 3. A blanket plan 4. A self-funded plan
4. A self-funded plan
The taxable portion of each annuity payment is calculated using which method? 1. Exclusion Ratio 2. Taxable Ratio 3. Cost Basis 4. Tax Basis
1. Exclusion Ratio
Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider? 1.Can be converted to permanent coverage without evidence of insurability 2. Coverage can be different for each child 3.Premiums on this rider are not required until the limiting age is reached 4.Increases the policy's overall cash value
1.Can be converted to permanent coverage without evidence of insurability
How many months can a life insurance policy normally be backdated from the date of application? 1. 3 2. 6 3. 9 4. 12
2. 6 *A life insurance policy can typically be backdated up to 6 months from the date of the written insurance application. Ohio is an exception and allows only up to 3 months.
A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) 1.adjustable policy 2. limited pay policy 3. level term policy 4. variable universal policy
2. limited pay policy
Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? 1. Adjustable life policy 2.Variable universal policy 3. Universal policy 4. Modified whole life policy
2.Variable universal policy *A variable universal life policy has three key elements- flexible premium, death benefit, and the choice of how the cash value will be invested.
Which of these is affected by the frequency of an insurance policy's premium payments? 1.Settlement options 2.Cash value 3.Death benefit 4. Cost
4. Cost
Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? 1. Future value approach 2. Earnings approach 3. Needs approach 4. Human life value approach
4. Human life value approach
Which contract element is insurable interest a component of? 1. Competent parties 2. Offer and acceptance 3. Consideration 4. Legal purpose
4. Legal purpose
All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT 1.Agent's report 2. Medical Information Bureau (MIB) 3. Inspection reports 4. National Association of Insurance Underwriters
4. National Association of Insurance Underwriters
All of the following are considered appropriate uses of life insurance for business purposes EXCEPT 1. Attracting quality employees by offering a group life plan 2. Funding an entity buy-sell agreement 3. Protecting the business by covering key employees with life insurance 4. Protecting the business by covering entry level employees with life insurance
4. Protecting the business by covering entry level employees with life insurance
What may be the result of replacing an existing life insurance policy with a new one? 1.Fine 2.Penalty tax 3.Capital gains tax 4. Surrender charge
4. Surrender charge
Which of the following is NOT required in an order from the Commissioner? 1. The purpose of the order 2. The grounds that the order is based on 3. The effective date of the order 4. The Governor's signature
4. The Governor's signature
Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she is seeking is called 1. variable payout 2. fixed accumulation 3. interest guaranteed 4. annuity certain
4. annuity certain
Converting a group plan to permanent life insurance requires 1. submitting proof of insurability 2. paying a lower premium 3. converting to term life insurance 4. the conversion being applied for within 31 days of termination
4. the conversion being applied for within 31 days of termination
The free-look provision gives the policyowner 1. the right to return the policy for a partial refund within a specified number of days 2.the right to contest the terms of the policy 3. the right to change a policy provision 4. the right to return the policy for a full refund within a specified number of days
4. the right to return the policy for a full refund within a specified number of days
Level premium permanent insurance accumulates a reserve that will eventually 1. equal the face amount of the policy 2. pay a dividend to the policyowner 3. require the policyowner to make periodic withdrawals 4. become larger than the face amount
1. equal the face amount of the policy
All of these are characteristics of a universal life insurance policy EXCEPT 1. Flexible death benefit 2. Fixed surrender value 3. Flexible premiums 4. Builds cash value
2. Fixed surrender value
An insurer's ability to make unpredictable payouts to policyowners is called 1.investment values 2.liquidity 3.assets 4.capital
2.liquidity
An example of naming a beneficiary by class would be 1. "To the children born of my union with Ned Jackson: David Jackson, Jennifer Jackson, and Scott Jackson" 2. "To the child born of my union with Ned Jackson: Scott Jackson" 3. "To the children born of my union with Ned Jackson" 4."To Ned Jackson"
3. "To the children born of my union with Ned Jackson"
A field underwriter's main task is 1.assign a risk classification to the insured 2.report medical information to the Medical Information Bureau (MIB) 3.to ensure an applicant's medical information is accurate and complete 4.to approve or decline an applicant
3.to ensure an applicant's medical information is accurate and complete
What is created after policy proceeds are obtained in a lump sum and then immediately invested? 1.Viatical Settlement 2. Emergency Fund 3. Lump Sum Fund 4. Estate
4. Estate
Interest on death benefits are NOT required to be paid by an insurance company as long as proceeds are paid within ___ after the date of the death of the insured. 1. 30 days 2. 40 days 3. 50 days 4. 60 days
1. 30 days
A producer who is licensed in Maryland but resident in another state is called a 1. nonresident producer 2. foreign producer 3. reciprocal producer 4. limited lines producer
1. nonresident producer
All of the following actions are considered rebating EXCEPT 1. sharing commissions with other licensed and appointed agents 2.refunding part of the premium as an inducement for purchase 3.offering special dividends 4. offering anything of value not specified in the policy
1. sharing commissions with other licensed and appointed agents
Which type of annuity stops all payments upon the death of the annuitant? 1.Life annuity 2.Period certain annuity 3.Cash refund annuity 4.Joint and survivor annuity
1.Life annuity
A single premium cash value policy can be described as 1.a policy that is paid up after only one payment 2. a policy that only requires an annual payment 3. a policy that is guaranteed issue 4. a policy that covers two or more lives
1.a policy that is paid up after only one payment
Each delivered life insurance policy in Maryland MUST include a(n) 1.legible and brief description of the policy on the first 2.page 3. underwriting manual 4. actuarial table on the first page notary seal
1.legible and brief description of the policy on the first
Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? 1. Policy loans are disallowed 2. The premium payments will be tax deductible 3. Pre-death distributions are typically taxable 4. Withdrawals will be prohibited
3. Pre-death distributions are typically taxable
Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death? 1. Active 2. Status 3. Results 4. Leave
3. Results
Under a life insurance policy, what does the insuring clause state? 1. The agent's obligation to provide the proper amount of coverage 2. The insurer's obligation to return all premiums upon an approved death claim 3. The insurer's obligation to pay a death benefit upon an approved death claim 4. The agent's obligation to pay a death benefit upon an approved death claim
3. The insurer's obligation to pay a death benefit upon an approved death claim
A Maryland insurance producer solicits an insurance policy. In the event of a controversy between the insured and the company, the producer is considered to represent the 1. insured 2. beneficiary 3. company 4. policyholder
3. company
A tax-free Section 1035 Exchange of a life insurance policy to a different policy is permitted if it occurs 1. in the same state as the original transaction 2. within a 12 month period 3. from insurer to insurer and no cash is received by the policyowner 4. from agent to agent as long as the agents are licensed in the same line
3. from insurer to insurer and no cash is received by the policyowner *The Internal Revenue Code (IRC) enables a tax-free Section 1035 Exchange of a life insurance policy to a different policy if it occurs from insurer to insurer and the policyowner does not receive any cash.
Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because 1. the MEC has tax deductible premiums 2. the MEC is considered an illegal product 3. the MEC tends to be an investment vehicle 4. the MEC does not accumulate cash value
3. the MEC tends to be an investment vehicle
What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? 1. Dual Life insurance 2.Joint Life insurance 3.Last Survivor Life insurance 4.Shared Life insurance
3.Last Survivor Life insurance
Which of the following is NOT a reason for the Commissioner to deny or refuse a producer license application? 1.Recently convicted of a felony 2.Engaged in fraudulent insurance practices 3.Unintentionally misrepresented a material fact on the application 4.Intentionally violated state insurance laws
3.Unintentionally misrepresented a material fact on the application
A person who, for a fee, gives advice or recommendations on benefits provided by an insurance contract is called 1.a broker 2.a producer 3.an advisor 4.a navigator
3.an advisor *An insurance adviser is any person who, for a fee, offers to examine any policy for the purpose of giving advice or recommendations with respect to the benefits provided by the contract. An adviser must be licensed in the State of Maryland.
How soon can the benefit payments begin with a deferred annuity? 1. Anytime after date of purchase 2. Anytime within 12 months after date of purchase 3. A minimum of 6 months after date of purchase 4. A minimum of 12 months after date of purchase
4. A minimum of 12 months after date of purchase
Why are dividends from a mutual insurer not subject to taxation? 1. Because insurance premiums are tax-deductible 2. Because dividends are already subject to capital gains 3. Because dividends are payable directly to the policyholder 4. Because dividends are considered to be a return of premium
4. Because dividends are considered to be a return of premium
What happens when an insurance policy is backdated? 1. The policy's elimination period is waived 2.The time frame for reinstating a lapsed policy is extended 3. The policy's probation period is earlier than the present 4. The policy's effective date is earlier than the present
4. The policy's effective date is earlier than the present * Backdating on an insurance policy is the practice of making the policy effective on an earlier date than the present.
Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this? 1. Modified Endowment Contract 2. Current assumptive whole life 3.Credit life insurance 4. Equity index whole life
4."Equity index whole life". The type of policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index is equity index whole life.
Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. His insurance agent told him the policy would be paid up if he reached age 100. The present cash value of the policy equals $250,000. Rob recently died at age 60. The death benefit would be 1. $250,000 2. $750,000 3. $375,000 4. $500,000
4.$500,000 * In this situation, the death benefit would be the $500,000 face amount.
Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance? 1. Policyowner may increase or decrease the premium payments 2.Policyowner may increase or decrease the face amount 3.Policyowner can contribute large sums of money 4.Policyowner has the right to select the investment which will provide the greatest return
4.Policyowner has the right to select the investment which will provide the greatest return
Which of the following is NOT considered to be an act of fraud? 1.Collecting a premium for insurance that is not provided 2.Collecting a charge for insurance that is less than the charge applicable to that insurance 3.Misappropriate or unreasonably withhold premiums or returned premiums 4.Willfully collecting a premium that exceeds the amount of the actual premium
2.Collecting a charge for insurance that is less than the charge applicable to that insurance
Which of the following is considered to be the period when the accumulated value in an annuity is paid out? 1. Annuitization phase 2. Accumulation phase 3. Principal phase 4. Period certain phase
1. Annuitization phase
Which of the following is NOT information found in a life insurance buyer's guide? 1. How to take legal action against an insurance company 2. How to compare life insurance policy rates 3. How to compare life insurance policy requirements 4. How to determine how much life insurance to purchase
1. How to take legal action against an insurance company
Which type of life insurance is normally associated with a Payor Benefit rider? 1.Juvenile insurance 2.Family income insurance 3. Spouse insurance 4. Term rider
1. Juvenile insurance *A Payor Benefit rider waives the premium ONLY in connection with juvenile insurance.
Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? 1. Life annuity certain 2. Secure life annuity 3. Irrevocable survivor annuity 4. Guaranteed life annuity
1. Life annuity certain *A life annuity certain provides a guaranteed minimum number of benefit payments, whether the annuitant live or dies.
What would be an expense factor in an insurance program? 1.Premiums collected 2. Mortality costs 3. Opportunity costs 4. Investment interest
2. Mortality costs
Which market index is normally associated with an indexed annuity's rate of return? 1.NAIC 2. SEC 3. S & P 500 4. A & P 300
3. S & P 500
Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? 1. Nothing 2. $100,000 3. $250,000 4. $500,000
1. Nothing
What is known as the immediate specific event causing loss and giving rise to risk? 1. Peril 2. Hazard 3. Loss factor 4. Liability
1. Peril *A peril is defined as the immediate specific event causing loss and giving rise to risk. A peril is the cause of a risk. For example, when a building burns, fire is the peril. When a person dies, death is the peril. When an individual is injured in an accident, the accident is the peril. When a person becomes ill from a disease, the disease is the peril.
Which situation accurately describes a reduced paid-up nonforfeiture option? 1. Policy has a decreased face amount 2. Face amount of the new policy equals that of the original policy 3. Cash value is surrendered to policyowner 4. Premiums must continue to be paid
1. Policy has a decreased face amount
Which of the following policies does NOT build cash value? 1. Term 2. Straight Life 3. Endowment 4. Variable Life
1. Term
In Maryland, an insurance producer cannot sell, solicit, or negotiate policies for an insurer unless there is an agreement in place between the producer and insurer. This agreement is called a(n) 1. appointment 2. license 3. binder 4. designation
1. appointment * The agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is called an appointment.
Which of the following is NOT a requirement for soliciting insurance in Maryland? 1.Pass insurance examination 2.At least 21 years old 3. Good character 4.Appointed by an insurer
2.At least 21 years old *The age requirement is 18,
Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? 1. $1,000 2. $3,000 3. $5,000 4. $7,000
3. $5,000 *Under the Fair Credit Reporting Act, the maximum penalty for a producer who obtains Consumer Information Reports under false pretenses is $5,000 and 1 year imprisonment.
James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount? 1.The original face amount will be paid to the beneficiary 2.The policy will be voided with no death benefits paid 3.The death benefit paid will be what the premium would have purchased at the correct age 4. The amount of premiums paid will be returned with interest
3.The death benefit paid will be what the premium would have purchased at the correct age *Correct. Under the Misstatement of Age provision, the amount paid will be what the premium would have purchased at the correct age.
An insurance producer is BEST defined as 1. a person appointed by more than one insurance company to issue policies 2. a person who has a contract with an insurance company to represent it 3. a person who places insurance with nonadmitted companies 4. an employee of an insurance company who has the authority to underwrite insurance
2. a person who has a contract with an insurance company to represent it * "Insurance producer" or "producer" is a person required to be licensed pursuant to the laws of this state to sell, solicit, or negotiate insurance.
When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT 1. give the applicant a Notice Regarding Replacement of Life Insurance 2. give the applicant the original or a copy of the proposals used in the sales presentation 3. obtain the beneficiary's signature on a summary of all policies to be replaced 4. submit to the producer's insurance company a copy of the Notice Regarding Replacement of Life Insurance signed by the applicant
3. obtain the beneficiary's signature on a summary of all policies to be replaced
Fixed period settlement options are considered to be a form of a(n) 1.cash value loan 2.variable life policy 3.annuity 4. endowment
3.annuity
A waiver of premium rider allows an insured to waive premium payments if the insured is 1.temporarily disabled 2.unemployed 3.completely and permanently disabled 4.experiencing financial hardship
3.completely and permanently disabled
John the insurance producer has an insurance license that expires in 6 months. If he files an application for renewal before the expiration date, his license will 1. remain in effect until a new one is issued 2. be automatically renewed regardless of any violations 3.be renewed upon determination of legal compliance within a 60-day period following the license expiration date 4.renew without the normal requirements
1. remain in effect until a new one is issued
Life insurance policies will normally pay for losses arising from 1.commercial aviation 2. war 3. suicide 4. hazardous jobs
1.commercial aviation
A producer who sells an individual life insurance policy in Maryland MUST deliver to the policyowner 1.An Underwriting Report Disclosure 2. A Prospectus and Ledger Statement 3. A Policy Summary and Buyer's Guide 4. An Annual Financial Statement of the insurer
3. A Policy Summary and Buyer's Guide
If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? 1.No death benefit is owed because of the misstatement of age 2. The full original death benefit listed on the policy 3. A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age 4. The original death benefit listed on the policy minus any outstanding loans and interest
3. A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age
Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake? 1.Reinstatement clause 2. Entire Contract clause 3. Incontestable clause 4. Nonforfeiture clause
3. Incontestable clause
A Modified Endowment Contract (MEC) is best described as 1. A life insurance contract which accumulates cash values higher than the IRS will allow 2. An annuity contract which was converted from a life insurance contract 3. A modified life contract which enjoys all the tax advantages of whole life insurance 4. A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty
1. A life insurance contract which accumulates cash values higher than the IRS will allow
Which of the following basics is a producer's fiduciary responsibility? 1. Collecting premiums and paying them to the insurance company 2. Maintaining a separate bank account for each insurance company the producer represents 3. Acting as a referee in the event of a disagreement between an insured and the insurance company 4. Advising prospective insureds of the lowest rates available
1. Collecting premiums and paying them to the insurance company
When must a claim on a life insurance policy be paid after proof of loss has been received by the insurer? 1. Promptly 2.Within 10 days 3. Within 20 days 4. Within 30 days
1. Promptly
The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to as 1. twisting 2. subrogation 3. a life settlement 4.coercion
1. twisting
How do insurers predict the increase of individual risks? 1.Law of large numbers 2.U.S. Census 3.Average mortality incidents 4.Experience of morbidity
1.Law of large numbers
The standard grace period for a life insurance policy sold in Maryland is 1. 15 days 2. 30 days 3. 45 days 4. 60 days
2. 30 days
A Roth IRA owner must be at least what age in order to make tax-free withdrawals? 1. 59 1/2 and owned account for a minimum of 10 years 2. 59 1/2 and owned account for a minimum of 5 years 3. 70 1/2 and owned account for a minimum of 10 years 4. 70 1/2 and owned account for a minimum of 5 years
2. 59 1/2 and owned account for a minimum of 5 years
Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death? 1. Financial loss value 2. Human life value 3. Assessment value 4. Replacement value
2. Human life value
How are contributions made to a Roth IRA handled for tax purposes? 1. Fully tax deductible 2. Not tax deductible 3. Partially tax deductible 4. Conditionally tax deductible
2. Not tax deductible
What is an insurer required to do when faced with an error made under the Misstatement of Age provision? 1. Cancel the policy 2. Pay age-corrected benefits 3. Pay full benefits as stated in the policy 4. Bill the policyowner for back premiums
2. Pay age-corrected benefits *Under the Misstatement of Age Provision, when done in error, an insurer must pay age-corrected benefits.
Under a group life policy, the insurer will issue an individual _____ to the policyowner for delivery to each person insured. 1.policy 2. certificate 3. application 4. rider
2. certificate
A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) 1. guaranteed term rider 2. guaranteed insurability rider 3. accelerated benefit rider 4. cost of living rider
2. guaranteed insurability rider *A guaranteed insurability rider is designed to permit young individuals to be able to purchase additional insurance as they grow older, regardless of insurability.
When a decreasing term policy is purchased, it contains a decreasing death benefit and 1. increasing premiums 2. level premiums 3. decreasing premiums 4. variable premiums
2. level premiums
The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of 1.any interest payable from an outstanding policy loan balance 2. past due premiums that have not been paid by the end of the grace period 3. the outstanding policy loan balance 4. any surrender charges owed by the policyowner
2. past due premiums that have not been paid by the end of the grace period *In a life insurance cash value policy, the automatic premium loan provision authorizes the insurance company to withdraw from the policy's cash values the amount of premiums due if the premium has not been paid by the end of the grace period.
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n) 1. waiver of premium rider 2. payor rider 3. automatic premium loan rider 4. juvenile waiver rider
2. payor rider
Any advertisement that mentions a dollar amount, period of time for which any benefit is payable, cost of policy, policy benefit, or the loss for which the benefit is payable MUST disclose 1.the date in which the advertisement was approved 2. the exceptions, reductions, and limitations affecting the 3.basic provisions of the policy 4. how much the advertisement cost to publish the person who wrote the advertisement
2. the exceptions, reductions, and limitations affecting the
ABC Corporation has a group life insurance policy that covers its employees and their dependent children. Which of the following would be considered a "dependent child"? 1.Employed 22 year old child who relies on the insured employee for financial support 2.Child over the age of 18 years who attends an educational institution and relies on the insured employee for financial support 3.Child age 27 still living at home and not attending an educational institution 4.Married child over the age of 26
2.Child over the age of 18 years who attends an educational institution and relies on the insured employee for financial support
An example of replacement is 1.canceling disability policy to buy a term life policy 2. canceling a term life policy to buy a whole life policy 3. canceling a long-term care policy to buy a whole life policy 4. canceling a whole life policy to buy a major medical policy
2.canceling a term life policy to buy a whole life policy
An example of a tax-qualified retirement plan would be a(n) 1.equity compensation plan 2.defined contribution plan 3.executive index plan 4.1035 exchange plan
2.defined contribution plan
How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability? 1. 3 months 2. 6 months 3. 12 months 4. 18 months
3. 12 months
Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application? 1.A waiver of premium 2. A replacement form 3. A good health statement 4. An exclusion
3. A good health statement
What is involved when a life insurance policy has been backdated? 1.Setting a policy's effective date prior to a preexisting condition 2.Redating a policy after it has been issued 3. Reinstating a lapsed policy 4. Making the policy effective on an earlier date than the present
4. Making the policy effective on an earlier date than the present
Which of the following is NOT part of an insurance contract? 1.Policy 2.Application 3.Riders 4.Certificate of Authority
4.Certificate of Authority *The Certificate of Authority allows an insurer to conduct business in a state. It is not part of an insurance contract.
All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT 1.Qualified college expenses 2.First time home purchase 3.Death of the participant 4.Stock purchase
4.Stock purchase
