Missed on Insurance

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? a)3 days b)5 days c)10 days d)14 days

a)3 days

What type of premium do both Universal Life and Variable Universal Life policies have? a)Flexible b)Level fixed c)Decreasing d)Increasing

a)Flexible

In replacement, an existing insurer must provide policyowners with a policy summary for existing life insurance within how many days of receiving the written communication and replacement? a)3 b)10 c)31 d)60

b)10

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

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company? a)Warranty b)Aleatory c)Adhesion d)Subrogation

b)Aleatory

Which Universal Life option has a gradually increasing cash value and a level death benefit? a)Option A b)Juvenile life c)Term insurance d)Option B

a)Option A

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.

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.

If an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of a)Coercion. b)Churning. c)Misrepresentation. d)Defamation.

b)Churning.

When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy until the conclusion of the next regular examination by the Insurance Department or for a)5 years. b)4 years. c)2 years. d)3 years.

d)3 years.

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a)7 days b)10 days c)3 days d)5 days

d)5 days

What is the main purpose of the Seven-pay Test? a)It requires level premium payments for 7 years. b)It ensures that the policy benefits are paid out in 7 years. c)It guarantees the minimum interest. d)It determines if the insurance policy is a MEC.

d)It determines if the insurance policy is a MEC.

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 life insurance policies allows a policyowner to take out a loan from the policy's cash value? a)Decreasing term life b)Variable universal life c)Increasing term life d)Credit term life

b)Variable universal life (Term insurance policies do not have cash value)

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)Variable life b)Adjustable life c)Universal life d)Flexible life

c)Universal life

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)A misrepresentation. b)A required disclosure. c)A legal representation of the Association. d)An unfair trade practice.

d)An unfair trade practice.

Which of the following is a feature of a variable annuity? a)Payments into the annuity are kept in the company's general account. b)Interest rate is guaranteed. c)Securities license is not required. d)Benefit payment amounts are not guaranteed.

d)Benefit payment amounts are not guaranteed.

Which of the following is TRUE for both equity indexed annuities and fixed annuities? a)They are both tied to an equity index .b)Both are considered to be more risky than variable annuities. c)They invest on a conservative basis. d)They have a guaranteed minimum interest rate.

d)They have a guaranteed minimum interest rate.

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.

Which of the following is a key distinction between variable whole life and variable universal life products? a)Variable universal life is regulated solely through FINRA. b)Variable whole life allows policy loans from the cash value. c)Variable universal life has a fixed premium d)Variable whole life has a guaranteed death benefit.

d)Variable whole life has a guaranteed death benefit.

Long-term care coverage may be available as any of the following options EXCEPT a)Endorsement to a health policy. b)Group long-term care. c)Individual long-term care. d)Endorsement to a life policy.

a)Endorsement to a health policy.

A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default? a)15 b)30 c)60 d)90

c)60

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the a)Incontestability clause. b)Reinstatement clause. c)Insuring clause. d)Misstatement of Age clause.

a)Incontestability clause.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT? a)The insured may choose to convert to term or permanent individual coverage. b)The insured would not need to prove insurability for a conversion policy. c)The insured may convert coverage to an individual policy within 31 days. d)The premium for individual coverage will be based upon the insured's attained age

a)The insured may choose to convert to term or permanent individual coverage.