Need to study 2

All of the following are true regarding the guaranteed insurability rider except

This rider is available to all insureds with no additional premium.

Which of the following is true regarding taxation of dividends in participating policies

Dividends are not taxable

The provision which states that both the policy and a copy of the application form the contract between the policy owner and the insure is called the

Entire contract

Under the fair credit reporting act if the consumer challenges the accuracy of the information contained in his or her report the reporting agency must

Respond to the consumers complaint

Equity Indexed Annuities

Seek higher returns

Which type of life insurance policy generates immediate cash value

Single Premium

All of the following statements concerning the use of life insurance as an executive bonus are correct except

The policy is owned by the company

All of the following are true about variable products except

The premiums are invested in the insurers general account

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?

conditional

A return of premium term life policy is written as what type of term coverage?

increasing

Who bears all of the investment risk in a fixed annuity

insurance company

For which of the following actions can an agent license be suspended or revoked

rebates of premiums

The insured under a 100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case what will the policy beneficiary receive

100,000

How long must producer maintain records of continuing education course completion?

4 years

What is the waiting period on a waiver of premium rider in the insurance policies?

6 months

What is a material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

viatical settlements may be rescinding within what time. After the viator receives the proceeds?

15 days

All of the following are examples of third-party ownership of a life insurance policy except

And insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan

What happens when a policy is surrendered for its cash value

Coverage ends in the policy cannot be reinstated

When possible, what should insurers strive to eliminate from illustrations?

Footnotes and caveats

All advertisements are the responsibility of the

Insurer

What is the purpose of a free look in insurance policies

It allows the insured to reject the policy with a full refund

A rider attached to a life insurance policy that provides coverage on the insurance family members is called the

Other insured rider

Which of the following has the right to convert the existing term coverage to permanent insurance

Policy owner

Which of the following is not the consideration in a policy

The application given to a prospective insured

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt five days later the applicant had to submit to a medical exam if the policy is issued, what would be the policy's effective date

The date of medical exam

The main difference between immediate and deferred annuities is

When the income payments begin

All the following are requirements for an individual to be licensed except

Provide a financial statement

An insured purchased a 10 year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10 year term?

The insured may renew the policy for another 10 years but at a higher premium rate

Which of the following is true about nonforfeiture values?

They are required by state law to be included in the policy

Upon the death of the insured the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

The beneficiary will only receive payments of the interest earned on the death benefit

Which of the following would provide an underwriter with information concerning an applicant health history?

The medical information bureau

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policies cash value. There is a limit for a withdraw the insurance charges a fee. What type of policy does the insured most likely have?

Universal life

All of the following information must be disclosed to the viator prior to the execution of a viatical Settlement contract except

Availability of stranger originated life insurance (STOLI)

Under a 20 pay whole life policy in order for the policy to pay the death benefit to a beneficiary the premiums must be paid

For 20 years or until death whichever occurs first

In life insurance policies cash value Increases

Grow tax deferred.

Which of the following must be included in all life insurance advertisements

Identity of the actual insurer

When a reduced paid up non-forfeiture Option is chosen what happens to the face amount of the policy?

It is reduced to the amount of what the Cash value would buy as a single premium

Which of the following statements is true about a policy assignment?

It transfers rights of ownership from the owner to another person

Which statement is not true regarding a straight life policy

It's premium steadily decreases over time in response to its growing cash value

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional pay your benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The insured's premiums will be waived until she is 21

An agent holds an insurance license in the state of Kansas and would like to transact insurance in Texas. The agent became licensed before written examinations were required. Therefore, the agent has not actually passed any kind of examination. Which of the following is true?

The written examination requirement will be waived

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years

What is the purpose of a disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

Which of the following is an IRS Qualified retirement program for the self employed?

Keogh

Traditional IRA contributions are

Tax deductible

If a change needs to be made to the application for insurance the agent may do all the following except

Erase the incorrect answer and record the correct answer

In the executive bonus plan, who is the owner of the policy, and who pays a premium?

Executive is the owner and the executive pays a premium

Which of the following documents must be provided to the policy owner or applicant during policy replacement?

Notice Regarding Replacement

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

Which of the following best describes with the annuity period is

The period of time during which a Accumulated money is converted into income payments

All of the following are true of key person insurance except

The plan is funded by permanent insurance only