News study set

conservation

A legally acceptable attempt by an existing insurer to dissuade a current policyowner from the replacement of existing life insurance is called

Other Insured Rider

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

The policy is owned by the company

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

Only to individuals

An agent license can be issued

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

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

12 months

An insured recently discovered that the interest rate on his policy loan once again increased. Which of the following is the shortest amount of time that could have passed since the last change in the insured's interest rate?

Modified Endowment Contract (MEC)

If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an

An unfair trade practice

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

The owner

In a life settlement contract, whom does the life settlement broker represer

sex orientation

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability ?

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annu payments. What type of annuity did the couple buy?

Joint Life

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant

All of the following statements regarding continuing education requirements in this state are true EXCEPT

Producers may repeat the same courses to meet the required CE hours for a licensing period.

Which of the following applicants would NOT qualify for a Keogh Plan?

Someone who works 400 hours per year

Set premium

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

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

One-Year Term Option

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

Absolute and Collateral

The two types of assignments are

Must be informed of the source of the report

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

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

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

Policy Summary

What describes the specific information about a policy?

Coverage ends and the policy cannot be reinstated

What happens when a policy is surrendered for its cash value?

It is intended to provide coverage on a date prior to the policy issue

What is the purpose of a conditional receipt?

Annuity Certain

Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated?

Insuring clause

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

How often does an agent's insurance license expire?

every 2 years