Oklahoma life exam

Collateral Assignment

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?

Collateral Assignments

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of an additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?

separate accounts

A domestic insurer issuing variable contracts must establish one or more

Immediate Annuity

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?

Pay the policy proceeds only if it would have issued the policy.

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Unearned premiums are retained by the insurance company

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT?

Unearned premiums are retained by the insurance company

According to the rights of renewablity rider for cancelable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT

The interest is not taxable since it remains inside the insurance policy

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

Variable life insurance

All of the following are categories of a limited insurance license EXEPT

The owner must be the party to receive benefits

All of the following are true of an annuity owner EXCEPT

Suggesting negotiations in settling the claim

All of the following are unfair claims settlement practices EXCEPT

Producers personal phone number

All of the following information must be included on a producers license EXCEPT

Transfer of all ownership rights in a policy

An absolute assignment is a..

FINRA

An agent selling variable annuities must be registered with

Fair credit reporting act

An application is denied insurance because of information found on a consumer report, which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

The date of medical exam

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?

Managing general agent

An individual or legal entity appointed by insurer to exercise supervision over the business of that insurer in Oklahoma is known as a/an

Pay a lower renewable premium by proving insurability

An insured had a level term life insurance policy that is guaranteed renewable and also includes a re-entry provision. The re-entry provision would allow the insured to renew the policy an

Pay a reduced death benefit

An insured had 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's discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

$50,000

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term?

Inspection report

An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)

Increases annually

Annually Renewable Term policies provide a level death benefit for a premium that

After three full years of premium payments

Any life insurance policy that accumulates cash values must include a provision for policy loans after a certain period of time. In the state of Oklahoma, that period of time is

6 months

For how long is an insurance company allowed to differ policy loan request

31 days

How many days from the insurance of an emergency cease and desist would the order be considered final?

The producer must provide the applicant with a notice regarding replacement

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The balance of the loan will be taken out of the death benefit

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

Whether an insurable interest exists between the individuals

If an applicant for a life insurance policy and person to be insured by the policy are two different people the underwriter would be concerned about

The policy will terminate when the cash value is reduced to nothing

If an insured continually uses the automatic premium loan option to pay the policy premium

The insurer

If an insurer requires a medical examination of an applicant in connection with the application for life insurance, who is responsible for paying the cost of the examination?

The amount purchased will be as much as the cash value will purchase at the insurerd's current age

If the insured chose the reduced paid-up insurance nonforfeiture option

A full death benefit

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

The customer's associates, friends neighbors provide the reports data

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

Each insured person

In group life policies, a certificate of insurance is given to

Death benefit

In increasing and decreasing term policies, which policy component fluctuates during the policy term

February 28th, or 10 days after the time the policy is delivered

J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent was vacationing at the time the policy was issued, so J did not receive the policy until February 18. J decides that he does not want the policy. When would J need to return the policy to the insurer in order to receive a full refund of premium paid?

Premium Receipt

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

That the cash value will not be lost

Nonforfeiture values guarantee which of the following for the policyowner?

Double the original license fee

Renewal fees for all licenses are the same as the initial license. However, late application for renewal of a license requires a fee of

As of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

An index like Standard & Poor's 500.

The minimum interest rate on an equity indexed annuity is often based on

reduction of premium

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Lower

The premium of a survivorship life policy compared with that a joint life policy would be

Entire contract

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

Waiver of Premium

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

Become a resident in the country in which the individual wishes to operate

To become licensed to transact insurance in Oklahoma, an individual must meet all of the following requirements EXCEPT

SEC registration

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

Te same face amount as in the whole life policy

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

The same face amount as in the whole life policy

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

Respond to the consumer's complaint.

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...

Must be informed of the source of report.

Under the fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report

Cash surrender

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policy owner?

insurance

What do individuals use to transfer their risk of loss to a larger group?

Face amount

What does "level" refer to in level term insurance?

The life and disability of a debtor during the time a loan in outstanding

What does credit life and health insurance cover?

Coverage ends and the policy cannot be reinstated

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

16

What is the maximum age for someone to purchase property insurance in this state?

$500,000

What is the maximum death benefit that the Oklahoma life and health insurance guaranty association will pay for health insurance benefits for any one individual

8%

What is the maximum interest rate allowed on life insurance policy loans?

Issue the policy anyway and pay the face value to the beneficiary.

When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will

10 days

When a producer ceases to maintain residency in the state, within how many days must the producer return the license to the commissioner?

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

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

When the application is signed and a check is given to the agent.

When is the earliest a policy may go into effect?

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

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

Death benefit

Which component increases in the increasing term insurance?

The beneficiary must have insurable interest in the insured.

Which is NOT true about beneficiary designations?

Life income with period certain

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original dies, the payments will continue to a designated beneficiary?

Issuing sales material with exaggerated statements about policy benefits

Which of the following best describes a misrepresentation?

Highs the principal and interest will be liquidated over a selected period of time

Which of the following best describes fixed-period settlement option?

Making derogatory oral statements about another insurers financial condition

Which of the following best describes the unfair trade practice of defamation?

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

Which of the following best describes what the annuity period is?

Depreciation Period

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?

Depreciation period

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?

Creditor can only insure the debtor for the amount owed.

Which of the following is TRUE regarding the insurance amount in a credit life policy?

Survivorship life

Which of the following is called a "second-to-die" policy?

Application

Which of the following is the basic source of information used by the company in the risk selection process?

Variable Annuity

Which of the following products requires a securities license?

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

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

Universal life

Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

Substandard Risk

Which of the following types of risk will result in the highest premium

Advising the insured that is the claim goes to arbitration, the insured would probably receive less than what is currently being offered

Which of the following would be considered an unfair flames settlement practice?

Target premium

Which of the following would help prevent a universal life policy from lapsing?

The medical Information Bureau

Which of the following would provide an underwritten with information concerning an applicants health history?

option b

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Medical information

Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?

Level or flexible

Which two terms are associated directly with the premium?

Single premium

Which type of life insurance policy generates immediate cash value?

Twisting

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

It had a guaranteed minimum interest rate

Why is an equity index annuity considered to be a fixed annuity?

That its policies are covered by a state Guaranty Association

which of the following may NOT be included in an insurance company advertisement?

Policy owner

who can request changes in premium payments, face value, and policy plans?