PA life insurance

Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this?

$10,000

immediate annuity has been purchased with a single premium. when does the annuitant typically begin receiving benefit payments?

1 month

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?

12 moths

A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax consequences.

60

within how many days must a rollover be completed in order to avoid being taxed a current income

60

which of the following is an example of the insureds consideration

A Paid Premium

which of the following best describes a conditional insurance contract?

A contract that requires certain conditions or acts

Stock Insurer

A nonparticipating company is sometimes called a(n)

which of the following is NOT considered advertising?

A rating from a service company, such as A.M. Best

which of the following is considered to be an alternative to a life settlement?

Accelerated Death Benefit rider

all of these are common exclusions to a life insurance policy EXCEPT

Accidental Death

State Insurance Departments

An insurer's claim settlement practices are regulated by the

which of the following is considered to be the period when the accumulated value in an annuity's paid out?

Annuitization phase

Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she is seeking is called

Annuity certain

The deeds and actions of a producer indicate what kind of authority?

Apparent

which of these factors help determine an insureds life insurance premium

Avocation (hobby)

Why are dividends from a mutual insurer not subject to taxation?

Because dividends are considered to be a return of premium

in which of the following relationships would there NOT be an insurable interest?

Business owner to Business customer

Insurable interest does NOT occur in which of the following relationships?

Business owners and Business Client

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?

Can be converted to permanent coverage without evidence of Insurability

Under a group life policy, the insurer will issue an individual _____ to the policyowner for delivery to each person insured.

Certificate

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?

Certificate of Coverage and Benefits

Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this?

Child Term rider

all of the following are elements of an insurance policy EXCEPT

Claim Forms

life insurance policies will normally pay for losses arriving from

Commercial Aviation

Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period?

Decreasing Term Insurance

Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive?

Endowment Policy

What is the name of the provision which states that a copy of the application must be attached to the policy when issued?

Entire Contract

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?

Equity index Whole Life

a professional liability for which producers can be sued for mistakes of putting policy into effect is called

Errors and Omissions

Fraternal Benefit Society has each of the following characteristics EXCEPT

Exist for Profit

All of these are settlement options for life insurance policies EXCEPT

Extended Term

what does the word "level" in Level Term describe?

Face amount

Which of these riders will pay a death benefit if the insured's spouse dies?

Family Term Insurance rider

A tax-free Section 1035 Exchange of a life insurance policy to a different policy is permitted if it occurs

From insurer to insurer and no cash is receivable by policy owner

how are annuities favorable tax treatment?

Gains are taxed at distribution

Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit options would he choose?

Guaranteed lifetime withdrawal benefit

Fixed annuities provide all of the following EXCEPT

Hedge against inflation

which of these is considered a major tax advantage of life insurance?

Income tax is typically not owed on proceeds paid directly to a beneficiary

all of the following are characteristic of a group life insurance plan except

Individual underwriting

which of the following is present when an applicant stands to lose value if the insured dies?

Insurable interes

In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest?

Insurable interest can be established sufficiently by sentimental attachment alone

Who his responsible for assembling the policy forms for insureds?

Insurance Carriers

which of these is not considered to be nonforfeiture option in a whole life insurance policy

Interest only

policy owner is prohibited from making any changes to the policy without the beneficiaries written consent under which beneficiary designation

Irrevokable beneficiary

life insurance policy written on one contact for two people in which it is payable upon the first death is called

Joint

the authority granted yo a licensed producer is provided via the

Law of Agency

Which contract element is insurable interest a component of?

Legal Purpose

which of the following payout options makes no additional payments regardless of when the annuitant dies

Life only

A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n)

Limited Pay Policy

a life insurance policy that has premiums paid up within a stated time period is called

Limited Payment Policy

all of the following are examples of pure risk except

Losing money at a casino

A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)

Payor rider

what is known as the immediate specific event causing loss and giving rise to risk?

Peril

which situation accurately describes a reduced paid-up nonforfeiture option

Policy has a decreased face amount

During the accumulation period, who can surrender an annuity?

Policyowner

Which of these describes the result of a modified endowment contract that failed to meet the Seven-Pay test?

Pre-death distributions are typically taxable

A policy owner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?

Reduction of premium dividend option

Proceeds from a life insurance policy are protected from the beneficiary's creditors by which clause?

Spendthrift Trust Clause

Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies, this income will become payable to their children for the remainder of the period. Kristi has what kind of annuity?

Temporary annuity certain

which of the following policies does not build cash value

Term

protect consumers with guidelines regarding credit reporting and distribution

The Fair Credit and Reporting Act's main propose is to

a life insurance policy that contains a guaranteed interest rate with the chances to earn a rate that is higher than the guaranteed rate is called

Universal Life

Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life insurance policy is this?

Universal life

all of the following are exempt from 10% tax penalty for early qualified plan withdrawn EXCEPT

Upon dividends

A securities license is required for a life insurance producer to sell

Variable Life /insurance

which type of life insurance offers flexible premiums, a flexible Death Benefit, and a choice of how the cash value will be invested?

Variable insurance policy

Participating Life Insurance Policy

What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?

which of the following employers is registered to follow ERISA regulations?

a local electrical company with 12 employees

non-contributory health insurance plan helps the insurer avoid

adverse selection

What is the nonforfeiture value of an annuity before annuitization?

all premiums paid, plus interest, ,minus withdrawals and surrender charges

individual most likely will have an insurable interest in insuring a persons life if

an economic interest exists for the continuance of the insured life

a renewable term life insurance policy can be renewed

at a predetermined date or age, regardless of the insureds health

attending physcians statement would be appropriate for which life purpose?

at the request of the insurer to assist in the underwriting decision

And employee under a group insurance policy has the right to name a beneficiary and the right to

convert to an individual policy in the event of employee termination

--- is not an element of a valid contract

countersignature

Level premium term life insurance policies

have premiums that are averaged over the policy period

How does one qualify as a fully-insured individual under Social Security disability coverage?

individual has been credited with the appropriate number of quarters of coverage

all of the following statements correctly describe the purpose of social security EXCEPT

it provides a source of income for a meaningful standard living retirement

the premium for a modified whole life policy is

lower than the typical whole life policy during the first few years and then higher than typical for the remainder

what is involved when a life insurance policy has been backdated?

making the policy effective on an earlier date than the present

what makes an Insurance policy a unilateral contract?

only the insurer is legally bound

the cause of a loss is referred to as a(n)

peril

Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement?

premiums paid plus interest earned is returned to beneficiary

Utmost Good Faith

promises made

decreasing term life insurance is often used to

provide coverage for a home mortgage

which of the following statements regarding the annuitant is correct?

the annuitants life expectancy determines the annuity payments

Converting a group plan to permanent life insurance requires

the conversion being applied for within 31 days go termination

krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of the following statements is true

the face amount and premium will remain constant over the 10-year period

What is a corridor in relation to a Universal Life insurance policy?

the gap between the total death benefit and the policy cash value

who were Keogh plans designed to provide pension benefits for?

the self-employed

the statement which best describes the relationship between the premiums of whole life policy and the premium payment period is

the shorter the payment period, the higher the Premium

Under a contract of adhesion,

the terms must be accepted or rejected in full

Legal purpose is a term used in contract law meaning

there must be legal reasons for entering into the contract

what is the purpose of the Medical Information Bureau (MIB)

to help underwriters evaluate risk

An example of naming a beneficiary by class would be

to the children born of my union with Ned Jackson

Insurance represents the process of risk

transference

Determine financial strength of an insurance company

what is the purpose of rating a service company such as A.M. Best?

which of these would be the best example of a limited pay life insurance policy

whole Life policy with premiums paid up after 20 years

Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds

will no longer provide insurance protection