Practice Exam 1 5/15/23

What is the maximum penalty the Director may impose on someone who transact insurance in Idaho without a license?

$15,000

When the Director request a hearing, written notice must be submitted how many days in advance

14

Which of the following would be considered an unfair claims settlement practice

A claims adjuster advises the insured, that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

Which of the following is true about the mandatory free luck in life insurance policy

Commences when the policy is delivered

When an insured makes truthful statements on the application for insurance and paste, the required premium, it is known as which of the following

Consideration

An individual has just borrowed $10,000 from his bank on a five-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to the situation

Decreasing term

Which of the following statements is true concerning the accidental death rider

It will pay double or triple the face amount

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be most affordable and still provide a death benefit should one of them die.

Joint Life

Using a class designation for beneficiaries means

Naming beneficiaries as a group

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

Other-Insured rider

Which of the following allows the insurer to relieve a minor insured from premium payments if the minors parents have died, or become disabled

Payor benefit

Eman decides to purchase $100,000 annually, renewable term life policy to provide additional protection and tell his children finished college. He discovered that his policy.

Required a premium increase each renewal

The president of the company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true

The annuitant must be a natural person

Which of the following is not a goal of risk retention?

To minimize the insured's level of liability in the event of a loss

Insurance companies can defer policy loan request for up to six months, unless the reason for the loan is

To pay the policy premium

All of the following are beneficiary designations except

specified