Primerica 2

Unless it is suspended or revoked, a business entity license issued by the Commissioner is valid for a

2-year time period

Within how many days after receiving proof of death are group life insurers required to pay the policy proceeds to the beneficiary?

30 days

An insured owns a 20-year Return of Premium term life policy. If the insured is still alive after 20 years, the premiums will be refunded

90 days

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

Cash surrender

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration

Which component must increase in the increasing term insurance?

Death Benefit

The Washington Insurance Code regulation regarding policy replacement applies to which of the following types of transactions?

Immediate annuity contract

An insured owns a 20-year Return of Premium term life policy. If the insured is still alive after 20 years, the premiums will be refunded

In full as nontaxable income

An insurer must pay interest on death benefits payable under the terms of a life insurance policy

Insuring the life of any person who was a resident of this state at the time of death.

At age 72, an insured purchases a life insurance policy through a third party who finances the premium through a short term non-recourse loan. The death benefit will be transferred to the third party. Most likely, the insured has obtained a(n)

Investor-originated life insurance policy.

No insurance policy form can be issued, delivered, or used unless

It has been filed with and approved by the Commissioner.

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

Keogh

The purpose of insurance regulation is to

Promote the public welfare.

Bonnie wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. Bonnie should have her husband named as the

Revocable Beneficiary

If an agent wishes to sell variable life policies, what license must the agent obtain?

Securitites

Which of the following policies would be classified as a traditional level premium contract?

Straight whole life

All of the following attributes are found in stock insurance companies EXCEPT

The board of directors is chosen by a state-based election board.

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

The same face amount as in the whole life policy

Under a SIMPLE plan, which of the following is true regarding taxation on both contributions and earnings?

They are tax deferred until withdrawn

Which of the following statements is most correct concerning irrevocable beneficiaries?

They can be changed only with the written consent of that beneficiary.

A life insurance policyowner skips her premium payment, but the policy does not lapse. Instead, the premium amount is deducted from the cash value of the policy. What type of policy is this?

Universal Life

An individual applied for an insurance policy. The payment for the first premium was included with the application. Which of the following statements is correct?

With a conditional receipt, the policy is in effect as of the date of application.