Primerica

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

According to the Fair Credit Reporting Act, all of the following would be considered negative information about a consumer EXCEPT

Disputes regarding consumer report information

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called

Guaranteed insurability

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

Lower

All of the following may result in suspension or denial of an insurance license EXCEPT

Sharing commissions with another licensed producer.

Which of the following is NOT correct regarding examination of companies?

The Commissioner must examine all alien companies.

Which of the following would qualify as a competent party in an insurance contract?

The applicant has a prior felony conviction

Which of the following determines the cash value of a variable life policy?

The performance of the policy portfolio

In terms of parties to a contract, which of the following does NOT describe a competent party?

The person must have at least completed secondary education.

Which of the following statements is correct regarding a whole life policy?

The policy owner is entitled to policy loans.

what is the purpose of settlement options?

They determine how death proceeds will be paid

What is the purpose of the Insurance Guaranty Association?

To protect policyowners against insurer insolvency

what is the name of the insured who enters into a viatical settlement?

Viator

which of the following types of policies will provide permanent protection?

Whole life

In insurance, an offer is usually made when

an applicant submits an application to the insurer

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

level term

In Indiana controlled business is

limited to 25% of a producers annual commission income

An applicant who receives a preferred risk classification qualifies for

lower premiums than a person who receives a standard risk

what describes the specific information about a policy?

policy summary

Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as...

rebating

All of the following are true regarding the convertibility option under a term life insurance policy EXCEPT

upon conversion, the death benefit of the permanent policy will be reduced by 50%

In forming an insurance contract, when does acceptance usually occur?

when an insurer's underwriter approves coverage

When is the earliest a policy may go in effect?

when the application is signed and a check is given to the agent

How long can a person hold a consultant's license before it expires?

2 years

Under which of the following circumstances would an insurer pay accelerated benefits?

An insured is diagnosed with cancer and needs help paying for her medical treatment.

What is a definition of a unilateral contract?

One-sided: only one party makes an enforceable promise

Which of the following riders would NOT cause the Death benefit to increase?

Payor benefit rider

what kind of policy allows withdrawals and partial surrenders?

Universal life

Which of the following is a statement that is guaranteed to be true, if untrue, may breach an insurance contract?

Warranty

Which of the following is not an essential element of an insurance contract?

counteroffer

What required provision protects against unintentional lapse of the policy?

grace period

Which of the following represents controlled business?

Writing policies for oneself and one's family

An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax - free rollover ?

$8,000, 60 days

The death protection component of Universal Life Insurance is always

Annually Renewable Term

Which of the following best describes an insurance company that has been formed under the laws of this state?

Domestic

When would a misrepresentation on the insurance application be considered fraud?

If it is intentional and material

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of report is that?

Inspection report

Which of the following types of license is most suitable for an individual or corporation that, for compensation, acts or aids in any manner in soliciting applications for a policy of insurance on behalf of an insurance company admitted to do business in Indiana?

Insurance producer

Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance?

Only written statements can be considered fraud

If an agent fails to obtain the applicant's signature on the insurance application, what must the insurer do?

Return the application to the applicant for a signiature

To sell variable life insurance policy's, and agent must receive all of the following except

SEC registration

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

convertible term policy

a producer agent must do all of the following when delivering a new policy to the insured except

disclose commissions earned from the sale of the policy

what is the purpose of a conditional receipt?

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

All of the following are true regarding the guaranteed insurability ride EXCEPT

this ridder is available to all insureds with no additional premium

which of the following types of insurance policies would perform the function of cash accumulation?

whole life

As a field underwriter, a producer is responsible for all of the following tasks EXCEPT

Issue the policy that is requested

which of the following is true regarding the annuity period?

It may last for the lifetime of the annuitant.

If an insurer issued a policy based on the application that had unanswered questions, what would be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application.

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

what is the waiting period on a waiver of premium rider in life insurance policies?

6 months

Both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

conditional

which nonforfeiture option provides coverage for the longest period?

reduced paid-up

an insured committed suicide one year after his life insurance policy issued

refund the premiums paid

which of the following is not true of life settlements

the seller must be terminally ill

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

$10,000, no tax consequence

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Limited pay whole life

A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?

Immediate

which of the following will be included in a policy summary?

Premium amounts and surrender values

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

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

Insurance producers who willfully violate the Indiana Insurance Code are committing a Class A misdemeanor. What is the maximum punishment they may be subjected to?

Up to 365 days in jail

Which of the following statements would best describe the difference between viatical settlements and accelerated death benefits?

Viaticals are funded by a third party, and Accelerated Death Benefits are provided by the insurer that issued the original policy

All the following are Nonforfeiture options EXCEPT

Interest only

A Straight Life policy has what type of premium?

A level annual premium for the life of the insured

A candidate applying for which of the following licenses will NOT be required to pass a written examination?

A nonresident producer

Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?

A policy summary

who is a third-party owner?

A policyowner who is not the insured

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

Application

In order to get a non-resident license in this state, producers must

Apply and pay a fee to a non-resident state that reciprocates.

When must insurable interest exist in a life insurance policy?

At the time of application

An insurance contract must obtain all of the following to be considered legally binding EXCEPT

Beneficiary's consent

Which of the following is NOT specified under Rule 39, AIDS & HIV Underwriting?

Benefits triggers

Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?

Buyers Guide

Which of the following would be considered a violation of Rule 13: Life Insurance Advertising?

Calling an insurance policy an investment plan

Representations are written or oral statements made by the applicant which

Considered true to the best of the applicants knowledge

which of the following is not true regarding a non qualified retirement plan?

It needs IRS approval

According to the entire contract provision a policy must contain

a copy of the original application for insurance

who can make a fully deductible contribution to a traditional IRA?

an individual not covered by an employer sponsored plan who has earned income

Which of the following includes information regarding a persons credit, character, reputation and habits?

Consumer report

what happens when a policy is surrendered for cash value?

Coverage ends and the policy cannot be reinstated

which of the following is a risk classification used by underwriters for life insurance?

standard

An agent selling variable annuities must be registered with

FINRA

which of the following is true about the premium on the children's rider in a life insurance policy?

It remains the same no matter how many children are added to policy

Which of the following best describes the MIB?

It's a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

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

Life income with period certain

An insurer wants to obtain information from investigators regarding an insured. What must the insurer do in order to legally acquire this information?

Present the insured with a disclosure authorization notice

The Federal Fair Credit Reporting Act

Regulates consumer reports

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

when an annuity is written whose life expectancy is taken into account?

annuitant

Who may contribute to an HR-10 plan?

self-employed plumber

Which of the following would be considered a nonqualified retirement plan?

split-dollar plan

An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

$100,000

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

$200,000

any licensed person whose activities affect interstate commerce and who knowingly makes false statements related to the business of insurance may be imprisoned up to

10 years

How much time does the insurer have to pay the death benefit to the beneficiary of a life insurance policy after the receipt of proof of death?

2 months

Under SIMPLE plans, participating employees may defer up to a specified amount each year, and the employer then makes a matching contribution up to an amount equal to what percent of the employee's annual wages?

3

which of the following terms is used to name the nontaxed return of unused premiums?

Dividend

If an insurer becomes insolvent, which of the following would pay benefits to policyholders?

Guaranty Association

In which of the following cases will the insured be able to recieve the full face amount from a whole life policy?

If the insured lives to age 100

which of the following is true about the mandatory free look in a life insurance policy

It commences when the policy is delivered.

which of the following statements are true concerning the accidental death rider?

It will pay double of triple the face amount

Death benefits payable to a beneficiary under a life insurance policy are generally

Not subject to income taxation by the Federal Government.

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

Payor benefit

which of the following is not the consideration in a policy?

The application given to a prospective insured

which is the primary source of information used for insurance underwriting?

application

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?

conditional

A domestic insurer issuing variable contracts must establish one or more

separate accounts

An insurance contract requires that both insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?

Conditional

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

Face amount

Which policy component decreases in decreasing term insurance?

Face amount

Which of the following is NOT a type of a whole life insurance?

Increasing term

Which of the following information about the applicant is NOT included on Part 1 of the application for insurance?

Medical background

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?

Pay the death benefit

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

one-year term option

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

Incontestability clause

A Return of Premium term life policy is written as what type of term coverage?

Increasing

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

Insurance

Who makes up the Medical Information Bureau?

Insurers

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

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

Upon policy delivery, the producer may be required to obtain any of the following except?

Signed waiver of premium

What type of whole life insurance policy generates immediate cash value?

Single premium

which of the following types of risk will result in the highest premium?

Substandard risk

the equity in an equity annuity is linked to

an index like standard & poors 500

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

must be informed of the source of the report

Which of the following is NOT a type of group eligible for group life insurance?

A social group

If a change needs to be made to the application for insurance, the agent may do all of the following except?

Erase the incorrect answer & record the correct answer.

All of the following violations may result in an agent's imprisonment EXCEPT

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would

Lower the insured's premium.

When a producer is trying to reinstate a lapsed license, what kind of fees would he be required to pay?

The producer will have to pay a penalty 3 times the unpaid renewal fees.

Which of the following best describes the aleatory nature of an insurance contract?

exchanged of unequal values

a man decides to purchase a $100,000 annually renewable term insurance life policy to provide additional protection until his children finished college, he discovered that this policy

required a premium increase each renewal

which of the following is not typically excluded from life policies?

Death due to plane crash for a fare-paying passenger

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

Depreciation period

A producer agent must do all of the following when delivering a new policy to the insured EXCEPT

Disclose commissions earned from the sale of the policy.

all of the following are dividend options except

Fixed period installments

which is true about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income

When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT

Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant.

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

Rebating

An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day, which of the following is true?

The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy

What may happen if the Commissioner determines that the insurance company knew about the producer's violation of the licensing law and did not report it?

The company's license may be suspended or revoked.

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

replacement rule

When producers change the address of their residence or office, the Insurance Department must be notified within

30 days

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at the time of renewal

A new insurance company wants to begin conducting insurance in Indiana. What will it need to receive before it can legally open for business?

Certificate of Authority

The policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. What settlement option should the policy owner choose?

Interest only option

When the policy owner specifies a dollar amount in which installments are to be paid, he/she has chosen what settlement option?

fixed amount

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

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

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Alien insurer

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

Twisting