Primerica Life License

Within how many days may a person who is being examined by the director for nonfinancial business practices request a hearing after recieving the examination report?

10 days

What age must the insured attain in order to recieve the policy's face amount in a Whole Life Policy?

100

What percentage of a company's employees must take part in a noncontributory group life plan?

100%

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?

2 years

Prior to requesting renewal of an insurance producer's license, how many hours of continuing education must a producer complete?

24 hours

THe policy loans provision states that the insurer must advance to the policyowner a sum up to the policy's cash value after the full amount of the premium have been paid for how long?

3 years

The Director informs a producer that a license has been terminated and, immediately recieves a request for changes to be reviewed in court. Within what maximum number of days must the hearing be held?

30

In order to qualify for a conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

5 years

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

6 credits

If a person applies to become a life insurance producer, what is the minimum hours of prelicensing education that must be completed in a classroom?

7.5 Hours

Which of the following is the required number of participants in a contributory group plan?

75%

All of the follwing are true regarding reinstatement of a lapsed producer license EXCEPT

A producer license may be reinstated within 24 months without having to pass a written exam

Temporary producer license can be issued to all of the following EXCEPT

A spouse of disabled licensed producer before and after the sale of the business

What is a material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

The two types of assignments are

Absolute and Collateral

An insured misstates her age at the time the life insurance application is taken. This misstatement may result in

Adjustment in the amount of death benefit

Which of the following is the closest term to an authorized insurer?

Admitted

Which of the following premium payment modes will insure the lowest overall payment?

Annually

The LEAST expensive first year premium is found in which of the following policies?

Annually Renewable Term

An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?

Application

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

Beneficiary Consent

What license or licenses are required to sell variable annuities?

Both a life and securities license

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

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

All of the following are personal uses of life insurance EXCEPT

Buy- Sell Agreement

Which of the following components must a life insurance policy have to allow policy loans?

Cash Value

What does Liquidity refer to in a life insurance policy?

Cash values can be borrowed anytime

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. What kind of contract is this?

Conditional

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?

Consumer Report

Which of the following is NOT typically excluded from life policies?

Death due to plane crash for a fare-paying passenger

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

Deffered

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

Depreciation Period

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

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

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

Exchange of unequal values

Which Nonforfeiture option has the highest amount of insurance protection?

Extended Term

All of the following are dividend options EXCEPT

Fixed period installments

What povision in a insurance policy extends coverage beyond the premium due date?

Grace Period

What required provision protects against unintentional lapse of the policy

Grace Period

The Death Benefit under Universal Life Option B

Gradually increases each year by the amount that the cash value increases

All of the following entities regulate variable life policys EXCEPT

Guaranty Association

What type of insurance would be used for a Return of Premium rider?

Increasing Term

The life solicitation rule applies to which of the following?

Individual life

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

Inspection Report

All of the following are true about the bond requirements in the state of Illinois EXCEPT

Insurance producers with insurance companies that take responsibility for their actions are still required to post bond

Which of the following policy components contains the company's promise to pay?

Insuring CLause

Which of the following policy components contains the company's promise to pay?

Insuring Clause

What is the purpose of conditional receipt?

Intended to provide coverage on a date prior to the policy issue

The policyowner 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 principle will be paid to their children when they reach a certain age. What settlement option is this?

Interest only option

When Y applied for insurance and paid the initial premium on August 14, he was given a conditional receipt.

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

Why is an equity indexed annuity considered to be a fixed annuity

It has a guaranteed minimum interest rate.

Which of the following is TRUE regarding the accumulation period of an annuity?

It is a period during which the payments into the annuity grow tax deferred

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

Which of the following settlement options in life insurance is known as straight life?

Life Income

Which of the following is an example of a limited pay life policy?

Life Paid-Up Age 65

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

Medical Information Bureau

A nonresident licensed producer moves to Illinois and wants to obtain a license in this state. WHich of the following is true regarding the licensing examination?

No examination will be required

To which of the following situations does the Replacement Regulation apply?

Nonrenewable coverage expiring in 8 years

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

Other-Insured Rider

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in a car accident and turns out he is actually 45 years old, not 43 like he said. What will the company do?

Pay a reduced death benefit

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 a

Premium Receipt

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by age, sex, and occupation of each individual certificate holder

Under standard circumstances, at what point should a Buyers guide be distributed to a prospective buyer?

Prior to the initial premium

All policy applications must identify which of the following?

Producer who solicited the applicants business

What type of license does an individual need to obtain in order to solicit and sell insurance?

Producer's License

Which Nonforfeiture option provides coverage for the longest period of time?

Reduced Paid-up

The policy owner pays for her life insurance annually. Until now, she has collected a non taxable dividend check each year. she has decided that she would rather use the dividends to help pay for her next premium. What option does she have?

Reduction of premium

A transaction where new life insurance is purchased, and as part of the transaction, existing life insurance is lapsed or surrendered, is known as

Replacement

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each renewal

Which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT?

SEP's are suitable for large companies

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

Signed Waiver of Premium

Which two terms are associated directly with the way an annuity is funded?

Single Payment or Periodic Payments

In order for a firm to maintain its registration as a legal insurance company, what must it do?

Submit a biennial fee to the Director

Which of the following would help prevent a Universal Life policy from lapsing

Target Premium

Traditional IRA contributions are

Tax deductible

The premiums paid by the employer in a business life insurance policy are

Tax deductible by the employer

All of the following would be different between qualified and non qualified retirement plans EXCEPT

Taxation on accumulation

Nonforfeiture values guarantee which of the following for the policy owner?

That the cash value will not be lost

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

Which is NOT true about beneficiary designations?

The beneficiary must have insurable interest in the insured.

What is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination.

All of the following statements are true concerning the use of Life insurance as an Executive Bonus EXCEPT

The policy is owned by the company

An insured chose a joint and 2/3 survivor as the settlement option. What does this mean for the beneficiary?

The surviving beneficiary will continue recieving 2/3 of what was recieved when both beneficiaries were alive.

What is the purpose of settlement options

They determine how death proceeds will be paid

All of the following are true regarding guaranteed insurability rider EXCEPT

This rider is available to all insured with no additional premium

Why should the producer personally deliver the policy when the first premium has already been paid?

To help the insured understand all aspects of the contract

In an insurance company makes statements that its policies are guaranteed by the existence of the insurance Guaranty Association, that would be considered

Unfair trade practice

What is the name of the clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military?

War or Military Service

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

an index like Standard And Poor's 500

The death protection component of Universal Life insurance is always

annually renewable term

The act of rebating is a

class B misdemeanor

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

rebating

The interest earned on policy dividends is

taxable

Producers are allowed by law to hold client premiums for no more than how many days?

90 days

All of the following are duties and responsibilities of producers at the time of application EXCEPT

Change any incorrect statement on the application by personally initialing next to the corrected statement

All of the following are regulated areas of the insurance industry EXCEPT

Commissions

Before a policy can be legally used, it must be approved by which of the following?

Department of Insurance

Which provisions of a life insurance policy states the insured's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring Clause

All of the following are Nonforfeiture options Except

Interest only

The policyowner want to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principle will be paid to their children when they reach a certain age. Which settement option should they choose?

Interest only option

Which two terms are associated directly with the premium?

Level or Flexible?