Primerica Life License
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
Which of the following premium payment modes will insure the lowest overall payment?
Annually
What license or licenses are required to sell variable annuities?
Both a life and securities license
What does Liquidity refer to in a life insurance policy?
Cash values can be borrowed anytime
Which of the following is an example of a limited pay life policy?
Life Paid-Up Age 65
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
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed Waiver of Premium
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.
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
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 is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
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
Which of the following components must a life insurance policy have to allow policy loans?
Cash Value
All of the following are regulated areas of the insurance industry EXCEPT
Commissions
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
Which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT?
SEP's are suitable for large companies
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 is NOT true regarding the annuitant?
The annuitant cannot be the same person as the annuity owner.
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination.
The act of rebating is a
class B misdemeanor
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
The life solicitation rule applies to which of the following?
Individual life
What type of license does an individual need to obtain in order to solicit and sell insurance?
Producer's License
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
Prior to requesting renewal of an insurance producer's license, how many hours of continuing education must a producer complete?
24 hours
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
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 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
Before a policy can be legally used, it must be approved by which of the following?
Department of Insurance
Which of the following is NOT a term for the period of time during which the annuitant of the beneficiary receives income?
Depreciation Period
Which of the following settlement options in life insurance is known as straight life?
Life Income
Which of the following would provide an underwriter with information concerning an applicants health history?
Medical Information Bureau
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
Traditional IRA contributions are
Tax deductible
The premiums paid by the employer in a business life insurance policy are
Tax deductible by the employer
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 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
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
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
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
A policy is reissued with a reduction in cash value
Which Nonforfeiture option has the highest amount of insurance protection?
Extended Term
What are the two components of a universal policy?
Insurance and cash account
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date prior to the policy issue
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
Under standard circumstances, at what point should a Buyers guide be distributed to a prospective buyer?
Prior to the initial premium
A new life insurance policy is derived from a policy that was recently terminated. Which of the following terms best describes this policy?
Replacement
If a nonresident if applying for a license in Illinois and his home state does not require continuing education for Illinois residents
The continuing education requirement will be waived in Illinois
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be true?
The policy will be interpreted as if the insurer waived its right to have an answer on the application
If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about
Whether an insurable interest exists between the individuals
The death protection component of Universal Life insurance is always
annually renewable term
Which of the following is the required number of participants in a contributory group plan?
75%
Producers are allowed by law to hold client premiums for no more than how many days?
90 days
The LEAST expensive first year premium is found in which of the following policies?
Annually Renewable Term
All of the following are dividend options EXCEPT
Fixed period installments
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
What is the purpose of conditional receipt?
Intended to provide coverage on a date prior to the policy issue
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
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 two terms are associated directly with the premium?
Level or Flexible?
All of the following would be different between qualified and non qualified retirement plans EXCEPT
Taxation on accumulation
All of the following are personal uses of life insurance EXCEPT
Buy- Sell Agreement
What required provision protects against unintentional lapse of the policy
Grace Period
Which of the following would help prevent a Universal Life policy from lapsing
Target Premium
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
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by age, sex, and occupation of each individual certificate holder
The minimum interest rate on an equity indexed annuity is often based on
an index like Standard And Poor's 500
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
What is the purpose of settlement options
They determine how death proceeds will be paid
All of the following are Nonforfeiture options Except
Interest only
What povision in a insurance policy extends coverage beyond the premium due date?
Grace Period
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
The Death Benefit under Universal Life Option B
Gradually increases each year by the amount that the cash value increases
All policy applications must identify which of the following?
Producer who solicited the applicants business
Which is NOT true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
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
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
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
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
Nonforfeiture values guarantee which of the following for the policy owner?
That the cash value will not be lost
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