Primerica: stimulated exam
If a hearing is scheduled for a producer who has violated regulations regarding unfair trade practices, the Superintendent must send a prior notice within how many days of the hearing?
10 days
The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?
100
How long does a licensee have to notify the Superintendent of a change of address?
30 days
In addition to examinations that are specifically authorized by the Insurance Code, the Superintendent may examine each domestic life insurer as often as it is deemed necessary for the protection of the consumers. The Code requires examination of domestic life insurers every
5 years.
An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of
A STOLI policy.
If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?
A full death benefit
All of the following could own group life insurance EXCEPT
A group needing low-cost life insurance.
Which of the following is NOT an allowable 1035 exchange?
A whole life insurance policy is exchanged for a term insurance policy.
The minimum interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500.
Which of the following would NOT be considered an insurance producer?
An insurer's officer
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice.
What type of life insurance is most commonly used for group plans?
Annually renewable term
Which of the following types of agent authority is also called "perceived authority"?
Apparent
An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his
Attained age.
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrower's beneficiary.
An insurance producer who by contract is bound to write insurance for only one company is classified as a/an
Captive agent.
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
A producer who fails to segregate premium monies from his own personal funds is guilty of
Commingling.
Which of the following is TRUE about credit life insurance?
Creditor is the policyowner.
If an insured changes his payment plan from monthly to annually, what happens to the total premium?
Decreases
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
Which of the following would NOT be considered an improper claims practice?
Denying a claim after proof of loss statements are completed and submitted by insureds.
Under a defined benefit retirement plan, who determines what benefits a retired employee will receive?
Employer
All of the following are business uses of life insurance EXCEPT
Funding against company's general financial loss.
Which is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
Which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection?
Greatest
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
Which of the following is correct regarding credit life insurance?
It insures the life of a debtor.
Which of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
Which of the following is TRUE regarding the annuity period?
It may last for the lifetime of the annuitant.
Which of the following is NOT true regarding a nonqualified retirement plan?
It needs IRS approval.
An insured who had a life insurance policy for $1 million died. In filing the claim, his wife and children discovered that there was no beneficiary named on the policy. What will happen to the death benefit in this case?
It will go to the insured's estate.
Which of the following statements is TRUE concerning the Accidental Death Rider?
It will pay double or triple the face amount.
The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called
Life income with period certain.
The reduction, decrease, or disappearance of value of the person or property insured in a policy by a peril insured against is known as
Loss.
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
Who might receive dividends from a mutual insurer?
Policyholders
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
Predicted needs of the family after the insured's death.
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Proof of insurability is not required.
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may
Require evidence of insurability.
The Ownership provision entitles the policyowner to do all of the following EXCEPT
Set premium rates.
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. The insurer returns all the premium payments to the owner, except for a predetermined percentage. What is this percentage called?
Surrender charge
Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?
Term
The initial amount of credit life insurance may NOT exceed
The amount to be repaid under the contract.
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?
The annuitant will receive the higher of either the guaranteed minimum rate or current rate.
In a defined contribution plan,
The contribution is known and the benefit is unknown.
A 40-year old man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the policy proceeds will go to
The insured's estate.
Which entity determines the amount of accelerated death benefits that will be paid to an insured?
The insurer
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans.
Which of the following statements is TRUE concerning irrevocable beneficiaries?
They can be changed only with the written consent of that beneficiary.
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
Universal life
Which of the following products requires a securities license?
Variable annuity
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?
indemnity
