Quiz
Funds exceeding the premium paid are taxable as ordinary income
Which is true about the cash surrender nonforfeiture option?
Which of the following is NOT true regarding Equity indexed annuities
They earn lower interest rates than fixed annuities
At the time the insured purchased her life insurance policy she added a rider that will allow her to purchase additional insurance...
Guaranteed insurability
Which of the following documents delivered to the policyowner includes information....
A policy summary
Which of the following best describes the concept that the insured pays a small amout of premium....
Aleatory
In which of the following circumstances is an active producer license NOT requried ?
A retiree receives renewal commission for policies written when he was active producer?
Which of the following of life insurance policy guarantees immediate cash value
Single premium
Suicide is excluded for a specific period of years and covered thereafter
Which of the follow statement about a suicide clause in a life insurance policy us TRUE?
All of the factors beig equal the least expensive first-year premium payment is found in
Annually renewable term
An insured owns a $50,000 whole life policy at age 47 the insured decides to cancel...
$50,000
Under SIMPLE plans participating....
3
Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?
Automatic premium loan
If the annuitant dies during the accumulation period who will recieve the annuity benefits
Beneficary
Which of the followinf is a feature of a variable annuity
Benefit payment amouts are not guaranteed
The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a sp.....
Incontestability clause
Which provision of a life insurance policy states the insures duty to pay benefits upon...
Insuring clause
When Y applied for insurance and paid the initial premium on august 14....
Issue the policy anyway and pay the face value to the beneficiary
What is the purpose of a conditional receipt
It is intended to provide conversge on a date eariler thn the date of the issuance of the policy
Which of the following is NOT true regarding the accumulation period of an annunity??
It would not occur in a deferred annuity
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
Joint and survivor
Twin brothers are starting a bew business they know it will take serveral years to bulid ......
Joint life
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period diring which if the orginal recipient dies the payment will continue to a designated beneficiary?
Life income with period certain
Which unicersal life option has a gradually increasing cash value and level death benefits
Option A
Which of the following explains the policyowners right to change beneficiaries choose option..
Owner's rights
Which of the following allows the insurer to relieve a minor insured from premium payments if the...
Payor benefit
Which of the following riders would NOT cause the death benefit ti increase
Payor benefit rider
Paul is a producer in kansas abd wants to become a producer in iowa the department will waiver certain examination....
Reciprocity
Which of the following is true if an insurer bases a life insurance policy loan interest rate on a publised monthly avarage
The avarage must not exceed the monthly average of the month ending 2 months before the date the rate is detemined
A corporation is the owner and beneficiary of the key person life policy....
The benefit is received tax free
Which of the following is INCORRECT concering a nonconteibutory group plan
The employees receive individual policies
What is the purpose of a disclosure statement in life insurance policies
To Explain features and beneficts of a proposed police to the consumer
What is the purpose of life insurance solicitation regulations
To help consumers compare life insurance products in regard to their relative cost
An insurered been diagnosed with a life threatening disease and his given approx six month....
Viatical settlement
Which of the following would be considered an unfair claims settlement practice
A claims adjuster advises the insured that if the claim goes to arbitration the insured eould probably receive less than what us currently being offered
An insured receives ab annual life insurance dividend check what term best describes this arrangement
Cash option
Under which nonforfeiture option does the company pay the surrender value and have no further obligation.....
Cash surrender
If an applicant for a life insurance policy is found to be a substandard risk the insurance company is most likely to
Charge a high premium
When a producer was reviewing a potential customers coverage written by another company....
Defamation
Which of the following information will be stated in the consideration clause of a life insurance policy
The amount of premium payment
The president of a company is starting an annuity and decides that his....
The annuitant must be a natural person
The information in the buyers guide
The information in the buyers guiide
Which of the following would provide an underwriting with information concering an applicants health history
The medical information bureau
What is the advantage of reinstating a policy if applying for a new one ?
The original age is used for premium determination
All of the following are true of an annuity owner EXCEPT?
The owner must be the party to receive benefits
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal life-option A
If an applicant for a life insurance policy and person to be insured by the policy.....
Whether an insurable interest exists between the individuals
If a consumer request additional information concering an investigative consumer report, how long does the insure or the reporting agency have to comply??
5 days
If an insurer believes that it has received a fraudulent claim it must notify the bureau and request an investigation...
60 days
Periodic payments of accumulated funds best describes
An Annuity
The life and health guaranty association maintains all of the following accounts EXCEPT
An Unallocated life insurance account
Which of the following terms is used to name the nontaxed return of unused premiums?
Dividend
All of the following statements concering dividends are true EXCEPT
Dividend amounts are guaranteed in the policy
Items stipulated in the contract that the insure will not provide coverage for are found in the ??
Exclusion clause
Which is the appropriate action by the insurer if prospective insured submitted an incompelets application
Return the application to the applicant for completion
Which of the following statement is NOT accurate regarding commissions and referrals
Serivce fees are acceptable as long as they policyholder is licensed
If an insure issued a policy based on the application that had unanswerd questions ...
The policy will be interpreted as if the insure waived its right to have an answer on the application
To lessen the risk of financial loss because of the death of a key employee.
What is the purpose of key person insurance
How long is a commissioners term
4 years
Life insurance death proceeds are
Generally not taxed as income
A policyowner who also the insured want to name her husband as the beneficary of her life policy. She also wishes ti retain all of the rights of ownership. The policyowner should have her husband named as the?
Revocable Beneficary
Which of the following statement about a suicide clause ina life insuarance policy is TRUE?
Suicide is excluded for a specific period of years and covered thereafter
The death protection component of universal life insurance is always
Annually renewable term
In an annuity the accumulated money is converted into a stream of income during which time period?
Annuitization period
The buyers guide and a life insurance cost index
The policy summary and the buyers guide
An individual is purchasing a permanent life insurance policy with a face value of $25,000 while thus us all the insurance that he can afford ....,
Guaranteed insurability option
A women has a whole life policy in force for $300,000 she is terminally ill she want to get an advance...
She probably met with a viarical settlement company