Review Missed Questions

After a hearing, civil penalties imposed by the commissioner for each unfair method of competition may NOT exceed

$1,000

What is the maximum aggregate civil penalty that may be imposed by the commissioner for violations of laws of fair trade practices?

$10,000

Which of the following is an account maintained by the Iowa Life and Health Guaranty Association?

A liability insurance account

In whole life insurance, when is the policy cash value scheduled to equal the face amount?

At the insured's age 100

Which of the following is guaranteed under a variable whole life insurance policy?

Minimum death benefit

Which statement best describes agreement as it relates to insurance contracts?

One party accepts the exact terms of the other party's offer.

Which dividend option will increase the death benefit?

Paid-up additions

Under a Debtor Group credit life policy, what is the maximum amount of death benefit provided?

The amount of the unpaid indebtedness to the creditor

Which of the following is required in order for a plan to be qualified?

The plan must be formally written and communicated to the employees.

How will life insurance proceeds that are paid as a lump sum received by the beneficiary?

Free of federal income taxation

The owner of a whole life policy with an accidental death rider intentionally kills himself after having the policy for 18 months. What is the insurance company's course of action

Deny any payment of death benefit

It is suspected that a producer is consistently violating insurance laws. Which of the following entities is responsible for making sure that the producer stops committing these violations?

commissioner

Which of the following is NOT a violation with regard to a life insurance replacement transaction?

Advising an insured of their rights under a policy to convert to another type of life insurance policy without providing evidence of insurability

Which of the following terms is used to the nontaxed return of under premiums?

Dividend

What is a foreign insurer?

An insurer with a home office in another state

An insured pays $1,200 annually for her life insurance premium. The insured applied this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe?

Reduction of Premium

The paid up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

which of the following types of insurance products would be appropriate for an individual with a low income and high insurance needs?

Term Insurance

A distribution from an employer sponsored retirement plan or from an IRA is eligible for a tax-free rollover if it is reinvested in an IRA within

60 days

Which of the following is true regarding taxation of dividends in participating policies?

Dividends are not taxable.

All of the following are consideration in an insurance policy EXCEPT

The cash value in the policy