Set #3
Within how many days must an insurer provide the insured or the beneficiary forms necessary to submit an insurance claim?
15 days
Temporary producer licenses may be issued for the maximum of how many days?
180
The Director conducts an examination of domestic insurer's is every..
5 Years
And insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for her policies, cash value, which is currently $20,000. What would be the face amount of the new term policy?
50,000 The face of the new term policy would be the same as a face provided under the whole life policy
The term "illustration "in a life insurance policy refers to...
A presentation of nonguaranteed elements of a policy
Riders that cause the death benefit to increase
Accidental death rider, Guaranteed Insurability Rider, Cost of living rider
What documentation grants express authority to an agent?
Agent's contract with the principal
In insurance, an offer is usually made when
An applicant submits an application to the insurer
In Insurance, acceptance takes place when
An insurer's underwriter approves the application and issues a policy
Which concept is associated with exclusion ration
Annuity payments
Because an agent is using stationary with the logo of an insurance company, applicants for insurance, assume that the agent is authorized to transact on behalf of that insure. What type of Agent authority does this describe?
Apparent
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
In class if beneficiary designations
Beneficiaries are not identified by name
An insured receives an annual life insurance dividend check. What term Best describes this arrangement?
Cash option
The violation when someone improperly with holds, misappropriate, or converts money, belonging to another person for one's personal used
Comingingly
Representations are written or oral statements made by the applicant that are
Considered true to the best of the applicant's knowledge
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
The provision which states that both of the policy and a copy of the application form the contract between the policy owner, and the insurer is called the
Entire Contract
Which of the following is used to determine the annuity amounts that are not taxable?
Exclusion ratio
When the policy owner specifies, a dollar amount in which installments are to be paid, which settlement option is that
Fixed Amount
Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliate at large or religious organization?
Fraternal benefit society
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?
Guaranteed surrender value
Units with the same or similar exposure to loss are referred
Homogeneous
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
When a reduced paid up, nonforfeiture option is chosen what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium
What is true about the accidental death rider?
It will pay double or triple the face amount
An insured has continuous premium whole life policy. She would like to use the policy dividends to pay off her policies sooner than would have been possible otherwise, what dividend an option could she use?
Paid up option
Play participating insurance policy may do which of the following?
Pay dividends to the policy owner
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
An insurer that does not pay a death benefit in a timely manner as required by state law will be required to?
Pay to the beneficiary entrance, penalty from the date of the insurance death
Installments for a Fixed Amount..
Pays a specific amount of benefits until funds are exhausted whether or not the annuitant is living
List of beneficiary designations
Primary, contingent and Primary
The risk of loss may be classified as
Pure risk and speculative risk
Which of the following best details the underwriting process for life insurance?
Selection, classification, and rating of risks
What are the the three risk classifications used by underwriters for life insurance
Standard, substandard, and preferred. These determine if the insured should pay a higher premium
During the accumulation period in a nonqualified annuity, what are the tax consequences of a withdrawal?
Taxable interest will be withdrawn first and the 10% penalty will be imposed if under age 59 ½. When money is withdrawn from the annuity during the accumulation phase, the amounts are taxed on a last in first out basis (LIFO). Therefore, all withdrawals will be taxable until the owner's cost basis is reached.
The interest earned on policy dividends is
Taxable. Any interest earn is taxable as ordinary income
Which is true about a spouse term rider?
The writer is usually level term insurance It is available for a limited amount of time, typically expiring at 65.
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
When transacting business in this state, an insurer formed under the laws of another country is known as a/an?
alien insurer
Units with the same or similar exposure to loss are referred to as
homogeneous
During partial withdraw from a universal life policy, which portion will be taxed?
interest
What is the other term for the cash payment settlement option?
lump sum
A tornado that destroys property would be an example of which of the following
peril
An absolute assignment is a
transfer of all ownership rights in a policy