Simulate missed questions ~part 6 ~

Continuing education must be completed every a) Year. b) 2 years. c) 3 years. d) 4 years.

2 years

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called a) Consideration. b) Conditions. c) Utmost good faith. d) Acceptance.

A) Considerations

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? a) As of the policy delivery date b) As of the first of the month after the policy issue c) As of the policy issue date d) As of the application date

As of the application date

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than a) Prior to filling out an application for insurance. b) With the policy. c) Upon issuance of the policy. d) Within 30 days after the first premium payment was collected.

B) with the policy

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of a) Discrimination. b) Nothing, unless the remarks were in writing c) Defamation. d) Misrepresentation.

C) Defamation

Which of the following provisions states that it is the insured's responsibility to notify the insurer of a loss within a specified number of days? a) Claim forms b) Time of payment of claims c) Notice of claim d) Proof of loss

C) Notice of claim

Which type of insurance is based on mutual agreements among subscribers? a) Limited liability b) Reinsurance c) Reciprocal insurance d) Mutual insurance

C) Reciprocal insurance

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 a) Coercion. b) Twisting. c) Controlled business. d) Rebating.

D. Rebating

Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members? a) Accidental death and dismemberment rider b) Guaranteed insurability rider c) Change of insured rider d) Term rider

D. Term rider

Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? a) An irrevocable beneficiary b) A buy-sell agreement c) Family term rider d) Third-party ownership

D. Third party ownership

All of the following statements concerning dividends are true EXCEPT a) Dividend amounts are guaranteed in the policy. b) Lower insurance company costs generate higher dividends. c) They stem from favorable underwriting experience. d) Favorable investment results generate higher dividends.

Dividend amounts are guaranteed in the policy

Which section of a property policy outlines what or who will NOT be insured? a) Conditions b) Exclusions c) Declarations d) Definitions

Exclusions

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? a) Option B b) Corridor option c) Variable option d) Option A

Option B

Which of the following refers to the amount of retirement benefits a worker receives under Social Security based on the worker's earnings and retirement age? a) QC b) PIA c) FICA d) OASDI

PIC

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit? a) If the primary beneficiary predeceased the insured b) When the insured dies, the primary and contingent beneficiaries share death benefits equally. c) With the primary beneficiary's written consent d) If the insured died from accidental means

a) if the primary beneficiary predeceased the insured

Which nonforfeiture option has the highest amount of insurance protection? a) Conversion b) Decreasing Term c) Reduced Paid-up d) Extended Term

d) Extended Term

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer? a) $8,000, no tax consequence b) $8,000, tax on growth only c) $10,000, tax on growth only d) $10,000, no tax consequence

$10,000, no tax consequence

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT? a) The insured may choose to convert to term or permanent individual coverage. b) The insured would not need to prove insurability for a conversion policy. c) The insured may convert coverage to an individual policy within 31 days. d) The premium for individual coverage will be based upon the insured's attained age.

A The insured may choose to convert to term or permanent individual coverage.

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date? a) The date of application b) The date of medical exam c) The date of policy delivery d) The date of issue

B. The date of medical exam

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? a) False advertising b) Rebating c) Twisting d) Switching

C) Twisting

Which of the following will NOT be an appropriate use of a deferred annuity? a) Accumulating retirement funds b) Accumulating funds in an IRA c) Funding a child's college education d) Creating an estate

D) Creating an estate