Simulated Exam 2

A licensed agent must complete how many hours of continuing education in the agent's line of authority every licensing period

5

A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default

60

Which of the following insurance products will be subject to the regulation on life insurance solicitation

A term life policy

How often must domestic Insurance companies be examined by the Chief Financial Officer in Florida

At least every 5 years

If an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of

Churning

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision

Common Disaster

Which of the following terms describes making false statements about the condition of any insurer that are intended to injure any person engaged in the business of insurance

Defamation

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called

Discrimination

Which of the following is true regarding taxation of dividends in participation policies

Dividends are not taxable

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

Equal to the original policy for as long a period of time that the cash value will purchase

A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it

Immediate

Life income joint and survivor settlement option guarantees

Income for 2 or more recipients until they die

An underwriter may obtain information on an applicant's hobbies. financial status, an

Inspection report

Which of the following components contains the company's promise to pay

Insuring clause

All of the following are nonforfeiture options EXCEPT

Interest only

The office of insurance regulation is responsible for all of the following insurer activities EXCEPT

Issue of securities

A policy will pay death benefit if the insured dies during the 20-year premium-paying period. and nothing if death occurs after the 20-year period. What type of policy is this

Level term

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

Misrepresentation

During replacement of life insurance, a replacing insurer must do which of the following

Obtain a list of all life insurance policies that will be replaced

An insured has a continuous premium whole life policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use

Paid-up option

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured has had concealed information during the application process. What can they do

Pay the death benefit

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Pay the policy proceeds only if it would have issued the policy

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option

Size of each installment

Which of the following statements about a suicide clause in a life insurance policy is true

Suicide is excluded for a specific period of years and covered thereafter

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information

The Fair Credit Reporting Act

Which of the following information will be stated in the consideration clause of a life insurance policy

The amount of premium payment

In which of the following examples would a contract between an insurer and a prospective insured be legal

The applicant has a prior felony conviction

All of the following statements concerning an employer sponsored nonqualified retirement plan are true except

The employer can receive a current tax deduction for any contribution made to the plan

In terms of parties to a contract, which of the following does NOT describing a competent party

The person must have at least completed secondary education

An agent tries to sell insurance over the phone to an applicant who appears to be confused, but is eventually able to give enough information for the application to be completed. After the policy was issued, the agent talked to the insured's family, and they explained that the insured was recovering from a surgery and might have been under the influence of medication at the time of the application. Which of the following is true

The policy may be voided if it can be proven that the applicant was not capable of making a buying decision at the time of application

Which of the following statements is correct regarding a whole life policy

The policyowner is entitled to policy loans

If a life insurer holds the proceeds of any policy it issues, which of the following is true

The proceeds may be exempt from any creditor's claims against a beneficiary other than the policy owner

Which of the following is the best reason to purchase life insurance rather than annuities

To create an estate

Under what circumstances can an agent's appointment be transferred to another person

Under no circumstances

When does a free-look period begin on a life insurance policy

When the policy is delivered to the insured

Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT

An agent misrepresents policy benefits to convince a policyowner to replace policies

Stranger-originated life insurance policies are in direct opposition to the principle of

Insurable interest

A life insurance policy has a legal purpose if both of which of the following elements exist

Insurable interest and consent

How long must insurers maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions

For 5 years after the insurance transaction is completed by the insurer

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act

$2,500

which of the following is TRUE about nonforfeiture values

They are required by state law to be included in the policy

Which of the following would be considered false advertising

implying that the agent is the insurer

The equity in an equity index annuity is linked to

An index like Standard and Poor's 500

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

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by the age, sex and occupation of each individual certificate holder

When an insurer terminates an agent's appointment, the insurer must do all the following EXCEPT

Provide a 30-day advanced notice to the commissioner

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this

Reinstatement provision

Which of the following is an example of a producer's fiduciary duty

The trust that a client places in the producer in regard to handling premiums