simulater notes Quiz
what risk would result in highest paying premium?
substandard risk
when money is withdrawn from annuity during accumulation phase, what happens?
taxable interest will be withdrawn first and 10%penalty will be imposed if under 591/2
who is the owner and who is beneficiary on a Key Person Life Insurance Policy?
the Employer is owner and beneficiary
a characteristics that is NOT of an insurable risk
the Loss must be catastrophic
what's is stated in the consideration clause of life insurance?
the amount of premium payments
peril
the cause of loss insured against
what happens if a deferred annuity is surrendered before the annuitization period?
the owner will receive the surrender value of the annuity
Absolute Assignment
transfer of all ownership rights in a policy
Universal Life policy is Interest sensitive and flexible
true
a participating insurance policy may Pay Dividends to pollicyowner. true or false
true
in joint life policies the death benefit is paid in full upon first death
true
true /false: insured commits suicide within a certain period of time following policy effective date,the liability is limited to refund of premium paid
true
true or false: any distributions fron MECs are taxable including withdraws and policy loans
true
true or false: the original age is used for premium determination when reinstating a policy instead of starting new
true
true/false; employee insured under a group life plan will be allowed to convert to individual insurance at same coverage once plan is terminated ,if they have been under group plan for 5yrs min
true
Concealment
when a person withholds a material fact that is crucial to making a decision, involves making underwriting decisions
acceptance of insurance occurs when?
when an insurer's underwriter approves coverage
when is the insurer NOT required to deliver a policy summary to applicant?
when the insurer provides an illustration during the sale of a policy
insurance contract
where insurer agrees to indemnify the insured for specific losses in exchange for premium
benefits payable that have not been paid to beneficiaries within 90 days of receipt of proof will accrue how much interest on day 91?
11%
every licensed person in WA must reply to an inquiry by commissioner regarding business of insurance within what time frame?
15 business days
appointment is filled,how many days does a commissioner have to verify apponitment?
30 days
how many hours of ethics training every licensed period in WA?
3hr
how many years must insurer producer keep records of written disclosures?
5yrs
Payor Benefit
A rider found in juvenile policies which waives the premiums if the person paying them (often the parent) is disabled or dies while the child is still a minor.
automatic premium loan
protects the insured from an unintentional policy lapse due to a nonpayment of premium
commissioner may permit an agent to enter into reasonable arrangement with prospective insureds to charge a reduced fee in situations where services that are charged for are....?
provided beyond the scope of customarily services in connection with the solicitation and procurement of insurance
Return of Premium Rider
- increasing term insurance rider - amount of rider equal to all premiums paid - death must occur while rider is in force
when an insurer receives notification of a claim. it must acknowledge the receipt within how many days?
10 working days or 15 for groups
Level Term Insurance
provides a level amount of protection for a specified period, after which the policy expires. Level premium and level death benefit
limited-pay life
requires you to only pay premiums for a specified number of years until paid up
what provision states that both the policy and copy of application form the contract between policyowner and insurer?
Entire Contract
what authority participated in creating the National Do Not Call registry
FTC(federal trade commission)
Universal Life Insurance has 2 types of interest rates, what are they?
Guaranteed and Current
another term for accumulation period of an annuity is?
Pay IN Period
if the annuitant dies during accumulation period who receives the annuity benefits?
The Beneficiary
distinction between Variable whole life and variable universal life
Variable whole life has a guaranteed death benefit
illustration
a presensation of non guaranteed elements of a policy
2 Types of Assignments
absolute and collateral
what limits the amount that a policy owner may borrow from a whole life insurance policy
cash value
conservation efforts
discouraging policyholders from dropping existing policies
how often are producers in WA required to pay license renewal fee?
every 2 yrs
true or flase; the annuitant cannot be same person as annuity owner
false
insurance companies promise guaranteed minimum on fixed annuities which means
investments draw less=company pays the fixed % investment earns over that amount,company pays excess
Speculative Risk
involves the chance of gain ot loss and is not insurable
an agent may backdated an application tup to 6months to?
lower insureds premium
Defamation
making untrue statements that hurt another person's reputation, oral or written direct or indirectly that are derogatory or maliciously critical to someones
a dividend option in which a policyowner uses dividend to purchase s term policy for 1yr is referred to what?
one year term OPTION
the following are period of times during which the annuitant of beneficiary receives income
pay out period liquidation period annuitization period
Universal life-option A
policy must maintain corridor or gap between cash value and death benefit as required by IRS
limited pay whole life
premium payments end at 65, but coverage last until 100
incontestability clause
prevents an insurer from denying a claim due to statements in application after policy has been in force for 2 yrs, does not apply to see age identity
who is entitled to interest earned on the deposits in a separate account?
producers