Test 2.22

The provision which states that both the policy and a copy of the application from the contract between the policy owner and the insurer is called the

Entire contract

All of the following are true regarding rebates except

Rebates are allowed if it is in the best interest of the client

Which of the following would help prevent a universal life policy from lapsing

Target premium

Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates dropped a specified level

Bailout

Which of the following is true about a class designation

Beneficiaries are not identified by name

When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy this is called

Executive bonus

Life income joint and survivor settlement option guarantees

Income for two or more recipients until they die

The type of term insurance the provides increasing death benefits as the insured ages is called

Increasing term

And ensure receives a report regarding of potential insured that indicates the insurance financial status hobbies and the hat what type of report is that

Inspection report

Which of the following is another term for the accumulation period of an annuity

Pay in period

An employee has group life insurance through her employer after five years she decides to leave the company and work independently how can she obtain an individual policy

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan

An adjustable life policyowner can change which of the following policy features

The coverage period

An individual applied for an insurance policy and pay the initial premium the insurer issued a conditional receipt five days later if the policies issued what would be the policies effective date

The date the medical exam

Which of the following describes the tax advantage of qualified retirement plan

The earnings in the plan accumulate tax deferred

Who is the owner and who is the beneficiary on a key person life insurance policy

The employer is the owner and beneficiary

How long must an insured keep the receipt of a policy delivery to the policy owner if it delivery was by mail

Two years

The waiver of cost of insurance rider is found in what type of insurance

Universal life

What kind of policy allows withdrawals or partial surrenders

Universal life

In a survivorship life policy when does the insurer pay the death benefit

Upon the last

Which of the following would be true of both fixed period And fixed amount cinnamon options

Both guarantee that the principal and interest will be fully paid out

Which of the following best describes the MIB

It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

Which of the following is the true about the premium on the children's writer in a life insurance policy

It remains the same no matter how many children or add to the policy

Which statement is not true regarding a straight life policy

Its premium steadily decreases overtime in response to its growing cash value

Who makes up the medical information bureau

Insurers

Why is an equity index annuity considered to be a fixed annuity

It has guaranteed minimum interest rates

What is the benefit of choosing extended term as a nonforfeiture option

It has the highest amount of insurance protection

Which of the following is correct concerning the taxation of premiums and key person life insurance policy

Premiums are not tax-deductible as a business expense

Which of the following states statements regarding HIV testing for life insurance purposes is not true

Insurers are barred from requesting HIV testing

What is the purpose of a conditional receipt

It is intended to provide coverage on a date prior to the policy issue

If during the underwriting process and ensure obtains personal information about an applicant from the applicant when must the insure provide notice of its information practices

At the time of policy delivery

What type of annuity guarantees to pay an income to the annuitant each year as long as he lives and upon death the annuity will refund the remaining payments to a beneficiary

Installment refund annuity

The medical information bureau was created to protect

Insurance companies from adverse selection by high-risk persons

All advertisements are their responsibility of the

Insurer

Which of the following is another term for accumulation period of an annuity

Pay in period

The limit on control business is

25%

In terms of Social Security what is the name of the time. After the youngest child family turn 16 before the surviving spouse may start receiving retirement benefits

Blackout period

The premium of a survivorship life policy compared with that of a joint life policy would be

Lower

Which of the following best describes what the annuity period is

The period of time during which accumulated money converted into income payments

An employee is insured under her employer's group life plan is she terminates her group coverage which of the following statements is incorrect

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

Which statement regarding insurable risk is not correct

Insurance cannot be randomly selected

Which of the following types of policies allows the policy owner to skip premium payments provided there's enough cash value in the policy to cover the premium amount

Universal life

If a person purchases a flexible premium deferred annuity when is the soonest that income payout will begin

After one year

Full premium was submitted with the application for life insurance and the policy was issued two weeks later after quest when does the policy's coverage become effective

As of the application date

Which of the following best describes what the annuity period is

The period of time during which accumulated money is converted into income payments

All of the following are true of key person insurance except

The plan is funded by permanent insurance only

An individual policy was delivered to the policy owner by an agent in person, which of the following is true

The receipt of delivery must contain the policy number and the date of delivery

Under an extended term nonforfeiture option the policy cash value is converted to

The same face amount as a whole life policy