Ucanpass v1
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
10,000 no tax consequences
The term of credit accident and health insurance begins on the date when the debt becomes obligated to the creditor, and the term of coverage cannot extend more then how many days beyond the schedule maturity date of the loan
15 days
Within how long of completing an approved prelicensing education course must a candidate submit a license application?
2 years
Applicant for an individual license must submit proof of completing certain number of hours of approved continuing education credits. how many hours are required
24
An insured decides to replace his life insurance policy with one offered by a new insurer. After receiving the policy, he is unsatisfied with the provisions and decides to return it. Within how many days must he return the policy in order to receive a full premium refund?
30
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
A policy is reissued with a reduction in cash value.
A policy matures and pays the face amount if the insured lives to a specified date. This best describes
An endowment policy.
Which of the following would NOT trigger the payment of Accelerated Death Benefits?
Being permanently disabled
In a replacement situation all of the following are prohibited practice except
Borrowing 50% of a policy cash value to fund a new life insurance contract
which of the following best describes a fix period settlement option
Both the principal and interest will bet liquidated over a selected period of time
#57. Which of the following would be an example of an insurer participating in the unfair trade practice of discrimination?
Charging the insured higher premiums based on her race
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will
Continue to increase.
All of the following are true of a nonqualified deferred compensation plan EXCEPT
Contributions are tax deductible.
An individual has a $200,000 convertible term life insurance policy. If he chooses, he can
Convert to a whole life policy for the same face amount without proof of insurability.
#71. When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
All of the following information needs to be included on an application for life insurance EXCEPT
Health insurance policies in force.
All of the following are required for H.I.V testing except
If H.IV is present, the person can be rated but cannot be declined
What does the state Life and Health Insurance Guaranty Association guard against?
Insurance insolvency
which of the following statement is true regarding advertising that the insurance Guaranty Association would ensure payment of benefit in the event of insurer insolvency?
It is illegal to mention the association in advertisement
Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select?
Joint and Survivor
Which of the following acts stated that the federal government would not regulate insurance as long as the states did an adequate job of regulating the industry?
McCarran-Ferguson Act
An example of an alien insurer doing business in this state is one formed under the laws of
Mexico
An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?
Misrepresentation
Guaranteeing future dividends is considered to be an unfair or deceptive act known as
Misrepresentation
f an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?
Never; the insurer has waived its right to those answers by issuing the policy
An insured falls down a flight of stairs and sustains a neck injury that renders him severely disabled. The insured owns a Whole Life policy. Is it possible for the policy to include a Waiver of Cost of Insurance rider, and if so, what insurance costs would be waived?
No; it is not possible for this waiver to be included in a whole life policy
Dividend received on participating life insurance policy are
Not taxable because they are returns of unused premiums
Which dividend option will increase the death benefit?
Paid-up additions
A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend?
Payor benefit
An applicant for surplus lines authority must do all of the following EXCEPT
Possess a certificate of authority in this state
If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?
Prior to performance of the test
The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT
Purchase of a new home.
Which of the following is a provision found in life insurance policies?
Reinstatement
All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT
Reports may be sent to anyone who requests one.
Which of the following could most likely be issued a resident producer license?
Sally lives in a neighboring state but has an office in New Jersey.
The family term rider incorporates
Spouse term and children's term
Which of the following policies would NOT offer a policy loan option?
Termlife
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
The amount of the distribution is reduced by the amount of a 20% withholding tax.
Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?
The beneficiary will only receive payments of the interest earned on the death benefit.
If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur?
The change must be filed with the Department
What happens to the face amount of a whole life policy if the insured reaches the age of 100?
The face amount is paid to the insured
In a life insurance application, all of the following signatures will be required EXCEPT
The home office underwriter
All of the following are advantages of a qualified retirement plan EXCEPT
The income at retirement is tax free.
With Adjustable Life, the owner can change all of the following EXCEPT
The insured
All of the following are true of credit life EXCEPT
The insured names the beneficiary
A group health insurance policy owner allows the policy to lapse, and fails to reinstate the policy after the grace period expires. To what extent will the insurer cover valid claims made before the end of the grace period?
The insurer is liable for all valid claims made.
An insurer decides to terminate the appointment of one of its producers and notifies the Commissioner 29 days after the fact. On the 9th day after the decision, the producer violates a regulation of the Insurance Code, and a policyowner wants to hold the insurer legally responsible. Which of the following is true?
The insurer will be held legally responsible.
which of the following would not be eligible for coverage under key person?
The owner of a shop
An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premiums will be slightly lower. The policy, however, would not offer either one of these things. What type of misrepresentation is being committed?
Twisting
If the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policyowner?
When the policy is delivered
When an insured terminates membership in the insured group, the insured can convert to
Whole life without proof of insurability
The renewable provision allows the policyowner to renew the coverage at the expiration date
Without evidence of insurability
contributions to roth IRA
are not tax deductible
an IRA contribution can be made from which of the following
cash
In a variable life insurance policy, all of the following assets are held in the insurance company general fund account except
cash surrender values
which of the following is true of the taxation of cash values in a business life insurance policy?
cash value grows taxed deferred
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 is a correct statement about annuities
fixed annuities do not provide protection against inflation
An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?
grace period
which of the following scenarios would a producer be able to obtain insurance through a unauthorized insurer?
if there are no authorized insurers for a specific type of coverage in this state
under which of the of the following circumstances would a life insurance proceed be taxable by the federal government
if there is a transfer for value
The type of insurance that provides increasing death benefit as the insured ages is called
increasing term
During partial withdrawal from a universal life policy, which portion will be taxed?
interest
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
interest only option
what significance did paul vs virginia have on the insurance industry?
it was decided that insurance was not interstate commerce and could not be regulated by the federal government
Cash Value guarantees in a whole life policy are called
nonforfeiture values
what is the difference between a straight life policy and a 20-pay whole life policy?
premium payment period
An applicant for a disability insurance policy has a heart condition of which they are unaware of and therefore they answer no to a question pertaining to heart problems on the application, the answer is considered to be a
representation
A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the
revocable beneficiary
which of the following individual would be a likely candidate to purchase deferred annuity
someone who wants to grow retirement funds tax deferred
which of the following are characteristics of term life insurance
temporary protection, renewability no cash value
All of the following are true of survivorship life policy except
the premium is based on the age of each insured
which statement is a accurate description of life insurance policy dividends
they are not taxable and not guaranteed
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
universal life
which of the following type of insurance is investment based, has a level fixed premium, and a non guaranteed cash value
variable whole life
