Ug nmixx star list
If taken as a lump sum, life insurance proceeds to beneficiaries are passed.
Free of federal income taxation.
The automatic premium loan provision is activated at the end of the .......
Grace period.
An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information?
Present the insured with a Disclosure Authorization Notice.
The Life Insurance Solicitation Regulation, Rule 24, was promulgated to do the following:
Provide information regarding insurance products.
which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments.
Nonforfeiture values guarantee which of the following for the policyowner?
That the cash value will not be lost.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability.
Which of the following is TRUE regarding the premium in term policies?
The premium is level for the term of the policy.
All of the following are true about variable products EXCEPT
The premiums are invested in the insurer's general account.
Which of the following conditions is NOT necessary for becoming a nonresident producer in Indiana?
Passing the proper examination.
If the Commissioner issues a cease and desist order, but the producer continues the same activities, the producer can face a fine up to which of the following amounts per violation?
$50.000
In the event an employer wishes to purchase life insurance on an employee, within how many days of receiving a written notice must the employee consent to be insured?
30 days.
An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?
A portion of the benefit up to a limit is tax free; the rest is taxable income.
In which of the following circumstances would a producer be exempt from continuing education requirements, upon the approval of the Commissioner?
A producer is retired but continues to receive commissions on business written before retirement.
Which of the following would be considered an unfair claims settlement practice?
Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered.
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by an employer-sponsored plan who has earned income.
Which of the following is a feature of a variable annuity?
Benefit payment amounts are not guaranteed.
Which of the following is NOT true regarding an annuity certain?
Benefits stop at the annuitant's death.
Life Insurance Replacement Rule 16.1 is considered which of the following?
Disclosure rule.
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.
According to the Fair Credit Reporting Act, all of the following would be considered negative information about a consumer EXCEPT
Disputes regarding consumer report information.
All of the following statements concerning dividends are true EXCEPT
Dividend amounts are guaranteed in the policy.
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection.
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option.
Which of the following is TRUE regarding the accumulation period of an annuity?
It is a period during which the payments into the annuity grow tax deferred.
Which of the following best describes annually renewable term insurance?
It is level term insurance.
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?
Joint Life.
Which of the following settlement options in life insurance is known as straight life?
Life income.
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.
Which of the following is NOT true regarding policy loans?
Money borrowed from the cash value is taxable.
Which of the following is NOT true of life settlements?
The seller must be terminally ill.
What is the purpose of a disclosure statement in life insurance policies?
To explain features and benefits of a proposed policy to the consumer.
Which employees of an insurance company are responsible for the final risk selection?
Underwriters.
If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?
Unilateral
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit.
Which of the following is NOT true regarding regulations of viatical settlements?
Viatical brokers do not need to be licensed insurance producers.
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce.
Without receiving written consent from an insurance regulatory authority.
What is the purpose of a conditional receipt?
it is intended to provide coverage on a date prior to the policy issue.