What you got wrong 2

Before an adjuster license may be issued, an applicant must file a surety bond with the Superintendent in the amount of

$1,000

An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time

Children's term rider

#78. Which dividend option will increase the death benefit?

Paid-up additions

# 98. All of the following statements about indexed whole life insurance are correct EXCEPT a) There is a guaranteed minimum interest rate. b) The cash value depends on the performance of the equity index. c) The death benefit is not guaranteed d) The premium is fixed.

c) The death benefit is not guaranteed

67. Which of the following indicates the person upon whose life the annuity income amount is determined? a) Owner Insured Annuitant Beneficiary

c) Annuitant

#57. Which of the following is a correct statement about annuities? a) Variable annuities place the funds into the company's general account. b) Fixed annuities have the annuitant assume the risks of investment. c) Fixed annuities do not provide protection against inflation d) Variable annuities provide minimum guaranteed rate of interest

c) Fixed annuities do not provide protection against inflation

65. Which of the following elements of an insurance contract requires paying premium and providing a statement of good health? a) Offer and acceptance b) Consideration c) Legal purpose d) Competent parties

b) Consideration

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

#70. Which of the following is true regarding pure life annuity settlement option? a) It guarantees that all the proceeds wll be pald out. b) The beneficiary will receive a refund of the principal. c) It guarantees income for a specified period of time. d) It provides the highest monthly benefit.

d) It provides the highest monthly benefit.

48. All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT a) It is funded by a level premium. b) It bullds cash value. c) If the insured lives to age 100, the policy matures, and the face amount is paid to the insured. d) Itdoes not have a guaranteed death benefit

d) Itdoes not have a guaranteed death benefit

If a person, firm, association or corporation conducts insurance business in New York without a certificate of authority the penalty for the first violation is

c) $1,000.

# 68. The frequency and the amount of the premium payment are known as what?

Premium mode

#51. Which of the following is NOT true regarding insurance consultants? a) They offer insurance advice to the public for a fee. b) They are required to pass a written examination. c) The Superintendent must recognize the candidate as trustworthy and competent before issuing a consultant's license. d) They may own shares in the insurers they represent

d) They may own shares in the insurers they represent

Which of the following is considered a field underwriter?

An agent

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

# 61. What does the Guaranty Association guard against?

Insurer insovency

The entire contract includes all of the following EXCEPT a) Any riders or amendments. b) A buyer's guide. c) The life insurance policy. d) A copy of the application.

A buyer's guide.

Which of the following would NOT trigger the payment of Accelerated Death Benefits? Terminal illness Requiring an organ transplant for the insured to survive Being permanently institutionalized Being permanitly disabled

Being permantly disabled

Which of the following could reduce the armount of the death benefit?

Failure to repay a policy loan

The purpose of the Fair Credit Reporting Act is to

Protect consumers against the circulation of inaccurate obsolete personal financial informat

In life insurance, which of the following is NOT required to have an insurable interest in the insured? The policyowner The insured The applicant The beneficiary

The beneficiary

Which of the following policies can be described as a flexible premium adjustable life policy?

Universal Life

What type of an interest rate is guaranteed in universal life policies?

Contract interest rate

What type of insurer uses a formal sharing agreement?

Reciprocal insurers

Which of the following terms refers to the nontaxable portion of each annuity benefit payment?

Cost base

Which of the following is true regarding a joint life annuity? The payments go to a beneficiary upon the last death. The payments go to the surviving annuitant after the first death. The payments stop at the first death,

The payments stop at the first death,

All of the following are true regarding the waiver of cost of insurance rider EXCEPT a) The rider explres when the insured reaches age 60 b) The rider waives insurance costs in the event the insured becomes disabled. c) The rider Is only applicable to universal life policies, d) The rider cannot waive the cost of premiums that accumulate cash value.

A) Age 60

#66. Which of the following terms is used to define the period of time during which an annuitant makes payments into an annuity? a) Accumulation period b) Premium building period c) Annulty perlod d) Loading period

a) Accumulation period

# 69. Under which of the following conditions would life insurance proceeds be taxable by the federal government? a) If there is a transfer for value b) If collaterally assigned to a lender c) If taken as a lump sum d If paid to the policyowner

a) If there is a transfer for value

#77. An insured purchases a non-participating whole life policy. This policy includes all of the following EXCEPT a) Cash and loan values. b) Dividends c) A premium calculated closely to the cost of the insurance. d) Permanent protection.

b) Dividends

An applicant for property insurance owns a building in which combustible materials are stored in the furnace room. From an underwriting standpoint, this risk would likely be considered a

Morale hazard,

The Superintendent of Financial Services in the state of New York is appointed by the

d) Governor

62. Which of the following best describes pure life annuity? a) It continues payments to the beneficiary when the annuitant dies. b) It is also known as refund life annuity. c) It guarantees to pay out all the proceeds. d) It provides the highest monthly benefits.

d) It provides the highest monthly benefits.