AGENT EXAM
interest rates
Current assumption whole life policies are sensitive to which of the following?
Which part of an insurance contract contains the promise to pay losses covered by the policy in exchange for the insured's premium and compliance with policy terms?
INSURING CLAUSE
what protects insured, policy owners and beneficiaries from financial impairment of insurers?
Insurance Guarantee association
Which of the following is common in an increasing term life policy?
It begins with little or no insurance protection.
Why is the accidental death benefit referred to as double indemnity?
It provides twice the face value in the policy for death due to accident.
what are the type of term policies?
L.I.D (Level, Increasing, Decreasing )
straight life policy, if the annuitant dies before they finish paying the principal, the beneficiaries get
NOTHING
All life insurance and health insurance contracts contain all of the following EXCEPT
Representations
All of the following are ownership rights EXCEPT
switching the policy from one insured to another
All of the following are features of the spendthrift clause EXCEPT
the beneficiary may encumber the proceeds.
A client's policy lapsed in 2012 without being renewed. In what year can the insurance company destroy the file on this policy?
2018 [after 6 years]
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5 yrs
Obtaining consumer information reports under false pretenses is prosecutable by which of the following?
Fair Credit Reporting Act
which annuity stops payment at death of annuitant
Life only/ Pure life/ Straight life
which option uses divident to buy another policy that increases the death benefit?
Paid up additon
What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application?
The applicant and possibly the agent initial any changes made.
Joint Life Policy
The first to die is when payment happens
If an individual's license has been revoked, how soon can he or she obtain a new license?
after 1 year
A temporary Licience issued for all BUT
an agents retirement
Which of the following is an example of a premium payment mode?
annual premium payment
What type of life insurance is most commonly used for group plans?
annually renewable term
Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy?
any exclusions
independent adjuster is
any one, firm, corporation who acts on behalf of the insurer on investigation and claims
Tax-Sheltered Annuities are (in regards to taxes)
are taxed upon distributions
insurnace producer who can only write insurance for one company is called
captive agent
Tax sheltered annuity retirement plans are for
certain groups of employees only
All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while
commiting a misdemeanor
Which whole life policy premium type is the most common?
continuous premium
section 1035 policy exchange?
does not have a specified time limit to complete exchanges
Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy?
establishing a trust to administer proceeds
defined benefit plans
favor key employees nearing retirement
variable life policies are regulated by
federal gov SEC Insurance dept
Child out growing the child rider insurance policy does not need to
have proof of insurability
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?
insured original issue age is used
Straight life policy has what type of premium?
level annual premium and level DB
During replacement of life insurance, a replacing insurer must do which of the following?
obtain a list of all life insurance policies that will be replaced
Agent born in 83' got his license in 2014, when will his license expire and get renewed?
on the agents birthday every odd numbered year
using dividend to pay up continuous premium whole life policy sooner is
paid-up option
If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices?
policy delivery
In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?
recording method
In order to AVOID being classified as an MEC, a policy must pass which of the following?
seven-pay test
To be a licensed settlement broker you must
submit fingerprints
What is the order in which beneficiaries receive proceeds from a life insurance policy?
succession of beneficiaries
Group AD&D policies may be deducted by whom and under which deduction category?
the employer under business expenses
What is the purpose of Stranger-originated life insurance (STOLI)?
the policy is originated primarily or solely for the purpose of resale
Which of the following occurs immediately after the application is submitted and the initial premium paid?
the underwriting process begins
policy that allows for flexible premium payment
universal life
Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit?
variable universal life
acceptance usually occurs
when an insurers underwriter approves coverage
Which of the following is NOT an example of a business use of Life Insurance?
workers compensation