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Any event there's no beneficiary living at the time of death and insured person. What is the maximum the pay benefit payments will pay to any person showing evidence of incurred funeral, or other expenses incidental to the last illness or death of the insured person
$2000
If the commission determines the agent appointment is invalid within how many days with the commission notify the insure
30 calendar days
An agent is convicted of a felony in another jurisdiction. within what period of time must the agent report the felony charges to the commission
30 days
Any insurance agent changes his residential address within what time. Must the agent notify the Commission of the change
30 days
Within how many days of moving from one state to another, must a nonresident producer send notice of change of address to commission
30 days
Which of the following persons is required to hold a producer license?
A person who negotiates insurance contracts
The beneficiary is not named for annuity benefits, to which entity will the benefit be paid
ANNUITANTs estate
What is another name for interest sensitive whole life insurance?
Adjust the life
And insured states her age at the time of the life insurance application is taken. This statement may result in.
Adjustment in the amount of death benefit
All of the following types of distributions are considered exceptions to the early distribution rule, and therefore, non-subjective penalty tax, except
Alone from the plan
Which of the following is not true section 1035 policy exchanges
Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30 days.
At what time may the insurance commission inspect records pertaining to the insurance transactions?
At any business time in the five years immediately following the relevant transaction
All of the following are true of the federal tax advantages
At distribution all amounts received by the employee are tax-free
An employee quits his job and converts his group policy to an individual policy. The premium for the individual policy will be based on his
Attained age
A policy owner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
Automatic premium loan
Which of the following is a feature of a variable annuity?
Benefit payments are not guaranteed
A tax sheltered annuity is a special tax favored retirement plan available
Certain employment groups
The proposed insure makes the premium payment on a new insurance policy. If the insurance should die, the insurer will pay the death benefit to the beneficiary. If the policy is approved to what is this example of kind of contract.
Conditional
Representations are written or oral statements made by the applicant that are
Considered true to the best of the applicant's knowledge
A key person insurance policy can pay for which of the following
Cost of training, a replacement
Which of the following would be the beneficiary in credit life insurance?
Creditor The creditor is the owner and the beneficiary of the policy.
Which of the following is true regarding the insurance amount in a credit life policy
Creditor can only insure the debtor for the amount owed.
Which of the following statements terms, make it false statements about financial condition of any insured that is intended to endure any person engaged in business insurance
Defamation
Two individuals are the same risk age class yet they are charged different rates for the insurance policy due to insignificant factors. What is it called just
Discrimination
If a change needs to be made to the application for insurance, the agent may do all of the following except
Erase the incorrect answer and record the correct answer
A universal life insurance policy has two types of interest rates that are called
Fixed in variable
What is required provision, protect against unessential lapse of the policy
Grace
What type of taxes associated with death proceeds from a life insurance policy
Income tax
A return of premium term life policy is written as what type of term coverage
Increasing
Which of the following life insurance policies allow policy owner to take out a loan from the policies cash value
Increasing term life policy
What type of life insurance policy may automatically increase the face amount of the policy as the consumer in price index increases
Indexed whole life
Which of the following statements is incorrect with regard to information collected, privacy protection
Insurance agents must provide notice of their information practices to applicants and policyholders no later than time the policies
Doreen parcel withdrawal from a universal policy which port will be taxed
Interest interest
Which of the following best describes a bell out provision
It allows the owner to surrender the annuity without a charge
Which of the following is true about the premium on a the children's rIDER in a life insurance policy
It decreases when the oldest child reaches the age of 21
Why is an equity index annuity considered to be a fixed annuity
It has a guaranteed minimum interest rate
Which of the following is true regarding the accumulation period of annuity
It is a period of time during which the payments into the annuity grow tax deferred
Which of the following is not true, regarding a certificate of authority
It is issued to a group insurance participants
Which of the following is usually true of participating life insurance policies
It pays dividends to policy owners?
Which of the following statements about the reinstatement provision is true
It requires the policy owner to pay all overdue premiums with interest before the policy is reinstated
If insurance surrenders his life insurance policy, which statement is true, regarding the cash value of the policy
It'. Not taxable.
A life policy increases significantly in face amount death benefit when the insured reaches a specific age. What type of policy is this?
Jumping juvenile policy
An applicant who receives a preferred risk classification qualifies for
Lower premiums than a person who receives a standard risk.
Hey, insurance company has 30 agents that represent the company and it's region. The agents each have their own satellite office where they perform agent duties numerous office have developed marketing campaign to increase sales. What is the companies duty regarding marketing communications and this example
Make a file copy of any marketing materials used with the public
which of the following would provide an underwriter with information concerning the applicants health history
Medical examination
The insurance company underwriter could find information concerning a persons, personal activities, and character of an African, from which of the following reports
Medical information bureau
An individuals tendency to be dishonest, will be indicative of a
Moral hazard
Traditional IRA contributions are tax deductible based on what of the following
Owners income
Which of the following writers were not cause the death benefit to increase
Pay your benefit rider
The cause of loss insured against in an insurance policy, known as
Perils
Which of following has the right to convert the convert the existing term coverage to permanent insurance
Policyowner
What are the disclosure requirements if an insurance producer wishes to charge a fee?
Posting a schedule of fees in the producer's office, disclosing the fees to the client in writing, and obtaining a signature on the disclosure from the client
All of the following are characteristics of group, life insurance except
Premiums are determined by the age, sex, and occupation of each individual certificate holder
If a policy includes a free look. Of at least 10 days the buyers guy may be delivered to the applicant no later than.
Prior to filling out an application for insurance
A couple old life insurance policy with the children's term writer. The daughter is reaching the maximum age of dependent covers so she will have to convert to permanent insurance in near future which of the following will she need to provide for proof of insurability.
Proof of insurability isn't requiredThe
What is the advantage of a reinstated policy instead of applying for a new one?
Proof of insure ability is not required
All of the following statements about equity index, annuities are correct, except
Receives a fixed amount of return
An insurance policy that only requires a payment of premium at its inception provides insurance protection for the life of the insured. Immature at the insured age 100 is called
Single, premium whole life
Which of the following applicants would not qualify for a KEOGH plan?
Someone who works 400 hours per year
Events in which person has both the chance of winning and losing our class
Speculative risks
Which of the following statements is correct about a standard risk classification in the same age group, and with similar lifestyles
Standard risk is representative of the majority of people.
Which of the following statements is true about a suicide clause in a life insurance policy?
Suicide is excluded for specific period of years and cover there after
The advantage of qualified plans to employers is
Tax-deductible contributions
Which of the following is example of a producer being involved in unfair trade practices of rebating
Telling a client that his first premium will be waived if he purchases the insurance policy today
Who is responsible for establishing a maintenance system by which recommendations to consumers can be monitored and supervised
The Better Business Bureau
All of the following statements are true concerning debitor groups except
The amount of insurance on the life of any deer makes the greater of the schedule or actual amount of unpaid indebitness to the creditor
The annulment dies, while the annuity is still in the accumulation stage, which of the following is true
The beneficiary will receive the greater of the money paid into the annuity or cash value
Incorporation is the owner and beneficiary of the key person life policy if the corporation collects the policy benefit then
The benefit is received, tax-free
Which of the following is example of liquidity in a life insurance contract
The cash value available to the policyholder/owner
Most methods used to determine the suitability of a particular annuity recommendation to a client are based on information regarding all of the following, except
The clients tax status
What authority issues of cease-and-desist order
The commission
Who is responsible for implementing a system that monitors and supervisors agent recommendations regarding annuity sustainability
The commission
In a case where the primary beneficiary predeceased is the insured in the event of the insured death, the death benefit proceeds will be paid to
The contingent beneficiary
What does liquidity refer to in life insurance policy?
The insured receives payments each month for retirement
All the following statements are true, regarding installments for a fixed amount, except
The payments will stop when the annuitant dies.
In terms of parties to a contract, which of the following does not describe a competent party
The person must have at least completed secondary education.
Which is true about the Cash❤️❤️❤️❤️❤️🙏🙏🙏🙏🙏 surrender nonforfeiture option
The policyholder receives the original Cash❤️❤️❤️❤️❤️🙏🙏🙏🙏🙏 value of the policy
When an insurance producer is to charge an administrative fee to the insured, all of the following must be done, except
The schedule of fees must be posted in the office
Determination of marital property rights may be reserved for the following reasons, except
The spouse name has beneficiary has obtained, or consented to a final decree or judgment of annulment, divorce or separation
Governing body issues, rules, and regulations for administration of the insurance code
The state corporation commission
Selling soliciting, variable, life, insurance, and insurance must provide the state corporation commission with the financial statement every
Three years
Why should the producer personally deliver a policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
Which of the following is not a goal of risk retention
To minimize the insurance level of liability in the event of a loss
A banker is ready to close on a customers loan. The bank is prepared to offer the loan, but only if the customer purchases and insurance policy from the bank in the amount of the loan, this is an example of.
Twisting
Agent to persuade insurance, to cancel a policy and favor of another one, when it might not be in the insured, best interest are guilty
Twisting
The validity of coverage under life insurance policy may not be contested, except for nonpayment of premium after the policy has been enforced for at least how
Two
Which of the following will least likely be considered as a legitimate need that would be paid by insurance proceeds
Vacation
In which instance may three licensee share commission
When all three are license for the same line of insurance from which the commission comes?
When would a 20 pay whole life policy endow
When the insured reaches age 100
Which of the following is incorrect regarding $100,000.20 year level premium
You think you sure dies before the policy expired the beneficiary will receive $100,000
Which of the following can surrender a deferred annuity contract
a) The beneficiary after the owner's death. b) A deferred annuity cannot be surrendered. c) Only the annuity owner. d) Only the insurance company for nonpayment of premiums. Answer: c) Only the annuity owner.
The paid-up addition option uses the dividend
a) To reduce the next year's premium. The dividends are used to purchase a single premium policy in addition to the face amount of the permanent policy.
Two types of assignments are
absolute and collateral
Forcing a client to buy insurance from particular lender, as a condition of granting, and loan is defined as
coercion
Which of the following best describes an insurance company that has been formed under the laws of the state
domestic
If a life policy allows the policy owner to make periodic additions to the face amount at standard rates without proving assure ability the policy includes
guaranteed insurability RIDER
What is the term which best describes when a person develops a formal program identifying, evaluating and funding its losses
self-insuring
Interest earned on policy dividends is
taxable
All of the following are true regarding a decreasing term policy, except
the payable premium amount steadily declines throughout the duration of the contract
If only one party to an insurance contract has made a legally enforceable promise what kind of contract is it?
unilateral