Brendens NEW study set

An employee who holds a producers license is designated as a compliance officer

A business entity May be licensed as an insurance producer if

Collateral Assignment

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?

The commissioner

A producer violates the insurance code, and it is decided that his license will be revoked. Who made this decision?

Increasing

A return of Premium term life policy is written as what type of term coverage?

Insurance Company

According to the law of agency, a producer always represents the:

Only written presentations by the producers are considered advertising

According to the life insurance advertising rule 13, all of the following statements are correct EXCEPT

At least every 5 years

All admitted insurance company's in Indiana are subject to fiscal examinations by the commissioner

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

Sharing commission with another licensed producer

All of the following may result in suspension or denial of insurance license EXCEPT

the producer met the continuing education requirements before license expiration

An expired license can be reinstated within 12 months without the requirement of an examination if

Conditional

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristics does this describe?

Refund the premiums paid

An insured committed suicide one year after his life insurance policy was issued. The insurer will

cash option

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Rebating

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

2 months

How much time does the insurer have to pay the death benefit to the beneficiary of a life insurance policy after the receipt of proof of death?

Every 2 years

How often must insurance procedures in this state complete continuing education requirements

Civil penalty of $25,000

If a company transacts any business of insurance without a certificate of authority, what is the maximum penalty that can be charged to the director of that company

Securities

If an agent wishes to sell variable life policies, what license must the agent obtain?

The guaranty association

If an insurer becomes insolvent, which of the following would pay benefits to policyholders?

Unilateral

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it ?

Limited to 25% of a producer's annual commission income

In Indiana controlled business is

when an insurers underwriter approves coverage

In forming and insurance contract,when does acceptance usually occur ?

an application submits and application to the insurer

In insurance and offer is usually made when ?

Apply and pay for a fee to a nonresident state that reciprocates

In order to get a nonresident license in this state, producers must

The partnership itself

John sims and Steve Becker have formed a partnership. After a serious car accident one of the partners was deceased and the other became totally disabled. To finish servicing the company's existing accounts, The commissioner could grant a temporary license to all of the following EXCEPT

Settlement options

Methods used to pay the death benefits to a beneficiary upon the insured's death are called,

Insurable Interest

Stranger-originated life insurance (STOLI) policies are in direct opposition to the principle of

Grace period

The automatic premium loan provision is activated at the end of the?

reduction of premium

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Interest only option

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. What settlement option should the policyowner choose?

Lower

The premium of a survivorship life policy compared with that of a joint life policy would be ?

They are tax deferred until withdrawn

Under a SIMPLE plan, which of the following is TRUE, regarding taxation on both contributions and earnings?

The same face amount as in the whole life policy

Under an extended term nonforfeiture option, the policy cash value is converted to

Providing the applicant with a signed copy of the important notice regarding replacement

Under rule 24, Life insurance solicitation, producers duties include all of the following EXCEPT

Signed waiver of premium

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Cash values can be borrowed at any time

What does "liquidity" refer to in a life insurance policy?

It determines if the insurance policy is an MEC.

What is the main purpose of the Seven-pay Test?

Viator

What is the name of the insured who enters into a vatical settlement ?

Increasing term

What type of insurance would be used for a Return of Premium rider?

It is reduced to the amount of what the cash value would buy as a single premium

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

Provide a copy of the important notice regarding replacement of Life insurance to the applicant.

When a replacement is involved, a replacing insurance company is responsible for all of the EXCEPT

fixed amount

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

When it is intentional and material

When would a misrepresentation on the insurance application be considered fraud?

size of each installment

Which of the following determines the length of time that benefits will be received under the Fixed Amount settlement option?

Level term

Which of the following is NOT a type of whole life insurance

A licensee writes policies solely for friends and their families

Which of the following is NOT an example if controlled business

Making comparisons between different policies

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

License may not be revoked

Which of the following is NOT true regarding penalties for violation of the rules and regulations of the insurance code?

Viatical brokers do not need to be licensed insurance producers

Which of the following is NOT true regarding regulations of viatical settlements

They are required by state law to be included in the policy

Which of the following is TRUE about nonforfeiture values?

A social group

Which of the following is not a type of group eligible for group life insurance?

Insurance commissioner

Which of the following is responsible for the powers, duties, management, and control of the insurance department

The license remains in effect as long as the renewal fee is paid and continuing education requirements are met by the due date

Which of the following is true about an insurance producer license ?

Certificate of authority

Which of the following must an insurer obtain in order to transact insurance within a given state ?

straight life

Which of the following policies would be classified as a traditional level premium contract?

Suicide is excluded for a specific period of years and covered thereafter

Which of the following statements about a suicide clause in a life insurance policy is TRUE:

Defamation

Which of the following terms describes making false about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance

Insurance producer

Which of the following types of licenses is most suitable for an individual who transacts insurance on behalf of an insurance company admitted to business in Indiana ?

The application has a prior felony conviction

Which of the following would qualify as a competent party in an insurance contract?

Face amount

Which policy component decreases in decreasing term insurance?

Replacement Rule

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Single premium

Which type of life insurance policy generates immediate cash value?

The client is converting from an existing term policy to whole life

You know that your client is currently insured under a life policy, but you are making a sale presentation to that client for a new life policy. You must provide the client with the important notice regarding the Replacement of life insurance and copy of the sale proposal under all of the following situations EXCEPT

To purchase a smaller amount of the same type of insurance as the original policy

the paid-up addition option uses the dividend

to explain features and benefits of a proposed policy to the consumer

what is the purpose of a disclosure statement in life insurance policies

Benefits payment amounts are not guaranteed

which of the following is a feature of a variable annuity?

Keogh Plan

which of the following is an IRS qualified retirement program for the self-employed?

Consumer report

which of the following reports will provide the underwriter with the information about an insurance applicants credit?

A debtor has an insurable interest in the life of a lender

which of the following statements is NOT true concerning insurable interest as it applies to life insurance?