Certified Exam
Before an adjustor license may be issued, an applicant must file a surety bond with the superintendent in the amount of
$1,000
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
$1,000
A distribution for an employer-sponsored retirement plan or from an IRA is eligible for a Tax-free rollover if it is reinvested in an IRA within
60 days
Which of the following indicates the person upon whose life the annuity income amount is determined?
Annuitant
In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT
Cash surrender values
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will
Continue to increase
What type of an interest rate is guaranteed in universal life policies?
Contract interest rate
An insured purchases a nonparticipating whole life policy. This policy includes all of the following EXCEPT
Dividends
To purchase insurance, the policyowner must face the possibility of losing money or something pf value in the event of loss. What is this concept called?
Insurable interest
Which of the following is the primary source of information that an insurer uses to evaluate an insured's risk for life insurance?
Insurance application
As an insurer's field underwriter, a producer has all of the following responsibilities EXCEPT
Issuing policies on behalf of the insurer
Which of the following is NOT a component of an insurance policy premium?
Number of beneficiaries
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party's offer
A stock insurer is defined as an insurer
Owned by its stockholders
Which dividend option will increase the death benefit?
Paid-up additions
Annuities certain limit the amount paid by the annuity to a certain fixed
Period or fixed amount
All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT
Reports may be sent to anyone who request one
If an insured purchases an insurance policy with a large deductible, what risk management technique is the insured exercising?
Retention
Life insurance can provide which of the following?
Survivor protection
Upon the surrender of a life insurance policy, any cash value accumulated in excess of the premium payments is
Taxed as ordinary income
What is the exclusion ratio used to determine?
The annuity benefit to be excluded from taxes
Which of the following would NOT be eligible for coverage under key person?
The owner of a shop
All of the following are general requirements of a qualified plan EXCEPT
The plan must be temporary
How are policy loans calculated?
The policy's cash value minus unpaid loans and accrued interest
What is the difference between a straight life policy and a 20-pay whole life policy?
Premium payment period
If an agent follows the rules and terms of his agent contract, he is exercising his
Express authority
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
Which of the following is TRUE regarding premium in a 10-year level premium policy?
The premium will remain level for 10 years
If any authorized entity fails to file an annual financial solvency statement, or does not reply to a written inquiry within 30 days, they are subject of a penalty of up to
$250 per day of delay, not to exceed an aggregate of $25,000 for each failure
An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive
$70,000
The policyowner has an option to pledge the life insurance policy as collateral for a bank loan. This is called
A collateral assignment
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
A policy reissued with a reduction in cash value
What is the most common name for a single life policy that is designated to insure two or more lives with a standard premium, and that pays the death benefit upon the first death?
Joint life
An individual has a $200,000 convertible term life insurance policy, if he chooses he can
Convert to a whole life policy for the same face amount without proof of insurability
According to agency law, the agent always represents the
Insurance company
Which of the following statements describes one of the reasons individuals purchases life insurance?
It creates an immediate estate
All of the following statements are true regarding an Ordinary (straight) life policy EXCEPT
It does not have a guaranteed death benefit
Considering the principals of liquidity, how would the policyowner use today's cash value in a life insurance policy?
Use it for emergency expenses
Which of the following types of insurance policies would perform the function of cash accumulation?
Whole life
An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?
Grace Period
When an insured terminates membership in the insured group, the insured can convert to
Whole life without proof of insurability
Which of the following is NOT a characteristic of variable insurance and annuities?
benefits are determined solely based on the policy premium
Which of the following could reduce he amount of the death benefit?
Failure to repay the policy loan
All of the following art true of the Survivorship life policy EXCEPT
The premium is based on the age of each insured