Delaware Life Insurance
which of the following is a feature of a variable annuity?
benefit payment amounts are not guaranteed
The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?
2 years
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process?
Buyer's guide
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection
what is the purpose of a conditional receipt
It is intended to provide coverage on a date earlier than the date of the issuance of the policy.
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income with period certain
Which is NOT true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?
The beneficiary will only receive payments of the interest earned on the death benefit
all of the following are true regarding the guaranteed insurability rider EXCEPT
The rider is available to all insured
the two types of assignments are
absolute and collateral
which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?
amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit
Under which of the following circumstances would an insurer pay accelerated benefits?
an insured is diagnosed with cancer and needs help paying for her medical treatment
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
beneficiary
a producer agent must do all of the following when delivering a new policy to the insured EXCEPT
disclose commissions earned from the sale of the policy
which of the following terms is used to name the nontaxed return of unused premiums?
dividend
which of the following is true regarding taxation of dividends in participating policies?
dividends are not taxable
The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the
entire contract
What does "level" refer to in level term insurance?
face amount
what type of insurance would be used for a return of premium rider
increasing term
the medical information bureau was created to protect
insurance companies from adverse selection by high risks persons
which of the following best describes annually renewable term insurance
it is a level term insurance
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
joint and survivor
An applicant who receives a preferred risk classification qualifies for
lower premiums than a person who receives a standard risk
what is the other term for the cash payment settlement option?
lump sum
During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes
misrepresentation
before a policy can be reinstated, all the past premiums must be repaid with what rate of interest
not to exceed 6% per year
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
a rider attached to a life insurance policy that provides coverage on the insured's family member is called the
other-insured rider
which option is being utilized when the insurer accumulates dividends at interest and the uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
paid up option
a prospective insured receives a conditional receipt but dies before the policy is issued. the insurer will
pay the policy proceeds only if it would have issued the policy
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parent have died or become disabled?
payor benefit
which of the following riders would NOT cause the death benefit to increase?
payor benefit rider
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?
reinstatement provision
which of the following is not one of the three basic types of coverage that are available, based on how the face amount changes during the policy term?
renewable
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?
replacement rule
what is the primary purpose of a 401(k) plan?
retirement
when an insured under a life insurance policy dies, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. which rider is attached to policy?
return of premium
a domestic insurer issuing variable contracts must establish one or more
separate accounts
the ownership provision entitles the policyowner to do all of the following EXCEPT
set premium rates
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
the death benefit can be increased by providing evidence of insurability
which of the following is INCORRECT concerning a noncontributory group plan?
the employee receive individual policies
in a life settlement contract, whom does the life settlement broker represent
the owner
all of the following are true of an annuity owner EXCEPT
the owner must be the party to receive benefits
which of the following determines the cash value of a variable life policy?
the performances of the policy portfolio
which of the following statements is correct regarding a whole life policy?
the policyowner is entitled to the policy loans
which of the following is TRUE regarding the premium in term policies?
the premium is level
which is true about a spouse term rider?
the rider is usually level term insurance
which of the following is the best reason to purchase life insurance rather than annuities?
to create an estate
the paid-up option uses the dividend
to purchase a smaller amount of the same type of insurance as the original policy-additional permanent policy
if it is determined that a violation was committed, the director may suspend a producer's license for
up to 12 months
in a survivorship life policy, when does the insurer pay the death benefit?
upon the last death
which of the following types of policies will provide permanent protection?
whole life
to which of the following do replacement rules apply?
whole life insurance
to which of the following would the life insurance solicitation rule apply?
whole life policies
if a policy includes a free-look period of at least 10 days, the buyer's guide may be delivered to the applicant
with the policy
what is the maximum penalty for a licensee who has intentionally violated the insurance code of Delaware?
$150,00 total in a 6 month period
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
fixed period
Insurance is a contract by which one seeks to protect another from
loss
If an agent wishes to sell variable life policies, what license must the agent obtain?
securities
all of the following are TRUE statements regarding the accumulation at interest option EXCEPT
the interest is not taxable since it remains inside the insurance policy
all of the following are examples of third-party ownership of a life insurance policy EXCEPT
an insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
when both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is
conditional contract
when an employee terminates coverage under a group insurance policy, coverage continues in force
for 31 days
the automatic premium loan provision is activated at the end of the
grace period
which authority is not stated ins a producer's contract but is required for the producer to conduct business?
implied
which of the following best defines the "owner" as it pertains to life settlement contracts?
the policyowner of the life insurance policy
all of the following are true about variable products EXCEPT
the premiums are invested in the insurer's general account
which of the following is NOT true of life settlements
the seller must be terminally ill
which of the following is TRUE about nonforfeiture values?
they are required by state law to be included in the policy
what is the purpose of the buyer's guide
To allow the consumer to compare the costs of different policies
all of other factors being equal, the least expensive first-year premium payment is found in
annually renewable term
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
as of the application date
which of the following is NOT true regarding equity indexed annuities
they earn lower interest rates than fixed annuities
which of the following is TRUE for both equity indexed annuities and fixed annuities?
they have a guaranteed minimum interest rate
a banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan
this is an example of coercion
Why should the producer personally deliver the policy when the first premium has already been paid?
to help the insured understand all aspects of the contract
what is the name of the insured who enters into a viatical settlement?
viator
which of the following determines the length of time that benefits will be received under the fixed-amount settlement option?
size of each installment
traditional IRA contributions are
tax deductible
If a life insurance policy has an irrevocable beneficiary designation,
the beneficiary can only be changed with written permission of the beneficiary
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
the insured may renew the policy for another 10 years, but at a higher premium rate
when a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?
the insured's contingent beneficiary
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
the insured's premiums will be waived until she is 21
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
when the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable statement of good health
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
conditions
which of the following is a licensee of the department who offers advice, counsel, opinion, or service regarding benefits, advantages or disadvantages to be obtained under any contract of insurance issued in this state
consultant
contracts that are prepared by one party and submitted to the other party on a take-it-or-leave it basis are classified as
contracts of adhesion
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
if the father is disabled for more than 6 months
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. Which settlement option should the policyowner choose?
interest only option
which of the following is TRUE about the 10-day free-look period in a life insurance policy?
it begins when the policy is delivered
Which two terms are associated directly with the premium?
level or flexible
who may accept a finder's fee from an insurer for a life policy?
license life insurance producer
Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors
life expectancy
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
lower
which of the following best describes the unfair trade practice of defamation?
making derogatory oral statement about another's financial condition
do life and health producers have authority to bind coverage?
no; the underwriting process must occur before the policy is issued.
when is it permissible for an insurance producer to make recommendations for the termination or surrender of existing insurance?
only if the producer has reasonable grounds to believe it is in the client's best interest
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
$50,000
who can make a fully deductible contribution to a traditional IRA
An individual not covered by and employer-sponsored plan who has earned income
