Dri 10.1

Any regularly salaried employee of a licensed insurer, without license or other qualification, may act on behalf of that insurer in the negotiation of insurance for that insurer, provided

A licensed producer participates in the sale of insurance.

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

All of the following statements concerning dividends are true EXCEPT

Dividend amounts are guaranteed in the policy.

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

All of the following are dividend options EXCEPT

Fixed-period installments.

Which of the following best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date prior to the policy issue.

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

What is the other term for the cash payment settlement option?

Lump sum

Which section of the policy explains the rights and characteristics of the contract?

Provisions

In group insurance policies, certificates of insurance are provided to

Qualifying group members.

Annuities can be used to fund which of the following?

Retirement plans

What is the purpose of settlement options?

They determine how death proceeds will be paid.

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

Upon conversion, the death benefit of the permanent policy will be reduced by 50%.

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?

Withdrawals are not taxable.