Exam review

How long does the law require agents to maintain a record of transactions pertaining to premium payments?

Three years

All of the following would qualify as a group for the purpose of purchasing group life insurance EXCEPT

An Association formed one year ago

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

Contributions to Roth IRA's are

Non-tax deductible

And ensure that operates for one or more social, educational, charitable, benevolent, or religious purposes for the benefit of its members is known as a

Fraternal insurer

An example of an alien insurer doing business in this state is one formed under the laws of

Mexico

If an insurer appoints a customer representative, the appointment needs to be filled with which of the following entities?

Department

In a group life policy with a death benefit of more than $50,000

Premium costs above $50,000 is taxable as income to the employee

And employee dies having 6 quarters of coverage during the previous 13 quarter period. What status of coverage does the employee have under Social Security?

Currently insured

What effect will the long-term care rider have on the death benefit of a life insurance policy if the long-term care benefits were paid to the insured?

Reduced death benefit

An agent who knowingly misrepresents material information for the purpose of inducing and insured to lapse, forfeit, change or surrender life insurance policy or annuity has committed and a legal practice known as

Twisting

Which of the following types of policies would not be subject to Florida regulations on life insurance solicitation?

Annuities

Which of the following would not trigger the payment of accelerated death benefits

Being permanently disabled

All of the following are true of a non-qualified deferred compensation plan except

Contributions are tax deductible

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in value.

What does the guaranty association guard against?

Insurer insolvency

All of the following statements are true regarding an ordinary (straight) life policy EXCEPT

It does not have a guaranteed death benefit

Which dividend option will increase the death benefit?

Paid-up additions

What is the difference between Straight life policy and the 20-Pay whole life policy?

Premium payment period

All of the following are true regarding the fair credit reporting act except

Reports may be sent to anyone who request one

If life life insurance policy is purchased by someone who has no insurable interest in the insured, it is considered

STOLI

Which of the following policies can be described as a flexible premium adjustable life policy?

Universal life

A licensee may have their license suspended, terminated or revoked for all of the following except

Unknowingly over-insuring any property insurance risk

An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?

10%

Where are premiums from fixed annuities invested?

general account

What is the maximum amount of individual life insurance coverage that a person can convert to if the existing group policy has been terminated?

$10,000

Which of the following sources would explain the state policies regarding appropriate agent conduct?

Code of ethics of the Florida Association of insurance and financial advisors

In order to reinstate a life insurance policy the insured must do all of the following EXCEPT

Pay next year's premium in advance

Which of the following is considered on the part of an insurer?

Paying a claim

According to the common disaster clause, if the insured in primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

The primary beneficiary died before the insured

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 premium on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. 10 days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?

Grace period

Which of the following is not considered eligible for group life insurance

A credit union that needs coverage only for its top 10 employees