Final variable exam

Commissioner determines a producer is ineligible for appointment by an insurer. The commissioner must notify the insurer within how many days?

5 days

A life policy qualifies as a MEC if the premium amount exceeds the amount that would have provided a paid-up insurance in how many years?

7 years. 7-pay test.

What type of insurance is investment based, has a level fixed premium and a non guaranteed CV?

Variable life. It is a combination of a decreasing term and an investment funds

If an agent follows the rules and terms of his agent contract, he is exercising his..

Express Authority

What assets are held in a variable life insurance policies general account

Mortality reserves, face amount reserves, incidental benefit amounts.

Annuities certain limit the amount paid by the annuity to a certain fixed..what?

Period or amount.

I set up a retirement account that my employer is now contributing to. My employer's contributions are not included in my gross income. What kind of retirement plan to I have?

SEP-Small employer, EE sets up and maintains plan that employer contributes. These contributions are not included in my gross income.

If a retirement plan or annuity is qualified this means what?

Satisfies the IRS requirements for favorable tax treatment.

What does the application of contract of adhesion mean?

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured. Take-it- or-leave-it basis.

What does it mean when the term "universal" is used to describe a whole or variable life policy?

That the contract owner is allowed to vary the amount and frequency of premiums as long as the min CV maintained is sufficient to support the cost of the insurance.

What happens to the interest in an annuity if the annuitant dies before the start date

The interest is taxable. If the beneficiary is a spouse the tax can continue to be deferred.

Variable Life Insurance separate accounts must be registered under what?

The invest comp of 1940. The Act of 1933-regulates investments and securities trading.