guarantee exam

Common Disaster Clause

When insured and primary die at the same time, it is assumed that the primary died first protection for the contingent beneiciary

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

extended term

a producer continues to use an approved name for 10 days after notification from commissioner. what's the max fine they'd face?

$5,000 (10+ days = extra fine. $250 if before 10 day period)

insurer must keep files of ADVERTISEMENTS used in Louisiana for how many years?

4 years

when an agent delivered an insurance policy to the insured, he collected the initial premium, as well as a document verifying that the insured had not had any injuries or illnesses since the app date. what is this document called?

Statement of Good Health

Annuity Owner

The "owner" is the person who purchases the contract and has all of the rights such as naming the beneficiary and surrendering the annuity. The owner, however, does not have to be the one who receives the benefits; it could be the annuitant or the beneficiary.

who would not be eligible for coverage under key person insurance?

the owner of a shop the owner is the principal, not a key person.

life insurance creates an immediate estate. which of the following best explains this statement?

the face value of the policy is payable to the beneficiary upon the death of the insured. unlike a traditional estate, a life insurance policy's face value is available immediately in one lump-sum upon the death of the insured.

cash value guarantees in a whole life policy are called

nonforfeiture values because permanent life insurance policies have cash values, there are certain guarantees built it to the policy that cannot be forfeited by policyholder. these guarantees are req. by state law to be included in the policy.

all of the following are true of survivorship life except

the premium is based on the age of each insured. same as joint life-- it insures two OR MORE lives based on a joint age

when an insured terminates membership in the insured group, the insured can convert to

whole life without proof of insurability

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. submitted on a "take-it-or-leave-it" basis any uncertain terms will be interpreted in favor of the insured.

in a deferred annuity, the difference between the accumulation value and the surrender value is the

surrender charge. when def. annuities are surrendered, the surrender charge is deducted from the accumulated value to produce the surrender value.

a distribution from an employer-sponsored retirement plan from an IRA is eligible for a tax-free rollover if it is reinvested within how many days?

60 days unless the entire amount is rolled over, the part retained will be taxed as ordinary income.

an IRA contribution can be made from which of the following?

Cash the money for IRA contributions cannot be used to purchase life insurance policies or any kind of collectibles. the money can be used to buy stocks, bonds, mutual funds, or annuities.

which of the following best describes a pure life annuity

an annuity with the highest monthly benefits AKA life only/straight life pays the most since it only guarantees to pay for the rest of one's life without a min. guarantee

all of the following are true regarding the federal fair credit reporting act except:

reports may be sent out to anyone who requests one credit reports may only be ordered by those involved in insurance underwriting/ customer must be notified if adverse action is taken as a result of the report does not have to give customers a copy of the report, only the name of the agency who they obtained the credit report from.

all of the following are true regarding the waiver of cost of insurance rider, EXCEPT:

the rider expires when the insured reaches age 60. waives cost of insurance and other expenses in the event an insured becomes disables. any premiums necessary yo the accumulation of cash values cannot be waived. this only applies to universal life policies.

Which of the following statements is true of level term insurance?

it is temporary protection. it is likely renewable at certain intervals and has a maximum renewal age.

your client wants to provide a retirement income for his elderly parents in case something happens to him. he wants to make sure that both beneficiaries are guaranteed income for life. which settlement option should this policy owner select?

joint and survivor