Guarantee Exam

how much is a producers licensing fee

180 every 2 years

an insurer must notify the consumer in writing that an investigating consumer report has been requested how many days

3 days

what is the term used for a life insurance provision or rider that allows for the early payment of some portion of the policy face amount terminal illness or injury?

accelerated benefits

which of following individuals would be a likely candidate to purchase a deferred annuity

someone who wants to grow retirement funds tax deferred

which risk classification is representative of the majority of people in a certain age group and with similar lifestyles

standard

all are prohibited under the Illinois law except

stating which section the payment or denial of a claim is based upon

which is true of level term insurance

temp protection

which of the following statemtns concerning the medical info bearue is correct?

the mib assist underwriters in evaluating and classifying risks

in order to get a nonresident license if this state, producers must

apply and pay a fee to a nonresidential state

which statement describes agreement as it relates to insurance contracts?

one party accepts the exact terms of the party offer

an applicant for life insurance must receive a buyers guide and policy summary prior to initial premium payment unless offer lasting for a minimum of

10 days

within how many days must insurers pay approved claims

30 days

an agreement that is enforceable by law is known as what contract?

Legal

which provision may be added to a permanent life policy, at no cost, that insures that the policy will not lapse so long as there is cash value?

automatic premium loan option

the requirements to hold a nonresidential producer license include all the following except

be a part time resident of illinois

when an agent writes insurance for himself, his spouse, or his own business, this is called

controlled business

What does the Guaranty Association guard against?

insurer insolvency

in order to reinstate a life insurance policy the insured must do all except

pay next years premium in advnace

what is the minimum penalty that may be imposed on an insurer found guilty of defamation

$200

a distribution from an employer sponsored retirement plan or from an IRA is eligible for a tax

60 days

variable life insurance is regulated by all of following entities except

US department of treasury

the entire contract includes all of the following except

a buyers guide

Where are premiums from fixed annuities invested?

general account

which of the following statemtns is true regard advertising that the insurance guaranteed assocation would ensure payment of insolvency?

it is unfair trade practice to mention the association in ads

what does the application of contract of adhesion mean?

since the insured does not participate in preparing the contract

Life insurance creates an immediate estate. which of the following best explains the statement

the face value of the policy is payable to the beneficiary upon the death of the insured

when life policy is surrendered for its nonforfeiture value what is the option

extended term

an annuity owner receives the same guaranteed payment every month

fixed

all of following info needs to be included on an application for life insurance except

health insurance polices in force

to purchase insurance, the policy owner must face possibility of losing money or something of value in event of loss

insurable interest

an individual purchases a life insurance and lists his parents as beneficiaries . he is able to change beneficiaries at any time designation does the policy have?

revocable

Agents may be found guilty of defamation if they make a false statement that is intended to?

maliciously criticize another insurance company

as it relates to life settlements the term owner means

owner of original life policy

variable insurance and variable annuities are regulated by

SEC, FINRA, and department of insurance

in event of producer found to have committed reacting, all penalties would apply except

producers license must immediately be terminated

An annuity would normally be purchased by an individual who wants to

provide income for retirement

which of the following are characteristics of term life insuracne?

temporary protection, renewability, no cash value

When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a

term rider

all of following statements about indexed whole life insurance except

policy face amount remains level throughout the life of the policu

what effect will the long term (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured?

reduce the death benefit

when replacement is involved the replacing insurer must send a notice to existing insurance company that identifies the insured

3 business days

what is the limit to the number of 90-day temporary licenses that a person may hold?

no more than 1 lifetime

which of the following statements regarding HIV testing is NOT true?

test results must be sent to the department of insurance

when comparing a joint life policy to two life policies of same amount which is true

joint life has a lower premium than the total of the two individual policies

within what Time period from the receipt must insurer refund any premiums due to the insured ?

15 days`

During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. This is an example of an unfair trade practice of

defamation

an insurer exaggerates the financial condition of one of its competitors and makes its sounds worse than trade practice of

defamation

which of the following entities ultimately determines the extent of a temporary licensee's authority?

director

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

pay next years premium in advance

all of following are general requirements of a qualified plan except

plan must be temporary

policies written on a third party ownership are usually written to cover which of the following ?

policy owners minor children or business associates

Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at

purchase of new home

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

universal life

Which dividend option increases the death benefit?

Paid-up additions

which of the following is a requirement for prelicensing education for producers in this state ?

certain number of hours must be completed in a classroom setting

under what circumstance will contingent bene. receive death benefit?

if primary dies before insured

a producer is required to maintain a premium fund trust account anytime the producer holds client premiums for more than how days

15 days

all of the following are true of annually renewable term insurance excpet

proof of insurablilyt must be provided at each renenwal

if the director serves a notice of a hearing upon the insurer, when must the hearing be held?

no sooner than 20 days and no later than 30 days

what must a producer disclose about policy dividends

dividends are not guaranteed

during sales presentation, what must a producer disclose about policy dividends?

dividers are not guaranteed

adjustable life policy can assume the form of

either term or permenant insurance

For a contract to be enforceable by law, the purpose of the contract must be

legal and not against public policy

which of following types of insurance policies would perform the function of cash accumulation?

whole life

The renewable provision allows the policy-owner to renew the coverage at the expiration date

without evidence of insurabiltiy

temporary licenses mat be issued to surviving spouses under certain circumstances...good for how many days?

180 days

an ira owner is 57 wants to make a withdrawal from her traditional ira. what penalty will be imposed?q

10%

what does an annuity protect the annuitant against?

Living longer than expected

which distributions from a modified endowment contract would be taxable as income at the time received to the extent before the payment exceeds the investment in the contract?

both partial cash surrender and policy loan

what happen to the face amount of whole life policy if insured reaches 100?

face amount paid to insured

which of the following must a producer do in order to retain a license?

pay renewal fees and complete required CE hours

all of the following are valid reasons for denial, suspension or revocation of a producers license EXCEPT

selling 25%controlled business

if life insurance policy is purchased by someone who has no insurable interest in considered

STOLI

insurance provider fails to meet the directors continuing education requirements

producers license will be terminated

all are true about the completion of prelicnsing except

the requirement can b fulfilled by completing training through lecture course, home study or online

an applicant for life insurance must receive buyers guide and policy summary prior to the initial premium payment for minimum of

10 days

which of following entities ultimately determines the extent of a temp licensees authority

director

which of the following is incorrect concerning MECs

must always pass the 7 pay test

which of the following is consideration on the part of the insurer?

paying a claim

all of following are true of survivorship life policy except

premium is based on age of insured

The manner and/or frequency that the policyowner pays the policy premium is called

premium mode

If the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policyowner?

when the policy is delivered

which of following is permissible reason for an insurance company to contest payment of a claim based on statement in

application contains material misstatements

the requirements to hold a nonresident producer license include all of the following

be a part time resident of illinois

when comparing a joint life policy to two individual policies on same amount which is true?

has lower premium than total of two

in life insurance application , all signatures are required except

home office underwriter

which of the following statements is true regarding SIMPLE plans?

contributions and earnings are tax deferred until funds are withdrawn

while completing a life insurance application the applicant realizes that she should have answered an earlier question differently.

cross out the incorrect information write correct answer and initial change

what is the limit to the number of 90 day temporary licenses that. aperson may hold

no more than 1 per lifetime

which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application?

the application contains material misstatements

all of the following statement about indexed whole life insurance are correct except

the policy face amount remains level throughout the life of the policy

which of following is NOT a standard exclusion in life insurance policies?

disability

*Policy loan requests, except for loan requests for payment of due premiums, may be deferred for a period of up to

6 months

According to the Common Disaster clause, if the insured and 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

the reduction of premium option uses the dividend to reduce

next years premium

at what point would an automatic premium loan be generated?

following the grace period

An annuitant pays the annuity premium on the 14th of each month. Which best describes the arrangement ? a-Flexible b-lump sum c-single d-level

level

which of the following is NOT an indicator of a competent party?

business profession

An aleatory contract is based on what kind of exchange?

unequal exchange of values

because of injury an insured has been out for 7 months, when his life insurance premium came due he was unable to

waiver of premium rider

which of following has right to change a settlement option in a life insurance policy?

policy owner at any time during the life of the insured

all of following are true about completion of prelicensing training except

the requirement can be fulfilled by completing training through lecture course home study or online

if applicant submits the initial premium with an application , which action constitutes acceptance

underwriters approve the application

which of the following would not be allowed to offer insurance advice for a fee or commission in this state

director of insurance company

when life insurance proceeds are used to pay inheritance taxes known as

estate conservation

which of the following would be a violation of the policy illustration regulation in Illinois?

providing customer with an incomplete illustration

within how many days must a producer report his or her felony conviction to the director

30

how many days notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans?

30 days

all of following are are considerations in insurance policy except

cash value in policy

under which of following conditions would life insurance proceeds be taxable by the fed government?

if there is a transfer for value

if insurance company issues a policy even though some questions on the application were unanswered when can the insurer

never