Guaranteed exam questions missed
What is the maximum civil penalty per violation of the regulations of the insurance code that define acts that are subject to fines or license suspension or revocation
$5,000
Once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured?
10 working days
What is the tax penalty for withdrawing money from an annuity prior to age 59 1/2
10%
An agent received some inaccurate information and as a result he publicly misstated the financial condition of another entity 12 times over a period of 3 months if this fact is revealed the agent my face a fine up to
10,000 dollars
An insurer must notify the consumer in writing that an investigative consumer report has been requested, with in how many days of the initial request
3 days
A distribution from an employer sponsored retirement plan or from an IRA is eligible for a tax free rollover if it is reinvested in an it's within
60 days
An individual acted as an exclusive general agent even though she was not licensed to do so. Since this offense occurred over a period of 60 days what is the maximum penalty she faces
60,000 and a third degree misdemeanor
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 cash value
Under the conditions of payment form an insurer may require all of the following conditions to be met in order to pay accelerated death benefits except
A probationary period of no more than 1 year
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
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be
Decreasing term
An insured purchases a non participating whole life policy this policy includes all of the following except
Dividends
In a life insurance application all of the following signatures will be required except
Home office underwriter
Under which of the following conditions would life insurance proceeds be taxable by the federal government
If there is a transfer for value
Which of the following statements is true regarding advertising that the insurance guaranty association would ensure payment of benefits in the event of insurer insolvency
It is an unfair trade practice to mention the Association in advertisements.
Which of the following best describes pure life annuity
It provides the highest monthly benefits
Your client wants to provide a retirement income for his elderly parents incase something happens to him . He wants to make sure both beneficiaries are guaranteed an income for life . Which settlement option should this policyowner select
Joint and survivor
The human life value approach to determining life insurance needs is based upon which of the following ideas
Loss of breadwinner's income
Guaranteeing future dividends is considered to be an unfair or deceptive act known as
Misrepresentation
cash value guarantees in a whole life policy are called
Nonforfeiture values
A married couple purchase a life insurance policy on their newborn baby they are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend
Payor benefit
An Equity Indexed Annuity will grow based upon
Performance of a recognized index
If a life insurance company uses hiv testing as a part of its underwriting when must an applicant e notified of the procedure
Prior to performance of the test
What type of insurer uses a formal sharing agreement
Reciprocal insurers
An individual purchases a life insurance policy and lists his parents as the beneficiaries. He is able to change the beneficiaries at any time. What type of beneficiary designation does the policy have
Revocable
In contrasting stock insurers with mutual insurers which statement is true
Stock insurers are owned by the shareholders and issue nonparticipating policies
In a deferred annuity the difference between the accumulation value and the surrender value is the
Surrender charge
All of the following are true about key person insurance EXCEPT
The death benefit is taxable to the business
All of the following are true about group life insurance except
The employer is the beneficiary
What happens to the face amount of a whole life policy if the insured reaches the age of 100
The face amount is paid to the insured
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
All of the following are true of group life insurance except
The insureds each own their own contract
Who is the annuity owner?
The person who purchases the annuity
All of the following statements about indexed whole life insurance are correct except
The policy face amount remains level throughout the life of the policy
If an applicant submits the initial premium with an application which action constitutes acceptance
The underwriters approve the application
An insured's flexible premium is invested into a separate account. What type of insurance product did he purchase?
Variable Universal Life
When an insured terminates membership in the insured group the insured can convert to
Whole life without proof of insurability
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?
a fixed amount
In life insurance which of the following is not required to have an insurable interest in the insured
beneficiary
Who does the spendthrift clause in a life insurance policy protect?
beneficiary
The policy owner has an option to pledge the life insurance policy as collateral for a bank loan this is called
collateral assignment
What type of an interest rate is guaranteed in universal life policies?
contract interest rate
All of the following are true regarding the federal fair credit reporting act except
reports may be sent to anyone who requests one
An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be a
representation
Which type of insurance policies provides pure life insurance protection without a savings element
term
An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as
twisting