I PASSED WA LIFE PRODUCER
An individual purchases a life insurance policy and lists his parents as the beneficiaries. He is able to change beneficiaries at any time. What type of beneficiary designation does the policy have?
Revocable
This state provides for a temporary license for all of the following EXCEPT
A producer's retirement.
Which of the following statements is CORRECT regarding associations?
All of the above are true
What is a prerequisite for receiving a commission from an insurance transaction?
An appropriate license
The entire contract includes all of the following EXCEPT
Buyer's Guide
An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount?
Children's term rider
How will life insurance proceeds that are paid as a lump sum received by the beneficiary?
Free of federal income taxation.
If a producer wants to sell annuity contracts, how often must the producer complete annuity suitability training?
One-time training only
Which of the following is consideration on the part of an insurer?
Paying a claim
The frequency and the amount of the premium payment are known as what?
Premium Mode
Life insurance disclosure rules would apply to which of the following types of coverage?
whole life
For a contract to be enforceable by law, the purpose of the contract must be
Legal and not against public policy
An agent who includes a statement which, when taken in context of the whole presentation, may tend to mislead or deceive the persons addressed has committed
Misrepresentation.
Cash Value guarantees in a whole life policy are called
Nonforfeiture values
Dividends received on participating life insurance policies are
Not taxable because they are a return of unused premiums
Which of the following statements is TRUE regarding an Agent's Report during the policy application process?
it provides the agents personal observations concerning the proposed insured
If a retirement plan or annuity is qualified, this means
it satisfies IRS requirements for favorable tax treatment
An insured recently had a new home built and insisted on having smoke detectors installed in multiple places in the house. What method of handling risk is the insured using?
reduction
How many days is the free-look period in most life insurance policies?
10 days
The purpose of the Fair Credit Reporting Act is to
Protect consumers against the circulation of inaccurate or obsolete personal or financial information.
What type of group covers employees of the United States government, or of any state, or of any political subdivision or instrumentality of any of them.
Public Employee Associations
An individual receives a lump-sum inheritance. He'd like to use the money to create a lifetime income since he'll be retiring soon. He purchases an annuity and wishes to receive payments beginning in 2 months. What did he buy?
Single Premium Immediate Annuity
After a careful examination of a policy, Insured A decided that the policy wasn't what he was looking for. He returned the policy to the insurer within 10 days of the policy delivery. Which of the following is true?
The insurer will refund any premiums paid into the policy,
Which of the following types of insurance is investment based, has a level fixed premium, and a nonguaranteed cash value?
Variable Whole Life
When an insured terminates membership in the insured group, the insured can convert
Whole life without proof of insurability
If an applicant's health is poorer than that of an average applicant, the policy may be issued
substandard
All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT
Reports may be sent to anyone who requests one.
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 tr continue making the premium payments due to death or disability. Which policy rider should their agent recommend?
Payor benefit
All of the following are consideration in an insurance policy EXCEPT
The cash value of the policy
All of the following are true about key-person insurance EXCEPT
The death benefit is taxable to the business
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
Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?
They are received tax free
Agents may be found guilty of defamation if they make false statements that are intended to
Maliciously criticize another insurance company
A whole life insurance policy must contain some cash value that may be borrowed by the policyowner after it has been in force for
3 years
A life insurance policy can be backdated to affect a lower premium for up to a maximum of how many months?
6
Which of the following documents used in the underwriting process contains specific medical details about an applicant?
Attending Physician's Statement (APS)
Under what circumstances will the contingent beneficiary receive the death benefit?
If the primary beneficiary dies before the insured
Restoring an insured financially after a claim is known as
Indemnity
In order to get a nonresident license in this state, a licensed producer from another state must
Apply for a nonresident license and pay a fee.
The Human Life Value approach to determining Life Insurance needs is based upon which of the following ideas?
Authorized
How often must organizations consult the National Do Not Call Registry?
Every 31 days
What is the tax penalty for withdrawing money from an annuity prior to age 59½?
10%
In a life insurance application, all of the following signatures will be required EXCEPT
Home office underwriter
According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT
If declined for an insurance policy, an applicant has no right to the information in the report.