Important questions Ive missed

Which of the following is an example of an agent's fiduciary responsibilities?

Forwarding premiums to the insurer

All of the following are business uses of life insurance EXCEPT

Funding against company's general financial loss.

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?

Immediate annuity

What type of insurance would be used for a Return of Premium rider?

Increasing Term

All of the following are Nonforfeiture options EXCEPT

Interest only

In order to enforce the Insurance Code, the Commissioner has the power to conduct which of the following?

Investigations

Which of the following activities is NOT performed by an insurance producer?

Issuing the policy

Which of the following is true about the mandatory free look in a Life Insurance policy?

It commences when the policy is delivered.

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date prior to the policy issue.

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

All of the following statements about equity index annuities are correct EXCEPT

The annuitant receives a fixed amount of return.

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract.

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

Which of the following determines whether a cease and desist order should be issued?

Commissioner

Any investigation into a complaint must be completed within

2 years

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

Conditional.

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions.

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration.

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called

Cost of living rider.

If a producer continues to violate the Insurance Code, a new civil penalty will be assessed every

Day

If a producer discusses policy dividends in a sales presentation, what statement must the producer also make?

Dividends are not guaranteed.

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

Which of the following statements about the reinstatement provision is true?

It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.

What is the term for how frequently a policyowner is required to pay the policy premium?

Mode

Regarding the free-look provision, the insurance company

Must allow the policyowner to return the policy for a full refund.

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive

Nothing; the payments will cease

What is the training requirement for producers who want to sell annuities in this state?

One-time 4-hour training course

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

One-year term option.

The Gramm-Leach-Bliley Act was passed to

Protect private customer information filed with a financial institution.

Which of the following best describes a pure life annuity settlement option?

Pure life provides payments for as long as the annuitant is alive.

Another name for a substandard risk classification is

Rated.

All of the following are true regarding rebates EXCEPT

Rebates are allowed if it is in the best interest of the client.

Which of the following is an example of a producer being involved in an unfair trade practice of rebating?

Telling a client that his first premium will be waived if he purchases the insurance policy today

Children's riders attached to whole life policies are usually issued as what type of insurance?

Term

Nonforfeiture values guarantee which of the following for the policyowner?

That the cash value will not be lost

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association.

Unless revoked or suspended, how long does a producer's license remain in effect in Tennessee?

24 months

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

$10,000, no tax consequence

What percentage of a company's employees must take part in a noncontributory group life plan?

100%

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's

Ancestry.

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application.

Which of the following is NOT true regarding Equity Indexed Annuities?

They earn lower interest rates than fixed annuities.

When would a misrepresentation on the insurance application be considered fraud?

if it is intentional and material

An insurance producer may NOT act as an agent for an insurer until

Appointed.

Any of the following would be considered an Unfair Trade Practice EXCEPT

Attempting to settle a claim by the use of arbitration.

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant.

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Pay the policy proceeds only if it would have issued the policy.

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

Which of the following provisions would NOT be found in Term life insurance?

Policy loan

If an insurance producer has been determined to be ineligible for appointment, within what time period must the Commissioner notify the insurer?

5 days

Which of the following may obtain a producer's license, but may NOT sell, solicit, or negotiate a contract of insurance in Tennessee?

A business entity

Who is specifically responsible for ensuring that a business entity complies with state insurance laws?

A designated licensed producer

All of the following are true regarding insurance policy loans EXCEPT

Policy loans can be made on policies that do not accumulate cash value.

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by the age, sex and occupation of each individual certificate holder.

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?

Premiums are not tax deductible as a business expense.

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

When may an insurance company use suicide as a defense against paying a death claim?

When death occurs within a specified period of time after the policy was issued

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than

With the policy.