insurance

What is the maximum civil penalty for willfully and knowingly violating a cease and desist order?

$50,000 per violation

Which of the following best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits

What would be an advantage to naming a contingent (or secondary) beneficiary in a life insurance policy?

It determines who receives policy benefits if the primary beneficiary is deceased.

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

Under an extended term nonforfeiture option, the policy cash value is converted to

the same face amount as in the whole life policy.

What is the number of credits required for fully insured status for Social Security disability benefits?

40

The minimum number of credits required for partially insured status for Social Security disability benefits is

6 credits

In order for a Canadian insurance company to do business in this state, it must apply for and obtain

A certificate of authority.

The Commissioner must be notified in all of the following circumstances EXCEPT

A change of the producer's business phone number.

In an annuity, the accumulated money is converted into a stream of income during which time period?

Annuitization period

In life insurance, producers are permitted to share or split commissions, providing that

Both are properly licensed or the recipient is not involved with the sale of said insurance.

A tax-sheltered annuity is a special tax-favored retirement plan available to

Certain groups of employees only.

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer.

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

Which of the following would NOT be considered rebating?

Giving a client a $20 pen with the insurer's logo during the insurance application process

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

Increasing Term

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Limited pay whole life

Which of the following will be included in a policy summary?

Premium amounts and surrender values

Which of the following would be in violation of producer's duties under Rule 24, Life Insurance Solicitation?

Producer referring to him/herself as financial consultant

The Life Insurance Solicitation Regulation, Rule 24, was promulgated to do the following:

Provide information regarding insurance products

Under Rule 24, Life Insurance Solicitation, producer's duties include all of the following EXCEPT

Providing the applicant with a signed copy of the Important Notice Regarding Replacement.

Which of the following would help prevent a universal life policy from lapsing?

Target premium

Which of the following would qualify as a competent party in an insurance contract?

The applicant has a prior felony conviction.

You know that your client is currently insured under a life policy, but you are making a sale presentation to that client for a new life policy. You must provide the client with the Important Notice Regarding the Replacement of Life Insurance and a copy of the sale proposal under all of the following situations EXCEPT

The client will have to borrow almost 50% of the existing policy's cash value to purchase the new policy.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

Who bears all of the investment risk in a fixed annuity?

The insurance company

John Sims and Steve Becker have formed a partnership known as the Sims & Becker Insurance Agency. After a serious car accident, one of the partners was deceased and the other became totally disabled. To finish servicing the company's existing accounts, the Commissioner could grant a temporary license to all of the following EXCEPT

The partnership itself.

How are contributions to a tax-sheltered annuity treated with regards to taxation?

They are not included as income for the employee, but are taxable upon distribution.

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

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.

All of the following actions can be described as twisting EXCEPT

explaining to a client the advantages of permanent insurance over term and suggesting changing policies.

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

illegal

Stranger-originated life insurance policies are in direct opposition to the principle of

insurable interest