insurance
In West Virginia, an alien insurance company is defined as one formed in
a country other than the United States
In West Virginia, an individual producer is considered to represent
an insurance company
A foreign company operating in West Virginia is a company incorporated or organized under the laws of
any jurisdiction within the United States other than West Virginia
In West Virginia, a domestic insurance company is defined as a company that
is incorporated and formed in West Virginia
Credit Life insurance is
issued in an amount not to exceed the amount of the loan
Replacement regulations apply to which of the following types of contracts?
Ordinary Life
Continuing education requirements in West Virginia apply to which of the following persons?
Resident producers
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?
$20,000 death benefit
A replacement of an existing Life insurance policy occurs when the cash value is subjected to loans exceeding
25%
One becomes eligible for Social Security disability benefits after having been disabled for
5 months
The maximum fixed interest rate charged by insurers in West Virginia is
8%
P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?
Accidental Death and Dismemberment provision
Which of these do NOT constitute policy delivery?
Policy issued with a rating
Which of these are NOT an example of a Nonforfeiture option?
Life Income
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?
Deferred
Which of these arrangements allows one to bypass insurable interest laws?
Investor-Originated Life Insurance
A policy of adhesion can only be modified by whom?
The insurance company
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Employee
Which of these Nonforfeiture Options continue a build-up of cash value?
Reduced Paid-Up
What is the Suicide provision designed to do?
safeguard the insurer from an applicant who is contemplating suicide
All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for
Modified Whole Life
Which policy is EXEMPT from replacement regulations?
Group Life policy
Which of the following statements is CORRECT about the West Virginia Life and Health Insurance Guaranty Association?
It is funded by insurance companies through assessments
The West Virginia Life and Health Guaranty Association guarantees life insurance death benefits up to
$300,000
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?
10 years
Under a Group Life insurance policy, an insured may assign a MAXIMUM of what percentage of the insured's coverage?
100%
Which of these require an offer, acceptance, and consideration?
Contract
Courses are approved for continuing education credit by the
Insurance Commissioner and the Board of Insurance Agent Education
T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?
Renewable
What is Old Age and Survivors Health Insurance (OASDHI) also known as?
Social Security
An insurance company licensed in West Virginia and domiciled in Pennsylvania is known as
a foreign company
A person who is insured within a group contract will be given a
certificate
The Insurance Commissioner may examine the records of an insurance company in order to
determine the solvency of the company
All of the following actions are considered rebating EXCEPT
sharing commissions with other licensed and appointed agents
An individual who purchases a Life annuity is given protection against
the risk of living longer than expected
Under West Virginia insurance law, an insured or insurer must ask for a rehearing based on a decision by the Insurance Commissioner within how many days?
30
An insurance policy has the right to defer granting a policy loan for a maximum of how many months after receiving the loan application?
6
A policy loan is made possible by which of these life insurance policy features?
Cash value provision
N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?
Claim will be denied
Which of the following violations is considered an unfair trade practice?
Coercion
Continuing education is required of individuals in the sale of all of the following types of insurance EXCEPT
Credit Accident and Sickness insurance
What type of life policy covers 2 lives and pays the face amount after the first one dies?
Joint Life Policy
Which plan is intended to be used by a sole proprietor and the employees of that business?
Keogh Plan
In West Virginia, which of the following actions by an insurance company or a producer is considered rebating?
Offering a prospect something of value that is not specified in a contract to induce the purchase of that contract
In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?
Owner's Rights
J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions?
Reinstatement provision
An insurance company must do which of the following to terminate an producer's appointment?
Send notice of the termination to the Commissioner
What type of life policy covers two people and pays upon the death of the last insured?
Survivorship
Under West Virginia law, a group life policy must cover a minimum of how many employees?
Two
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?
Upon completion of the application
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?
Variable Universal Life
The West Virginia Life and Health Guaranty Association is funded by
assessments on member companies
All of the following circumstances are grounds for revocation of a license EXCEPT
being charged with a misdemeanor unrelated to insurance activity
A life insurance application must be signed by all of these EXCEPT
beneficiary
Additional coverage can be added to a Whole Life policy by adding a(n)
decreasing term rider
stock insurance company is BEST defined as an incorporated company that has its capital divided into shares and
is owned exclusively by its shareholders
An agent who tells a client that dividends are guaranteed may be guilty of
misrepresentation
Anyone who makes a fraudulent statement on an insurance application in order to obtain money benefits from an insurance company has committed an act of
misrepresentation
Making an unfair comparison of two policies is defined as
misrepresentation
All of these are considered to be a benefit under Social Security EXCEPT for
unemployment
If a producer has been engaged in an administrative action by any government agency, within how many days following the final deposition must the producer report the action to the Insurance Commissioner?
30
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase?
30 Pay Life
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
Decreasing term
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?
Revocable
What type of annuity has a cash value that is based upon the performance of it's underlying investment funds
Variable
Individual life insurance proceeds are exempt from creditor's claims when they are payable to any of the following entities EXCEPT the insured's
estate
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This life insurance policy may be issued with a(n)
extra premium
In West Virginia, an insurance company that publishes misleading information about insurance coverage may be found guilty of
false advertising
In West Virginia, unless otherwise excepted, a prelicensing education course is required for
resident producers
A group life policy may be issued to a labor union if it has at least how many members?
25
Policyholders elect the governing bodies of which of the following types of insurance companies?
Mutual
Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance company?
The producer who sells the new insurance policy
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
Conversion
At the date of issue, an employee group life insurance policy must cover a MINIMUM of how many employees?
Two
A producer is suggesting replacement if a prospective insured is given all of the following advice EXCEPT
Convert your Term insurance to Whole Life
Which of the following statements is CORRECT about the replacement of one insurance policy with another?
It is strictly regulated and requires full disclosure by both the producer and the replacing insurance company
D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?
Level term
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?
Modified Whole Life
Which statement is correct regarding the premium payment schedule for whole life policies?
Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured
In West Virginia, if an insurance producer charges a fee for placing an insurance policy, which of the following statements is CORRECT?
The producer must report the placement to his primary insurance company
If a producer sells an insurance policy for an insurer not licensed in this state, which of the following is responsible for unpaid claims?
The selling producer
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age?
Traditional Individual Retirement Account (IRA) withdrawals are normally subject to a tax penalty if they are made before the owner reaches age 59 1/2
Replacement is involved in all of the following situations EXCEPT when
a Term policy is converted to a permanent plan with the same insurance company
Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?
Entire cash surrender value is taxable
E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to?
F
Under the Unfair Trade Practice law, producers may be found guilty of defamation if they make a false statement that is intended to
malign another insurance company
In West Virginia, life or health insurance offered through direct-response solicitation by a sponsoring organization, under which the insured person pays all of his insurance costs, is known as
mass marketed insurance
When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT
obtain the beneficiary's signature on a summary of all policies to be replaced
If a producer knowingly violates a cease and desist order issued by the West Virginia Commissioner for unfair trade practices, the producer may receive which of the following penalties for each violation?
A $5,000 fine
If a producer knowingly violates the Unfair Trade Practices laws of West Virginia, the Office of the Insurance Commissioner may fine the producer a MAXIMUM of which of the following amounts per violation?
$5,000
T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay?
$50,000
The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called
Reinstatement
A producer may legally make which of the following statements to an insured about a Whole Life policy?
The policy will have Nonforfeiture benefits after a period of time
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a
$25,000 individual whole life policy
What provision in a life insurance policy states that the application is considered part of the contract?
Entire Contract provision
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?
Evidence of insurability is required when the option is exercised
If the West Virginia Insurance Commissioner calls a hearing on a producer's license, the affected producer must be given at LEAST how many days advance written notice?
Fifteen
The life insurance and annuity replacement regulation defines replacement as
exchanging an existing policy for a new policy
Which statement is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the amount of the premium payment
The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of the
policyowner
Which of these life products is NOT considered interest-sensitive?
Modified Whole Life
Individual Life and Accident & Sickness insurance policies other than Medicare Supplements and direct-response policies, must state that the policyholder has a right to return the policy within a MAXIMUM of how many days after policy delivery?
Ten
Which of the following statements is CORRECT if an insured converts his Life policy to Paid-Up Insurance and buys new insurance?
The transaction is considered replacement
Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?
Variable Life
When a producer reports a final disposition of an administrative action against the producer to the Insurance Commissioner, the report must include
a copy of the order
Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company?
annuity
To be eligible for Social Security disability benefits, an employee must be unable to perform
any occupation
During a sales presentation for an ordinary life insurance policy, a producer may legally state that the insurance company guarantees
cash values
In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and
the initial premium
The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and
the initial premium
An insured who is covered under an employer's Group Life policy for $15,000 has resigned. All of the following statements about conversion privileges are true EXCEPT
the insured can convert to a $15,000, 15-Year Level term policy
In group life insurance policies, assignment of benefits is permitted in West Virginia if the assignment is made to all of the following EXCEPT
the insured's employer
Which of the following statements is CORRECT about accelerated death benefits?
Must have a terminal illness to qualify
When an existing life insurance policy is being reissued with a reduction in cash value, the producer must sign the
Notice Regarding Replacement of Life Insurance or Annuity". When a policy has been reissued with any reduction in cash value, that is considered a replacement. A Notice Regarding Replacement must be signed by both the producer and applicant
When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?
Void the policy only if it is discovered during the Contestable period and proven to be material
When does a life insurance contract become effective if the initial premium is not collected during the application process?
When producer delivers policy and collects initial premium
What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?
Whole Life
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to
P only
The underwriting process involves all of these EXCEPT for
Policy loan
The conversion period for a terminated employee to convert group life coverage to an individual plan is
31 days
Which of the following statements is correct about the Insurance Commissioner's authority to examine the business records of a producer?
The Commissioner may examine them whenever it's deemed necessary
All of the following activities may result in the revocation or suspension of a producer's license EXCEPT
Representing a foreign insurance company
S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?
Single Premium
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
A policyowner's rights are limited under which beneficiary designation?
Irrevocable
A policyowner is allowed to pay premiums more than once a year under which provision
Mode of Premium
Within thirty days of the initial pretrial hearing in a criminal prosecution, the producer must submit to the Insurance Commissioner a copy of all of the following EXCEPT
the bond posted
When recommending a purchase or exchange of an annuity, the producer or insurer must have a reasonable basis for believing that a recommendation is suitable based on all of the following facts disclosed by an applicant EXCEPT the applicant's
county of residence
Which of the following statements is CORRECT about the authority of the Insurance Commissioner to review Life, Accident & Sickness policy forms for use in West Virginia?
The Commissioner has authority to review these forms if they will be issued for delivery in West Virginia
Which of the following qualifications is required for a producer's license in West Virginia?
Trustworthiness and competence
