Insurance Agent Test questions
max fine for violating a cease and desist order
5,000
How long must insurers keep record's of claims
6 years
Policies not drawn up to negotiate
Adhesion
What's not true about section 1035 policy exchange?
Any exchange made under 1035 must be completed within 30 days
What is the following feature of variable annuity?
Benefit payments amount is not guaranteed.
sold insurance to family
Controlled
Level
Face amount
Independent adjuster may include which of the following?
Firm who acts on behalf of the insurer
Which statement is true about buy-sell agreements ....
Funded by life insurance policy
Automatic Premium Loan Provision is activated at the end of
Grace Period
Universal life insurance policy has two types of interest rates.
Guaranteed and Current
Why should producer deliver policy?
Help insured understand contract
Annually Renewable Term policies provide a level death benefit for a premium that.
Increase Annually
what type of insurance would be used for a return of premium rider?
Increasing Term
As a field underwriter, producer is responsible for all the following Except?
Issue the policy requested
What describes annually renewable term insurance?
It is Level term insurance
Which statement is not true regarding straight life policy?
Its premium steadily decreases over time in response to growing cash value
Married couple owns permanent policy which pays death benefit upon first insured. What policy is this.
Joint Life
husband died wife still receives money, then wife dies, payments stop
Joint and survivor
Which of the following terms means a result in calculation based on the average number of months the insured is projected to live due to medical history and mortality factor?
Life Expectancy
Pay premium for specific number of years until the policy is paid up....
Limited pay life
In a single employer group plan, what is the name of the policy issued to the employer?
Master Contract
What describes Gross annual premium
Net premium plus expenses
Traditional IRA contributions are tax deductible based on...
Owners' income
Relieve a minor insured from premium payments if minor's parents died or have become disabled......
Payor Benefit
Which of the following riders would not increase the death benefit
Payor Benefit Rider
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
Predicted need of family after insured's death
Which of the following would be included in policy summary?
Premium amounts and surrendered value
Which two terms are associated with the way annuity is funded?
Single and periodic payment
Producers must ensure that the contracts they recommend are in the best interest of the insured. This is called.
Suitable
What is not considered when underwriting group insurance?
The insured's medical history
If an insured continually uses the automatic premium loan option to pay the policy premium,
The policy will terminate when the cash value is reduced to nothing
One side made promise
Unilateral
Which of the following would have an IRS required corridor or gap between the cash value and death benefit?
Universal life Option A
Not example of business use...
Wokers Comp
Two types of assignments
absolute and collateral
Who can make a fully deductible contribution to a traditional IRA?
any induvial not covered by an employer
In Order for a nonresident licensee to become a resident producer in New York they must....
apply within 90 days of becoming a resident
IRA Completed when beneficiary not named
dec 31st fifth anniversary owners' death
Benefits paid before being exhausted
fixed period
Two components of universal policy
insurance and cash account
Which of the following is not a whole life insurance?
level term
Whole life
live to 100 to retain face amount
Receive full face amount in whole life policy
live up to 100
The premium of Survivorship compared to Joint life would be
lower
Ridder attached to life insurance policy that provides coverage on insured's family is called
other insured rider
Not a requirement for qualified plan
plan must provide an offset for social security benefits
Spendrift Clause in life insurance policies
protects the policy proceeds from creditors of the beneficiary
Pure life settlement option
pure life provides payments for as long as annuitant lives
which annuities generally provide highest monthly income
straight life
Under extended term of nonforfeiture option the policy cash value is converted to
the same face amount as in whole life policy
