Insurance Exam IN

Which of the following explains the policy owners right to change beneficiaries, choose options, and receive proceeds of a policy? A. the entire contract provision B. the consideration clause C. assignment rights D. owners rights

D. owners rights

Which of the following features of the indexed whole life policy is not fixed? A. policy period B. cash value growth C. Premium D. Death benefit

B. cash value growth

If a consumer requests additional information concerning an investigative consumer report how long does the insurer or reporting agency have to comply? A. 10 days B. 3 days C. 5 days D. 7 days

C. 5 days

Producers helping a married couple determine the financial needs of their children in the event one or both should die prematurely this is a personal use of life insurance known as? A. survivorship insurance B. juvenile protection provision C. Survivor protection D. life planning

C. Survivor protection

What is the waiting period on a waiver of premium rider in insurance policies? A 30 days B. 3 months C. 5 months D. 6 months

D. 6 months

All of the following could qualify as a group for the purpose of purchasing group life insurance EXCEPT A. a trustee group B. a labor union C. A single employer with only 20 employees D. An association formed one year ago

D. Association formed one year ago

And insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up what kind of policy is it? A. Limited pay life B. variable life C. Adjustable life D. graded premium life

A. Limited pay life

Informing an insurance contract when does acceptance usually occur? A. When an insurer's underwriter approves coverage B. when insured delivers the policy C. Richard received an application D. when an insured submit an application

A. When an insurer's underwriter approves coverage

If a life policy allows the policy to make periodic additions to the face amount at standard rates without approving insurability the policy includes a? A. guaranteed insurability rider B. paid up additions option C. Cost of living provision D. nonforfeiture option

A. guaranteed insurability rider

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? A. adhesion B. consideration C. God faith D. representation

B. Consideration

In a case where the primary beneficiary predeceased insured in the event of the insured's death the death benefit proceeds will be paid to? A. insured spouse B. the policy owner C. Insurance company D. the contingent beneficiary

D. the contingent beneficiary

Which of the following is an example of liquidity in the life insurance contract? A. flexible premium B. money in a savings account C. The cash value available to the policy owner D. the death benefit paid to the beneficiary

C. The cash value available to the policy owner

Which of the following allows the insurer to relieve a minor insured from premium payments if the minors parents have died or become disabled? A. Payor benefit B. jumping juvenile C. Juvenile premium provision D. waiver of premium

A. Payor Benefit

Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application? A. return the application to the applicant for completion B. issue a policy anyway since application has been submitted C. Ask the producer who solicited the policy to complete and resign the application D. fill in the blanks to the best of dentures knowledge

A. return the application to the applicant for completion

Which of the following would be considered a class A misdemeanor? A. failing to provide the insured with the policy summary B. willfully violating the Indian insurance code C. Being involved in an unfair competition practice D. committing insurance fraud

B. willfully violating the Indiana insurance code

In a life settlement contract, whom does the life settlement broker represent? A. The insurer B. The beneficiary C. The life settlement intermediary D. The life-policy owner

D. The life-policy owner

Put the following are required for life insurance illustrations except? A. may only be used as approved B. they must identify nonguaranteed values C. They must differentiate between guaranteed and projected amounts D. They must be part of the contract

D. They must be part of the contract

And insured receives an annual life insurance dividend check. What term best describes this arrangement? A. cash option B. reduction of premium C. Annual dividend provision D. accumulation at interest

A. Cash Option

If a settlement option is not chosen by the policy owner or the beneficiary which option will be used? A. Fixed period B. fixed amount C. lump sum D. life income

C. lump sum

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit? A. If the primary beneficiary predeceases the insured B. when the insured dies the primary and contingent beneficiary shall share death benefits equally C. With the primary beneficiaries written consent D. if the insured died from accidental means

A. If the primary beneficiary predeceases the insured

In forming an insurance contract, when does acceptance usually occur? A. When an insurer's underwriter approves coverage B. when an insurer delivers to policy C. Insure receives an application D. when an insured submits an application

A. When an insurer's underwriter approves coverage

A universal life insurance policy is best described as a what? A. flexible premium variable life policy B. annually renewable term policy of the cash value account C. Variable life with a cash value account D. whole life policy with two premiums target and minimum

B. annually renewable term policy with the cash value account

Under rule 24 life insurance solicitation producers duties include all of the following except? A. advising the applicant that the dividends in the policy are not guaranteed B. providing the applicant with a signed copy of the important notice regarding replacement C. Clarifying to the applicant that the producer will be receiving a commission for the transaction D. Informing the applicant of the name of the company that the producer represents

B. providing the applicant with a signed copy of the important notice regarding replacement

Interest rate earned on policy dividends is A. tax deductible B. 40% taxable C. Taxable D. nontaxable

C. Taxable

Which of the following is true regarding a hearing upon the nonrenewal of a producers license? A. the hearing must be held within 30 days B. after the hearing the commissioner may impose a criminal penalty on the applicant C. A hearing guarantees renewal of the license D. The commissioner may request a hearing within 63 days of the non-renewal date

A. the hearing must be help within 30 days of the written demand

A 60 year olds participate in a 401(k) plan takes a distribution rules it over to IRA within 60 days which of the following is true? A. the amount distributed is subject to ordinary income tax B. the amount of the distribution is reduced by the amount of 20% withholding tax C. Taxes are due since the plan for Jasper is over the age of 59 1/2 D. there is a 10% early withdrawal penalty

B. the amount of the distribution is reduced by the amount of 20% withholding tax

If an insurer becomes insolvent, which of the following would pay benefits to policyholders? A. the federal reserve fund B. the guaranty association C. The NAIC D. the state department of insurance

B. the guaranty association

Fixed annuities provide all the following except A. minimum guaranteed rate of interest B. future income payments C. Hedge against inflation D. equal monthly payments for life

C. Hedge against inflation

SIMPLE Plans require all of the following EXCEPT A. no other qualified plan can be used B. no more than 100 employees C. Employees must receive a minimum of $5000 in annual compensation D. At least 1,000 employees

D. At least 1,000 employees

A universal life insurance policy is best described as a/an A. variable life with a cash value account B. Whole life policy with two premiums target and minimum C. Flexible premium variable life policy D. annually renewable term policy with the cash value account

D. annually renewable term policy with the cash value account

Which of the following includes information regarding a persons credit, character, reputation and habits? A. consumer history B. Insurability report C. Agents report D. consumer report

D. consumer report

All of the following are examples of third-party ownership of a life insurance policy except? A. and insured couple purchases a life insurance policy issuing the life of their grandson B. A company purchases a life insurance policy on their manager who is an important part of operation C. When an insured purchased a new home the insured made an absolute assignment of life insurance policy to the mortgage company D. insured borrows money from the bank and make a collateral assignment of a part of death benefit to secure the loan

D. insured borrows money from the bank and make a collateral assignment of a part of death benefit to secure the loan

The paid-up additional option uses the dividend A. purchase a one year term insurance in the amount of the cash value B. to reduce the next year's premium C. To accumulate additional savings for retirement D. purchase a smaller amount of same type of insurance as the original policy

D. purchase a smaller amount of same type of insurance as the original policy

Under the replacement regulation rule 16.1 shut the following statements best describe the producers duties? A. the producer must notify the existing company of the replacement B. the producer must provide an application with a copy of the important notice regarding the replacement of life insurance C. Producer must make sure that the applicant has received our court forms D. the producer must conduct a reasonable investigation to determine if your placement will take place

D. the producer must conduct a reasonable investigation to determine if your placement will take place

Which of the following is a key distinction between variable whole life and variable universal life products? A. variable universal life is regulated solely through FINRA B. variable whole life policy loans from the cash value C. Variable universal life has a fixed premium D. variable whole life has a guaranteed death benefit

D. variable whole life has a guaranteed death benefit