Insurance "Life"

An insurer terminates an agents appt. Within how many days must the intermediary be notified?

15

A claimant, who is totally and permanently disabled, is eligible for Social Security Disability benefits after an elimination period of

5 months.

All of the following could own group life insurance EXCEPT

A group needing low-cost life insurance

Which of the following is NOT true of Section 1035 Policy Exchanges?

Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30 days.

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

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

When a rider is attached to a permanent life insurance policy, it provides an amount of insurance on each family member?

Family term rider

Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?

Human life value approach (HLVA)

An insured has a life insurance policy with a face amount of $500. He pays a premium each week to the agent who sold him the policy. What kind of policy does the insured have?

Industrial Life

Who does the Interstate Insurance Product Regulation Compact serve?

Insurers

What is the other term for the cash payment settlement option?

Lump Sum

Which type of life insurance policy generates immediate cash value?

Single Premium

All of the following are true regarding the guaranteed insurability rider EXCEPT

This rider is available to all insureds with no additional premium.

When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called

Class Designation

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of

Coercion.

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

What type of annuity can be purchased with a single premium and provides benefit payments immediately?

Immediate

Which of the following is NOT true regarding a nonqualified retirement plan?

It needs IRS approval.

Which of the following settlement options in life insurance is known as straight life?

Life Income

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability.

All of the following are true regarding the Policy Summary EXCEPT

The policy summary may show dividends.