Insurance missed 2

Certificate of authority

Which of the following must an insurer obtain in order to transact insurance within a given state?

Universal Life- Option A

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

PIA

Which of the following refers to the amount of retirement benefits a worker receives under Social Security based on the worker's earnings and retirement age?

Automatic premium loan

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

Premiums are determined by the age, sex and occupation of each individual certificate holder

All of the following are characteristics of group life insurance EXCEPT

They must be part of the contract

All of the following are requirements for life insurance illustrations EXCEPT

The plan is funded by permanent insurance only

All of the following are true key person insurance EXCEPT

Taxation on accumulation

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

Aleatory

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

$50,000

An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out?

Upon the last death

In a survivorship life policy, when does the insurer pay the death benefit?

The cash value will be paid to the annuitant's estate

The annuity owner dies during the accumulation period without naming a beneficiary. Annuity's cash value exceeds premiums paid. Which of the following is TRUE?

The beneficiary

The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the dat of her husband's death. Who will select the settlement option in this case?

Death benefit

The term "fixed" in a fixed annuity refers to all of the following EXCEPT

Counteroffer

Which of the following is NOT an essential element of an insurance contract?

Insuring clause

Which of the following policy components contains the company's promise to pay?

Decreasing term

An individual has just borrowed $10,000 on a 5-year note from his bank. The note is due in installments. What type of life insurance policy would be best suited to this situation?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

Present the insured with a Disclosure Authorization Notice

An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information?

Inspection report

An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)

At the end of 20 years, the policy's cash value will equal $100,000

Which of the following is INCORRECT regarding a $100,000 20-year level term policy?

The application given to a prospective insured

Which of the following is NOT the consideration in a policy?

5 days

If a consumer request additional information concerning an Investigative Consumer Report, how long does the insurer or reporting agency have to comply?

Guaranteed insurability rider

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Gross premium

Mortality - Interest + Expense =

It determines if the insurance policy is a MEC

What is the main purpose of the Seven-pay Test?

Application

When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information?

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

When is the earliest a policy may go into effect?

Extended term

Which nonforfeiture option has the highest amount of insurance protection?

Reduced paid-up

Which nonforfeiture option provides coverage for the longest period of time?

Straight life

Which of the following types of annuities will generally provide the highest monthly income?