insurance review

variable insurance and variable annuities are regulated by

Sec, finra, and department of insurance

a substandard risk compared to a standard risk would pay?

a higher premium

the medical information bureau is

a source of medical information to alert insurers to adverse medical history

what is the primary purpose of a 401 k plan ?

accumulation of retirement funds

who acts behalf of the principal

agent

what type of life insurance is most commonly used for group plans?

annual renewable term

when an annuity is written whose life expectancy is taken into consiserations

annuitant

which of the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy from one individual to another?

assignment

all of the followers are nonfoeiture options in life insurance policies except

automatic premium loan

an insurance contract must contain all of the following elements to be considered legally binding except?

beneficiary consent

which of the following is not true regarding an annuity certain?

benefits stops at the annuitants death

social security benefits are avaible for surving spouse untill the youngest child reaches the age 16. benefits are later resumed when the surviving spouse reaches the retirement age. what is the time period called during which the surviving spider does not recieve benefits?

blackout period

which of the following statements is true of both the fixed period and fixed amount settlement options

both guarantee the principal and interest will be fully paid out.

which type of annuity settlement stops when the annuitaunt dies?

cash refund annuity

the 10% early withdrawal penalty from IRA can be waived for

catastrophic medical expenses

if an applicant for insurance submits the application and pays the premium at the same time, the insured must give which of the follwoing to the applicant

conditional receipt

when must insurable intrest exists in life insurance?

date of application

when the insured purchase a new home he wanted to purchase a life insurance policy that would protect his family against losing the home should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be

decreasing term

an individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. which of the following types of annuities would beet meet this need?

deferred

annuities may be purchase with all of the following payment methods except?

deferred annuity

which of the following is not a standard exclusion in life insurance policies?

disability

which of the follwing terms is used to named the nontaxable return of unused premiums?

dividend

what qualifies an individual to contribute to an IRA

earned income

for retirement plan to be qualified it must be designed for the benefit of the?

employees

in an insurance contract consideration refers to ?

exchange of something of value by both parties

a spouse receives $5,00 a month until the principal and interest on her husband life insurance policy have been paid out. Which settlement option did this beneficiary choose?

fixed amount

an annuity that guarantee a minium rate of return is known as an

fixed annuity

an insurance company that is formed under the laws of another state is known as what type of insurer?

foreign

which of the following features allows an insurance policy to remain in force for a specific number of days beyond the premium due date?

grace period provision

conditions that increase the chances of an insured loss occurring are referred to as

hazards

when would a misrepsenatation to the insurance applications be considered fraud?

if it is intentional and material

which of the following is true regarding term insurance?

if the insured dies after the end of the term, there is no death benefit to the beneficiary.

under what circumstances will the contingent beneficiary receive the death benefit?

if the primary beneficiary dies before the insured

an agents actions show what kind of authority?

implied

a life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

incontestability clause

which state provision states the if a policy allows for greater compensation than the financial loss incurred, the insured may only recieve benefits for the amount lost?

indemnity

when beneficiary in a life insurance policy receives payments consisting of both principal and interest portion, what will be taxed as income

intrest only

all of the following are true regarding the guaranteed insurability rider except

it is avaible automatically for no extra premium

all of the following are true regarding the guaranteed insurability rider except?

it is avaible automatically for no extra premium.

which of the following is true about the mandatory free look period in a life insurance policy?

it starts when the policy is delivered.

which of the following is an example of a limited pay life policy?

life paid at 65

what does an annuity protect the contract owner against?

living longer than expected

in a single employer group plan what is the name of the document that is issued to the employer?

master contract

which of the following is not true regarding policy loans?

money borrowed from the cash value is taxable

which of the following premium payment nodes would result in the highest overall premium for life insurance?

monthly

the approach to determining the amount of the personal life insurance that an applicant needs that considers such factor as the cost associated with death, cost of educating children, and cost of housing is called the

needs approach

an insured submits the full premium along with the completed application for life insurance. once the policy is issued, when does the coverage begin?

on the date of the application

which of the following has the right to surrender a deferred annuity contract?

only the annuity owner

when a death claim is submitted, the insurer discovered that the insured understand her age on the application for a life policy. what action will the insurer take?

pay a reduced death benefit base on the insured actual age.

in oreder to reinstate a life insurance policy the insured must do all of the following except

pay next year premium in advance

if no receipt is issued at the time of the application, a statement of good health is usually required at the time of

policy delivery

mutual companies are owned by

policy owners

which of the following is a characteristics of a revocable beneficiary designations

policyowner can change beneficiary designation anytime without consent of beneficiary

which of the following is true regarding a joint life policy?

premium is based on the average age of the insured's.

all of the following are examples of risk retention except?

premiums

which of the following is an example of an agents fiduciary responsibilities?

promptly forwarding premiums to the insurer

which of the following factors is not considered by an underwrite when determining the premium rates for an individual seeking insurance?

race

the insured pays 1,200 annually for life insurance premium. This year she has accumulated $175 worth of dividends which she applied to her next premium, this reducing it to 1,o25. what dividend option has the insured chosen

reduction of premium

with a traditional whole life policy the death benefit

remains constant over time

an annually renewable term policy

renews each year with an increased premium

if an employer wants to enter the group outside of the open enrollment period, to reduce adverse selection the insurer may

require evidence of insurability

a policyowner cancels his life policy but instructs the insurance company to transfer the cash value of the policy to an annuity. the non taxable transaction is called a?

rollover

if an agent wishes to sell variable life policies what license must the agent obtain In addition to a life insurance license?

securities

an annuity begins payments to the annuitaunt one month after it is purchased. what type is

single premium immediate annuity

an insurance policy that only requires a payment of premium at its inception and provides insurance protection for the life of the insured and endows at the age 100 is called?

single premium whole life

in insurance a contracts, a warranty is a

statements that must be true

all other factors being equal which of the following types of annuities will provide the highest monthly income?

straight life

life insurance death benefits can be used to fund funeral and other expenses that could be otherwise difficult to fund with a loss of the insured income. what term is most closely associated with this?

survivor protections

in life insurance policies cash value increases are

tax deferred

for personal use life insurance, the lump sum death benefit is recieve

tax free

which of the following retirement plans is for nonprofit, charitable, educational, or religious organizations

tax shelter annuity 403 (b)

generally the premium paid for personal life insurance is

taxed

the time period during which an anniutant contributes to an annuity is called

the accumulation period

an individual owns a adjustable life policy. sometime in the future he 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 may have an insurable interest in the insured except?

the employer

who bears the investment risk in a fixed annuity?

the insurance company

life insurance companies are mortality tables to predict?

the life expectancy of the proposed insured.

all of the following are true of key person insurance except?

the plan is funded by permanent insurance only

risk insurance terminology refer to

the uncertainty of financial loss

which of the following statements is true about annuities?

they can provide a lifetime income

annuities can be used for all the following reason except?

to create an estate

in which of the following methods dealing with risk is applied when a person purchase insurance

transfer

which division of an insurance company is responsible for the selection, evaluations and classification of risks?

underwriting

a policy that allows the beneficiary to collect both the death benefit and cash value upon the death of the insured is

universal life, option B

the insured must be able to rely on the statements in this application and the insured must be able to reply on the insurer to pay valid claims. In the forming of an insurance contract this is referred to as?

utmost good faith

an insured receives a monthly summary regarding his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does he have

variable

avoiding tax consequences when transferring asset from one IRA to another can be accomplished by which of the following?

waiting until after 60 days to deposit funds in a new plan

beacuse of an injury an insured has been unable to work for 7 months. He hasn't been able to pay his life insurance policy premium, yet the policy remained in force. This policy includes

waiver of premium rider

the insured is also the policyowner of whole life policy. What age must the insured attain in order to receive the policy face amount?

100

if 100,00 of life insurance proceeds were used In a settlement options which is paid 13,00 per year for 10 years, which of the follwokf amounts would be taxable annually

3,000

excess contribution to a Roth IRA are subject to what tax penalty?

6%