Insuranceee

The USA patriot act was enacted in?

2001

When a policy owner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?

Conversion provision

How are surrender charges deducted in a life policy with a rear-end loaded provision?

Deducted when the policy is discontinued

Which of these is not an element of life insurance premiums?

Morbidity rate

A return of premium life insurance policy is

Whole life and Increasing term

Group life insurance policies are generally written as

annually renewable term

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

$20,000 death benefit

An employee with 25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a:

$25,000 individual whole life policy

P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the application asks if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary?

$50,000 minus any outstanding policy loans

A Limited-Pay Life policy has

*premium payments limited to a specified number of years (In a Limited-Pay Life policy, premium payments are limited to a specified number of years.)

What percent of personal life insurance premiums is usually deductible for federal income tax purposes

0%

Which of the following nonforfeiture options offers the highest death benefit?

Extended term

What action should a producer take if the initial premium is not submitted with the application?

Forward the application to the insurer without the initial premium

Which requirement must be met for an association to be eligible for a group life plan?

Group was formed for a purpose other than acquiring insurance

A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following

Inability of the insured to perform more than 2 Activities of Daily Living (ADL's)

Which of these actions should a producer take when submitting an insurance application to an insurer?

Inform insurer of relevant information not included on the application

Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death

Joint Life

Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?

Life Income

Which of these would be considered a limited pay life policy

Life Paid-Up at Age 70

When a life insurance policy exceeds certain IRS table values, the result would create which of the following?

Modified Endowment Contract (MEC)

All of these insurance products require an agent to have proper FINRA Securities registration in order to sell them except for

Modified Whole Life

Jay is issued a life insurance policy with a death benefit of $100,000 she pays $600 per year in premium for the first five years the premium then increases the $900 per year in the 60 year and remains level there after the policies death benefit also remains at $100,000 which type of life insurance policy is this

Modified life premium

In a life insurance policy, which provision states who may select policy options, designate a name a beneficiary, and be the recipient of any financial benefits from the policy?

Owner's Rights

Which statement is true in regards to a policy loan?

Past-due interest on a policy loan is added to the total debt

Which of the following provisions guarantees that premiums will be waived if a juvenile life policy owner becomes disabled?

Payor clause

A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the

Policy Loan provision

Which is true concerning a variable universal life policy?

Policyowner controls where the investment will go and selects the amount of the premium payment

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group term life plan to all its eligible employees?

Portion of the premiums paid for by the employer may be a tax deduction

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

Proceeds will be paid to K's estate if P dies within a specified time

All of these are considered sources of underwriting information about an applicant EXCEPT

Rating Services

The provision that can be used to put an insurance policy back in force after it is lapsed due to nonpayment is called?

Reinstatement

J let her life insurance policy lapse eight months ago due to nonpayment. She can reestablish coverage under which of the following provisions?

Reinstatement provision

T is covered by an accidental death and dismemberment policy that has an irrevocable beneficiary. What action with the insurance company take if she request a change of beneficiary?

Request of the change will be refused

Why is an applicant signature required on a life insurance application?

To attest that the statements on the application of accurate to the best of the applicants knowledge

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

When the conditions of the receipt are met

The automatic premium loan provision is designed to

avoid a policy lapse

If it's employees share in the cost of insurance, What type of group life insurance plan would a corporation have?

contributory

What type of group insurance plan involves employees sharing the cost?

contributory plan

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

conversion

A variable insurance policy

does not guarantee a return on its investment accounts

Under a trustee group life policy, who would be eligible for a certificate of coverage?

employee

K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?

level

Which life insurance rider typically appears on a juvenile life insurance policy?

payor benefit rider

What type of life insurance are credit policies issued as

term

A variable annuity has which of the following characteristics?

Underlying equity investments

A potential client age 40 would like to purchase a whole life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?

20-Pay Life accumulates cash value faster than Straight Life

Which of the following statements about noncontributory employee group life insurance is false

A minimum number of employees is required to participate

Which of the following types of policies pays a benefit if the insured goes blind?

AD&D

All are true statements regarding the underwriting process, except?

Aids and HIV virus exams can be conducted in a discriminatory fashion

The consideration clause in a life insurance policy indicates that policyowner's consideration consist of a completed application and

An initial premium

An incomplete life insurance application submitted to an insurer will result in which of these actions?

Application will be returned to the writing agent

Under a graded premium policy the premiums

Are lower during the policies early years

What action can a policyowner take if an application for a bank loan requires collateral?

Assign policy ownership to the bank

At what time was the policy owner have insurable interest on the insured in order for the life policy to be valid?

At the time of the application

A student pilot can pay regular premium cost for her life insurance policy with the addition of which of the following?

Aviation exclusion

T is the policyowner for a life insurance policy with an irrevocable beneficiary designation. If T wishes to change the beneficiary, T must obtain permission from the

Beneficiary

A whole life insurance policyowner does not have the right to

Change the grace period

Which of the following features of a group term life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

Conversion privilege

And employee of 20 years recently retired at age 59 1/2. This employees group life contract can be:

Converted to an individual permanent policy and an individual rate

What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time

Decreasing term

Which of these types of policies may not have the automatic premium loan provision attached to it

Decreasing term

Which provision prevents an insurer from changing the terms of the contract with the policy owner by referring to documents not found within the policy itself

Entire contract provision

Which of these statements about a guaranteed insurability option rider is not true?

Evidence of insurability is required when the option is exercised

Ina life insurance policy, which feature states that the policy will not cover certain risks?

Exclusion

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

What kind of beneficiary may be changed by the policy owner without the consent of the beneficiary

Revocable

Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant?

Risk classification

T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

Ten-Year Endowment

What would the Medical Information Bureau (MIB) identify?

Testing positive for marijuana use from a previous screening

J chooses a monthly premium payment mode on his whole life insurance policy. Which of these statements is correct?

The gross premium is higher on a monthly payment mode as compared to being paid annually

All of these statements about equity indexed life insurance are correct except

The premiums can be lowered or raised, based on investment performance

A medical information report may disclose which of the following

Use of marijuana

A producer is required to register with the financial industry regulatory authority in order to sell what kind of life policy

Variable

A wise insurance policy owner would like to take out a policy loan against the cash value in his whole life policy. The interest rate applied to this loan may vary over time. This is referred to as what kind of rate loan?

Variable

What kind of life policy offers the owner investment in products such as money market funds, long-term bonds and equities

Variable

Which type of life policy contains a monthly mortality charge as well as self-directed investment choices

Variable Universal Life

What kind of life policy combines investment choices with a form of term coverage

Variable universal

A life policy that contains a monthly mortality charge as well as self-directed investment choices is called a

Variable universal life policy

Term life policies that have the ability to be converted to permanent coverage may do so during a specific time period. This conversion period

Varies according to the contract

When a misinterpretation of a life insurance policy application is discovered, what action may an insurance company take?

Void the policy only if it is discovered during the contestable. And proven to be material

ABC insurance company has excepted a life insurance application which contains unanswered questions. The company that makes the application part of the life contract in the situation, the insurer has:

Waived one of its legal rights