Life Insurance / Exam FX

a) benefits are paid to the borrower's beneficiary

All of the following are components of a Credit Life program EXCEPT a) benefits are paid to the borrower's beneficiary b) the amount of insurance permissible is limited per borrower c) premiums are usually paid by the borrower d) befits are paid directly to the creditor

a) the payable premium amount steadily declines throughout the duration of the contract

All of the following are true regarding a decreasing term policy EXCEPT a) the payable premium amount steadily declines throughout the duration of the contract b) all other factors being the same, it has a lower premium outlay than level term c) the contract pays only in the event of death during the term and there is no cash value d) the face amount of the contract steadily declines throughout the duration of the contract

C) the CEO of a private corporation

All the following are employees that may use a 403b plan for their retirement EXCEPT a) a part-time classroom aide b) the vice-president of a charitable organization c) the CEO of a private organization d) a school bus driver

Yes

Can an insurance institution provide a single notice if a policy is jointly owned?

shall be deemed guilty of a Class 1 misdemeanor

If any person shall act as adjuster on a contract made other than as authorized by the laws of North Carolina, or by any insurance company not regularly licensed to do business in NC

guaranteed insuability

If tom's policy allows him to make periodic additions to the face amount at a standard rate, without proving insurability, his policy includes?

consists of completing 24 hours every 2 years for Property Casualty Agents

In NC, the state's continuing education requirement is

disclosing publicly held personal info of persons who are now, or have ever been, customers of the financial institution

In addition to the notice of info practices, an insurance institution or agent shall provide, to all applicants and policyholders no later than before the initial disclosure of personal info or at the time of the delivery of the insurance policy a clear and conspicuous notice, in written or electronic form, iof the insurance or agent's policies and practices with respect to all the following EXCEPT

highest

In comparison with the other primary types of term insurance sold, what kind of premium does level term have?

No

Is an insurance institution required to provide the notices to any policyholder whose policy s lapsed, expired, inactive, or dormant, or if the insurance institution has not communicated with the policyholder for a period of 12 consecutive months?

c) Jack's payments will be larger (the life expectancy of a woman is longer than that of a man)

Jack and Jill are twins. when their grandfather died, he left one $100,000 which they each used to buy an annuity. When they retired, each selected the life income option. Which is true? a) the payments will be based on their health at the time the payments begin b) because they are the same age, they will receive the same payments c) Jack's payments will be larger d) Jill's payments will be larger

Losing tax advantages

The corridor in a Universal Life Policy raises the death benefit to avoid what?

One-year term option

The dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as?

C) The insurer suspects criminal activity and fraud

Under which of the following circumstances would a pretext interview be permissible? a) a third party is conducting the interview b) the insurer needs to obtain confidential info c) the insurer suspects criminal activity and fraud d) the applicant for insurance fails to provide pertinent info to underwriters

life income with period certain

What annuity settlement option provides income payments to the annuitant for the duration of his or her life, and also guarantees payment for a specified number of years when if the annuitant dies, it will go to the beneficiary?

target premium

What would help prevent a universal life policy from lapsing?

c) provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant

When a replacement is involved, a replacing insurance company is responsible for all the following EXCEPT a) include a policy summary on the proposed life insurance in communication with the existing company b) obtain from the producer a list of the applicant's life insurance or annuity contracts to be replaced c) provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant d) send the existing insurance company a written notice of replacement

OPTION A

Which Universal Life option has a gradually increasing cash value and a level death benefit?

both state government and the Insurance department

Which entity regulates variable life policies?

B) A "deferred annuity" is characterized by the time during which payments are made into the annuity and gain interest on a non-taxable basis

Which is NOT true regarding annuity payments? a) the period of time during which payments are made into an annuity is called the "accumulation period" b) A "deferred annuity" is characterized by the time during which payments are made into the annuity and gain interest on a non-taxable basis c) the payments are called "premiums" d) interest earned on payments is taxable when withdrawn

UNTRUE: C) the annuitant cannot be the same person as the annuity owner

Which is NOT true regarding the annuitant? a) annuitant receives the annuity benefits b) the annuitant must be a natural person c) the annuitant cannot be the same person as the annuity owner d) the annuitant's life is taken into consideration for the annuity

a) Joint life pays a death benefit on the first death, while Survivorship life pays on the last death

Which is the correct comparison between survivorship life and traditional joint life policy? a) Joint life pays a death benefit on the first death, while Survivorship life pays on the last death b) a traditional joint life policy has a lower premium than a survivorship life policy c) joint life policies can cover more than two individuals, while survivorship life is limited to two d) the premiums for both are determined by a combined general health rating

OPTION B

Which option for Universal Life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Other-insured rider

a rider attached to a life policy that provides coverage on the insured's family members is called?

C) contingent upon the profitability of the investment portfolio

a variable annuity has a payout that is a) tied to an index S&P 500 b) guaranteed in the contract c) contingent upon the profitability of the investment portfolio d) the same from one payment to the next

A) this rider is available to all insured

all the following are true regarding the guaranteed insurability rider EXCEPT a) this rider is available to all insured b) the insured may purchase additional coverage at the attained age c) the insured may purchase additional insurance up to the amount specified in the base policy d) it allows the insured to purchase additional amounts of insurance without proving insurability only at a specified date or event

family maintenance

pays monthly income upon the death of the breadwinner for a predetermined number of years after death, plus a lump sum at death, and combines a level term and whole life

5 years

the commissioner must examine every domestic insurer at least once every

annuity period

the period of time during which accumulated money is converted to income payments