Life insurance learn as you go pt 1

What is the maximum benefit that the Washington Life and Disability Insurance Guaranty Association will pay for any one individual?

$500,000

According to the Entire Contract provision, a policy must contain

A copy of the original application for insurance

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?

A debtor has an insurable interest in the life of a lender.

The term "illustration" in a life insurance policy refers to

A presentation of non-guaranteed elements of a policy

the LEAST expensive first-year premium is found in which of the following policies?

Annually renewable term

Upon written request, the records of the Insurance Commissioner may be inspected by which of the following?

Any member of the public

An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his

Attained age.

Which of the following information would be explained in the buyer's guide?

Generic information about different types of life insurance policies

In life insurance policies, cash value increases

Grow tax deferred.

The purpose of life and disability insurance guaranty association is to

Help protect policy owners and beneficiaries against financial loss caused by the insolvency of an insurance company

A participating insurance company may do which of the following?

Pay dividends to the policyowner based upon actual mortality cost, interest earned and costs

The Federal Fair Credit Reporting Act

Regulates consumer reports

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

Pay a reduced death benefit The incontestability clause prevents an insurer from denying a claim due to statements in an application after the policy has been in force for 2 years. However does not apply to statements relating to age, sex and identity.

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

Settlement option.

Group life insurance policies delivered in this state must contain all of the following provisions EXCEPT

Statements of the applicant are considered warranties.

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

If an applicant for a life insurance policy and the potential insured are two different people, what would be the underwriter's main concern?

The existence of insurable interest between the applicant and the insured

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

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

All of the following are characteristics of a group life insurance plan except

There is a requirement to prove insurability on the part of the participants. There is no individual underwriting for group life insurance

Which term describes an individual who is domiciled and licensed as a resident produced in a state other than Washington?

Non resident producer

Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance?

Only written statements can be considered fraud.

At least once every 5 years, the Commissioner must fully examine each of the following organizations or person EXCEPT

National Association of insurance commissioners (NAIC)

If the State Insurance Department believes that a producer may be in violation of an insurance law or regulation, what may be issued?

Cease and Desist order

The document that indicates that an insurer has been approved and is authorized to transact insurance in a particular state is known as

Certificate of Authority

What type of violation is transacting insurance without a license?

Class B felony

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

Fair Credit Reporting Act

Which is true about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income.

The type of term insurance that provides increasing death benefits as the insured ages is called

Increasing Term

The insurer may suspect that a Mora hazard exists if the policyholder

Is not honest about his health on an application for insurance Moral hazards refer to those applicants that may lie on an application for insurance or in the past have submitted fraudulent claims against an insurer

A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?

Joint and survivor

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-Pay Life

Which of the following is NOT true regarding policy loans?

Money borrowed from cash value is taxable

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?

Monthly premium waiver and monthly income

the rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Waiver of premium

When may an insurance company use suicide as a defense against paying a death claim?

When death occurs within a specified period of time after the policy was issued.

An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health

which of the following is NOT an example of a valid insurable interest

debtor in creditor

Which of the following information will be stated in the consideration clause of a life insurance policy?

the amount of premium payment