Life Insurance

full benefit

A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy?A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy?

Required a premium increase each renewal.

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Other-insured rider.

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

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

The payments will stop when the annuitant dies.

All of the following statements are true regarding installments for a fixed amount EXCEPT

Annually Renewable Term.

All other factors being equal, the least expensive first-year premium payment is found in

lower

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

permanent

An applicant wants to buy a policy that has a cash value element. Which type should she buy?

The date of medical exam

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

Common disaster

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

$9,800

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?

Universal life

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

cash option

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

inspection report

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?

$300

At the time of initial licensing, what fee must a viatical settlement provider pay?

It is the viatical settlement provider's responsibility to inform his insurance company that the policy has been viaticated.

Bob decides to sell his life insurance policy to a viatical settlement company. Which of the following is true?

Seek higher returns

Equity indexed annuities

By their members - authorized insurers

How are state Insurance Guaranty Associations funded?

Until the beneficiary's death

How long will the beneficiary receive payments under the single life settlement option?

Jumping juvenile policy

If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?

0

If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?

the type of investment

In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT

loss

Insurance is a contract by which one seeks to protect another from

15 days prior to group policy expiration.

Insurers are required to give the insured converting to an individual policy notice of their conversion privilege

30

Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Pennsylvania within how many days of the final disposition of the matter?

5000 for each violation

Once it has been reasonably proven that a person has knowingly violated the Insurance Code regarding unfair methods of competition, the Department may impose a civil penalty of

Regulates consumer reports.

The Federal Fair Credit Reporting Act

grace period

The automatic premium loan provision is activated at the end of the

taxable

The interest earned on policy dividends is

Is defined as the frequency and the amount of the premium payment.

The mode of premium payment

To purchase a smaller amount of the same type of insurance as the original policy.

The paid-up addition option uses the dividend

Interest only option

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

It has the highest amount of insurance protection.

What is the benefit of choosing extended term as a nonforfeiture option?

The policyowner must sign a delivery receipt.

What must happen when an individual policy or annuity has been personally delivered to the policyowner?

Purchase a single premium policy for a reduced face amount.

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Annuitant

When an annuity is written, whose life expectancy is taken into account?

When the insured reaches age 100

When would a 20-pay whole life policy endow?

Reduced paid-up

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

reduced paid up

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

It is level term insurance.

Which of the following best describes annually renewable term insurance?

policyowner

Which of the following has the right to convert the existing term coverage to permanent insurance?

Death due to plane crash for a fare-paying passenger

Which of the following is NOT typically excluded from life policies?

It provides income the beneficiary cannot outlive.

Which of the following is true regarding a single life settlement option?

It can protect the policy proceeds from creditors of the beneficiary.

Which of the following is true regarding the spendthrift clause in life insurance policies?

Buy-sell agreements are normally funded with a life insurance policy.

Which of the following statements concerning buy-sell agreements is true?

A licensee is barred from charging a fee in addition to a commission to a person for the sale, solicitation or negotiation of a contract of insurance for commercial business.

Which of the following statements is INCORRECT?

dividend

Which of the following terms is used to name the nontaxed return of unused premiums?

Universal life

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

Vacation travel expenses

Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds?

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?

Limited pay whole life

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Decreases

if an insured changes his payment plan from monthly to annually, what happens to the total premium?

waiver of premium receipt

upon policy delivery, the producer may be required to obtain any of the following EXCEPT