LIFE Primerica Legal
Minimum age for purchasing a life insurance policy in Florida is ______?
15
What is the closest term to an "authorized" insurer?
Admitted
Another name for a substandard risk classification is
Rated
Which of the following is TRUE regarding variable annuities?
The annuitant assumes the risks on investment.
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.
An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity?
10 %
Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
If a licensee changed his or her residence address, within how many days must the department be notified?
30 days
In the state of Florida, it is illegal for a licensee's commissions from controlled business to exceed what percentage of the total in a given year?
50
In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the cumber of days elapsing before the premium is paid. What is the maximum annual interest rate?
8 %
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
Controlled
Who does the secondary notice provision protect?
Elderly Insured
An agent's client needs additional insurance which the agent's own insurer cannot provide. The agent has to solicit additional coverage from another authorized insurer. This coverage is known as ____
Excess
Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?
Family Term Tider
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
Fixed amount
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection.
Regarding the free-look provision, the insurance company
Must allow the policyowner to return the policy for a full refund.
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. the agent is guilty of _________.
Rebating
Which rule would apply if an agent known an applicant is going to cash in an old policy and use the funds to purchase new insurance?
Replacement Rule
Who protects policy owners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?
The Guaranty Association
Which of the following dates must be contained in a policy summary?
The date the summary was prepared
Who does the second addressee provision protect?
The insured of the age of 64
What kind of policy allows withdrawals or partial surrenders?
Universal Life
An agent delvers a life insurance policy to the proposed insured. The insured makes a decision not to accept the policy. The insured may return the policy for a full refund of premium within how many days?
14 days
If an agent advises a policy holder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of ________
Churning
Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?
Term Rider
In what way can an agent demonstrate high standards of ethics?
By putting the needs of the insured above his own
When an annuity is written, whose life expectancy is taken into account?
Owner
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?
Premiums are not tax deductible as a business expense
Because of financial obligations, John felt that he needed more insurance than the insurer was willing to issue. John's insurance producer told him that he could maximize the death benefit without increasing the face amount by the use of a(n)
Return of premium rider
What is the purpose of settlement options?
They determine how death proceeds with be paid
If an employee is accepted into a group insurance plan, which status will the employee have?
Certificate holder
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy.