Missed questions on Guarantee Exam
How many days' notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans?
30 days
Which of the following is NOT considered eligible for group life insurance?
A credit union that needs coverage only for its top 10 employees
Which of the following is guaranteed under a variable whole life insurance policy?
Minimum death benefit
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party's offer
A licensee may have their license suspended, terminated or revoked for all of the following EXCEPT...
Unknowingly over-insuring any property insurance risk
An annuity has accumulated the cash value of $70,000 of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive...
$70,000
Within how many days after receiving a written communication of replacement must an existing insurer provide a policyowner with a policy summary?
10 Days
In the Social Security blackout period, the surviving spouse will not receive benefits until the age of...
60 years
A viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?
A percentage of the face amount of the policy
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
A policy is reissued with a reduction in cash value
Which of the following types of policies would NOT be subject to Florida regulations on life insurance solicitation?
Annuities
Which statement below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs?
Applicants who may require a larger death benefit in the future should buy convertible term insurance
What does the application of contract of adhesion mean?
Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured
A whole life policy that will generate immediate cash value is a...
Single premium policy
A producer advises a policyholder that he should replace his life insurance policy with another, similar policy. The agent is advising this, however, for the sole purpose of earning a commission. What violation has the agent committed?
Churning
Which of the following elements of an insurance contract requires payment of premium? Which of the following elements of an insurance contract requires payment of premium?
Consideration
Which of the following statements is true regarding SIMPLE plans?
Contributions and earnings are tax-deferred until funds are withdrawn.
Which of the following is NOT true regarding a deferred annuity?
Income payments begin within 1 year from the date of purchase
An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?
Grace Period
Variable insurance and variable annuities are regulated by...
SEC, FINRA and Departments of Insurance
Which dividend option will increase the death benefit?
Paid-up additions
In order to reinstate a life insurance policy the insured must do all of the following EXCEPT...
Pay next year's premium in advance
Which of the following will NOT be included in the buyer's guide?
Specific information about the policy
When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a...
Term rider
Which of the following statements regarding HIV testing is NOT true?
Test results must be sent to the Department of Insurance
What is the cost of coverage based on for group life insurance?
The average age and the ratio of men to women
All of the following are true about key-person insurance EXCEPT...
The death benefit is taxable to the business
What happens to the face amount of a whole life policy if the insured reaches the age of 100?
The face amount is paid to the insured
All of the following are advantages of a qualified retirement plan EXCEPT...
The income at retirement is tax free
With Adjustable Life, the owner can change all of the following EXCEPT...
The insured
Which of the following entities is considered the principle?
The insurer issuing a policy
All of the following statements about indexed whole life insurance are correct EXCEPT...
The policy face amount remains level throughout the life of the policy
According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?
The primary beneficiary died before the insured
An insured has a life insurance policy in the amount of $250,000 naming his wife as beneficiary. Upon his death, his beneficiary decides not to receive the death benefit for some time. When she finally receives the death benefit check, it's in the amount of $250,530. Is any portion of the proceeds that the beneficiary receives taxable?
Yes, proceeds in excess of face amount are taxable as interest