NW Mutual Life prep

Which of the following riders can be included in a life insurance policy without additional premium due? Guaranteed insurability Return of premium Automatic premium loan Waiver of premium

Automatic premium loan

An insurance company sells an insurance policy over the phone in response to a TV ad. Which of the following best describes this act? Insurance telemarketing Direct response marketing Independent agency marketing Illegal

Direct response marketing

As a field underwriter, a producer is responsible for all of the following tasks EXCEPT Issue the policy that is requested. Help prevent adverse selection. Solicit business that will fall within the insurer's underwriting guidelines. Obtain appropriate signatures on the application for insurance.

Issue the policy that is requested

What are the licensing requirements for someone who sells variable universal life insurance? Universal life and variable products Life insurance and securities Life insurance Securities

Life insurance and securities

Any individual life insurance policy must provide for a minimum period of at least how many years during which the insured may institute legal action? 12 months 2 years 3 years 6 years

3 Years

A person requesting a hearing should file the request within how many days of the act giving rise to the grievance? 90 days 20 days 60 days 40 days

60 days

All of the following information about the applicant is identified in the General Information section of a life insurance application EXCEPT Education. Age. Gender. Occupation.

Education

An insurer invests the money it receives from premiums paid by its insureds. Which of the following is TRUE regarding the interest earned on these investments? It is paid out as dividends. It is used to fund executive bonuses It is used to increase the death benefit. It is used to lower premiums.

It is used to lower premiums.

Which statement is NOT true regarding a Straight Life policy? Its premium steadily decreases over time, in response to its growing cash value. The face value of the policy is paid to the insured at age 100. It usually develops cash value by the end of the third policy year. It has the lowest annual premium of the three types of Whole Life policies.

Its premium steadily decreases over time, in response to its growing cash value.

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? Corridor option Variable option Option A Option B

Option B

Which of the following individuals must have insurable interest in the insured? Producer Policyowner Beneficiary Actuary

Policyowner

All of the following are general requirements of a qualified plan EXCEPT The plan must be communicated to all employees. The plan must be for the exclusive benefits of the employees and their beneficiaries. The plan must be permanent, written and legally binding. The plan must provide an offset for social security benefits.

The plan must provide an offset for social security benefits

#19. SIMPLE Plans require all of the following EXCEPT a) No more than 100 employees. b) Employees must receive a minimum of $5,000 in annual compensation. c) At least 1,000 employees. d) No other qualified plan can be used.

c) At least 1,000 employees.

The minimum variable interest rate that a company can charge is the policy's guaranteed cash value rate, plus 3%. 5%. 1%. 2%.

1%

Which nonforfeiture option provides coverage for the longest period of time? Paid-up option Accumulated at interest Reduced paid-up Extended term

Reduced paid-up

Which of the following information will be stated in the consideration clause of a life insurance policy? The parties to the contract The time period allowed for the payment of premium The conditions for insurability The amount of premium payment

The amount of premium payment

An insurer hires a representative to advertise its company at a local convention. The representative lies about the details of some of the policies, in an attempt to secure more business for the company. Who is responsible for the representative's claims? The representative The underwriters The agent The insurer

The insurer

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT Upon conversion, the premium for the permanent policy will be based upon attained age. Upon conversion, the death benefit of the permanent policy will be reduced by 50%. Evidence of insurability is not required. Most term policies contain a convertibility option.

Upon conversion, the death benefit of the permanent policy will be reduced by 50%.

#49. Which of the following policies is characterized by a provision where the premiums are lower in the early years of the policy and increase over time to a point where they become level for the remainder of the policy? a) Enhanced whole life b) Minimum deposit whole life c) Graded premium whole life d) Indeterminate premium whole life

Graded Premium Whole Life

Some persons become eligible to receive more than one Social Security benefit. They may qualify for retirement benefits based on their own earnings, and they may also be eligible for benefits based on the earnings of a spouse. In such cases, the person is entitled to receive a) The larger of the two benefits, not the total of the two benefits. b) A portion of each benefit c) Both benefits. d) The smaller of the two benefits.

The larger of the two benefits, not the total of the two benefits.

The automatic premium loan provision is activated at the end of the Free-look period Elimination period. Policy period. Grace period.

Grace period

When the owner of a $250,000 life insurance policy died, the beneficiary decided to leave the proceeds of the policy with the insurance company and selected the Interest Settlement Option. If at the time of withdrawal the interest paid was $11,000, the beneficiary would be required to pay income tax on $11,000. None, because the beneficiary has not received the death benefit. $261,000. $239,000.

$11,000