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Under SIMPLE plans, participating employees may defer up to a specified amount each year, and the employer then makes a matching contribution up to an amount equal to what percent of the employee's annual wages?
3
Within how many days after the initial pretrial hearing date must an insurance producer report criminal prosecution of the producer to the Commissioner?
30 days
Jeff is 45 years old and currently owns life insurance, but is considering purchasing a new Universal Life policy. Which of the following scenarios would NOT involve replacement?
Allowing his one-year Term policy to expire
Which of the following products provides income for a specified period of years or for life, and protects a person against outliving his or her money?
An annuity
How is the Commissioner selected for the office?
Appointed by the Governor
Which of the following features of the Indexed Whole Life policy is NOT fixed?
Cash Value Growth
The term "fixed" in a fixed annuity refers to all of the following EXCEPT
Death benefit
What required provision protects against unintentional policy lapse?
Grace period
The death benefit under the Universal Life Option B
Gradually increases each year by the amount that the cash value increases.
Which of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report.
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
One-year term option.
All of the following are true regarding rebates EXCEPT
Rebates are allowed if it's in the best interest of the client.
All of the following may result in suspension or denial of an insurance license EXCEPT
Sharing commissions with another licensed producer.
An IRA purchased by a small employer to cover employees is known as a
Simplified Employee Pension plan
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
The interest earned on policy dividends is
Taxable.
Which of the following is true about the Commissioner of Insurance?
The Commissioner is authorized to participate in the NAIC.
Which of the following is TRUE about nonforfeiture values?
They are required by state law to be included in the policy.
Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings?
They are tax deferred until withdrawn
What is the purpose of settlement options?
They determine how death proceeds will be paid
Which of the following is NOT true regarding Equity Indexed Annuities?
They earn lower interest rates than fixed annuities.
Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?
Withdrawals are not taxable
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
joint and survivor
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
An absolute assignment is a
transfer of all ownership rights in a policy
Which of the following is true regarding a hearing upon the nonrenewal of a producer's license?
The hearing must be held within 30 days of the written demand.
Who bears all of the investment risk in a fixed annuity?
The insurance company
If an insurer requires a medical examination of an applicant in connection with the application for life insurance, who is responsible for paying the cost of the examination?
The insurer
Insurance producers who willfully violate the Indiana Insurance Code are committing a Class A misdemeanor. What is the maximum punishment they may be subjected to?
Up to 365 days in jail
All of the following are true regarding viatical settlement regulations in Indiana EXCEPT
Viatical contracts allow for a 10-day free-look period.
A tax-sheltered annuity is a special tax-favored retirement plan available to
certain groups of employees only
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
consideration
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
respond to the consumer's complaint
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
size of each installment
Which of the following describes the tax advantage of a qualified retirement plan?
the earnings in the plan accumulate tax deferred
Which of the following statements about the reinstatement provision is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.
Which of the following statements is TRUE about a policy assignment?
It transfers rights of ownership from the owner to another person
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint Life
The Commissioner must be notified in all of the following circumstances EXCEPT
A change of the producer's business phone number.
Which of the following will be EXEMPT from continuing education requirements?
A limited lines credit producer
What does "liquidity" refer to in a life insurance policy?
Cash values can be borrowed at any time.
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The Fair Credit Reporting Act
You know that your client is currently insured under a life policy, but you are making a sale presentation to that client for a new life policy. You must provide the client with the Important Notice Regarding the Replacement of Life Insurance and a copy of the sale proposal under all of the following situations EXCEPT
The client is converting from an existing term policy to whole life.
If a death benefit from a life insurance policy is not paid out in a timely manner, when does the interest begin to accrue?
after 30 days from the date the benefit is due