pass now pt2

How long is a free-look period for replacement of policies?

20 day

If the Commissioner issues a cease and desist order, but the producer continues the same activities, the producer can face a fine up to which of the following amounts per violation?

$50,000

Which of the following is NOT an example of controlled business?

A licensee writes policies solely for friends and their families.

A temporary license may be obtained for all of the following situations EXCEPT

A producer's retirement.

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Alien insurer.

What is a foreign insurer?

An insurer with a home office in another state

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice.

The Medical Information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons.

Who makes up the Medical Information Bureau?

Insurers

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of premium

A domestic insurer issuing variable contracts must establish one or more

Separate accounts.

All of the following would be eligible to establish a Keogh retirement plan EXCEPT

The president and employee of a family corporation.

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?

Interest only option

Which of the following is TRUE regarding the annuity period?

It may last for the lifetime of the annuitant.

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

Other-insured rider.

Which of the following would be in violation of producer's duties under Rule 24, Life Insurance Solicitation?

Producer referring to him/herself as financial consultant

When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT

Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant.

If an agent wishes to sell variable life policies, what license must the agent obtain?

Securities

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association.

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

The annuitant must be a natural person.

If an insured continually uses the automatic premium loan option to pay the policy premium,

The policy will terminate when the cash value is reduced to nothing.

Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings?

They are tax deferred until withdrawn.

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

An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

When a producer is trying to reinstate a lapsed license, what kind of fees would he be required to pay?

The producer will have to pay a penalty 3 times the unpaid renewal fees.

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant

With the policy.

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

Annuitant

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

Convertible Term Policy.

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

Paid-up option

What describes the specific information about a policy?

Policy summary

A woman has a life policy in force for $300,000. She is terminally ill. She wants to get an "advance" from her death benefit to help pay her mounting medical bills. She met some people who said they could advance her $100,000 if she would sign ownership over to them. Which of the following is true?

She probably met with a Viatical Settlement Company.

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Contracts of adhesion.

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing term

What is the purpose of a free-look period in insurance policies?

It allows the insured to reject the policy with a full refund.

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

Reduced paid-up

In a direct rollover, how is the money transferred from one plan to the new one?

From trustee to trustee

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Guaranteed insurability rider.

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?

Limited pay whole life

An individual has been contributing to a retirement account after taxes are taken out of his paycheck. His financial advisor told him that he will be allowed to make contributions after age 70½. The account owner does not have to pay taxes on the growth of his account. What type of retirement account is it?

Roth IRA

Which of the following describes the tax advantage of a qualified retirement plan?

The earnings in the plan accumulate tax deferred.

All of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT

The employer can receive a current tax deduction for any contributions made to the plan.

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?

Fraud

Fixed annuities provide all of the following EXCEPT

Hedge against inflation.

An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information?

Present the insured with a Disclosure Authorization Notice

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Revocable beneficiary.

All of the following employees may use a 403(b) plan for their retirement EXCEPT

The CEO of a private corporation.