Practice exam questio

an insurance agent changes his address. How long will the agent be given to notify the Department of Insurance?

10 days

an insurer that terminates the appointment of an agent must notify the commissioner within

30 days

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy reissued with a reduction in cash value

The Guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following except: - marriage, purchase of a new home, approximately every 3 years between ages 25-40, Birth of a child?

Purchase of a new home

Which of the following would be most likely to establish a SEP?

Small Employers

When an agent delivered an insurance policy to the insured, he collected the initial premium, as well as a document verifying that the insured had not had any injuries or illness since the application date. What is this document called

Statement of good health

what is the most the North Carolina Life and Health Insurance Guaranty Association will pay for a basic hospital, medical, and surgical insurance or major medical policy?

$500,000

T or F: the policy face amount remains level throughout the life of an indexed whole life policy

False; it increases annually to keep up with inflation

When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?

Paid-up additions

a viatical settlement sells for ...

a percentage of the face amount of the policy

What type of interest rate is guaranteed in universal life policies?

contract rate?

An annuity owner receives the same guaranteed payment every month. What type of annuity is it?

fixed

what is guaranteed under a variable whole life insurance policy?

minimum death benefit

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

misrepresentation

what is a specific requirement regarding the number of employees in a SIMPLE plan?

no more than 100 employees

Among the applicants in the same class and life expectancy, which of the following factors can be used to influence premium rates? - race, occupation, ancestry, marital status

occupation

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

Keogh (HR-10) plans are qualified plans for

the self-employeed

in life insurance, when must the policy summary be presented?

before accepting the initial premium deposit

What is NOT a characteristic of variable insurance and annuities?

benefits are determined solely based on the policy premium

which of the following would be TRUE of both the fixed-period and fixed-amount settlement options?

both guarantee that the principal and interest will be fully paid out

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

twisting