Premerica

An individual purchased a $100.000 joint life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

$100,000

And insured long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The longer-term care facility only charge $100 per day. How much will the insurance company pay

$120 a day

What is the maximum period of time a temporary license can be in force?

15 months

If a n agent's residence address is changed, within how many days must the agent notify the commissioner?

30 days

What is the timeframe for filling relevant suspicious activity reports

30 days of initial discovery

If a consumer request additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply

5 days

All of the following are examples of violations of replacement, except.

Advising an application to answer questions correctly

Which of the following would NOT be a violation of state insurance regulations.

Agent C was her license to write only business other than controlled.

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

Alien insurer

The LEAST expensive first- year premium is found in which of the following policies?

Annually renewable term

In an annuity., the accumulated money is converted into a stream of income during which time period?

Annuitization period

Which of the following is a short term annuity that limits the amount paid to a separate fixed period or until a specific fixed amount is liquidated

Annuity Certain

which of the following is the basic source of information used by the company in the risk selection process?

Application

which of the following includes information regarding a persons credit, character, reputation, and habits?

CONSUMER REPORT

A business owner was trying to obtain a bank loan to find the purchase of a new business facility but the bank required proof of additional assets to secured loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan which provision makes this possible.

Collateral assignment

A producer who fails to separate premium monies from his own personal funds is guilty of.

Commingling

An insurance contract requires that both the insured meet certain conditions in order for a contract to be enforceable which contract characteristics does this describe?

Conditional

Which of the following is NOT an essential element of an insurance contract

Counteroffer

Which of the following terms describes making false statements about the financial condition of any insure that are intended to injure any person engaged ion the business of insurance?

Defamation

An individual has been making periodic premium payment on an annuity annuity. Income payments are scheduled to begin after one year since the annuity was purchased. What type of annuity is it?

Deferred

All of the following statements concerning dividends are true EXCEPT

Dividend, amounts are guaranteed in the policy

Long term care coverage may be available as any of the following options EXCEPT.

Enforcement to a health policy

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 is an eligibility requirement for all Social Security disability income benefits

Have attained fully insured status

An insured has a modified Endowment Contract. He withdraw some money in order to pay medical bills. Which of the following is true?

He will have to pay a penalty if he is younger than 59 1/2

An insurer publishes intimidating brochures that portrayed the insurance competition as financially and professionally unstable. The insurer hoping that this advertising will help to illuminate the competition, and therefore create a monopoly, which of the following best describes this act.

Illegal

Which of the following policy component contains the company's promise to pay

Insurance clause

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

During partial withdrawal from a universal life policy, which portion will be taxed

Interest

What is the function of a certificate of authority?

It allows on insurer to transact insurance in Georgia

why should the producers personally deliver the policy when the first premium has already been paid?

It is the producers responsibility to make sure that the policy is UNDERSTOOD by the Insured & all their QUESTIONS are SATISFIED,& the DELIVERY RECEIPT SIGNED.

Which of the following is NOT true regarding a non qualified retirement plan?

It needs IRS approval.

which of the following is true about the premium on the children's riders in a life insurance policy?

It remains the same no matter how many children are added to the policy

The president of a manufacturing company has offered on of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before- tax corporate dollars, and it does not meet government approval standards. This annuity plan is.

Non-qualified annuity plan

Death benefits payable to a beneficiary under a life insurance policy are generally

Not subject to income taxation by the federal government

On a participating insurance policy issued by a mutual insurance company, dividends paid to policy holders are.

Not taxable since the IRS treats them as a return of a portion of the premium paid.

The dividend option, and which is a POLICY OWNER uses dividends to purchase a term policy for one year is referred to as the

One- year term option

Part two of the application for life insurance provides questions regarding all of the following, except

Other insurance coverages

If a person is compensated for a testimonial in a advertisement, which of the following statements should be included in the advertisement

Paid endorsement

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident, and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

Pay a reduce death benefit

A participating insurance policy may do which of the following?

Pay dividends to the policy owner.

Which of the following types of licenses is solely responsible for offering advice on insurance policies for a fee

Pay-in- period

Which of the following allows of the insurer to relieve a minor insured from premium payments if the minors parents have died, or become disabled

Payor Benefit

Who can request changes in premium payments, face values, loans, and policy plans?

Policy owners

All of the following statements, regarding continuing education requirements in this state are true except

Producers may repeat the same course to meet the required CE hours for licensing period

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

When a policy is being replaced, the replacing company notifies the

Replacement company

Which of the following statements is INCORRECT?

Replacing insurance policies for the purpose of making commissions is legal.

An insurance agents responsibilities include all of the following EXCEPT

Represent the client

The insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. What must the insurer do with the application?

Return to the applicant for completion

Which of the following best details the underwriting process for life insurance

Selection, classification, and rating of risks

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

Survivor Protection

Which of the following types of insurance policies would provide the greatest amount of protection for a temporary. During which an insured will have limited financial resources

Term

which of the following is NOT the consideration in a policy?

The application given to a Prospective Insured

in comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The consumer's associates, friends, and neighbors provide the reports data.

What is the advantage of a reinstating a policy instead of applying for a new one?

The original age is used for premium determination

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insurance death, he chose the life income settlement option the amount of the payment will be determined by taking into account all of the following EXCEPT.

The password's age at death

All of the following are true of key person insurance EXCEPT

The plan is funded by permanent insurance only

which of the following is TRUE regarding the premium in term policies?

The premium is level for the term of the policy

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums.

All of the following are requirements for a life insurance, illustrations except

They must be part of the contract

What is the purpose of life insurance Solicitation Regulation?

To help consumers compare life insurance products in regard to their relative cost.

What is the purpose of a suicide provision within a life insurance policy?

To protect the insurer from a person who purchased life insurance with the intention of committing suicide

What process do insurance companies use to determine whether or not a particular applicant is insurable

Underwriting

The main difference between immediate and deferred annuities is

When the income payment begin

in the underwriting process, it was discovered that the applicant for life insurance is in poor health & has same dangerous habits which of the following is true concerning the policy premium?

Will likely be higher because the applicant is a substandard risk

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 the application date

How often does an agent insurance license expire?

every 2 years

Under the Fair Credit Reporting Act, Individuals reject for insurance due to information contained in a consumer report.

must be informed of the source of the report

Which option of universal life insurance allows beneficiary to collect the death benefit in the cash value upon the death of the insured

option B

which of the following types of risk will result in the highest premium?

substandard risks

Which of the following entities is responsible for determining whether in advertisement might miss lead of deceive, a person of average education and intelligence

the Commissioner

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

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

A willful violation of an agent's fiduciary responsibility involved funds exceeding $1,000 will be considered

A Felony

Representation are written on oral statements, made by the applicant that are

Consider true to the best of the applicants knowledge

Which of the following best described the aleatory nature of an insurance contract?

Exchange of unequal value

When does a producer's license expire?

Every two years on the last day of the producers Birth month.

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.

When twin Brothers applied for life insurance from company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much strong financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered.

Discrimination

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either amount paid into the plan or cash value of plan, whichever is the greatest amount.

All of the following actions can be described as twisting EXCEPT

Explaining to a client the advantages of permanent insurance over term and suggesting changing policies.

Circulating deceptive sales material to the public is what type of unfair Trade Practice?

False Advertising

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

False advertising

And Insurance Company is domiciled in Montana and transacts insurance in Wyoming which term best describes the insures classification in Wyoming

Foreign

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments what type of annuity did the couple buy?

Joint life

Which of the following is NOT a type of what life insurance?

Level term

Which of the following is an example of a limited- pay- life policy?

Life Paid- up at Age 65

What is the term for how frequently a policy owner is required to pay the policy premium?

Mode

A policy owner 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 policy owner should have her husband named as the

Revocable Beneficiary

The duties of an agent where a replacement is involved, include all of the following, except

Splitting the commission with the agent who originally sold of the policy being replaced