primerica answers
when an insurance policty procides for payment to a beneficiary, the compnay must pay interest if the profeeds aren't paid within
30 days
when producers change the address of their residence or office, the insurance department must be notified within
30 days
within how many days of requesting an investigative consumer report musta n insurere notify the consumer in writing that the report will be obtained
30 days
conversion privilege in group life insurance policies must be exervised withith that period of time after termination of group coverage
31 days
a producer earns 38 continuing education credit hours during his 3-year period of his license. He then renews his license. How many continuing education credit hours will he need to complete during the 3-year period
36
how long is a commissioner's term
4 years
which is the number of credits required for fully insured status for social security
40
an internal revenue code provision that specifically provides for an individual retirement plan for public school teachers is a(n)
403(b) plan(TSA)
in order to qualify for conversion from a group life policy to an individual policy of the same coverage, a person must have insured under the group plan for how many years
5
if a consuemr requests additional information conering an investigative consumer report, how long does the insurere or reporting agency have to comply
5 days
What is the waiting period on a Waiver of Premium rider in life policies?
6 months
in an insurer believes that it has received a fraudulent claim, it must notify the bureau and request an investigation within
60 days
All of the follwing are dividend options EXCEPT
Fixed-period installments
Which two terms are associated directly with the premium?
Level or flexible
which individual would be required to be licensed as an insurance producer
a salaried employee who advertises and solicits insurance
what is the material misrepresentaion
a statment by the applicant that, upon discovery, would affect the underwritting decision of the insurance company
which of the following would be required to obtain a maine insurance producers license
a trustee of an employee trust plan that is compensate indirectly by the company issuing the contract
which of the following best describe a misrepresentation
issuing sales material with false statements about policy benefits
which of the following not true regarding a nonqualified retirement plan?
its needs IRS approval
which of the following best describes an unfair trade practice of defamatin
making derogatory oral statmetns about another insurer's financail condition
which of the floowing informaion about the application is not included on part 1 of the applicaiton for insurance
medical background
if during a sales presentation a producer intentionally makes a stamen which may mislead the insurance applicant, the producer has committed
misrepresentation
if during a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant, the producer has committed
misrepresentation
the life insurance solicitation regulation was promulgated to do the following
provide adeate iniformation to consumers regarding relative cost of insurance products
an agent offers his client free tickests to a sporting even in exchange for the purchase of an insurance policy. the agent is guilty of
rebating
a producer in another state wants to become a producer in iowa. the other state gives the same privileges to iowa producers wanting to be licensed in that state as it does its own producers. Iowa therefore extends the privileges of its producers to the prospective producer of the other state. what is this called
reciprocity
which of the follwing is not one of the three tyepes of coverages that are available, based on how the face amount changes during the policy term
renewable
which rule would apply if an agent knows an applicant is goung to cash in an older policy and use the funds to purchase new insurance
replacement rule
insurae is the transfer of
risk
which of the following statements NOT accurate regarding commisssions and referrals
service fees are acceptable as long as the policyholder is licensed
which of the following applicants would not qualify for a Keogh Plan
someone who works 400 hours per year
a group life insurance policy issued to an emplyer to insure employees of that employer, must cover how many employees at the date of issue
2
in a life settlement contract, whom does the life settlement broker represent
the owner
in which of the following situations is it legal to limit coverage based on marital status
it is nver legal to limit coverage based on marital status
which of the following is not true regarding a nonqualified retirement plan
it needs IRS approval
after a hearing, civil penalties imposed by the commissioner for each unfair method of competition may not exceed
$,1000
a group insurance policy issued to a nonprofit industrial association must cover at least how many employees a the date of issue
1,000
Which rider, when attached to permanent life insurance policy, provides an amount of insurance on every family member?
A family rider
which of the following statements concerning a simplified employee pension plan (SEP) is INCORRECT
SEPs are suitable for large companies
which of the following would be considered a nonqualified retirement plan
split-dollar play
who is a third-party owner
a policy owner who is not the insured
SIMPLE plans require all of the following EXCEPT
at east 1,000 employees
which of the following is not a duty of the commissioner
develop insurance rates
which of the following is FALSE regarding insurance sales presentations to prospective purchasers
if there is no producer invilved, there are no special disclosures that must be made
an insurer devises an intimidation strategy in order to corner a large porion of the insurance market. which of the following best describes this praactice
illegal
which of the following statements is correct about a standard risk classification i nthe same age group and with similar lifestyles
stadnard risk is represntative of the majority of people
the commissioner has scheduled a eharing for a producer who is imiplicated in an unfair method of competition. the notice of hearing must be delivered to the producer no later than how many days prior to the hearing
ten
the individual conversion policy CANNOT exceed
the amount of insurance being terminated
which of the following is an example of liquidity in a life insurance contract
the cash value available to the policy owner
who has the right to assign the benefits and/or all other incidents of ownership under a group life insurance policy
the person insured
according to the regulations on life insurance policy solicitatio, what two documents must be presented to an applicant during the application process
the policy summary and the buyer's guide
which of the following is true regarding taxation of accelerated benefits under a life insurance
they are tax free to terminally ill insured
when an insured makes truthful statmentes on the applicaion for insurance and pays the required premium, it is known as which of the foloowing
consideration
if an applicant for a life insurace policy and person to be insured by the policy are two different people, the underwriter would be concered about
whether an insurable interest exists between the individuals
if the commissioner believes an individual is involved in unfair trade practices and delivers to that individual a notice of hearing, the hearing may be no sooner than
10 days after receipt of notice
to be eligible to purchase a group insurance policy, a nonprofit industrial association must be incorporated for how long
10 years
what percent of a company's employees must take part in a noncontributory group life plan?
100%
group life insurance is a single policy written to provide coverage to members of a group. which of the following statements concerning group life is correct
100% participation of members is required in noncontributory plans
except for nonpayment of premiums, the validity of a group life insurance policy cannot be challenged after the policy has been in force ofor a period of
2years
a producer must compete a new set of continuing education houres every
3 years
What type of insurance would be used for a Return of Premium rider?
Increasing Term
Which of the following is true TRUE about mandatory 10-day free-lock period in a Life Insurance policy?
It begins when the the policy is delivered
which of the following individuals engaged in the business of insurance would NOT be require to be licensed
a person who secures informantion for enrolling individual into a group insurance
an individual has been diagnosed with Alzheimer's disease. he is insured under a life insurance policy with the accelerated benefits rider. which of the following is true regarding taxation of the accelerated benefits
a portion of the benefit up to a limit is tax free; the rest is taxable income
in which of the followinog circumstances is an active producer livense NOT required
a retiree receives renewal commision for policies written when he was an active producer
which of the folliwing would be considered a nonmedical insurance applicaion
an application on which the medical information is completed by the applicant and the agent only
the life and health guaranty association maintains all of the following accounts EXCEPT
an unallocated life insurance account
in iowa, group insurance may be written to provide insurance coverage for
any group that conforms to one of the descriptions of eligible groups as established by the insurance division or that receives special approval from the commissioner
violaton of life insurance policy replacement rules may result in which of the following penalties for an insurance producer and/or insurer
any of all of the above
the commissioner regulates insurance rates through detailed rate reviews. The commissioner will prohibit insurance rates that are
any of the above
when may an insurer determine its own maximum interest rate for life insurance policy loans
at no time
which of the following would NOT be considered a misrepresentation on the part of the insurer
backdating policies to secure a lower premium for the insured
if a person is suspected of violating insurance laws, what can the commissioner issue that would order the person to stop violating the violations
cease and desist order
which of the following describes making false statemtns about the financial condition of any insurer that are inteded to injure any person engaged
defamation
which of the following will NOT be considered unfair discrimination by insurers
discriminating in benefits and coverages based on the insured's habits and lifestyles
which of the following best describes the aleatory nature of an insurance contract
exchange of unequal values
an employee is insured under her employer's group life plan. if she terminates her group coverage, which of the following statements is INCORRECT
the insured may choose to convert to term or permanent individual coverage
what entit was created to protect insureds against insurer insolvency
the iowa life and health guaranty association
which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policy owner
third-party ownership
an insured has been diagnosed with a life-threatening disesease, and is given apporoximately six months to live. the insured is in a hard financial situation which will worsen with the upcoming medical expenses. which of the following option could he utilize right now
vertical settlement
group life insurance is a single policy written to provide coverage to members of a group statements concerning group life is CORRECT
100% participation of members is required in noncontributory plans
within how mnay days of requesting an investigative consumer report must an insurere notify the consumer in writting that the report will be obtained
3 days
What type of insurance would be used fro a Return od Premium rider?
Increasing Term
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents haev died or become disabled?
Payor Benefit
A couple owns a life insurance policy with a Children's Term rider. Their Daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof od insurability?
Proof of insurability is not required
Which of the following is TRUE about nonforfeiture values?
They are required by state law to be included in the policy.
an investor buys a life policy on an eldery person in order to sell it for a life settlement. This is an example of
a STOLI policy
level term insurance provides a level death benefit and a level premium during the policy term. if the policy renews at the end of a specified period of time, the policy premium will be
adusted to the insured's age at the time of renewal
all of the following are examples of third-party ownership of life insurance policy EXCPEPT
an insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
The death protction component of universal life insurace is always
annually renewable term
the full premium was submitted with the application for life insrance, and the policy was issued two weeks later as requsted. when does the policy coverage become effect
as the application date
when must insurable interest exist in a life insurace policy
at the time of application
if the annuitand dies during the accumulation period, who will receive the annuity benefits
beneficiary
if the annuitant dies during the accumulation period, who will receive the annuity benefits
beneficiary
An insurance contract must contain all of the following to be considered legally binding EXCEPT
beneficiary's consent
which of the following features of the indexed whole life policty is not fixed
cash value growth
If an applicant for a life insurance policy is found to be a substandard, risk, the insurance company is most likey to
charge a higher premium
an insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. what contract characteristic does this describe
conditional
which of the folliwng is NOT an essential element of an insruance contract
counteroffer
an individual has been making periodic premium payments on an annuity. the annuity income payments aer scheduled to begin 2 years after the annuity was purchased. what type of annuity is it
deferred
in the executive bonus plan, who is the owner or the policy, and who pays the premium
executive is the owner, and the executive pays the premium
under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
for 20 years or until death, whichever occurs first
an insured has a modified endowment contract. he wants to 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 and a half
the life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of ime is known as the
incotestability clause
annually renewarble term policies provide a level death benefit for a premium that
increase annually
a return of premium term life policy is written as what theype of term coverage
increasing
the medcial information Bureau was created to protect
insurance companies from adverse selection by high risk persons
which fo the following statemetns regarding HIVV testing for insurance purposes is not true
insureres are barred from requesting HIV testing
when Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwritting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killled in an automobile accident on august 22, before the policy was issued. in this case, the insurance company will
issue the policy anyway and pay the face value to the beneficiary
an insured buys a 5-year level premium term policy with a face amount of $10,000. the policy also contans renewability and convertibilty options. when the insured renwes the policy in 5 years, what will happen to the premium
it will increase because the insured will be 5 years older than when the policy was originally purchased
your client wants both protection and savings from the insurance, and is willing to pay premium until retirement at age 65. what would be the right policy for his client
limited pay whole life
all other factors being equal, what would the premium be like i na survivorship life policy as compared to the premium in a joint life policy
lower
what is the major differecne between a stock compnay and a mutual company
ownership
which of the following is another term for the accumulation period of an annuity
pay-in period
which of the following is correct concerning the taxation of premiums in a key-person life insurance policy
premiums are not tax deductible as a business expense
which of the flowwing statemetns is correct about a standard risk classification in the same age group and wiht similar lifestyles
standark risk is representative of the majority of people
which of the following statements is correct about a standard risk classificationi i nthe same age group and with simila lifestyles
standark risk is representative of the majority of people
which of the followoing is not true regarding the annuitant
the annuitant cannot be the same person as the annuity owner
which of the following is not the consideration in a policy
the applicaiton given to a prospective insured
in insurance, an offer is usually made when
the applicaiton is submitted
if only one party of an insurance contarct has made a legally enforceable promise, what kind of contract is it
unilateral
Life income joint adn survivor settlement option guarantees
Income for 2 or more recipients until they die
when both parties to a contrac must perform certain duties and follow rules conduct to make the contract enforceable, the contract is
conditional
an insured purchased a life insurance policy. the agent told him that depending upon the companys investments and expense factors, the cash values could change from those shown in the policy at issue time. the policy a/an
initerst-senstive whole life
two brothers are staring a new business. they know it will take several years to build the buisness to the point htat they can pay off the dbt incurred in starting the business. what they of insurance would be the most affordable and still probide a death benefit should one of them die
joint life
what is the official name for the social security program
old age survivors disability insurance
which of the following is TRUE regarding the premium in term policies
the premium in any type of term plicy is level
when would a 20-pay whole life policty endow
when the insured reaches age 100
the main difference between immediate and differed annuities is
when the invome payments begin
the annuity owner dies while the annuity is still in the accumulation state. which os the following is true TRUE.
the beceficiary will receive the greater of the monty paid into the annuity or the cash value
J 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 receice form the policy
$100,000
Which of the following policy components contain the company's promise to pay?
Insuring clause
Which settlment option allows the insurer to retain the face amount but pay some income based on gain on the proceeds to the beneficiary at regular intervals?
Interest Only
What would be an advantage to naming a contingent ( or secondary) beneficiary in a life insurance policy?
It determines who receives policy benefits if the primary beneficiary is deceased.
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 reduced death benefit
Which of the following factors dtermines the amount of each installment paid in a Life Income option arrangement ?
Recipient's life expectancy and amount of principal
insurance companies may be classified according ot the legal form of their ownership. the type of compnay organazed to return any surplus money to their policyholders is
a mutual insurer
in order for an insurer to legally transact insurace, it must obtain which of the following
certificate of autority
which of the following is not true regarding equity indexed annuities
they earn low interest rates than fixed annuities
which of the folliwng is not true regarding equaty indexed annuities
they earn lower interest rates than fixed annuities
which of the following is NOT true regarding equity indexed annuities
they earn lower interst rates than fixed annuities
which of the following products requires a secruties license
variable annuity
which of the following products requires a securities license
variable annuity
All of the following are true regarding insurance policy loans EXCEPT
Policy loans can be made on policies that do not accumulate cash value
If a life insurance insurance policy has an irrevocable beneficiary designation,
The beneficiary can only be changed with written permission of the beneficiary
an applicant who receives a preferred risk classificaiton quilifies for
lower premium that a person who receives a standark risk
which of the folowing information about the applicant is not inculded on part 1 of the applicaion for insurance
medical backgroud
all of the following are true regarding a decreasing term policy EXCPET
the payable premium amount steadily declines trhougout the during of the contract
which of the following products requires a securitys license
variable annuity
which of the folliwng is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract
warranty
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?
Reinstatement provision
A father owns a life insurance policy on his 15-year-old daughter. Thr policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance permiums?
The insured's premiums will be waived until she is 21.
The provision which the states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the
Entire Contract
in the underwritting process, it was determined that the applicant for life insuracen is in poor health and has some dangerous habits, which of the following is true concerning the policy premium.
it will likely be higher because the applicant is a substandard risk
in a life settlement contract, whom does the life settlement broker represents
the owner
a married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. which policy is that
joint life policy
which two terms are associated directly with the way an annuity is funded
single payment or periodic payments
which type of life insurance policy generates immediate cash value
single premium
who is the owner and who is the beneficiary on a key person life insurance policy
the employer is the owner and beneficiary
which of the following best difines target premium in a universal life policy
the recommended to keep the policy of force throught its lifetime
which of the following is true regarding taxation accelerated benefits under a life insurance policy?
they are tax free to terminally ill insured
