Primerica

Life insurance and securities

What are the licensing requirements for someone who sells variable universal life insurance?

A registered nurse

Who may complete a paramedical report?

The same face amount as in the whole life policy.

Under an extended term nonforfeiture option, the policy cash value is converted to

Automatic premium loan

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

Death benefit

Which component increases in the increasing term insurance?

An appointment by the Governor

The Commissioner of Insurance is placed in office by which means?

Biennially.

A producer's license must be renewed

403(b) Plan (TSA).

An Internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers is a(n)

Insurance

What do individuals use to transfer their risk of loss to a larger group?

To allow the consumer to compare the costs of different policies

What is the purpose of the buyer's guide?

6 months

What is the waiting period on a Waiver of Premium rider in life insurance policies?

$10,000, no tax consequence

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

Decreasing term

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?

$50,000

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

Material misrepresentation

An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied?

Conservative investments like bonds

In reference to fixed annuities, what comprises most of a life insurance company's general account?

Fiduciary responsibility.

The requirement that agents not commingle insurance monies with their own funds is known as

Position of financial trust to clients and insurance company.

The term "fiduciary capacity" refers to a producer's

Defamation.

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of

Bail-out

Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level?

The insured's premiums will be waived until she is 21.

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

Required a premium increase each renewal.

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

It is approved by the IRS.

If a retirement plan or annuity is "qualified," this means

Whether an insurable interest exists between the individuals

If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about

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

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

The policy will be interpreted as if the insurer waived its right to have an answer on the application.

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The completed application is submitted

In insurance, an offer is usually made when

The insurer will pay the full death benefit from the group policy to the beneficiary.

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

Adjustable Life

At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?

Copy of the original application

According to the entire contract provision, what document must be made part of the insurance policy?

Until the beneficiary's death

How long will the beneficiary receive payments under the single life settlement option

Joint life annuity.

If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a

The change must be reported to the Commissioner.

If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur

Reciprocity

Paul is a producer in Ohio and wants to become a producer in Pennsylvania. The Commissioner will waive certain examination requirements, provided that Ohio would waive these same requirements if a Pennsylvania producer sought licensure in Ohio. What term is used to describe this phenomenon

The cost of coverage is based on the ratio of men and women in the group.

Which of the following statements about group life is correct?

The annuitant must be a natural person.

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 period of time during which accumulated money is converted into income payments

Which of the following best describes what the annuity period is?

Reciprocal

Which of the following insurance options would be considered a risk-sharing arrangement?

It is issued to group insurance participants.

Which of the following is NOT true regarding a Certificate of Authority?

Life Paid-up at Age 65

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

Survivorship life

Which of the following is called a "second-to-die" policy?

They are tax free to terminally ill insured.

Which of the following is true regarding taxation of accelerated benefits under a life insurance policy?

Pays dividends to policyowners.

Which of the following is usually true of a participating life insurance policy?

Cash option

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

180 days

How long does a temporary producer's license last for the surviving spouse of a deceased producer?

Guaranteed insurability rider.

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

Authorized.

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

Any form of life insurance

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Its premium steadily decreases over time, in response to its growing cash value.

Which statement is NOT true regarding a Straight Life policy?

Cease and Desist Order

When the Commissioner suspects that a person is violating an insurance law or other regulation, what can be issued that would order the person to stop committing the act of violation?

It transfers rights of ownership from the owner to another person.

Which of the following statements is TRUE about a policy assignment?

The interest is not taxable since it remains inside the insurance policy.

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

The payable premium amount steadily declines throughout the duration of the contract.

All of the following are true regarding a decreasing term policy EXCEPT

Rebates are allowed if it's in the best interest of the client

All of the following are true regarding rebates EXCEPT

It is a life contingency option.

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT

Depends on the performance of a separate account.

The death benefit in a variable universal life policy

Pure risk and speculative risk.

The risk of loss may be classified as

Fines of up to $1,000 for each act.

Violation of unfair discrimination law may result in all of the following penalties EXCEPT

180 days.

When a producer died, his surviving spouse needed to maintain the insurance agency until it could be sold. Without testing, she could qualify for a temporary license for a maximum period of

A debtor has an insurable interest in the life of a lender.

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?

Apparent

Which of the following types of agent authority is also called "perceived authority"?

Universal life

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

Joint and survivor.

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Separate account

Underlying assets for variable annuity contracts must be maintained in what type of account?

An applicant who is a smoker

Which of the following applicants could the insurer charge a higher rate of premium and not violate regulations regarding unfair discrimination?

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

Which of the following applies to the 10-day free-look privilege?

Commissioner

Which of the following authorities is authorized to issue a temporary insurance producer's license?

Net premium plus expenses

Which of the following best describes gross annual premium?

Straight Life

Which of the following policies would be classified as a traditional level premium contract

To help the insured understand all aspects of the contract

Why should the producer personally deliver the policy when the first premium has already been paid?

Monthly premium waiver and monthly income

Z falls from the roof of his house while fixing it and damages his spinal column enough to render him disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will Z receive?

Lower

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

Fixed

An applicant wants to buy a life insurance policy in which he can count on receiving the same benefits as stated in the contract. Which type should he buy?

Incontestability clause.

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

The rider is usually level term insurance.

Which is true about a spouse term rider?

Without receiving written consent from an insurance regulatory authority.

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Return of premium

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. Which rider is attached to the policy?

Handling insurer funds in a trust capacity

Concerning insurance, the definition of a fiduciary responsibility is