set 2

In a contract when one party can walk away from the agreement at any time while the other party is bound, this is an example of a A: Aleatory Contract right B: Conditional Contract right C: Unilateral Contract right D: None of the Above

Unilateral Contract rights C When one party to a contract is bound while the other is not is a unilateral contract right.

All of the following is true about a children's rider EXCEPT: A: All children are covered with their own death benefit for one premium. B: A Child's Term Rider will expire at age 18-21. C: Newborn children are covered immediately under the rider. D: Sometimes a child has a right to converted upon age 18-21 to a permanent policy without proving insurability.

With a Child's Term rider, coverage for a newborn will usually apply after 15-30 days after birth. C, Newborn children are covered immediately under the rider.

HIPAA is : a federal regulation that allows the insurer to inspect medical records upon written consent of the insured. The HIPAA consent form must be presented and signed at point of sale/application.

a federal regulation that allows the insurer to inspect medical records upon written consent of the insured. The HIPAA consent form must be presented and signed at point of sale/application.

A terminally ill insured who sells a portion of the life insurance proceeds before they die in exchange for immediate cash payment is known as:

a viator In a Viatical Settlement, the terminally ill/injured insured as known as a viator. A Viatical Settlement allows a terminally ill and/or injured insured (less than 2 years to live) to sell all or a portion of their proceeds before they die. Generally, Viatical Settlement benefits are received tax free, but it is always best to consult a tax advisor.

All Viatical Settlement Providers must report on or before _______ of every year.

all vIAtical providers musT report to The Director on or before march 1st of every year.

HOW LONG SHOULD PRODUCERS KEEP RECORDS?

2 YEARS.

K is a single mother and is considering buying a life insurance policy on her 10 year old son to protect his insurability as he grows up. K is concerned that if she were to die, no one would be able to pay for her son's policy. K should consider:

A Purchase a Payor Benefit Rider A Payor Benefit rider would waive premiums until K's son would hit age 21-25 if she were to die while he was still a minor child.

What is the advantage to buying a Equity Index Life Policy?

B: The cash value is guaranteed and in good years, interest exceeds a fixed product

If a producer is found guilty of defamation, their producer license may be suspended, revoked or denied and additionally they may be assessed a civil penalty of

C: from $200 to $10,000. The statutory civil fine structure for defamation by a producer is a minimum of $200 and a maximum of $10,000

Deferred or renewal commissions may be paid under which of the following conditions?

D: If the producer was licensed at the time of sale they are entitled to receive deferred compensation even if not licensed at the time renewal commissions are paid. Any producer who was properly licensed at the time of an insurance sale may be paid renewal commissions or deferred compensation without holding a license at the time of renewal commission payment.

The best definition of "rebating" is

when a producer offers something of value to induce a person to purchase an insurance policy. Rebating takes places when a producer offers ANYTHING of value that is not part of an insurance contract as an enticement to purchase the coverage whereby the purchase would not have taken place except for the inducement.

Which of the following policies will most likely have the lowest premiums?

A: 30 year level term B: 10 year decreasing term C: Single Premium Whole Life D: 15 year decreasing term ANSWER IS B 10 YEAR DECREASING TERM.

Under a life policy's Settlement Options, the beneficiary has a right to take all of the following actions EXCEPT:

A: receive fixed payments on a regular basis until the policy proceeds are depleted B: receive a portion of the proceeds in a lumps sum and allow the rest to generate interest C: leave the entire policy proceeds on deposit with the insurance company and exercise the Interest Only option D: receive the policy proceeds under the Life Income option for two years and then convert to the Interest Only Option. D IS THE ANSWER . receive the policy proceeds under the Life Income option for two years and then convert to the Interest Only Option.

An attorney solicits a client for the sale of an insurance product but the attorney does not hold any type of insurance producer license. Which of the following statements is most accurate?

B: The attorney is guilty of a Class misdemeanor, a criminal offense.may only advise about incidental insurance matters for a fee but is not allowed to perform the functions of a licensed producer without obtaining the property producer licensing authority.

An Adjustable Life policy gives the policyowner the option to:

B: increase the premium by certain amounts at certain times Adjustable life allows the policyholder the right to increase premiums within the contract

B has a whole life policy and has taken a loan against the cash value. About a month after receiving the loan, B has died. Which of the following is CORRECT about how the insurer will handle the loan?

The insurer will pay the proceeds with the loan and interest amount deducted

Each of the following is a requirement for a Life, Health, Property and Casualty prelicensing course, EXCEPT:

The licensing candidate must spend 7.5 hours in class per line. B: The licensing candidate must complete a 20 hour course per line. D: An exam that is graded by a course provider must be passed before a prelicensing course is successfully completed. Each of the 4 main lines of licensing authority: LIFE, HEALTH , PROPERTY and CASUALTy REQUIRE 20 total course hours of which 7.5 must be classroom hours.

Which of the following is an example of illegal advertisement? A: An agent calling a client telling them whole life is permanent protection. B: An agent calling a client telling them term life is temporary protection. C: An agent telling a client that the number of people who can get coverage is limited and they better act now for benefits. D: An agent using a sales kit to solicit an annuity

answer is c An agent telling a client that the number of people who can get coverage is limited and they better act now for benefits. An agent cannot claim that only a limited number of people are eligible for a policy unless that is stipulated for underwriting purposes.