State board test part 2

If an insurer terminates a producer the commissioner will receive a notification. Within how many days of the notification must the producer be sent a copy

15 days

If an insurer cancels a universal life insurance policy due to the nonpayment of required premiums how much prior notice must be given to the policyowner

30 days

What is the penalty for IRA distributions that are below the required minimum for the year

50%

If a licensee does not earn 24 hours of continuing education by the license review date the license will be suspended for up to how many days

90 days

Which of the following documents delivered to the policy owner includes information about premium accounts, cash value, surrender value, and death benefit for specific policy years

A policy summary

What is the material misrepresentation

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

What documentation grants authority to an agent

Agents contract with the principal

Which of the following produces evaluations of insurers' financial status often used by state departments of insurance

Am best

All of the following would be considered rebating EXCEPT

An agent misrepresents policy benefits to convince a policy owner to replace policies

In insurance an offer is usually made when

An applicant submits an application to the insurer

The least expensive first year premium is found in which of the following policies

Annually renewable term

Which is the primary source of information used for insurance underwriting

Application

When must insurable interest exist in a life insurance policy

At the time of application

Which of the following best describes fixed-period settlement option

Both the principal and interest will be liquidated over a selected period of time.

When an insured make a truthful statements on the application for insurance and pays the required premium it's known as which of the following

Consideration

Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis and classified as

Contracts of adhesion

Which of the following will NOT be considered unfair discrimination by insurers

Discriminating in benefits and coverages based on the insured's habits and lifestyle

Two individuals are in the same risk and age class; yet they are charged different rates for the insurance policies due to insignificant factor. What is this called

Discrimination

Which nonforfeiture option has the highest amount of insurance protection?

Extended term

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

Fiduciary responsibility

An insured receives a report regarding a potential insured that includes the insurers financial status hobbies and habits. What type of a report is that

Inspection report

Who makes up the Medical Information Bureau?

Insurers

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider

An applicant want to buy a policy that has a cash value element. Which type should she buy

Permanent

Based on human life value approach which of the following is NOT used to calculate an individuals life value

Predicted needs of the family after the insured's death.

Which rule would apply if an agent knows an application is going to cash in an old policy and uses the funds to purchase new insurance

Replacement rule

A man wants to buy a life insurance policy in which he can count on guaranteed minimum benefits. Which type should he buy?

Solid

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

Straight life

What is true about spouse term rider

The rider is usually level term insurance

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 premium

Which of the following is True for both equity indexed annuities and fixed annuities

They have gaurenteed minimum interest rate

All of the following would be different between qualified and not qualified retirement plans EXCEPT

Taxation on accumulation

Which of the following is NOT the consideration in a policy

The application given to a prospective insured

Which of the following is NOT a characteristic of an insurance risk

The loss must be catastrophic

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated

Those who have been insured under the plan for at least 5 years

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

To help the insured understand all aspects of the contract

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

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?

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

An insurer want to begin underwriting procedures for an applicant. What source is I'll it consult for the majority of its underwriting information

Application

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

Application

An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his

Attained age

According to her nonforfeiture law of the owner decides to surrender a deferred annuity prior to annuitization the owner is entitled to which of the following

Gaurenteed surrender value

Which of the filling statements regarding HIV testing for life insurance purposes is NOT true

Insurers are barred from requesting HIV testing

All of the following actions by a person could be described as risk avoidance EXCEPT

Investing in the stock market

Which of the following best describes annually renewable term insurance

It is level term insurance

Which statement is NOT true regarding an straight life policy

It's premium steadily decreases over time in response to its growing cash value

If a settlement option is not chosen by the policy owner or the beneficiary which option will be used

Lump sum

Which of the following best describes the unfair trade practice of defamtion

Making derogatory oral statements about other insurers financial condition

Which of the following explains the policy owners right to change beneficiaries choose option and receive proceeds of a policy

Owners rights

The policy owner of an adjustable life insurance policy wants to increase the death benefit. Which of the following statements is correct regarding this change

The death benefit can be increase by providing evidence of

Which of the following is NOT. A goal of risk retention

To minimize the insured's level of liability in the event of loss

Which is NOT required of an applicant for an insurance license in michigan

Two letters of recommendation attesting to trustworthiness reliability and good reputation

Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?

apparent