stimulate

if a producer has been found guilty of any violations of the provisions of the insurance code in addition to or instead of the suspension revocation or refusal to renew a producers license the commissioner may levy a fine upon the licensee up to

$1,000 per offense

a temporary license in this state is valid for

180 days

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

commingling

which component increases in the increasing term insurance

death benefit

Which Universal Life option has a gradually increasing cash value and a level death benefit?

juvenile life

when is the insurer NOT required to deliver a policy summary to a policy applicant?

when the insurer provides an illustration during the sale of a policy

an insured purchased a 15 year level term life insurance policy with a face amount of $100,000. the policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. what amount would his beneficiary receive as a settlement?

$200,000

An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?

$3,000

If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?

$3,000

according to the state regulations pertaining to claims settlements after receiving a notification of claim from an individual policyowner the insurer must acknowledge that notice within

10 working days

what is the penalty for the insurer who fails to refund premiums within 30 days after the free look period

10%

Every order by the Commissioner suspending any insurance license must specify the period during which the suspension will be effective and may not last longer than

12 months

when an individual life insurance policy is being replaced by an insurer using an agent the policyowner must be given an unconditional right to a full refund of premiums if the policy is returned within

20 days

after approval by the national association of insurance commissioners the current buyers guide cannot be used for longer than

6 months

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an

Authorized insurer

which of the following is a feature of a variable annuity

Benefit payment amounts are not guaranteed

which of the following best describes fixed period settlement option

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

which of the following would not be considered an exception to the national do not call list

Calls based from outside of the United States

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Cash surrender

which of the following reports will provide the underwriter with the information about an insurance applicants credit

Consumer report

which of the following is not typically excluded from life policies

Death due to plane crash for a fare-paying passenger

the term conservation effort deals with

Discouraging policyholders from dropping existing policies.

according to the fair credit reporting act, all of the following would be considered negative information about a consumer except

Disputes regarding consumer report information

the provision which 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

Items stipulated in the contract that the insurer will not provide coverage for are found in the

Exclusions

which of the following regulatory authorities participated in creating the national do not call registry

FTC

which of the following would provide an underwriter with information concerning an applicants health history

Medical Information Bureau

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant

which of the following types of policies allows the policyowner to skip premium payments provided there is enough cash value in the policy to cover the premium amount

Universal Life

which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds?

Vacation travel expenses

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

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

insurance contracts are agreements between which two parties

insurer and policyowner

which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home

long term care

on it's advertisement a company claims that it has funds in its possession that are in fact not available for the payment of losses or claims the company is guilty of

misrepresentation

which term describes an individual who is domiciled and licensed as a resident producer in a state other than washington?

nonresident producer

which of the following riders would not cause the death benefit to increase

payor benefit rider

The causes of loss insured against in an insurance policy are known as

perils

A producer has established a separate account for premiums collected on life insurance policies sold by the producer. Who is entitled to the interest earned on the deposits in the separate account?

producer

Whose responsibility is it to determine that all the questions on an insurance application are answered?

producer

An insured committed suicide 6 months after his life insurance policy was issued. The insurer will

refund the premiums paid

If an agent wishes to sell variable life policies, what license must the agent obtain?

securities

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called

Guaranteed insurability

which of the following methods of calculating the amount of life insurance needed takes into account the insureds wages years until retirement and inflation

Human life value approach

in which of the following cases will the insured be able to receive the full face amount from a whole life policy

If the insured lives to age 100

The Washington Insurance Code regulation regarding policy replacement applies to which of the following types of transactions?

Immediate annuity contract

any person who transacts insurance without a license is punishable with a class b felony. if the commissioner has reason to believe that any person has violated this rule, the commissioner may do any of the following except

Impose a prison sentence of no more than 6 months

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

Incontestability clause

what are the two components of a universal policy

Insurance and cash account

which of the following ultimately determines the interest rates paid to the owner of a fixed annuity

Insurer's guaranteed minimum rate of interest

an insurer must pay interest on death benefits payable under the terms of a life insurance policy

Insuring the life of any person who was a resident of this state at the time of death.

all of the following are nonforfeiture options except

Interest only

which of the following best describes annually renewable term insurance

It is level term insurance

in the underwriting process it was determined that the applicant for life insurance 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.

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

An applicant who receives a preferred risk classification qualifies for

Lower premiums than a person who receives a standard risk.

what is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military

Military service or war

which of the following can surrender a deferred annuity contract

Only the annuity owner

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

Other-insured rider

which of the following explains the policyowners right to change beneficiaries choose options and receive proceeds of a policy

Owner's Rights

the insurance company underwriter could find information concerning the personal activities and character of an applicant from which of the following reports

Producer's report

Which nonforfeiture option provides coverage for the longest period of time?

Reduced Paid-Up

During policy delivery, insurance producers are allowed to do all of the following EXCEPT

Retain the policy for safekeeping

which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?

Return the application to the applicant for completion

which type of life insurance policy generates immediate cash value

Single Premium

an insurance policy that only requires a payment of a premium at its inception provides insurance protection for the life of the insured and matures at the insureds age 100 is called

Single premium whole life

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

Straight life

Nonforfeiture values guarantee which of the following for the policyowner?

That the cash value will not be lost

which of the following is true regarding variable annuities

The annuitant assumes the risks on investment

which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

The producer has been convicted of a felony. How will that affect the producers license?

The license may be revoked immediately

which is true about a spouse term rider

The rider is usually level term insurance

which is generally true regarding insureds who have been classified as preferred risks

Their premiums are lower.

what is the purpose of key person insurance

To minimize the risk of financial loss caused by the death of a key employee

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

Without receiving written consent from an insurance regulatory authority.

in a case where the primary beneficiary predeceases the insured in the event of the insureds death the death benefit proceeds will be paid to

contingent beneficiary

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

defamation

No insurance policy form can be issued, delivered, or used in this state unless it has been

filed and approved by the commissioner

an insurance company is domiciled in Montana and transacts insurance in wyoming. which term best describes the insurers classification in wyoming

foreign

an insured purchased a variable life insurance policy with a face amount of $50,000. over the life of the policy, stock performance declined and the cash value fell to $10,000. if the insured dies, how much will be paid out?

$50,000

which of the following is called a second to die policy

survivorship life

who is required to pay the fee for an insurance producers appointment

the appointing insurer

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.

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

to bail out

when an individual purchases insurance what risk management technique is he or she practicing?

to transfer

an insurer owns a life insurance policy. to be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. there is a limit for a withdrawal and the insurer charges a fee. what type of policy does the insured most likely have?

universal life

which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

warranty

If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?

Jumping juvenile policy

an individual has been diagnosed with alzheimer's disease he is insured under a life insurance policy with 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

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

an individual was involved in a head on collision while driving home one day. his injuries were not serious and he recovered. however he decided that in order to never be involved in another accident, he would not drive or ride in a car ever again. which method of risk management does this describe

avoidance