Test 2.22
The provision which states that both the policy and a copy of the application from the contract between the policy owner and the insurer is called the
Entire contract
All of the following are true regarding rebates except
Rebates are allowed if it is in the best interest of the client
Which of the following would help prevent a universal life policy from lapsing
Target premium
Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates dropped a specified level
Bailout
Which of the following is true about a class designation
Beneficiaries are not identified by name
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy this is called
Executive bonus
Life income joint and survivor settlement option guarantees
Income for two or more recipients until they die
The type of term insurance the provides increasing death benefits as the insured ages is called
Increasing term
And ensure receives a report regarding of potential insured that indicates the insurance financial status hobbies and the hat what type of report is that
Inspection report
Which of the following is another term for the accumulation period of an annuity
Pay in period
An employee has group life insurance through her employer after five years she decides to leave the company and work independently how can she obtain an individual policy
She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan
An adjustable life policyowner can change which of the following policy features
The coverage period
An individual applied for an insurance policy and pay the initial premium the insurer issued a conditional receipt five days later if the policies issued what would be the policies effective date
The date the medical exam
Which of the following describes the tax advantage of qualified retirement plan
The earnings in the plan accumulate tax deferred
Who is the owner and who is the beneficiary on a key person life insurance policy
The employer is the owner and beneficiary
How long must an insured keep the receipt of a policy delivery to the policy owner if it delivery was by mail
Two years
The waiver of cost of insurance rider is found in what type of insurance
Universal life
What kind of policy allows withdrawals or partial surrenders
Universal life
In a survivorship life policy when does the insurer pay the death benefit
Upon the last
Which of the following would be true of both fixed period And fixed amount cinnamon options
Both guarantee that the principal and interest will be fully paid out
Which of the following best describes the MIB
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
Which of the following is the true about the premium on the children's writer in a life insurance policy
It remains the same no matter how many children or add to the policy
Which statement is not true regarding a straight life policy
Its premium steadily decreases overtime in response to its growing cash value
Who makes up the medical information bureau
Insurers
Why is an equity index annuity considered to be a fixed annuity
It has guaranteed minimum interest rates
What is the benefit of choosing extended term as a nonforfeiture option
It has the highest amount of insurance protection
Which of the following is correct concerning the taxation of premiums and key person life insurance policy
Premiums are not tax-deductible as a business expense
Which of the following states statements regarding HIV testing for life insurance purposes is not true
Insurers are barred from requesting HIV testing
What is the purpose of a conditional receipt
It is intended to provide coverage on a date prior to the policy issue
If during the underwriting process and ensure obtains personal information about an applicant from the applicant when must the insure provide notice of its information practices
At the time of policy delivery
What type of annuity guarantees to pay an income to the annuitant each year as long as he lives and upon death the annuity will refund the remaining payments to a beneficiary
Installment refund annuity
The medical information bureau was created to protect
Insurance companies from adverse selection by high-risk persons
All advertisements are their responsibility of the
Insurer
Which of the following is another term for accumulation period of an annuity
Pay in period
The limit on control business is
25%
In terms of Social Security what is the name of the time. After the youngest child family turn 16 before the surviving spouse may start receiving retirement benefits
Blackout period
The premium of a survivorship life policy compared with that of a joint life policy would be
Lower
Which of the following best describes what the annuity period is
The period of time during which accumulated money converted into income payments
An employee is insured under her employer's group life plan is she terminates her group coverage which of the following statements is incorrect
The insured may choose to convert to term or permanent individual coverage
Which statement regarding insurable risk is not correct
Insurance cannot be randomly selected
Which of the following types of policies allows the policy owner to skip premium payments provided there's enough cash value in the policy to cover the premium amount
Universal life
If a person purchases a flexible premium deferred annuity when is the soonest that income payout will begin
After one year
Full premium was submitted with the application for life insurance and the policy was issued two weeks later after quest when does the policy's coverage become effective
As of the application date
Which of the following best describes what the annuity period is
The period of time during which accumulated money is converted into income payments
All of the following are true of key person insurance except
The plan is funded by permanent insurance only
An individual policy was delivered to the policy owner by an agent in person, which of the following is true
The receipt of delivery must contain the policy number and the date of delivery
Under an extended term nonforfeiture option the policy cash value is converted to
The same face amount as a whole life policy