ucanpass

An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

$100,000

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

$100,000

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 auto accident, and after 10 weeks of hospitalization, died from the injuries. How much will the beneficiary receive from the policy?

$200,000

A producer holds both a Life and Health and a Prperty and Casualty Licenses. How many hours of continuing education will the producer be required to complete every 2 years?

24

All other factors being equal, which of the following individuals would receive the largest monthly check from a single premium straight life immediate annuity?

A 60-year-old man

A provision in a life insurance policy that provides for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called

Accelerated Benefit Provision

Which of the following is the most precise synonym for an "authorized" insurer?

Admitted

In insurance, an offer is usually made when?

An applicant submits an application to the insurer

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

Which of the following is TRUE about a class designation?

Beneficiaries are not identified by name

All of the following are personal uses of life insurance EXCEPT

Buy-sell agreement

What is another name for interest-sensitive whole life insurance?

Current assumption life

An insurance company sells an insurance policy over the phone in responses to a TV ad. Which of the following best describes this act?

Direct Response marketing

Under a defined benefit retirement plan, who determines what benefits a retired employee will receive?

Employer

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

The death benefit under the Universal Life Option B

Gradually increases each year by the amount that the cash value increases

An individual purchased a life insurance policy on his life naming his wife as primary beneficiary, and their daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

If the primary beneficiary predeceases the insured

The type of term insurance that provides increasing death benefits as the insured ages is called

Increasing Term

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring Clause

During partial withdrawal from a universal life policy, which position will be taxed?

Interest

All of the following are Nonforfeiture options EXCEPT

Interest Only

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

It transfers rights of ownership from the owner to another person

Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary?

It will decrease the benefits paid to the beneficiary

For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become

Larger

What is the other term for the cash payment settlement option?

Lump Sum

When calculating the amount a policyowner may borrow from a variable life policy, what must be subtracted from the policy's cash value?

Outstanding loans and interest rates

Which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy?

Owner's Rights

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Paid-up option

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

Which of the following stipulates that life insurance premiums can be paid in advance of policy issuance?

Payment of premium clause

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider

Which of the following has the right to convert the existing term coverage to permanent insurance?

Policyowner

In term policies, what happens to the premium throughout the term policy?

Premium always remain level

The life insurance solicitation regulation was promulgated to do the following:

Provide adequate information to consumers regarding relative cost of insurance products

All of the following are marketing arrangements used by insurers EXCEPT

Reinsurance System

All of the following are types of term policies based on what happens to the face amount during the policy term EXCEPT

Renewable

Which of the following describes attachments made to policies that either add or modify coverage?

Riders

An IRA purchased by a small employer to cover employees is known as a

Simplified Employee Pension Plan

An insurance policy that only requires a payment of premium at its inspection, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called

Single Premium Whole Life

When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?

Spendthrift provision

What type of annuity activity will cause immediate taxation of the interest earned?

Surrendering the annuity for cash

How is social security funded?

Taxes imposed on a worker's earned income

The National Do Not Call Registry was created to regulate

Telemarketers

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

The balance of the loan will be taken out of the death benefit

The primary beneficiary of her husband's life policy found no settlement option was stated in the policy on the date of her husband's death. Who will select the settlement option in this case?

The beneficiary

If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?

The death benefit will be smaller

Which of the following entities was created to protect insureds against an insurer's insolvency?

The life and Disability Insurance Guaranty Association

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT

The loss may be intentional

Which of the following entities will most likely regulate an insurer's advertisement on local TV station?

The marketing department of the insurance company

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

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

Which of the following statements is correct regarding a whole life policy?

The policyowner is entitled to policy loans

Producers will be deemed to be using their license primarily to write controlled business if, during any 12-month period

The total premiums on controlled business exceeds the total premiums on all other business written

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

Unilateral

What kind of policy allows withdrawals or partial surrenders?

Universal Life

Which of the following Life Insurance policies would be considered interest sensitive?

Universal Life

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium account?

Universal Life

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

Which of the following is true about the premium on the children's rider in a life insurance policy?

it remains the same no matter how many children are added to the policy

if another governmental agency takes legal action against a licensee, whose responsibility is it to report the action?

the licensee

which is NOT true about beneficiary designations?

The beneficiary must have insurable interest in the insured

According to the regulations on life insurance policy solicitation, what two documents must be presented to an applicant during the application process?

The policy summary and the buyer's guide

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

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

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later, what will probably happen?

The policy will not be affected

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 insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

100

What percentage of a company's employees must take part in a noncontributory group life plan?

100%

When the insurer stipulates the time period for payment of claims, how soon must the insurer pay a death benefit claim after receiving the proof of death?

2 months

Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Alabama within how many days of the final disposition of the matter?

30 days

Which of the following is the required number of participants in a contributory group plan?

75%

In an annuity, the accumulated money is converted into a stream of income during which time period?

Annuitization Period

which of the following features of the indexed Whole Life Policy is NOT fixed?

Cash Value Growth

In order for an insurer to legally transact insurance, it must obtain which of the following?

Certificate of Authority

When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called

Class Designation

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?

Conditional

Because an insurance policy is legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration

Which of the following is NOT an essential element of an insurance contract?

Counteroffer

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

Discrimination

Which policy component decreases in decreasing term insurance?

Face Amount

Using names or titles that have tendency to misrepresent the true nature of a policy is an example of what illegal practice?

False advertising

j applied for a life insurance policy on January 10th. the policy was issued January 31. j's agent was vacationing at the time the policy was issued, so j did not receive the policy until February 18. j decides that he does not want the policy. when would j need to return to the insurer in order to receive a full refund of premium paid?

February 28th, or 10 days after the time the policy is delivered

What type of insurance would be used for a Return of Premium rider?

Increasing Term

A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?

Joint and Survivor

Which of the following is NOT true regarding minors purchasing insurance policies in this state?

Minors at the age of 14 are allowed to buy their own policies

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid-up additions

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

Required a premium increase each renewal

In case of a loss, the indemnity provision in insurance policies

Restores an insured person to the same financial state as before the loss

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?

Return of Premium

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

Which of the following types of policies will provide permanent protection?

Whole Life

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the application no later than

With the policy

if the commissioner has not approved or disapproved any insurance form by the end of the judgment period, the insurer

can assume the form is approved

What characteristic makes whole life permanent protection?

coverage until death or age 100

In group life policies, a certificate of insurance is given to

each insured person

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed Amount

Which of the following choices best describes the blackout period?

From the youngest child's age 16 until the surviving spouse's age 60

What provision in a life insurance policy extends coverage beyond the premium due date?

Grace Period

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date prior to the policy issue.