xcel insurance review

Without producing proof instability ability

A renewable Term life insurance policy allows the policy owner the right to renew the policy______________________?

Business owner and business client

Insurable interest does NOT occur in which of the following relationships? *Sister and brother *Parent and children *Business partners *Business owner and business client

peril

The cause of a loss is referred to as what?

individual plan upon employment termination

The conversion privilege under a group life plan allows an employee to convert to what?

10

The free look period provided in a life insurance policy is usually____ days

Take civil action against the insurer

The life insurance buyers guide includes information about all over following except how to what? •Take civil action against in insure •Decide how much life insurance to buy •Compare life insurance policy rates •Compare Life insurance policy requirements

survivorship life

The type of policy which pays on the death of the last person is called what?

obtaining information from the applicant to determine whether an insurance or annuity product is appropriate

what is suitability?

Entire Contract

what provision states that the policy And the application shall constitute the entire contract between the parties?

Fine and/or imprisonment

Violations of US Code Title 18 section 1033, may result in what?

The license required for an insurer to conduct business in the state

What is a certificate of authority?

The gap between the total death benefit and the policy's cash value

What is a corridor in relation to a Universal Life insurance policy?

Protect insureds from insolvent insurers

What is considered the purpose of the Guaranty Association?

Hazard

What is considered to be an event or condition that increases the probability of an insured's loss?

Estate

What is created after policy proceeds are obtained in a lump sum and then immediately invested?

Participating life insurance policy

What kind of life insurance policy issued by a mutual insurer Provides a return of divisible surplus?

level premiums

When a decreasing term policy is purchased, it contains a decreasing death benefit and what?

was a licensed producer at the time of the sale

Deferred commissions may be paid to a person who sold an insurance policy when the person was what?

Universal Life policy

Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this?

5

Lapsed individual life insurance may be reinstated at any time within____ years

Dies instantly from a car accident

Matt is applying for life insurance and request a double Indemnity rider. A Double indemnity benefit will be payable to Matt beneficiary if Matt is______________ • Is killed While committing a felony •Dies of a stroke •Dies instantly from a car accident •Is injured in a skiing accident and dies 18 months later

Class designation

Naming a contingent beneficiary as "all surviving children" is described by which term?

What is Suitability?

Obtaining information from the applicant to determine whether in insurance or annuity product is appropriate

Common disaster clause

Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved in an automobile accident where Pat dies instantly and Karen dies 5 days later. Which policy provision will protect the rights of the contingent beneficiary to receive the policy benefits?

a surrender charge

Replacing an existing life insurance policy with a new one may result in what?

income period

Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's what?

income period

Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principle interests and the contracts _______________

seeks temporary protection and lower premiums

Term insurance is appropriate for someone who seeks what?

Certificate of Authority

Which of the following is NOT part of an insurance contract? *Policy *Application *Riders *Certificate of Authority

A paid premium

Which of the following is an example of the insureds Consideration? •Insurer's promise to pay benefits •Paid premium •Legal purpose •Intent

automobile

Which of these factors is NOT taken into account when determining an applicant's life insurance needs? *Social Security *automobile *savings *pension

The benefit can be offered as a rider at a specific extra cost or may be at no cost

Which of these is NOT a characteristic of the Accelerated Death Benefit option? *The face amount and policy premium are not affected by the payment * Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness *There may be a dollar limit on the maximum benefit *The benefit can be offered as a rider at a specific extra cost or may be at no cost

Accelerated death benefit

Which of these is considered to be a Living Benefit option in a life insurance policy? *Reinstatement *Waiver of premium *Accelerated death benefit *Payor benefit

The annuitant's life expectancy determines the annuity payments

Which of these statements regarding the annuitant is CORRECT? *The contract can only be assigned by the annuitant *The annuitant is the only individual who can surrender the contract *The annuitant must also be the beneficiary *The annuitant's life expectancy determines the annuity payments

Insurance carriers

Who is responsible for assembling the policy forms for insureds?

A life insurance contract which accumulates cash values higher than the IRS will allow

A Modified Endowment Contract (MEC) is best described as what?

No federal income tax is owed on life insurance proceeds

A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed? *A flat tax of 10% is owed on all proceeds *Federal income tax is owed if proceeds exceed $250,000 *No federal income tax is owed on life insurance proceeds *Tax liability owed depends on the type of life insurance policy

Initial made by the applicant

A change in insurance application requires what?

all of the members of the union

A group policy may be issued to a labor union. The members eligible for insurance under the policy shall be what?

2 years

A life insurance policy becomes incontestable after it has been in force for how long?

universal life

A life insurance policy that is subject to a contract interest rate is referred to as what?

Variable Whole Life

A life insurance policy which contains cash values that vary according to its investment performance of stocks is called What?

Guaranteed insurability rider A guaranteed insure ability writer is designed to permit young individuals to be able to purchase additional insurance as they grow older regard less of insurability

A life insurance rider that Allows An individual to purchase insurance As they grow older, Regardless of ensure ability is called What?

Producer

A person required to be licensed pursuant to the laws of this state to sell, solicit or negotiate insurance is called what?

preferred

A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification?

names of the beneficiary

A policy illustration given at time of sale does NOT typically include what?

Reduction of premium dividend option

A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? *Reduction of premium dividend option *Extended term option *Paid-up option *Cash dividend option

variable Life Insurance

A securities license it's required for life insurance producer to sell what?

Family Term

A spouse and child can be added to the primary insured coverage as what kind of rider?

from insurer to insurer and no cash is received by the policyowner

A tax-free Section 1035 Exchange of a life insurance policy to a different policy is permitted if it occurs _________________________________________________.

Replacement

A transaction in which a new life insurance policy is purchase and then existing life insurance policy is surrendered is called what?

association or labor group

A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a what?

promises made

According to the principle of utmost good faith, They insured Will answer questions on the application to the best of their knowledge and pay the Required premium, While the insurer Will deal fairly with the insured and its_______ ________

Protecting the business by covering entry level employees with life insurance

All of the following are considered appropriate uses of life insurance for business purposes EXCEPT *Attracting quality employees by offering a group life plan *Funding an entity buy-sell agreement *Protecting the business by covering key employees with life insurance *Protecting the business by covering entry level employees with life insurance

reduction of premium

All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT •extended term insurance •cash surrender •reduction of premium •reduced paid-up insurance

Losing money at a casino

All of the following are examples of pure risk EXCEPT *Losing money at a casino *Injured while playing football *Falling at a casino and breaking a hip *Jewelry stolen during a home robbery

accidental death

All of these are common exclusions to a life insurance policy EXCEPT *accidental death *military service *aviation *hazardous occupations

National Association of Insurance Underwriters

All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT *Agent's report *Medical Information Bureau (MIB) *Inspection reports *National Association of Insurance Underwriters

A Policy Summary and Buyer's Guide

An agent who sells an individual life insurance policy in MUST what deliver to the policyowner?

At the request of the insurer to assist in the underwriting decision

An attending physician's statement would be appropriate for which life insurance purpose?

stock

An insurance company that is owned and controlled by stockholders is what kind of company?

Blood test for HIV

An insurer has a right to screen applicants for HIV in which of the following ways?

30

An insurer must submit all policy forms and applications to the Commissioner at least __ days before they can be used.

marital status

An insurer would be committing Unfair Discrimination if coverage was denied based upon what?

Replacement

Any transaction in which new life insurance is purchased and, as a result, the existing life insurance will be surrendered is called what?

during periods of inflation, annuitants will experience a decrease in purchasing power of their payments

He said has recently bought a fixed annuity. what is the disadvantage of owning this type of annuity?

Gains are taxed at distribution

How are annuities given favorable tax treatment?

appointment

In Washington, an insurance producer cannot sell, solicit, or negotiate policies for an insurer unless there is an agreement in place between the producer and insurer. This agreement is called a(n) what?

Investigative consumer report

In applicant's character and personal habits can be obtained for underwriting purposes from which source?

Business owner to business customer

In which of the following relationships would there NOT be an insurable interest? *Parent to child *Business partner to business partner *Brother to sister *Business owner to business customer

normally at any time during the policy term

When can a A beneficiary change occur?

life income annuity

Which Of these is not considered to be a common life Insurance non forfeiture option? • cash surrender • extended terms insurance • reduced paid up Insurance • Life in Annuity

Equity-indexed annuity

Which annuity is linked to a market-related index?

Flexible premium deferred annuity

Which annuity requires premium payments that vary from year to year?

Legal purpose

Which contract element is insurable interest a component of?

accumulation at interest option

Which dividend option Would an insurer invest the policyowners money and add any interests earnings as the dividends accrue?

Accumulation at Interest Option

Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue?

The Securities Exchange Commission

Which federal government agency enforces the security laws enacted by Congress?

Failing to adopt and implement reasonable standards for the prompt investigation of claims

Which of the fine acts by and ensure, if committed without just cause and performed with such frequency as to indicate standard operating procedures, constitutes in an unfair Claims Settlement Practice?

Failing to adopt and implement reasonable standards for the prompt investigations of claims

Which of the following acts by an insurer, if committed without just cause and performed with such frequency as to indicate standard operating procedures, constitutes an Unfair Claims Settlement Practice? *Unknowingly misrepresenting pertinent facts or policy provisions to claimants *Failing to adopt and implement reasonable standards for the prompt investigations of claims *Discouraging policyowners from initiating lawsuits by offering a quick and fair claim settlement *Investigating a claim without the knowledge and permission of the claimant

One formed under the laws of Washington

Which one of the following is a domestic insurer? *One formed under the laws of Washington *One formed under the laws of a state or government of the United States other than Washington *One formed under the laws of a country other than the United States of America *One formed under the laws of Washington or under the laws of a state geographically bordering Washington

straight life

Which one of these will have the highest monthly payout upon annuitization? •straight life •joint life •joint and survivor life •life with period certain

Insured

ambiguities in an insurance policy are always resolved in the favor of the ___________

To licensed producer who is appointed with the insurer

an insurer may pay a commission in which of the following scenarios? • To a license non appointed producer who has Sold, solicited, or negotiated a policy of insurance on behalf of the insurer • To an unlicensed person who has sold solicited or negotiated a policy of insurance on behalf of the insurer • To a licensed producer who is a plan with the insurer •when a policy is cancelled back to inception