3 LO

Insurers must keep files of all advertisements used in Georgia for the minimum of how many years?

4 Years

Authorized insurance companies are examined by the Commissioner at least once every

5 years.

Always representing the insured

An agent is acting ethically in all of the following situations EXCEPT

Conditions.

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

Whether an insurable interest exists between the individuals.

If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about

The policy will not lapse since payment to the agent is the same as a payment to the insurer.

If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?

Traditional IRA contributions are tax deductible based on which of the following?

Owner's income

The death benefit can be increased by providing evidence of insurability.

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

Reduction of premium

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Coverage ends and the policy cannot be reinstated.

What happens when a policy is surrendered for its cash value?

Universal life

What kind of policy allows withdrawals or partial surrenders?

Long-term care

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?

They can be changed only with the written consent of that beneficiary.

Which of the following statements is TRUE concerning irrevocable beneficiaries?

The policyowner is entitled to policy loans.

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

Variable Plan

Which of the following terms will be permissible in describing a life insurance policy in company advertisements?

Regarding long-term care coverage, as the elimination period gets shorter, the premium

higher

The benefit is received tax free.

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then

What is a material misrepresentation?

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

Current assumption life

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

Discrimination.

When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered

Replacement.

Whenever agents submit applications to insurers, they must also submit statements, signed by the applicant and agent, disclosing the involvement or lack of involvement of