Comprehensive Exam Questions
Every Long-Term Care policy must provide a ______-day free look period from the date the policy is delivered. A 10 B 60 C 30 D 15
30
What provision describes the parts of the life insurance contract? A Incontestability B Consideration C Entire Contract D Insuring
Entire Contract
Basic Health Insurance plans do not have a deductible, so they are known as providing: A "Designated" coverage B "Catastrophe" coverage C "First Dollar" coverage D "Non-Deductible" coverage
"First Dollar" coverage
Victor's AGI is $100,000. His disability income policy premium was $3,500, his LTC premium was $4,000, and he had $5,500 in unreimbursed medical expenses. Based on this information, Victor may deduct: A $3,000 B $2,000 C $9,500 D $5,500
$2000 While the total amount is $13,000, part of that total refers to disability insurance premiums, which are not deductible. Minus that amount, the other expenses add up to $9,500, which exceeds 7.5% of Victor's AGI by $2,000. Therefore, Victor can deduct the excess amount.
During a sale, Producer L misrepresented the conditions of an insurance policy to a potential purchaser. The Commissioner finds after a hearing that Producer L knowingly engaged in the unfair practice and orders payment of a monetary penalty of what amount? A $10,000 B $5,000 C $1,000 D $50,000
$5,000 The Commissioner may impose a penalty of up to $5,000 per violation, not to exceed $50,000 in any 6-month period, if the person knew they were engaging in an unfair practice. If Producer L was unaware of the misrepresentation, the penalty would be no more than $1,000 per violation, not to exceed $10,000 in an 6-month period.
Ted owns a $50,000 Whole Life Policy. At age 47, he decides to stop paying premiums on his policy when it has $15,000 of cash value and exercise the Extended Term Option. Ted's term benefit will be: A $15,000 B $35,000 C $50,000 D $65,000
$50,000 upon its lapse, to automatically buy a single premium term policy of the same face amount for a specified number of years and days as listed in the policy's nonforfeiture table.
Albert owned a $100,000 policy that had accumulated a cash value of $20,000, against which he had borrowed $10,000. If he dies with this loan outstanding, his beneficiary will receive which of the following amounts? A $110,000 B $120,000 C $80,000 D $90,000
$90,000 Any outstanding loans at the insured's death will be deducted from the face amount (death benefit) along with any interest due.
An insured should receive necessary claim forms within _____ days after notice of claim. A 20 B 10 C 5 D 15
15
The Time Limit on Certain Defenses (Incontestable) period is _____ years under individual health and disability contracts. A 5 B 7 C 2 D 3
2
Notice of claim is required within _____ days of loss. A 10 B 90 C 15 D 20
20 Under the Notice of Claim Provision (a Mandatory Uniform Provision), the insured is required to notify the insurer, in writing, within 20 days of any loss.
When replacing a life insurance policy in Kansas, the replacing insurer must notify the existing insurer of the replacement within: A 7 working days B 5 working days C 10 working days D 3 working days
3 Working Days
A producer in Kansas must keep a copy of the life insurance replacement form for what period of time? A 7 years B 3 years C 2 years D 90 days
3 years
An individual accident and sickness policy issued in Kansas must provide indemnity for a medical care facility for not less than _____ days per year for the treatment of alcoholism. A 30 B 60 C 45 D 15
30
The grace period under individual life insurance policies in Kansas is not less than _____ days. A 30 B 15 C 10 D 60
30
In Kansas, advertisements for sickness and accident insurance must be maintained at the insurer's home or principal office for a period of either _____ year(s), or until the filing of the next regular report, whichever is the longest period of time. A 2 B 4 C 1 D 7
4
Producers in Kansas must maintain records of all information used in making annuity recommendations for _____ years. A 1 B 5 C 4 D 2
5
Insurer XYZ creates a new life insurance advertisement and maintains it in its files, subject to inspection by the Kansas Department of Insurance. How long must Insurer XYZ maintain the advertisement after discontinuing its use? A 5 years B 3.5 years C 4 years D 3 years
5 years
If the insured is receiving regular disability income payments, the insurer can require notice of continuance of claim every ______ months. A 12 B 3 C 9 D 6
6
In a Medicare Supplement replacement sale, if the original policy has been in force for less than ______ months, the replacing insurer shall waive any time periods applicable to preexisting conditions to the extent that they have already been satisfied under the original policy. A 6 B 9 C 3 D 12
6
Regarding disability income policies, which of the following benefit periods would have the lowest premium? A 6 weeks B 1 year C 2 years D 6 months
6 Weeks A long benefit period corresponds with a higher premium--a shorter benefit period means a lower premium
If an insurer makes a payment for a claim but the insured is dissatisfied with it, the insured must wait _____ days after proof of loss before taking any legal action. A 60 B 90 C 45 D 20
60 Relevant Content: Individual Policy Provisions
How much of a cash value policy loan will an insurer normally grant with a variable type policy? A 80-90% B 100% C 50-75% D 75-90%
75-90%
A group health policy issued in Kansas may impose a pre-existing conditions exclusion for a period not to exceed: A 6 months B 12 months C 90 days D 30 days
90 Days Under a group health policy, a pre-existing condition exclusion may be imposed for up to 90 days after the date of enrollment for a medical condition that existed 90 days prior to the effective date of enrollment.
Which of the following is an example of a collateral assignment? A A corporation signing over a policy on the life of an executive upon their retirement B A wealthy person signing over a life insurance policy to their irrevocable trust for estate planning purposes C A business using a life insurance policy to secure a bank loan D A parent turning over the juvenile policy to the now adult child
A business using a life insurance policy to secure a bank loan
Part B of Medicare excludes which of the following medical expenses? A Clinical laboratory services B Home health care C A regular dental checkup D Outpatient hospital treatment
A regular dental checkup Part B does not cover routine dental services.
According to Kansas law, a viatical settlement broker is: A A representative of the viatical settlement provider in negotiating viatical settlement contracts B A person, other than a viator, who enters into a viatical settlement contract or obtains financing for the purchase of a viatical settlement C A representative of the viator in negotiating viatical settlement contracts D The owner of a life insurance policy who enters into a viatical settlement contra
A representative of the viator in negotiating viatical settlement contracts
Which of the following statements is correct regarding the payment of accelerated benefits in Kansas? A The payment of accelerated benefits is subject to a separate set of conditions not included in the policy B The payment of an accelerated benefit does not affect the cash value of the underlying policy C The insurer may direct how the insured uses the proceeds D Accelerated benefits must provide for a lump sum benefit option
Accelerated benefits must provide for a lump sum benefit option
Kirk has just reinstated an individual A&H policy that had lapsed and wants to know how soon coverage will be in effect for any accident or sickness. You, the agent, would say: A Accidents immediately, sickness after 30 days B Sickness immediately, accidents after 10 days C Accidents immediately, sickness after 10 days D Sickness immediately, accidents after 30 days
Accidents immediately, sickness after 10 days
The exception to the rule concerning the non-deductibility of life insurance premiums is: A All employer paid group life insurance premiums B Life insurance to fund a Buy-Sell Agreement C Key Employee Insurance D Third-Party Ownership Policies
All employer paid group life insurance premiums An employer may deduct 100% of the total group life premium it pays as a business expense, but the value of premiums for any employee's coverage in excess of $50,000 must be 'imputed' to the employee and income tax paid on that amount.
When Harry completed his insurance application, the agent discovered that he was under treatment for a chronic condition. In order to gather the necessary information, Harry's agent ordered a/an: A A Medical Information Bureau report B An inspection report C An attending physician statement D A medical exam
An attending physician statement
All of the following are true regarding the Life and Health Insurance Guaranty Association, except: A Other member insurers are assessed to provide money for the claims of an insolvent insurer B An insurer may use the existence of the Association in advertisements to purchase insurance C The Association is not liable for more than $300,000 in the aggregate for any one life D It prevents financial loss to policyholders when an insurer becomes insolvent
An insurer may use the existence of the Association in advertisements to purchase insurance
All of the following statements regarding a group Accidental Death and Dismemberment policy are incorrect, except: A Accidental Death and Dismemberment Insurance is not available on a group basis, only on an individual basis B The premiums paid by the employer are considered part of the employee's income C Any benefits received are not taxable to the recipient D The premiums paid by the employer are not deductible as a business expense to the employer
Any benefits received are not taxable to the recipient
Which of the following is a true characteristic of a Variable Universal Life policy? A The insurer bears all risks in accumulating cash value B As long as there is sufficient cash value to cover policy expenses when due, the insured is not required to pay the planned premium C The policy has a fixed premium schedule D The policy requires only a life license to sell
As long as there is sufficient cash value to cover policy expenses when due, the insured is not required to pay the planned premium
The technical name of the person who makes a policy assignment is the: A New owner B Assignee C Assignor D Old owner
Assignor The original owner (the assignor) will name a new owner of the policy (the assignee).
The premium charged for new policies obtained by exercising the Guaranteed Insurability Rider is based upon the: A Original policy issue age of the insured B Original policy issue age of the policyowner C Attained age of the insured D Attained age of the policyowner
Attained age of the insured
Which underwriting source is primarily used when an application reveals conditions for which more medical information is required? A Agent's Report B Inspection Report C Medical Information Bureau Report D Attending Physician's Statement
Attending Physician's Statement
With Joint Life Insurance policies, the premium is based on the: A Average age of both insureds B Age in a specialized table used for this type of policy C Age of the youngest insured D Age of the oldest insured
Average age of both insureds
What type of disability income insurance provides funds to cover business expenses when the business owner becomes disabled? A Buy-sell B Business overhead expense C Reducing term D Key employee
Business overhead expense Business Overhead Expense provides the funds to cover the overhead expenses of a business when the owner becomes disabled. The benefits include expenses such as office rent, utilities, and employee labor. The owner cannot collect loss of income under this policy, however.
Which of the following plans could generate a taxable event to the recipient? A Key person disability income B Disability buy-sell C Business overhead expense D Medical expense policy owned by a sole proprietor
Business overhead expense Since the premiums are deductible, the benefit is taxable.
The nonforfeiture option that, if exercised, terminates all coverage is: A Reduced Paid-Up B Extended Term C Cash Surrender D Paid-up Additions
Cash Surrender
The bank may require its borrowers to have a life insurance policy to secure a loan in the event of the borrower's death. Which provision gives the bank proportional protection but not control of the policy? A Consideration Clause B Collateral Assignment C Policy Loan Provision D Entire Contract Clause
Collateral Assignment
All of the following CE requirements are correct, except: A Continuing education courses are required every 4 years B 12 hours for life and/or health C 12 hours for property, casualty, or personal lines D 4 hours for title
Continuing education courses are required every 4 years Every 2
_______ income benefits received by an employee are subject to taxation in proportion to the amount of premium that the employer paid. That income attributable to the employee's premium is not taxable. A Dental B Disability C Long-Term Care D Medical
Disability Disability income premiums paid by the employer are deductible to the employer and are not considered part of the employee's income. Because of this, benefits received are treated as income to the employee to the extent that the employer paid the premiums.
Beth has a contract stating she must be disabled for 3 months before benefits will begin to be paid. This 3-month period is known as the: A Contingency Period B Grace Period C Elimination Period D Probationary Period
Elimination Period
All of the following regarding employer group life insurance are true, except: A Employee-paid premiums are tax-deductible to the employee B Death benefit proceeds paid to an employee's named beneficiary are received income tax-free C Employer-paid premiums do not constitute taxable income to the employee unless the death benefit exceeds $50,000 D Premiums paid by an employer are tax-deductible to the business as an ordinary and necessary business expense Excellent!
Employee-paid premiums are tax-deductible to the employee Premiums paid by an employee are not eligible for a tax deduction.
Alice finds she no longer is able to pay premiums on her $50,000 Whole Life Policy, but needs that amount of protection for her family. Which Nonforfeiture Option provides this protection? A Reduced Paid-Up B Fixed Amount C Extended Term D Paid-Up Option
Extended Term
Which Settlement Option pays a specified dollar amount until benefits are exhausted? A Life Income with Period Certain B Paid-Up Option C Life Income D Fixed Amount
Fixed Amount
If the beneficiary is concerned about a payout for a particular period of time, the _______ settlement option should be selected. A Fixed Amount B Fixed Period C Life with Period Certain D Joint and Survivor
Fixed Period
Which Settlement Option pays for a specified period, regardless of who may receive the payments? A Life Income with Period Certain B Paid-Up Additions C Fixed Period D Fixed Amount
Fixed Period regardless of who may receive the payments.
An organization that transacts insurance only with its own members is a(n): A Mutual insurer organization B Fraternal Benefit society C Domestic insurer D Insurance guaranty association
Fraternal Benefit society
The National Association of Insurance Commissioners (NAIC): A Enacts legislation and policy B Requires each legislature to accept recommendations C Has no legal authority over insurance regulation D Requires only 30 Commissioners to be members at any time
Has no legal authority over insurance regulation The NAIC does not have legal authority over insurance regulation, but promotes uniformity in the interpretation of insurance legislation and regulation.
When advertising health insurance policies in Kansas, insurers must: A Obtain confirmation of testimonials used more than 3 years after they were originally given B Have a 6-month gap between enrollment periods C Never use statistics D Use words like "only" or "merely" to describe restrictions or exclusions
Have a 6-month gap between enrollment periods Confirmation of testimonials must be obtained if the testimonial is used more than 1 year after it was originally given. Statistics may be used if they are cited, and using words like "only" and "merely" to describe restrictions or exclusions is prohibited.
Under the Fair Credit Reporting Act, which of the following statements is correct? A If an individual is denied coverage, they can request a copy of the report B The reporting company can provide confidential information to anyone requesting it C The Act is designed to protect reporting agencies from the public D The reporting agency has no responsibility to investigate inaccurate information
If an individual is denied coverage, they can request a copy of the report
Which principle states that an insured may be reimbursed up to the amount of the actual loss? A Indemnity B Fair Claims Settlement C Insurable Risk D Adhesion
Indemnity
Which of the following manufactures and sells insurance coverage in the form of insurance policies or contracts of insurance? A Applicants/insureds B Insurance agents C Insurance companies D Insurance agencies
Insurance companies Key word: Manufactures
Mandatory uniform provisions found in health insurance policies are designed to protect the: A Agency B Insured C Insurer D Producer
Insured
Optional uniform provisions found in health insurance policies are designed to protect the: A Agency B Insurer C Producer D Insured
Insurer
Optional Uniform Provisions are included in the contract at the _______ option. A Beneficiary's B Insurer's C Insured's D Commissioner's
Insurer's The Optional Uniform Provisions are included at the insurer's option. However, if used, they must conform to that state's insurance code.
The Commissioner may revoke, suspend, or refuse to renew a license for all the following, except: A Cheated on an insurance examination B Been convicted of a felony C Issued insufficient coverage to a customer through apparent authority D Had a license suspended or revoked in another state
Issued insufficient coverage to a customer through apparent authority
Of the following listed choices, which is true as it pertains to Medicare Part A? A All recipients pay a monthly premium B Provides coverage for outpatient services C It is prepaid through FICA taxes and is automatic when that worker qualifies for Social Security retirement benefits ('fully insured') D It covers all prescription drugs
It is prepaid through FICA taxes and is automatic when that worker qualifies for Social Security retirement benefits ('fully insured')
Which of the following statements is correct with respect to a certificate of authority in Kansas? A It is unlawful for an insurer to transact any business in Kansas without a certificate of authority B Insurers are not required to have a certificate of authority in order to transact business in Kansas C An insurer may transact business in Kansas for a maximum of 30 days before obtaining a certificate of authority D Once an insurer has applied for a certificate of authority, it may transact business in Kansas until and if the application is denied by the Commissioner
It is unlawful for an insurer to transact any business in Kansas without a certificate of authority
Insurer XYZ certifies a producer on June 1. The insurer must notify the Department of Insurance of the appointment by: A June 10 B June 15 C July 31 D July 1
July 1 An insurer that certifies a producer must notify the Insurance Department within 30 days of the appointment.
Which provision is a Mandatory Uniform Provision? A Legal Actions B Misstatement of Age C Change of Occupation D Illegal Occupation
Legal Actions
All of the following are Optional Uniform Provisions, except: A Change of Occupation B Illegal Occupation C Legal Actions D Misstatement of Age
Legal Actions Mandatory
Which of the following disability income benefit periods will result in the highest premium? A 5 years B Age 65 C 2 years D Life
Life
Albert owns a life insurance policy insuring his son David. He wants a Settlement Option that, if David were to die, would provide guaranteed payments to Albert and his wife until both of them die. Albert's producer should recommend: A Life Income Joint and Survivor B Life Income Period Certain C Fixed Amount D Joint Life
Life Income Joint and Survivor
Producer Q is placing an annuity with a customer in Kansas. Before recommending a specific annuity, Producer Q should take into account all of the following, except: A Liquid net worth and the customer's illness/condition B Intended use of the annuity and annual income C Age and risk tolerance D Financial status and financial objectives
Liquid net worth and the customer's illness/condition
This type of policy covers various expenses that an insured may incur due to a routine accident or sickness. A Dental expense B Disability income C Medical expense D Long-term care
Medical expense
With _______, the patient must pay 20% of covered charges plus the deductible. A Medicare Part B B None of the answers listed C A Medicare Supplement D Medicaid
Medicare Part B Medicare Part B pays 80% of allowable charges after the annual deductible is met.
An individual is newly eligible for Medicare and purchases a Medicare Supplement policy. The required core benefits of the policy would include all of the following, except: A Medicare Part B deductible B Medicare Part A eligible expenses for hospitalization, up to 365 days C First 3 pints of blood under Medicare Part A and Part B D Coinsurance amount of eligible expenses under Medicare Part B
Medicare Part B deductible
Which of the following is not correct regarding Kansas individual and group health policy provisions? A The free look period for Medicare Supplement policies is 30 days B Must provide not less than 60 days per year for a mental condition in a facility C Notification of a newborn child must be given to the insurer within 31 days of birth D Must provide coverage for 48 hours for a vaginal delivery
Must provide not less than 60 days per year for a mental condition in a facility Coverage must provide not less than 45 days per year for mental health in a medical care facility.
Which Act was implemented in order to protect consumers from questionable Medicare Supplement Policy marketing practices? A HIPAA B OASDHI C NAIC Model Law D COBRA
NAIC Model Law NAIC Model Law requires all Medicare Supplement policies to be standardized.
A Short-Term Disability Policy generally is for a disability lasting for: A 3-5 years B 2-3 years C Not more than 2 years D 2 weeks
Not more than 2 years
When a producer lives in Missouri and wants to do business in Kansas, they must first: A Obtain permission from the Commissioner of Insurance in Missouri B Relinquish their Missouri resident license C Obtain a nonresident license in Kansas D Open an office in Kansas
Obtain a nonresident license in Kansas
Which of the following Whole Life insurance policies has the lowest annual premium payment per $1,000 of coverage for a 35-year-old, all other factors being equal? A Limited Pay Ordinary Whole to age 85 B Ordinary Straight Whole Life C 20-Pay Ordinary Whole Life D 30-Pay Ordinary Whole Life
Ordinary Straight Whole Life The longer the premium-paying period, the lower the annual premium
Which of the following is not covered by Medicare Part A? A Hospitalization B Hospice care C Outpatient hospital treatment D Post hospital skilled nursing facility care
Outpatient hospital treatment Outpatient services are covered under Part B.
An insured with a participating life insurance policy receives annual dividends. She has opted for the insurer to use these funds to increase her overall amount of insurance. This would refer to which option: A Premium Reduction B Paid-Up Additions C One-Year Term D Reduced Paid-Up
Paid-Up Additions
Angela bought a policy from her friend, an insurance producer. After looking it over thoroughly, Angela only has one question. Will she receive dividends? She will if the policy is which of the following? A Accumulating B Cash Value Policy C Participating D Nonparticipating
Participating
Each insured under a blanket accident and sickness policy issued in Kansas must be furnished a memorandum providing all of the following information, except: A Eligible persons to whom benefits are payable B Policy adjustments for each insured as a result of individual underwriting C Essential coverages and conditions D Procedure to make a claim under the policy
Policy adjustments for each insured as a result of individual underwriting Key word: Individual
The purpose of the Kansas Guaranty Association Act is to guarantee that the life or health insurer will: A Remain solvent B Protect policyowners in the event an insurer becomes insolvent C Issue policies that have at least $100,000 in benefits D Pay no more than $1,000,000 for any one life
Protect policyowners in the event an insurer becomes insolvent
Which of the following is NOT a purpose of the Kansas statutes regarding the replacement of life insurance? A Protects the beneficiaries from a loss of benefits B Regulates the activities of insurers and producers C Reduces the opportunity for misrepresentation D Establishes penalties for violation of the statutes
Protects the beneficiaries from a loss of benefits The requirements for the replacement of life insurance and annuity or variable contracts are designed to protect the interests of purchasers from the loss of benefits, not the beneficiaries.
For which of these policies is the individual allowed to deduct the premiums they pay that exceeds 7.5% of their adjusted gross income? A Dental B Either a long-term care policy or a group health plan C Workers' Compensation D Qualified Long-Term Care
Qualified Long-Term Care
Which of the following is NOT a Dividend Option? A Paid in Cash B Accumulate at Interest C Reduced Paid-Up D Paid-Up Additions
Reduced Paid-Up Reduced Paid-Up is a Nonforfeiture Option
Guaranteed Renewable means: A Renewable with guaranteed premium B Renewable only at the option of the insurer C Renewable with adjustable premiums determined by frequency of claim D Renewable with adjustable premiums, by classification only
Renewable with adjustable premiums, by classification only
The Guaranteed Renewable Provision states that the policy is: A Renewable with premiums that may be increased for entire classes of insureds B Renewable only at the option of the insurer C Renewable with no increase in premium D Renewable with adjustable premiums determined by frequency of claims
Renewable with premiums that may be increased for entire classes of insureds
Which of the following life insurance policies is not exempt from Kansas replacement regulations? A Group life insurance policies B Credit life insurance administered by group-type methods C A term policy that is nonconvertible and nonrenewable with 5 years or less to expire D Replacing a whole life policy with a term policy
Replacing a whole life policy with a term policy
All are true of HMO subscribers, except: A Subscribers do not pay a copayment B Subscribers do not file claims C Subscribers do not pay deductibles D Subscribers do not receive a bill
Subscribers do not pay a copayment Subscribers do not pay deductibles, file claims, or receive a bill; members may be required to make a copayment for office visits and hospital services.
Which policy utilizes a Corridor Deductible after Basic Medical Expense Coverage benefits have been exhausted and before Major Medical benefits begin? A Hospital Expense B Supplementary Major Medical C Surgical Expense D Comprehensive Major Medical
Supplementary Major Medical
_____________ are allowed as a way to access annuity values without having to elect a settlement option or surrender the contract. A Contract waivers B Premium deferrals C Loans D Systematic withdrawals
Systematic withdrawals
_____________ are allowed as a way to access annuity values without having to elect a settlement option or surrender the contract. A Contract waivers B Systematic withdrawals C Premium deferrals D Loans
Systematic withdrawals Relevant content: Annuities
Deferred annuities are normally purchased to defer ___________. A Earnings on any deposits B Withdrawals of any principal C Withdrawals of any earnings D Taxes on any policy earnings
Taxes on any policy earnings
All of the following are true regarding requirements for a foreign company to be authorized to transact business in Kansas, except: A The foreign company must demonstrate that the majority ownership interests of the company are financially sound B The foreign company must have been in operation for at least 3 years C The foreign company requires immediate regulatory attention by the Department of Insurance D The foreign company must make the required deposit with the Kansas Insurance Department
The foreign company requires immediate regulatory attention by the Department of Insurance
Clayton is asking his life insurance producer about any potential taxation issues related to his $100,000 personal Whole Life policy. All of the following are TRUE, except: A Upon surrender of the policy, he will be taxed on any amount by which the cash value exceeds the cost basis (premiums paid) of the contract B The interest that he pays on policy loans is tax-deductible C Since his policy is a personal policy, he cannot deduct the premiums he pays for the policy D Annual increases in the policy's cash value are not taxable at the time they are credited to the policy
The interest that he pays on policy loans is tax-deductible The interest on policy loans is not tax-deductible.
On a variable universal life policy what is the difference between the cash value and the cash surrender values? A The amount of any outstanding policy loan B The interest earned C The surrender charge D The investment performance
The surrender charge
Producers may not transact insurance business in Kansas unless: A There is reciprocity B The licensee has an endorsement by another producer C The Commissioner is notified within 90 days of the appointment D There is a certification from at least 1 insurer
There is a certification from at least 1 insurer In order to transact insurance business in Kansas, a producer must be certified by at least 1 insurer.
In Kansas, which of the following is exempt from licensing examination requirements? A Life producer B Title producer C Travel producer D Pre-need producer
Travel producer Other applicants for a producer license who are exempt from licensing requirements include one who was previously licensed in Kansas and the license lapsed less than two years ago, the applicant wants to write insurance on growing crops and has been continually licensed, the applicant passed the exam but was not appointed in error, and the applicant was previously licensed in good standing in another state.
Which of the following pays a current interest rate and also guarantees a minimum interest rate that will be credited to the cash values of the life insurance policy? A Variable Whole Life B Ordinary Whole Life C Universal Life D Variable Universal Life
Universal Life Universal Life insurance has a current interest rate which is generally higher than the guaranteed minimum interest rate. It depends on the interest rates the insurer can earn on the assets in its general account.
A Variable Universal Life (VUL) is a combination of: A Term and Universal Life B Whole Life and Variable Life C Term and Whole Life D Universal and Variable Life
Universal and Variable Life
In Kansas, the following types of policies may defer the payment of dividends for more than 5 years, except: A Pure endowments B Industrial insurance C Annuities D Variable universal life
Variable universal life Deferring dividends on participating policies for more than 5 years is a prohibited provision for all life insurance policies except industrial insurance, annuities, and pure endowments.
All of the following are times in which life insurance policy cash values can become taxable, except: A At policy surrender B If the policy fails to meet the IRS definition of life insurance C When a policy loan is taken out D When the policy is sold
When a policy loan is taken out
