Dri 2.0
Which of the following is NOT among the primary ways deductibles for major medical plans can be paid?
An embedded deductible
All of the following are examples of third-party ownership of a life insurance policy EXCEPT
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.
An insured committed suicide one year after his life insurance policy was issued. The insurer will
Refund the premiums paid.
An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?
Viatical settlement
What is the name of the insured who enters into a viatical settlement?
Viator
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
With the policy.
After an insurance company examination, the Commissioner or the examiner appointed by the Commissioner must file a written report of the examination within
60 Days
All of the following events will terminate a producer's certificate of appointment, EXCEPT
A new Commissioner is put into office.
The accelerated benefits provision will provide for an early payment of the death benefit when the insured
Becomes terminally ill.
The Commissioner must examine the affairs and conditions of every insurer licensed in the State not less frequently than
Every 5 years.
What required provision protects against unintentional lapse of the policy?
Grace period
Fixed annuities provide all of the following EXCEPT
Hedge against inflation.
After receiving a subpoena to appear at a hearing, any person who fails to appear or refuses to testify may be
Held in contempt of court.
Personal Lines property policies are designed to meet the needs of
Individuals.
What do individuals use to transfer their risk of loss to a larger group?
Insurance
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Which of the following is NOT correct with regards to the death proceeds of a life insurance policy?
The insured's creditors may claim the proceeds from the life insurance policy of the deceased insured.
Which of the following must an insurer obtain in order to transact insurance within a given state?
Certificate of authority
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is
Conditional.
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
Which policy provision found on the first page of the policy makes clear that both parties to the contract must contribute something of value for the contract to be effective?
Consideration
What insurance term best describes perils that are NOT insured against?
Exclusions
All of the following actions can be described as twisting EXCEPT
Explaining to client the advantages of permanent insurance over term and suggesting changing policies
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, whichever occurs first.
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
In group insurance policies, certificates of insurance are provided to
Qualifying group members.
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Defamation
How much of the premium is paid by employees participating in a non-contributory plan?
0%
If a producer's license lapses, how much time does the producer have to apply for reinstatement without having to take an exam?
12 Months
Which is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
Interest only option
Which of the following is true about the mandatory free look in a Life Insurance policy?
It commences when the policy is delivered.
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?
It will increase because the insured will be 5 years older than when the policy was originally purchased.
Which of the following is an example of a limited-pay life policy?
Life Paid-up at Age 65
When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would
Lower the insured's premium.
If more than one policy is in force and covering the same risk at the time of loss, which provision defines how each policy will respond?
Other Insurance
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the
Other-insured rider.
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
Which of the following riders would NOT cause the Death Benefit to increase?
Payor Benefit Rider
Exclusions in insurance policies are
Perils that are not covered.
In life insurance, the policyowner is always the
Person who entered into the contract with the insurer.
All of the following are true regarding insurance policy loans EXCEPT
Policy loans can be made on policies that do not accumulate cash value.
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
