Dri 8.0

Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?

A policy summary

If an insurer and the insured cannot come to an agreement as to the value of damaged property, they must follow which provision of the policy?

Appraisal

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an

Authorized insurer.

Which type of policy would be used to cover the property insurance needs of a business?

Businessowners

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

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called

Cost of living rider.

Which of the following is TRUE about credit life insurance?

Creditor is the policyowner.

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and survivor.

Variable Whole Life insurance is based on what type of premium?

Level fixed

Annuities are purchased to

Liquidate an estate.

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid

Which of the following coverages in a personal auto policy would address losses such as hail, deer, or falling objects?

Other-than-collision

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.

Which of the following will be included in a policy summary?

Premium amounts and surrender values

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Revocable beneficiary.

Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?

Standard risk is representative of the majority of people.

Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?

Term rider

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association.

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

The benefit is received tax free.

Which of the following is an example of liquidity in a life insurance contract?

The cash value available to the policyowner

When determining the suitability of a life insurance policy or annuity contract, the agent must consider all of the following, EXCEPT

The commissions payable on such policy or contract.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?

The employer is the owner and beneficiary.

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.

All of the following are true about variable products EXCEPT

The premiums are invested in the insurer's general account.

Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings?

They are tax deferred until withdrawn.

Which of the following is true about commercial lines policies?

They are used by corporations and businesses.

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

They have a guaranteed minimum interest rate.

All of the following are true regarding the guaranteed insurability rider EXCEPT

This rider is available to all insureds with no additional premium.

Social Security was created to provide all of the following benefits EXCEPT

Unemployment income.

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

The main difference between immediate and deferred annuities is

When the income payments begin.