F
An Equity Indexed Annuity will grow based upon
Performance of a recognized index
What is the purpose of the insurability provision in group life policies
To allow the insurer to require proof of insurability from individual applicants
As an insurers field underwriter a producer has all of the following responsibilities except
Issuing policies on behalf of the insurer
With Adjustable Life, the owner can change all of the following EXCEPT
The insured
Which is true regarding a joint life annuity
The payments stop at the first death
All of the following are true of the survivorship life policy except
The premium is based on the age of each insured
What guaranteed that the information explained in the insurance contract is true
A warranty
What type of interest rate is guaranteed in universal life policies
Contract interest rate
Which of the following would be exempt from the policy replacement regulations for insurers
Credit life insurance
Example of alien insurer doing business in this state would be
Mexico
How are policy loans calculated
The policy's cash value minus unpaid loans and accrued interest
Which of the following types of insurance policies would perform the function of cash accumulation
Whole life
What happens to the face amount of a whole life policy if the insured reaches 100
Face amount paid to insured
Which of the following is correct about annuities
Fixed annuities do not provide protection against inflation
Who is responsible for verifying that an insurer is authorized to sell insurance policies in this state
Soliciting producer
Under which of the following conditions would life insurance proceeds be taxable by the federal government
If there is a transfer for value
Which of the following is not a component of an insurance policy premium
Number of beneficiaries
Restoring an insured financially after a claim is known as
Indemnity
The policy owner must face the possibility of losing money or something of value in the event of loss. What is this concept called?
Insurable interest
Life insurance can provide which of the following
Survivor protection
What is the cost of coverage based on for group life insurance
The average age and the ratio of men to women
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?
Fixed amount
If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?
IMMEDIATELY
Regulations regarding policy replacement of life insurance protect the interest of which of the following
Policy purchasers
According to the common disaster clause if the insured and primary beneficiary are killed in the same accident and cannot be determined who died first what is assumed
Primary beneficiary died first before insured
What type of insurer uses a formal sharing agreement
Reciprocal Insurers
What is a provision found in life insurance policies
Replacement
If an insured purchases an insurance policy with a large deductible what risk management technique is the insured exercising
Retention
How long must insurers maintain a copy of each disclosure document used in insurance transactions!
3 years
What is a prerequisite for receiving a commission from an insurance transaction
An appropriate license
Life insurance disclosure rules would apply to which of the following types of coverage
Whole life
All of the following are considerations under the needs approach for life insurance except
Insureds income tax
Who bears risk in fixed products
Insurance company
An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive
$70,000
during policy replacement the policy owner is entitled to a free look period of how long
20 days
How many days notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans
30 days
If a person whose license has been temporarily suspended demands a hearing the commissioner must hold the hearing within how many days after receipt of the demand
30 days
What is the maximum loan amount a policy owner may withdrawal from a variable universal life policy
An amount not exceeding the cash value
In a variable life insurance policy all of the following assets are held in the insurance company's general account EXCEPT
Cash surrender values
The policy owner has an option to pledge the life insurance policy as collateral for a bank loan this is called
Collateral assignment
When a whole life policy is surrendered for its nonforfeiture value what is the automatic option
Extended term
Which of the following is NOT a standard exclusion in life insurance policies
Disability
Which of the following would be true of both the fixed period and fixed amount settlement options
Both guarantee that the principal and interest will be fully paid out
An agent tells an insured that if he replaces his current policy with a newer one his dividends will be higher and his premiums will be slightly lower.the policy however would not offer either one of those things. What type of misrepresentation is being committed
Twisting
When life insurance proceeds are used to pay inheritance taxes and federal estate taxes it is known as
Estate conservation
All of the following are examples of a policy replacement EXCEPT
A Term policy is being converted to whole life
Twisting
A misrepresentation that persuades an insured or owner to his detriment
What type of group covers employees of the United States government or of any state or of any political subdivision or instrumentality of any of them
Public employee associations