Final Exam Wrong Questions
To keep the policy in force
What is the purpose of establishing the target premium for a universal life policy?
Credit life
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
The policy contains sufficient cash value to cover the cost of insurance.
The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as
Pay dividends to the policyowner
A participating insurance policy may do which of the following?
The policyholder.
A person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership under the policy to any of the following EXCEPT
Participating
A policy which stipulates that the company will return any unused premiums to policyowners, is called
Survivor Protection
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Certain groups of employees only.
A tax-sheltered annuity is a special tax-favored retirement plan available to
30 days
After receiving an application for a hearing, the Commissioner must hold a hearing within
Fixed-period installments.
All of the following are dividend options EXCEPT
The plan is funded by permanent insurance only
All of the following are true of Key Person insurance EXCEPT
The annuitant receives a fixed amount of return.
All of the following statements about equity index annuities are correct EXCEPT
The date of medical exam
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
Pay a reduced death benefit
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
If the primary beneficiary predeceased the insured
An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
15 days from the date of the first insurance application is submitted.
An insurer must appoint a licensee before he/she is authorized to transact insurance business. The insurer must file a notice of appointment within
100
The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?
Interest
During partial withdrawal from a universal life policy, which portion will be taxed?
Fixed period
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
The contingent beneficiary.
In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to
Not taxable since the IRS treats them as a return of a portion of the premium paid.
On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
To purchase a smaller amount of the same type of insurance as the original policy.
The paid-up addition option uses the dividend
$2500
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
They determine how death proceeds will be paid.
What is the purpose of settlement options?
6 months
What is the waiting period on a Waiver of Premium rider in life insurance policies?
Life income with period certain
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original dies, the payments will continue to a designated beneficiary?
A minor son of the insured
Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death?
Buy-sell agreements are normally funded with a life insurance policy.
Which of the following statements concerning buy-sell agreements is true?
It will pay double or triple the face amount
Which of the following statements is TRUE concerning the Accidental Death Rider?
life expectancy
Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?
Decreasing term
Which of the following types of insurance policies is most commonly used in credit life insurance?
A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered.
Which of the following would be considered an unfair claims settlement practice?
A salaried employee who advertises and solicits insurance
Which of the following would be required to be licensed as an insurance producer?
The lawful beneficiary is entitled to all policy benefits free from all claims of creditors or representatives of the insured's estate.
Which statement is true regarding the proceeds of a life insurance policy?
Insurers
Who makes up the Medical Information Bureau?
It has a guaranteed minimum interest rate.
Why is an equity indexed annuity considered to be a fixed annuity?