Financial advising
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
The policyowner of a universal life policy may skip paying the premium and the policy will not lapse as long as
The policy contains sufficient cash value to cover the cost of insurance.
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
Erase the incorrect answer and record the correct answer.
Which of the following is NOT a type of whole life insurance
Level term
Which of the following will be included in a policy summary
Premium amounts and surrender values
Which nonforfeiture option provides coverage for the longest period of time?
Reduced Paid-Up
All of the following are TRUE statements regarding the accumulation at interest option except
The interest is not taxable since it remains inside the insurance policy.
Which of the following products provides income for a specified period of years or for life, and protects a person against outliving their money
an annuity
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
coercion
Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home
long term care
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
Which of the following statements concerning buy-sell agreements is true
Buy-sell agreements are normally funded with a life insurance policy
A candidate for an Accident and Heath Producers license must complete how many hours of pre licensing education
20 hours
As a condition for renewal of their licenses, how many hours of continuing education are required for all resident and nonresident insurance producers?
24
How soon from the submission of a notice of claim must an insurer acknowledge the receipt of the notice?
30 days
What is another name for interest-sensitive whole life insurance
Current assumption life
Which of the following is INCORRECT concerning noncontributory group plan
The employees receive individual policies
When a producer was reviewing a customers coverage, written by another company, the producer made several remarks that were maliciously critical to the other insurer. The producer could be found guilty of
Defamation
A temporary license may be issued without examination in all of the following instances except
To an applicant who fails to pass an insurance producers examination
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act
$2,500
Any of the following may be an unfair claims practice EXCEPT
Attempting to settle a claim by the use of arbitration
If a producer is found to have committed unfair trade practices or fraud, the Commissioner has the authority to do what
Sentence the Producer to jail time
Which of the following types of annuities will generally provide the highest monthly income
Straight life
Children's riders attached to whole life policies are usually issued as what type of insurance
Term
If an insured under a variable life insurance policy dies, how will the insurer respond to outstanding policy loans?
The loan amounts are deducted from the death benefit.
Which of the following statements is correct regarding a whole life policy
The policyowner is entitled to policy loans
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated
Those who have been insured under the plan for at least 5 years
Which of the following premium payment modes will incur the lowest overall payment
annual
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
the insured's premiums will be waived until she is 21.
Any licensed person in this state may be assessed a civil penalty for an unintentional violation of a state insurance statute up to
$1,000
Within how many days must insurance producers report changes of address to the commissioner
30 days
What license or licenses are required to sell variable annuities?
Both a life insurance license and a securities license
The annuitant dies while the annuity is still in the accumulation stage. Which of the following is true
The beneficiary will receive the greater of the money paid into the annuity or the cash value.
Which of the following is the best reason to purchase life insurance rather than an annuity
To create an estate
Which is true about a spouse term rider
The rider is usually level term insurance
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
Which of the following riders would NOT cause the death benefit to increase
Payor Benefit Rider
When a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary does in the same car accident , and it was impossible to determine who died first. Which of the following would receive the death benefit
The insureds contingent beneficiary
Which of the following best describes the aleatory nature of an insurance contract
Exchange of unequal values
A life insurance policy has a legal purpose if both of which of the following elements exist
Insurable interest and consent
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
Mutual
