Guaranteed

Which of the following indicates the person upon whose the life annuity income is determined?

Annuitant

Which of the following documents used in the underwriting process contains specific medical details about an applicant?

Attending Physician's Statement (APS)

What life insurance arrangement would be most suited for transitioning business?

But-sell agreement

According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT

If an applicant is declined for an insurance policy, he or she has no right to know what was in the report

In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer?

If there are no authorized insurers for a specific type of coverage in this state

What is the difference between a straight life policy and a 20-pay whole life policy?

Premium payment period

The Viatical Settlement Broker is deemed to represent the

Viator

All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT

it does not have a guaranteed death benefit

Which of the following statements is TRUE regarding an Agent's Report during the policy application process?

It provides the agent's personal observations concerning the proposed insured

In a life insurance application, all of the following signatures will be required EXCEPT

the home office underwriter

Which of the following is NOT a personal use of life insurance?

An individual buys insurance to fund a buy-sell agreement

Concerning the Family Protection Policy, all of the following statements are true EXCEPT

Children, upon reaching the age of majority, are permitted to convert an individual policy with proof of insurability

All of the following are examples of a policy replacement EXCEPT

A Term policy is being converted to Whole Life

An adjustable life policy can assume the form of

Either term insurance or permanent insurance

If an applicant submits the initial premium with an application, which action constitutes acceptance?

The underwriters approve the applicatikn

Considering the principles of liquidity, how would the policy owner use today's cash values in a life insurance policy?

Use it for emergency expenses

All of the following are true of group life insurance EXCEPT

The insureds each own their own contract

Insurance rates are regulated to the extent of all of the following EXCEPT

They are in relation to the cost of living

The purpose of the Fair Credit Reporting Act is to

Protect consumers against the circulation of inaccurate or obsolete personal or financial information

Which of the following is NOT a component of an insurance policy premium?

Number of beneficiaries

All of the following statements are true about participating and non participating policies EXCEPT

Nonparticipating policies issues dividends to policy owners

What is the cost of coverage based on for group life insurance?

The average age and ratio of men to women

Which of the following is true regarding a joint life annuity?

The payments stop at the first death

All advertisements, regardless of their source of creation, are the responsibility of the

Insurer

Which of the following is NOT true of the agent's implied authority?

It is specifically stated in the contract

What statement best describes agreement as it relates to insurance contracts?

One party accepts the exact terms of the other party's offer

Which dividend option will increase the death benefit?

Paid-up additions

If the insured and the primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

The primary beneficiary died before the insured

What is the exclusion ratio used to determine?

The annuity benefit to be excluded from taxes

Which of the following statements concerning the Medical Information Bureau is correct?

The Medical Information Bureau assists underwriters in evaluating and classifying risks

A temporary license may be issued for which of the following reasons?

The agent is seriously injured and their disability keeps them from working

Which of the following best describes industrial life insurance?

$1,000 or less in coverage and premiums collected by agent

Applicant pays initial premium but refuses to submit a statement of good health. Which terms has the applicant violated?

Consideration

A whole life policy is surrendered for a reduced paid-up policy. The cash value in the new policy will

Continue to increase

A person takes an extended vacation and forgets to pay the premium. 10 days later the policy is still in effect and has not lapsed. Which policy provision allowed for this?

Grace period

During the accumulation phase of a fixed annuity, the annuitant's interest rate is based on a minimum rate as specified in the contract, or the current interest rate, whichever is

Higher

If the policy summary for a life insurance policy is not given when the application is taken, when just the policy summary be given to the policy-owner?

When the policy is delivered

An individual purchases a life insurance policy and lists his parents as the beneficiaries. He is able to change beneficiaries at any time. What type of beneficiary designation does the policy have?

Revocable

Within how many days must an insured return the policy in order to receive a full premium refund

20

Within how many days must an insured return the policy in order to receive a full premium refund?

20

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

Being permanently disabled

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

Which of the following is the primary source of information that an insured uses to evaluate an insured's risk for life insurance?

Insurance application

Which of the following is the primary source of information that an insurer uses to evaluate an insured's risk for life insurance?

Insurance application

What does the application of contract of adhesion mean?

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured

A whole life policy that will generate immediate cash value is a

Single premium policy

Upon the surrender of a life insurance policy, any cash value accumulated in excess of the premium payments is

Taxed as ordinary income

An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of every month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?

Grace period

When comparing a Joint Life Policy to two individual life pinches if the same amount on the same insureds, which condition is true?

Joint Life has a lower premium than the total of the individual policies

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT

Cash surrender values

A policy owner no longer needs a life insurance policy and agrees to sell it to a third party for more than its cash value. This type of transaction is called a

Life settlement

A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of

Coercion

Somebody gets severely disabled. The insured owns a Whole Life policy. Is it possible for the policy to include a Waiver Cost of Insurance rider, and if so, what insurance costs would be waived?

No; it is not possible for this waiver to be included in a whole life policy

An agent knowingly misrepresents material Information for the purpose of inducing an insured to lapse, forfeit or do anything else to **** up a life insurance policy or annuity has committed an illegal practice know as

Twisting