Insurance Exam 4

#78. How long is the waiting period for benefits to be paid in a long-term care policy or rider? a) 30 days b) 60 days c) 90 days d) 120 days

90 days

#27. If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary? a) 50% of the death benefit b) The face amount minus the premiums that would have been collected until the insured reached the age of 100 c) A full death benefits d) A death benefit equal to the cash value of the policy

A full death benefits

#51. For variable products, underlying assets must be kept in a) A separate account. b) A revenue account. c) A money market account. d) A general account.

A separate account.

#57. Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement? a) Term insurance only b) Permanent insurance only c) Universal life insurance only d) Any form of life insurance

Any form of life insurance

#73. Which of the following includes information regarding a person's credit, character, reputation, and habits? a) Insurability report b) Agent's report c) Consumer report d) Consumer history

Consumer report

#71. When an employee terminates coverage under a group insurance policy, coverage continues in force a) For 60 days. b) Until the employee can obtain coverage under a new group plan. c) Until the employee notifies the group insurance provider that coverage conversion policy is issued. d) For 31 days.

For 31 days.

#36. In insurance transactions, fiduciary responsibility means a) Being liable with respect to payment of claims. b) Commingling premiums with agent's personal funds. c) Handling insurer funds in a trust capacity. d) Maintaining a good credit record.

Handling insurer funds in a trust capacity.

#33. A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium? a) If the daughter is disabled for any length of time b) If the father is disabled for more than 6 months c) If the father is disabled for at least a year d) If the daughter is disabled for more than 3 months

If the father is disabled for more than 6 months

#11. As defined by the Georgia Insurance Code, all of the following entities may have an insurable interest in the insured EXCEPT a) A corporation in which the insured holds a large percentage of shares. b) Insurer. c) Trustee. d) Charitable institution.

Insurer

#61. Which of the following is true about the premium on the children's rider in a life insurance policy? a) It decreases when an adopted child is added to the policy. b) It remains the same no matter how many children are added to the policy. c) It decreases when the oldest child reaches the age of 21. d) It increases when a newborn baby is added to the policy.

It remains the same no matter how many children are added to the policy.

#5. A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy? a) Joint and survivor b) Life with period certain c) Joint limited annuity d) Joint life

Joint life

#81. All of the following are examples of transacting insurance in Georgia EXCEPT a) Placing advertisements for an insurer. b) Insurance solicitation. c) Preliminary insurance negotiations. d) Making an insurance contract go into effect.

Placing advertisements for an insurer.

#46. Whenever agents submit applications to insurers, they must also submit statements, signed by the applicant and agent, disclosing the involvement or lack of involvement of a) A change in policy amount. b) Replacement. c) A change of health. d) An inducement.

Replacement.

#38. Which of the following types of annuities will generally provide the highest monthly income? a) Installment refund b) Life with a 10-year period certain c) Straight life d) Joint and survivor

Straight life

#20. 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 a) Juvenile protection provision. b) Survivor protection. c) Life planning. d) Survivorship insurance.

Survivor protection.

#39. Nonforfeiture values guarantee which of the following for the policyowner? a) That the death benefit will be paid in a lump sum b) That the policy premiums will never increase c) That the cash value will not be lost d) That the dividends will be paid annually

That the cash value will not be lost

#23. Which of the following is NOT true regarding the annuitant? a) The annuitant's life expectancy is taken into consideration for the annuity. b) The annuitant receives the annuity benefits. c) The annuitant must be a natural person. d) The annuitant cannot be the same person as the annuity owner.

The annuitant cannot be the same person as the annuity owner.

#12. If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back? a) The balance of the loan will be taken out of the death benefit. b) The policy beneficiary receives the full death benefit. c) The policy beneficiary takes over the loan payments. d) The policy is rendered null and void.

The balance of the loan will be taken out of the death benefit.

#18. Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of a) Twisting. b) Defamation. c) Misrepresentation. d) Rebating.

Twisting.

#8. Which type of life insurance policy allows the policyowner to pay more or less than the planned premium? a) Universal life b) Variable whole life c) Decreasing term d) Straight whole life

Universal life

#88. In this state, what is the maximum fine for transacting insurance without a license? a) $500 b) $1,000 c) $5,000 d) $10,000

$1,000

#9. In replacement, an existing insurer must provide policyowners with a policy summary for existing life insurance within how many days of receiving the written communication and replacement? a) 3 b) 10 c) 31 d) 60

10

#35. The term "illustration" in a life insurance policy refers to a) Pictures accompanying a policy. b) Charts and graphs. c) A presentation of nonguaranteed elements of a policy. d) A depiction of policy benefits and guarantees.

A presentation of nonguaranteed elements of a policy

#58. A tax-sheltered annuity is a special tax-favored retirement plan available to a) Certain age groups only. b) Certain groups depending on factors such as race, gender, and age. c) Certain groups of employees only. d) Anyone.

Certain groups of employees only.

#53. An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n) a) Variable Annuity. b) Flexible Annuity. c) Immediate Annuity. d) Equity Indexed Annuity.

Equity Indexed Annuity.

#82. If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than a) Prior to filling out an application for insurance. b) With the policy. c) Upon issuance of the policy. d) Within 30 days after the first premium payment was collected.

With the policy.