insurance exam
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective>
As of the application date
In order for a debtor group to qualify for group life insurance, what should be the minimum number of participants joining the plan every year?
100
An individual purchased a $100,000 joint life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife recieve from the policy
100,000
The minimum number of credits required for partially insured status for social security disability benefit is
6 credits
A paid up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the permium in default?
60
In insurance, an offer is usually made when
An applicant submits an application to the insurer
Under which of the following circumstances would an insurer pay accelerated benefits?
An insured is diagnosed with cancer and needs help paying for her medical treatment
Which of the following is true about a class designation
Beneficiaries are not identified by name
A producer who fails to separate premium monies from his own personal funds is guilty of
Commingling
An insurance producer just sold an insurance policy to his sister. what kind of business is this?
Controlled
Which of the following riders would NOT cause the death benefit to increase?
Payor Benefit Rider
An employer has sponored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. what is this called?
Profit sharing plan
Which of the following would qualify as a competent party in an insurance contract>
The applicant has a prior felony conviction
All of following are the general qualifications fo an agents license except
have a high school diploma
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
Which of the following insurance products will be subject to the regulation on life insurance solicitation
term life policy
Regulations for annuity recommendations would apply when a consumer is at least what age
65 years old
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of
Concealment
Which of the following best describes an insurance company that has been formed under the laws of this state?
Domestic
Which of the following would be an example of an unfair claims settlement practice?
Failing to acknowledge a claim within 30 days
Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member
Family term rider
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?
Fixed period
The inclusion of the life and health guaranty association in an advertisement by an insurer is
Forbidden
An insured recieved a new life insurance policy 5 days ago, but after a closer inspection of the policy provisions, decided to return it to the insurer. What provision would allow the insured to return the policy for a full premium refund?
Free look
Who might recieve dividends from a mutual insurer?
Policyholders
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
Replacement rule
Which of the appropriate action by the insurer if a prospective insured submitted an incomplete application?
Return the application to the applicant for completion
Which type of life insurance policy generates immediate cash value?
Single premium
An agents appointment has been denied. Which of the following is true?
State taxes may be refunded upon a written request
Which of the following dates must be contained in a policy summary
The date the summary was prepared
An insured purchased a 10 year level term life policy that is guranteed renewable and convertible. what happens at the end of the 10 year term
The insured may renew the policy for another 10 years, but at a higher premium rate.
In terms of parties to a contract, which of the following does not describe a competent party?
The person must have at least completed secondary education
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
Which of the following statements regarding the taxation of Modified endowment contract is false?
Withdrawals are not taxable
The Office of insurance regulation is responsible for all of the following insurer activities except
issue of securities
Which of the following best describes annually renewable term insurance?
it is level term insurance
When a reduced paid up nonforfeiture option is chosen, what happens to the face amount of the policy
it is reduced to the amount of what the cash value would buy as a single premium
An agent and an applicatn for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional reciept is issued. when will coverage begin?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable statement of good health
How are state insurance guaranty associations funded
By their members authorized insurers
