💋Insurance- learn/test set💋
The minimum number of credits required for partially insured status for Social Security disability benefits is
6 Credits
Which of the following best describes fixed-period settlement option?
Both the principal and the interest will be liquidated over a selected period of time
What type of premium do Universal Life and Variable Universal Life policies have?
Flexible
The death benefit under the Universal Life Option B
Gradually increases each year by the amount that the cash value increases.
All of the following are nonforfeiture options EXCEPT
Interest only
Which of the following settlement options in life insurance are known as straight life?
Life income
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
Settlement option
When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?
The insurance companies general account
The insured had his wife named as the beneficiary of his life insurance policy. To insure that his wife had income for life after the insureds death, he chose the life income settlement option. The amounts of payments will be determined by taking into account all of the following EXCEPT
The insureds age at death
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio
All of the following are true of key person insurance EXCEPT
The plan is funded by permanent insurance only
All of the following are true about variable products EXCEPT
The premiums are invested in the insurers general account.
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
When would a 20-pay whole life policy endow?
When the insured reaches age 100.
Failure to notify the commissioner of changes to a licensees address with in 10 business days may result in an administration fee of
$50
After appointing an agent, how long does the insurer have to file with the commissioner a notice of appointment?
15 days
The reinstatement provision in life insurance policies in this state allows an owner of a lapsed policy to reestablish it within how many years?
5
A person licensed to solicit applications or negotiate a policy of insurance is called
An agent
A Universal Life insurance policy is best described as a/an?
Annually Renewable Term policy with a cash value account.
The LEAST expensive first-year premium is found in which of the following policies?
Annually renewable term
Which of the following is a short term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated?
Annuity Certain
SIMPLE plans require all of the following EXCEPT
At least 1,000 employees
If a Licensee is convicted of a criminal violation, the licensees insurance license is
Automatically suspended.
What does the Guaranty Association guard against?
Insurer insolvency
What is the purpose of conditional receipt?
It is intended to provide coverage on a date prior to the policy issue
Variable whole life insurance is based on what type of premium?
Level Fixing
Who is a person, other than viator, that enters into a viatical settlement contract?
Provider
Which two terms are associated directly with the way annuity is funded?
Single payment or periodic payment
Which of the following would help prevent a Universal life policy from lapsing?
Target premium
What is the maximum face amount on an industrial policy?
1,000
Insurance companies are required to provide proof of lost forms to the claimant within how many days after receipt of notice of loss?
15 days
How long is a free-look period for replacement policies?
30 days
Any agent, broker or limited representative who acts for a person other than himself negotiating a contract of insurance, for the purposes of receiving the premium, is deemed to be
An agent of the company
Which of the following is a Short-Term annuity that limits the amount paid to a certain fixed period or a certain fixed amount is liquidated?
Annuity certain
Which of the following is a feature of variable annuity?
Benefit payment amounts are not guaranteed
Which of the following is a feature of variable annuity?
Benefits payment amount is not guaranteed
Which of the following is NOT true regarding an Annuity Certain?
Benefits stop at the Annuitants death.
Which of the following is NOT true regarding an annuity certain?
Benefits stop at the annuitants death
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time
A person who knowingly obtains information about an individual from an agent or the insurer under false pretenses has committed a(n)
Class 1 misdemeanor
An Insurance contract requires that both The insured and the insure meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?
Conditional
Term policies are available as Level, increasing, decreasing. Which policy component fluctuates depending on the policy type?
Death benefit
Which component increases in the Increasing term insurance?
Death benefit
All of the following describes the purpose of the North Carolina regulations governing the solicitation of life insurance EXCEPT
Educate the buyer about policy protection by the Guarantee Association.
What does "Level" refer to in Level term insurance?
Face amount
What does "level" refer to in level term insurance?
Face amount
A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which policy would he most likely buy?
Family protection policy
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
What type of premium do both Universal life and Variable Universal life policies have?
Flexible
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
Guaranteed insurability option
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
Illegal
The life insurance policy clause that prevents an insurance company from denying payments of a death claim after a specified period of time is known as the
Incontestability clause
An underwriter may obtain information on an applicants hobbies, financial status and habits by ordering a(n)
Inspection report
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option
Which of the following best describes annually renewable term insurance?
It is level term insurance
All of the following statements are true regarding credit life insurance EXCEPT
It may be required if the loan amount exceeds $50,000
Which statement is NOT true regarding a Straight Life policy?
It's premium steadily decreases over time, in response to its growing cash value
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specific age, what type of policy is this?
Jumping juvenile policy
Which two terms are associated directly with the premium?
Level or Flexible
Which two terms are associated directly with the premium?
Level or flexible
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period and nothing if the death occurs after the 20-year period. What type of policy is this?
Level term
B just bought a new car which he anticipates it will be paid for four years from now. He also wants to buy a life insurance policy, but is financially limited until the car is paid off. Which of the following types of policies would be best for B?
Modified life
Which of the following documents must be provided to the policy owner or applicant during policy replacement?
Notice Regarding replacement
Under a pure annuity, an income is payable by the company.
Only for the life of the annuitant
Which option for Universal life allows the beneficiary to collect both the death benefit and the cash value upon the death of the insured?
Option B
If the policy owner, the insured and the beneficiary under the life insurance policy are three different people, who has the ownership rights?
Policy owner
Which nonforfeiture option provides coverage for the longest period of time?
Reduced Paid-up
A policy order who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policy owner should have her husband named as the
Revokable beneficiary
The ownership provision entitles the policy owner to do all of the following EXCEPT
Set premium rate
Which of the following determines the length of time that Benefits will be received under the Fixed-Amount settlement option?
Size of each installment
The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The Death benefit can be increased by providing evidence of insurability
All of the following statements about equity index annuities are correct EXCEPT
The annuitant receives a fixed amount of return
All the following statements about equity index annuities are correct EXCEPT
The annuitant receives a fixed amount of return
Which of the following determines the cash value of a variable life policy?
The performance of the policies portfolio
Which of the following is true about nonforfeiture values?
They are required by state law to be included in the policy
If only one party to an insurance contract has made a legally enforceable promise. What kind of contract is it?
Unilateral
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?
Universal life
Which of the following is a statement that is guaranteed to be true, and if untrue, may breech an insurance contract?
Warranty
Under the L & H guarantee association, the maximum benefit one contract holder may receive in benefits, regardless of the number of contracts held, is
$5,000,000
If an insurer excepts premium payments by credit card, who is responsible for paying the fees charged by the credit card company?
Insurer accepting payment
Under a 20-pay whole life policy, I order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, which ever occurs first
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?
Installments for a fixed period
Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?
Insurers guaranteed minimum rate of interest
Which of the following types of policies allows for a flexible premium and a variable investment component?
Variable universal
Which of the following is a key distinction between variable whole life and variable universal products?
Variable whole life has a guaranteed death benefit
Your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy would you recommend?
An endowment policy
A banker is ready to close on a customers loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy in the amount of the loan. This is an example of
Coercion
A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her 250,000 life insurance policy to secure the loan. Which provision makes this possible?
Collateral assignment
An insured and his wife are both involved in a head on collision. The husband dies instantly and the wife does 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?
Common disaster
Because an insurance policy is an illegal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Conditions
What is another name for interest-sensitive whole life insurance?
Current assumption life
Intimidating or discouraging a claimant from seeking legal advice would be a violation of which of the following?
Ethical standards
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level term
Which of the following is TRUE regarding an indeterminate premium whole life policy?
The premium can be raised up to a guaranteed maximum rate
All of the following would be eligible to establish a KEOGH retirement plan EXCEPT
The president and employee of a family corporation
How are contributions to a tax-sheltered annuity treated with regards to taxation?
They are not included as income for the employee, but are taxable upon distribution
