Life & Annuity state exam prep (examfx)
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
what is the waiting period on a waiver of premium rider in life insurance policies?
6 months
what is a foreign insurer?
an insurer with a home office in another state
the death protection component of universal life insurance is always
annually renewable term
which of the following is the basic source of information used by the company in the risk selection process?
application
if an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be
authorized
both universal life and variable universal life have a
flexible premium
what is the other term for the cash payment settlement option?
lump sum
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
rebating
which nonforfeiture option provides coverage for the longest period of time?
reduced paid-up
Nonforfeiture values guarantee which of the following for the policyowner?
that cash value will not be lost
which of the following best describes what the annuity period is?
the period of time during which accumulated money is converted into income payments
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
the policy owner 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
which of the following is true regarding taxation of accelerated benefits under a life insurance policy?
they are tax free to terminally ill insured
which of the following is not true regarding equity indexed annuities?
they earn lower interest rates than fixed annuities
an employee will be taxed on cost of group life insurance paid by the employer if the amount of coverage exceeds
$50,000
group life insurance is a single policy written to provide coverage to members of a group. which of the following statements concerning groups life is CORRECT?
100% participation of members is required in noncontributory plans.
a 40-year old man buys a whole life policy and names his wife and his only beneficiary. His wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the policy proceeds will go to
The insured estates
the paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
which of the following is a feature of variable annuity?
benefit payment amounts are not guaranteed
when a producer was reviewing a potential customers coverage written by another company, the producer made several remarks that were maliciously critical of that there insurer. the producer could be found guilty of
defamation
circulating deceptive sales material to the public is what type of unfair trade practice
false advertising
an insurance company is domiciled in Montana and transact insurance in Wyoming. which term best describes the insurer's classification in Wyoming?
foreign
which of the following is true regarding the spendthrift clause in life insurance policies?
it can protect the policy proceeds from creditors of the beneficary
if a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an
modified endowment contract
a prospective insured receives a conditional receipt but dies before the policy is issued. the insurer will
pay the policy proceeds only if it would have issued the policy
which of the following is an example of liquidity in a life insurance contract?
the cash value available to the policyownwer
all of the following are correct about life insurance policy loan interest rate except
there are no restrictions or limitation on policy loan rates.
under special circumstances, continuing education requirements may be extended beyond the 2 year period for a maximum period of
12 months
a licensed agent must complete how many hours of continuing education in the agent's line of authority every licensing period
5
an insured received a new life insurance policy 5 days ago, but a closer inspection of the policy provisions, decide too return it to the insurer. what provision would allow the insured to return the policy for a full premium refund?
free look
the automatic premium loan provision is activated at the end of the
grace period
what kind of policy does NOT typically require proof of insurability?
group insurance
what kind of policy issues certificates of insurance to insureds?
group insurance
all of the following are the general qualifications for an agent's license EXCEPT
have a high school diploma
under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan?
if the employee enrolls within a certain time period
which of the following is not a type of whole life insurance ?
increasing term
which of the following best describes the unfair trade practice of defamation?
making derogatory oral statements about another insurer's financial condition
during replacements of life insurance, a replacing insurer must do which of the following?
obtain a list of all life insurance policies that will be replaced
which universal life option has a gradually increasing cash value and a level death benefit?
option A
certificates of coverage are issued to
participants in a group plan
under fair credit reporting act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
respond to the consumer's complaint
an insurance agent b likes to add additional coverages to applicants' policies and charge them such coverages without their knowledge. the agents is guilty of
sliding
which of the following is an example of a producer being involved in an unfair trade practice of rebating?
telling a client that his premium will be waived if he purchased the insurance policy today
an individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional recipe. five days later the applicant had to submit to a medical exam. if the policy is issued, what would be the policy's effective date?
the date of medical exam
in accordance with the code of ethics, agents must provide a completed application to
the prospective insured and the insurer
Stranger-originated life insurance policies are in direct opposition to the principle of
insurable interest
which of the following best describes a misrepresentation?
issuing sales material with exaggerated statements about policy benefits
An insured purchased a life policy in 2010 and died in 2017. the insurance company discovers a that time that the insured had concealed information during the application process. what can they do?
pay the death benefit
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 following statements is correct about a standard risk classification in the same age group and with similar lifestyles?
standard risk is representative of the majority of people
Life income joint and survivor settlement option guarantees
Income for 2 or more recipients until they die
which of the following is NOT true regarding a certificate of authority?
it is issued to group insurance participants.
a man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. what type of annuity is it?
Immediate
in life policies issued in this state, insurers are permitted to charge interest during policy grace period for the number of days elapsing before the premium is paid. what is the maximum annual interest rate?
8%
who is a third-party owner?
A policyowner who is not the insured
if an employee is accepted into a group insurance plan, which status will the employee have?
certificate holder
contracts that are preparedly one party and submitted to the other party on a take-it-or-leave-it basis are classified as
contract of adhesion
which of the following would not be a violation of state insurance regulations?
agent c uses her license to write only business other than controlled
all of the following are requirements for life insurance illustrations EXCEPT
they must be part of the contract
in a survivorship life policy, when does the insurer pay the death benefit?
upon the last death
All of the following benefits are available under social security EXCEPT
welfare benefit
when an insurer appoints an agent
The insurer is bound by the agent's acts.
an agent's appointment has been denied. which of the following is true?
state taxes may e refunded upon written statement request
Which of the following statements about a suicide clause in a life insurance policy is true?
suicide is excluded for a specific period of years and covered thereafter.
all of the following would be different between qualified and non qualified retirement plans except
taxation on accumulation
a person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership conferred on the insured by the policy or by law, to any of the following EXCEPT
the policyholder
the term "illustration" in life insurance policy refers to
a presentation of non guaranteed elements of a policy