Life & Health Insurance Test

Remember NOT

Value of auto or personal property

Failure to provide notification after 45 days of the administrative fee charge will result in a fine between

$100 and $1000

If an insured purchased a 20 year family income policy at age 35 and then died at age 45 how long with benefits be paid to the beneficiaries

10 years

Sam zee has the universal life policy with an initial face amount of $100,000 an increasing death benefit option B and a $25,000 current cash value what is the death benefit amount

$125,000

Misrepresentation

A false statement.

Record file maintenance

All licensees including producers messed maintain healthy record at his or her place of business for a period of three years from the date of the last transaction.

Policies covered by life & health guaranty (member insurer) association

All traditional types of life, health, and annuity insurance coverage are provided coverage. HOWEVER, THERE IS NO PROTECTION FOR: 1. VARIABLE LIFE POLICIES, VUL, OR VARIABLE ANNUITIES. 2. HEALTH MAINTENANCE ORGANIZATION 3. FRATERNAL BENEFIT SOCIETY

Replacement

An insurance policy issued by one insurer is being replaced with an insurance policy from another insurer.

Representations

Are written statements regarding material facts that the applicant believes to be true. All statements made on insurance applications are considered to be representations.

OID may order an examination of insurer

As often as necessary

A policy provision which allows a transfer of all or a portion of the policy owners rights under an insurance contract is

Assignment

The owner of a life insurance policy has the right to transfer all rights to another person

Assignment clause

The owner of a life insurance policy has the right to transfer all rights to another person this policy provision is the

Assignment clause

When can a level term policy be exchanged a permanent policy

At any time during the policy period

When can a universal life policy be surrendered for the cash value

At any time upon the policy owners request

When additional amounts of life insurance or purchased using a guaranteed insurability rider the additional policy premiums are based on

Attained age

The policy owner of a whole life policy with $2000 in cash value quits paying the premium and allows the policy to lapse unless instructed otherwise the insurance company will

Automatically use the extended term option

Morgan is 25 years old and is applying for a $50,000 life insurance policy all of the following must be completed except

Be examined by a paramedic or physician

The primary beneficiary on the life insurance policy is deceased upon the death of the insured the death benefit will

Be paid to the contingent beneficiary

Accidental death benefits would not be payable in which of the following circumstances

Death caused by explosion while the insured was robbing a bank

All of the following are common exclusions on life insurance policies except

Death while A passenger on a public transportation system

If the insured dies with an outstanding policy loan the insurer will

Deduct the loan amount plus interest from the benefit amount

Human life value

Described the calculation of the amount of life insurance an individual requires i.e. financial needs approach.

If the beneficiary designations are not clear which of the following could occur

Disputes me arise causing delays in payment

What is the group member called

Insured

A payer waiver benefit rider is used with what type of policy

Juvenile insurance policy

Kelly is applying for a $500,000 term life insurance policy and was given a conditional receipt by the producer at the time of application she is scheduled to take her physical exam with her doctor in two weeks six days after receiving the conditional receipt she dies which is the following is true

Kelly's beneficiary will receive a refund of premium without interest

Regardless of how long the annuitant lives which annuity option would continue to make payments

Life income

Paisley has $500,000 accumulated and annuity what community action could pay paisleys beneficiary with Paisley dies

Life income period Certain

Mable 76 years old and is the annuitant on a single premium immediate annuity. Upon Mabel's death which of the following annuity options would make a lump sum payment to Mabel's beneficiary

Life income with a refund

Regarding the taxation of life insurance policies which of the following is not true

Life insurance policy dividends are taxable income

A collateral assignment of a life insurance policy is

Limited assignment under which the owner retain some rights

Information that would affect and underwriters decision to accept the application is called

Material fact

Four years ago Libby a schoolteacher purchase a five-year R&C term policy in the amount of two and 50,000 he has been selected by NASA to be the first schoolteacher to fly in space what can Libby's life insurance company do

Nothing

Timeline of insurance department hearing

Notice of hearing at least five days hearing within 30 days order punishment within 30 days right to your pillow within 30 days hearing phase is not in court court face you judicial review court room

Signatures on an application are required for all the following except

Officer of the insurer

William is not in good health and has a $100,000 group life insurance coverage under his employers group life insurance policy upon Williams termination from employment what law will permit William to continue the life insurance

Oklahoma group life conversion

When an applicant completes a nonmedical application received a conditional receipt with premium payment in proves to be insurable the insurance coverage will begin

On the date of the application

What Life insurance policy has a level premium any level face amount for the term of the contract

Ordinary life

Using the dividend any participating policy to buy additional permanent life insurance is

Paid up additions option

If the amount of credit insurance is greater than the indebtedness The additional amount is

Pay to survivors of the debtor

Which of the following statements regarding universal life is true

Policy consists of annually renewable term insurance in cash Account

All the following are true regarding the taxation of life insurance except

Premiums paid on key person life insurance policies are tax-deductible

Regarding a premium payments of a universal life insurance policy which of the following is not true

Premiums skipped must be repaid

Regarding the reinstatement provision all of the following are true except

Premiums will be based on the insured's attained age

If the insured and the primary beneficiary are both killed in a common accident in the primary beneficiary clearly outlives the insured the life insurance proceeds will be paid to

Primary beneficiaries estate

Endows prior to age 100 age 99 or less

Primary difference between endowment and whole life. Cash value builds quickly, higher premium outlay than whole life or term.

Sally's 45 and wants a tax-deferred savings plan for retirement. Sally can afford to make a $20,000 single payment and plans to retire at age 62 what should the producer recommend.

Single premium deferred annuity

Regarding the payout of a variable annuity policy which of the following remains fixed during a variable annuity payout period

The Number of annuity units for each payment

Rebating aka illegal inducement mean the same thing

The act of offering to make and insurance contract using an illegal inducement.

Single premium whole life

The face amount or death benefit remains level 28 100 but the premium payment is made in one lump sum. The cash value in early years will be higher than ordinary life for a limited pay life. Face amount is death benefit remains level to age 100. Cash value at age 100 equals face amount. Premium is paid one time.

When applying for life insurance and the policy owner is someone other than the applicant proposed insured this is known as

Third-party ownership

All the following statements are true regarding variable annuities except

Variable annuities are covered by the life and health guaranty Association in the event of the insurance company insolvency

The type of life insurance policy where the cash value are invested insecurities such as mutual fund products is

Variable life

Which of the following life insurance policies places the risk of investment performance upon the insured

Variable life

Know the difference between

debtor & creditor

Insurance information and privacy protection act

purpose: regulates the collection and use of personal information by an insurance provider. *Privacy notice *Information required to be included *Opportunity to opt-out

Which of the following is false about modifications to existing life insurance policy

The change must be countersigned by producer

All of the following are characteristics of the family plan except

The children may be added as they are born for an additional premium

All the following are true regarding the waiver of premium rider except

The disability must be partial

Regarding group life and health insurance all of the following are true except

The employer can be the beneficiary on a group life term policy

Modified whole life sometimes called modified life.

The face amount or death benefit remains level 28 100 but the premium amount is reduced during the first five years of the policy. The premium amount increases one time and then remains level the policies designed to a live person to purchase higher amounts of insurance knowing your income will have increased by the time the premium increases such as students are in college face amount remains level to age 100. Cash value at age 100 equals face amount. Premiums are payable to age 100 but the amount of premium will increase one time.

Exceptions to replacement regulations aka law

The following are not included in the definition of replacement and are therefore exempt from the policy replacement regulations. 1. Credit life or health insurance 2. Group life or health insurance 3. Converting one policy to another policy with the same insurer 4. Exercising options within a policy, i.e. guaranteed insurability provision 5. Short term non-renewable or non-convertible term life policies

Jane is applying for a $50,000 non-medical exam life insurance policy and gives the producer a premium check for which she received a conditional receipt Jane dies three days later which is the following is true

The home office under writer will continue to underwrite the case as if Jane were alive and pay the death claim at the policy is approved

Twisting

The illegal act of an insurance policy replacement through misrepresentation (a false statement aka lying) regarding the benefits and disadvantages of an insurance policy. Compare-Twisting vs. Defamation

Regulation and bearable life policies

They sell a variable policies is regulated by all the following. Securities and exchange commission federal. Financial industry regulatory authority federal. Oakland to state insurance department state. Licenses required to silly bearable life Elsie include both Oklahoma life producers license, security license security license a.k.a. Series six or Series seven

If the death of the a annuitant occurs during the accumulation period

The value of your annuity is paid to the designated beneficiary

All of the following are characteristics of a straight whole life policy except

Their premiums are paid until the insured reaches age 65

What will the beneficiary receive if the insured commit suicide within the first two years of the policy

Their premiums paid on the policy

Under the common disaster act if the insured in the primary beneficiary are killed simultaneously in an accident the following is true

Their primary beneficiary is it assumed to have died first

The greatest disadvantage to the life income only mode of life insurance settlement is

There is no refund of proceeds when the payee dies

Know the differences between

Twisting and Defamation

All of the following are true except

Uninsured must wait until the end of the term policy before converting to a permanent policy

Commingling of Funds

Unlawful taking or using other people's money. Embezzlement-converting funds of others to personal use. Embezzlement is a criminal offense (felony) and punishable by fines and jail time.

Continuing education carry over

Up to six CE hours in excess of the 24 maybe carry forward to the next 24 month period

The grace. Policy provision provides all the following except

Waves the past you premium if the insured dies during the grace period

Which of the following is true regarding the premium waiver writer available as a writer to a life insurance policy

Waves the premiums when the insured is totally disabled

If a conditional receipt is not given when does the life insurance policy going to force

When the insured is found to be in good health the premium paid in the policies delivered

Flexible life insurance policies

Where Herbalife in variable universal life resembles whole life policy pays level premium and deals with the stock market.

A revocable life insurance beneficiary is one

Which can be changed without the knowledge or consent of the beneficiary

Comparison between whole life and limited pay whole life

Which has a larger annual premium? they are the same. Which build cash value the quickest? Limited Which pays a larger death benefit? Same

Thepolicy owner would know the actual costs of the policy including mortality, interest, and administration on all the following policies except

Whole life

Types of whole life policies

Whole life a.k.a. straight life a.k.a. ordinary life both the face amount or death benefit in the premium remain level to age 100. Limited pay whole life the death benefit remains level to age 100 but the premium payments are made for either a limited number of years or until a specific age is reached. Face amount or death benefit remains level to age 100. Cash value at age 100 equals face amount. Premiums remain level for a limited number of years or until a specific age is reached in a paid up age 65 policy premiums remain level in our payable to age 65

Whole life insurance

Whole life also known as straight life or ordinary life the death benefit and face amount do not change the level amount of life insurance for the insured's whole life up to age 100. Age 100 is significant because the mortality tables assumes all persons are considered to be Level amount of premium constant for the insured's whole life up to age 100 the amount of premium never increases even though the insured's age increases. The whole life policy will endow at insureds age 100. The term endow means cash value equals the face value a.k.a. death benefit example a tuner $50,000 face amount whole life policy will have statistically dead at age 100.

The major difference between whole life insurance and universal life insurance is

Whole life premiums are fixed and universal life are flexible

Five years ago Abner purchase a $100,000 whole life policy with a double indemnity rider attached Abner commits suicide how much if any with the policy pay

Whole life will pay $100,000 and the double indemnity will pay zero because suicide is not considered an accident

All of the following are true regarding the withdrawal of cash value deposits fromA universal life insurance policy except

Withdrawal of deposits are determined by the beneficiary

Not essential elements

Written, delivered, signed, not reviewed by an attorney.

Untrue statements

Accused unpaid speeding tickets or bankruptcy all misdemeanors

Who receives the certificate in group insurance

Member

All the following are standard provisions for group life and health except

Members covered by the group can be individually underwritten

All the following are considered sources of underwriting information of the applicant except

Mortality tables

Which of the following is true regarding dividends paid by mutual insurer

Dividends are a refund of excess premium

Which of the following is not true regarding a whole life policy written by a mutual insurance company

Dividends are guaranteed

When a policy owner borrows money from a permanent life policy the collateral is

The cash value of the policy

Nonforfeiture provisions are found in all the following types of life insurance policies except

Increasing term policies

A group life underwriter would be concerned about all the following except

Individual health problems

Three methods to fullfill CE requirements

1. Attend an approved CE seminar course (no test) 50 minutes of class time is the equivalent for one hour of CE credit. 2. Teach an approved CE seminar course (no test) 3.) Self study an approved CE correspondence or online study course and pass a test.

Actions that are NOT considered an illegal inducement are: ARE OKAY

1. Commission payments to producers licensed in same line of business *Splitting commission is not rebating* 2. Dividends returned by an insurer 3. Premiums returned by and insurer based on loss experience 4. Premiums reduced by an insurer based on reduced costs in premium collection (bank draft, payroll deduction) 5. Employees of an insurer receiving commission for policies on their own lives.

U.S. Judicial system

1. Criminal court prosecutes a member of society for violation of law a public wrong remedy is criminal fine, imprisonment, or combination of both (12 person jury) 2. Civil court a.k.a. tort lawsuit filed for legal liability from a private wrong remedy is civil fine, compensation for damages, or combination of both.

Considerations when calculating the amount of life insurance would include:

1. Final medical & burial expenses 2. Loss of earning power (income replacement) 3. Number of dependents 4. Outstanding debt 5. Social Security benefits available

Advertising does not include

1. General announcements 2. Internal memos 3. Communications to an existing client when the communications does not urge them to buy or increase coverage.

Due process aka innocent until proven guilty

1. Give notice of hearing the OID must give at least five days written notice registered mail and not more than 30 days the notice of hearing must include the following time, place, and reason.no other information held at OID office, no court fees no judge. 2. Conduct the hearing used to determine if the licensee has committed a violation. the meeting is open to the public and the OID can take depositions and subpoena witnesses or evidence. The OID my summarize the findings in writing within 30 days of the hearing. 3. Orders punishment after the hearing, if the OID determines a violation has occurred the OID may punish the licensee with a issue a cease and desist order, institute a civil suit, institute a civil penalty a.k.a. fine of $100-$1000, suspend, nonrenew Or revoke, a licensees license. Cannot pay restitution, jury trial, jail time. 4.Right to appeal licensee has the right to appeal any OID action. Licensee has 30 days to file for judicial review. Real judge real court room

Four (4) essential elements of a legal contract

1. Legal purpose not against the public interest 2. Competent parties parties entering into a contract must at the time of application be considered legally competent to enter into an agreement. People who are minors, legally insane, or intoxicated are not competent. 3. Agreement requires both an offer and an acceptance. Offer is made when the applicant completes the application and submits with premium payment, making a request to the insurance company for insurance coverage. Acceptance is made when insurance policy is issued. 4. Consideration something of value which both parties must give IE trade of value consideration can be a.) an act, b.) a promise, c.) a waiver, or D.) money.

Three separate accounts

1. Life insurance account 2. Health insurance account 3. Annuity account

Producer responsibilities involving replacement

1. List the policies to be replaced 2. Complete a comparison statement and have applicant sign (give a copy to applicant) 3. Give applicant a notice to applicant form which describes the disadvantages of replacing an existing policy including: *Proving insurability on the new policy *Higher premium on new policy due to premiums being based on current attained age. *Contestability period and suicide period will begin again. *May be different policy provisions which are less beneficial. 4. Send a copy of the completed comparison statement along with all sales materials prepare to insurance company you are appointed.

False information and advertising is prohibited:

1. No false or misleading advertising. 2. No free insurance 3. If not an insurance company, cannot use any name which infers you are. 4. Cannot misrepresent the terms of any insurance policy 5. Cannot misrepresent the dividends on any insurance policy. 6. Cannot misrepresent the financial condition of any insurance company. 7. Cannot misrepresent the true nature of an insurance policy.

Insurer Responsibility involving replacement

1. Notify each insurer whose policy is being replaced with 5 days of receipt of replacement application. *A legally acceptable attempt by the existing insurer to retain the business after a replacement form has been received is called conservation also known as retention. 2. Guarantee a 20 day free look 3. Maintain copies for three (3) years

Three ways to have an insurable interest

1. One's own life for an unlimited amount 2. Any close family member related by blood or marriage based on sentimental affection. 3. Any other person whose death would cause economic hardship such as a business relationship.

Truthful Advertising:

1. Publishing of advertising material is the responsibility of the insurer. *The name of the insurance company must be clearly stated on all advertising including the plan number / form number of the policy advertised. 2. When a producer misrepresents an advertisement to the consumer, both the producer ad the insurance company are held responsible.

Illegal inducement aka Rebating NOT OKAY

1. Special favors in the form of dividends, i.e guaranteeing dividends. 2. Any prizes or merchandise of aggregate value in excess of $100.00. 3. Any special benefit or favor, i.e premature disposal of a premium note. 4. Any stock, securities, or profits from securities. 5. Offer of employment

Three sources of regulation of the insurance business

1. State regulation is the primary source a.k.a. the insurance code or an acted by the Oklahoma state legislator. Rules and regulations are made by the Oklahoma insurance department to enforce the provisions of the Oklahoma insurance code the insurance department does not enact law. Rules and regulations are promulgated A.k.a. put into effect as often as necessary. 2. Federal a.k.a. watchdog role federal regulation supervises areas of insurance not covered by state regulation or when state jurisdictions are in conflict. 3. Self-regulation by the national Association of insurance commissioners in a RC the NAIC is a voluntary nonprofit organization the purpose of the NAIC is to promote uniformity among states by proposing standardized loss model legislation the Oklahoma insurance commissioner is a member of the NAIC The NAIC makes recommendations to state insurance department but has no legal authority.

Which of the following should receive the highest amount of monthly lifetime income from a $200,000 single premium immediate annuity

65-year-old

Appointment a producer by insurer

1. The insurer must appoint a producer with 15 days after the date of the agency contract or the date the insurer except the business from the producer. 2. A producer can sell only types of insurance licensed and appointed. 3.A producer can receive a commission from an insurer only if the producer is license in the line of insurance in appointed by the insurer. 4. Uninsured or must notify the OID within 30 days from terminating a producer appointment. 5. And appointment is for a 12 month period of time.

Elements must exist for a risk to be insurable:

1. The loss must be accidental. 2. The loss must be ascertainable in cause, time, and amount. 3. There must be an economically feasible premium. 4. The insurance must exclude catastrophic loss exposure such as war or nuclear. (World war 3 = no coverage) *Therefore, a life or health loss in time of war would be excluded. 5. The insurer must be able to predict the chance of loss using the "Law of Large Numbers".

Types of insurers by domicile

1.Domestic insurer formed under the laws of Oklahoma. 2. Foreign insurer formed under the laws of another state. 3. Alien insurer formed under the laws of another country.

Types of insurers there are five

1.Stock company Incorporated insurer with capital stock owned by shareholders. 2.Mutual company Incorporated insurer without capital stock owned by its policy owners example own a piece of the rock. 3. Fraternal a.k.a. fraternal benefit society a.k.a. nonprofit unincorporated society, order, or launch without to capital stock they operate for the sole benefit of their members and beneficiaries example a member only. 4. Service organizations nonprofit provide prepaid dental and medical care benefits. Pay benefits directly to the provider of medical services a.k.a. Blue Cross Blue Shield. 5.Federal government insurers operated by the federal government Medicare, Medicaid, Social Security, FD I C, flood insurance program, crop insurance, crime insurance.

The Oklahoma life & health guaranty (member insurer) association is under the direction of a

12- person board of directors and is not under the direct control of the Oklahoma Insurance Department.

The examined ensure has up to

20 days to make a rebuttal, which is the right to disagree. After that time, examination her report is public record. Rebut means disagree

Address change timeline

30 days $50 fee after that 30 days 45 days $100-$1000 fine

When group insurance is written on a contributory basis and the minimum participation required is

75%

In Oklahoma what is the maximum interest allowed to be charged on the policy loan for a whole life policy

8%

Law of agency

A body of law which pertains to contractual relationships where a person is authorized to perform certain ask for another under this law there are three parties involved as followed 1.principal a.k.a. Insurer 2.Producer a.k.a. agent 3. Third-party a.k.a. client or policy owner

As a new producer you have completed a life insurance application received the annual premium in issue the receipt the receipt states that coverage will start on the date of the latter of either the application on the medical exam if the applicant is insurable this type of reciept is

A conditional receipt

Coercion of borrowers prohibited

A financial institution, when lending money, can require a person to maintain insurance coverage. However, the lending institution cannot require the debtor to buy the insurance from their financial institution as a condition of the loan. The debtor has the option of furnishing the required insurance through other insurance policies including current insurance policies. * Can force you to provide life insurance just not from them.

A joint life insurance policy written to cover two individuals will pay

A full face value on the first death only nothing on the second

Which of the following would be considered third-party ownership

A key person life insurance policy

Fraud

A knowing misrepresentation of truth or concealment of a material fact to induce another to act to his or her detriment aka harm fraud is a felony and is punishable by the following: 1. A penalty up to $10,000 2. Imprisonment for up to 10 years 3. Combination of both If the applicant for insurance lies regarding a material fact of the Application for life or health insurance the applicant has committed fraud exclamation 12 person jury criminal court.

What is a modified endowment contract

A life insurance policy that fails the seven pay test therefore losing the tax-deferred status of the cash value

Any life insurance policy what is a free look

A mandatory for vision which gives the policy owner time to decide about the policy

Which of the following does not characterize individual credit life insurance

A master policy issued to the sponsor and group credit insurance with certificates of insurance issued to borrowers

Actuary

A mathematician employed by the insurer who develops the rates for the insurer.

Producer (agent) aka field underwriter aka agent underwriter

A person required to be licensed to solicit, negotiate, or sell insurance on behalf of the insurer.

Attained age

A person's current age

All the following are true regarding the accelerated death benefit except

A portion of the cash value is advanced in A lump sum

Notification of change

A producer must notify the Oklahoma insurance department within 30 days of any change of legal name, change your mailing address, change of email address, Conviction of a felony. Failure to notify of change a $50 fee a.k.a. address violation is imposed.

If insured has a terminal illness the insurer for medical and living expenses can advance life insurance benefits before the insured dies this is called

Accelerated benefits provision

All of the following could be excluded from my life insurance policy except

Accidental death

Proper Replacement

A producer should only replace an existing policy when the existing policy does not meet the current needs o the policy owner.

Reinstatement of expired license

A producer who allows license two laps may reinstate license within 12 months without retaking the examination unless license was revoked or suspended by the Oklahoma insurance department. A penalty in the amount of double the license renewal fee must be paid.

Practicing insurance without a license

A producer, with a suspended or revoked license, he continues to practice insurance a.k.a. transact insurance after losing his or her license due to a violation of the insurance code is subject to a felony and the following criminal penalties. Find up to $5000 and or jailed from 1 to 5 years 12 Jury court. A person never licensed as a producer that practice insurance a.k.a. transact insurance is subject to a misdemeanor and the following criminal penalties. Find out to $500 and or jailed for six months to one year 12 person jury

Which of the following is true regarding the insured committing suicide within the first two years of the policy

A return and pay premiums without interest will be paid

The dividend paid under a participating life insurance policy is

A return of excess premium charges

A widow age 77 has received one hand thousand anyone sign she has no other retirement income and is worried about living her income what type of insurance policy would you recommend she purchase

A single premium immediate fixed annuity with a life income

Temporary producer

A temporary producer license maybe issued for 180 days to the following without requiring an examination. A surviving spouse or court appointed personal representative of a licensed insurance producer who dies or becomes disabled. Person designated by a licensed insurance producer who is entering active service in the armed forces. Any person the insurance commissioner determines would serve the public interest. No exam no CE

Which of the following is true

A whole life policy is designed to provide a death benefit beyond retirement

Which occurrence could create a double payment

Accidental death

Jim Bob has a tan $250,000 life insurance policy and is terminally ill with cancer what policy provision would allow Jim Bob ask as a portion of the tuner $250,000 from the life insurance company

Accelerated benefit

Commissioners general responsibilities authority include

Adopt rules and regulations, examine insurance companies, jurisdiction over complaints against anyone, authority to conduct hearings, issue cease and desist orders, initiate civil actions, censure, suspend, revoke or non-renew an insurance license, approving a.k.a. affirm and monitoring the adequacy of insurance company rates. Maintain books and records required by law. Provide an annual report to the governor regarding the financial statusand the total amount of insurance claims paid in the state of Oklahoma. Educate consumers. Deliver to their success are all furniture, records and property of the insurance department.

The tendency for less favorable risk to purchase insurance is called

Adverse selection

Advertising Fact

Advertising is all about generating interest in the products.

Oklahoma resident license qualifications

Allows the licensee residing in Oklahoma to solicit, negotiate, or sell insurance in the state of Oklahoma. An applicant must be a resident of Oklahoma and legally entitled to work in the USA be a citizen of the United States or possess a valid visa with I-9 form a.k.a. legal alien status. Be competent, trustworthy, and financially responsible, with a good business and personal reputation. No conviction of a felony. Be at least 18 years of age. Pay Oklahoma fees. Having insurance company appointment a.k.a. sponsor. Pay license examination fees, pass license examination with a 70% or better, unless exempt.

Oklahoma nonresident license qualification

Allows the licensee residing in another state to solicit, negotiate, or sell insurance, and applicant must. The residents of another state with life and Indic standing in legally entitled to work in the USA is this an out of the United States or possess a valid visa or I9 form. The competent trustworthy and financially responsible no conviction of a felony. He at least 18 years of age, Tennessee, have an insurance company appointment for sponsor, maintain resident insurance license and his or her home Resident state. Reciprocity between states waives the oklahoma exam if producer has passed exam in his or her home resident state.

Audrey has a whole life policy in the amount of $100,000 on her life with a guaranteed insurability rider with this rider she can purchase

An additional $100,000 of life insurance at specified ages in the policy without proof of insurability

If life insurance is used to protect against premature death what policy is used to protect against the risk about living your income

An annuity

Underwriter aka Home office Underwriter

An employee of the insurer who gathers information, analyzes exposures, and selects risk for the insurer.

Which of the following policies would have an increase in premium every year

Annually renewable term

All of the following would qualify for special tax treatment using a 1035 tax-free exchange except

Annuity to a life policy

Exempt from examination requirement

Any limited insurance producer, a person licensed as an insurance producer in another state who moved Oklahoma and makes application within 90 days. No examination is required for anyone of authority held in the prior state.

Advertising Defined

Any material designed to create interest in an insurance product. 1. Printed and Published material, including newspaper, magazine, radio scripts, TV scripts billboards and similar displays. 2. Descriptive literature and sales aids. 3. Prepared sales talks, scripts, presentations, and material for use by producers.

Which of the following statements is false about the grace period Provided by life insurance policy

Any overdue premiums are waived if the insured dies

Do not call Registry

At home law only applies to non-customers. Contact prospects during the appropriate times telephone consumer protection act a.k.a. do not call Registry applies to noncustomers a.k.a. prospects contacted at home contacts can only be made between 8 AM and 9 PM in the zone other prospect excluded under the act or charities political parties existing customers and businesses 2.Identifying types of financial risk a.k.a. risk management to the insured 3. Selling the coverage most suitable for the insured a.k.a. suitability recommend insurance coverage which is most appropriate to me the applicants from Angel needs based on age assets personal objectives etc. 4. Complete the application 5. Collecting the initial premium 6. Delivering the insurance policy

Certificate of authority for insurers insurance companies have certificate of authority

Before an insurance company can transact business in the state of Oklahoma it must obtain a certificate of authority from the Oaklana insurance department The certificate of authority is the insurers license to do business in the state of Oklahoma. Certificate of authorities are perpetual in automatically renew annually on March 1 unless the insurer fails to qualify or renew.

3 amigos

Boycott, Coercion, and intimidation - entering into an agreement that would result in the restraint or monopoly of the insurance business.

Authorized insurer a.k.a. admitted has an Oklahoma certificate of authority would include a domestic, foreign, or alien insurer doing business in Oklahoma

Can transact

An authorized insurer a.k.a. nonadmitted does not have an Oklahoma certificate of authority

Can't transact

If the policy owner no longer wants to continue to pay the premiums on a whole life insurance policy, he or she can't use one of three nonforfeiture options. Only want to be selected and may not be changed once chosen.

Cash surrender value a cash surrendered policy cannot be reinstated cash surrender terminates the face amount of life insurance death benefit the cash surrender value does not equal the total premiums paid. Reduced paid up allows the policy owner to use the cumulative cash value to purchase a single premium paid up policy for a reduced face amount. Extended term insurance allows the policy owner to use the accumulated cash value to purchase a term life policy for the original face amount death benefit for as long as a. As the cash value will purchase extended term is the automatic choice if no other option is selected.

Endow means

Cash value equals the face amount a.k.a. death benefit. Example a $250,000 face amount whole life policy will have Karen $50,000 in cash value upon the insured's 100 birthday.

Dividend options

Cash withdrawal pay to the policy owner in cash. Reduced premium applied to the next premium payment reducing the amount of the next premium do. Accumulate at interest dividend remains with the insurance company to earn interest the dividend is considered a return of premium and nontaxable income to the policy owner. interest earned on dividends left with the company is subject to income taxes. Paid up additions this option maximizes the permit death benefit of the life insurance policy. One year term give it in applied as a single premium to purchase an additional amount of one year term life insurance. There are five choices but you can only pick one.

The entire contract provision states all the following are included any valid life insurance policy except

Certificate of authority

Pure Risk (Example financial loss)

Chance of financial loss with no possibility of gain. (The only potential outcome is loss.) Pure risks are the subject of insurance, but not all pure risks are insurable.

Speculative Risk (Example gambling)

Chance of financial loss with the possibility of gain or loss. (Speculative risk is gambling and NOT insurable.)

The policy owner has the right to do all of the following except

Change the provisions of the policy

Defamation

Circulation of false or maliciously critical information for the purpose of injuring any person engaged in the insurance business.

What is the difference between the absolute assignment and the collateral assignment

Collateral assignment is partial and temporary

Features of universal life

Competitive term life insurance rates. Choice of death benefit. At the time of application, the death benefit can be either level or increasing. Level death and if it pays the face amount of life insurance same as whole life. Increasing death benefit provides an increasing amount of life insurance benefit.flexible premium schedule based on interest rates in past premiums may be level increased decreased or even skipped without causing the policy to last for future premiums. Competitive interest rate. Income tax deferred growth. Annual statement. Not on annual statement is the beneficiary. Test question. Ability for the policy owner to withdraw cash value. Calculation of the taxation is based on fifo first in first out ability for the policy owner to borrow cash value.

Producers restrictions on writing controlled business

Controlled business can't exceed 25% of the producers total commissions within a -2 month period. We can write controlled business

Group life insurance has a conversion privilege that allows an employee who terminates membership in the insured group to

Convert to an individual policy without evidence of insurability

When an employee terminates membership in an insured group plan the group lead conversion privilege provides which of the following

Convert to individual policy without evidence of insurability

Tanner a participant under a group life policy has $50,000 of life insurance coverage what is the name of the provision that will allow Tanner to receive an individual life insurance policy without evidence of insurability

Convertibility

Reasons the OID may censure, suspend, revoke or non-renew

Convicted or pleading guilty to any felony not a misdemeanor. Failure to pay court mandated child support. Failure to pay Oklahoma state income tax. Delinquent.

Three classes of life and health insurance

Credit life & disability, Individual life & health, Group life & health.

What is the interest rate credited to universal life policy that is guaranteed for appeared of time and then may fluctuate

Current interest

The beneficiary receives the face amount also known as death benefit upon the insured's death the beneficiary does not receive the

Death benefit plus the cash value.

Which of the following is not true regarding the taxation of life insurance policies

Death benefits paid any lump sum are subject to income tax

A life annuity pays an income

During the annuitants lifetime with no refund upon his or her day

Continuing education CE requirements

During the biennial term of 24 months of the license, the licensee must complete. 24 CE total hours, 19 CE hours in subjects the producers license a.k.a. general, +3 CE hours in the subject of ethics, +2 CE hours in the subject of the legislative updates.

Regarding a group insurance policy all the following are true except

Each employee receives a copy of the master group policy

Which of the following is not true about group life insurance

Each individual insured received an insurance policy

Which add the following underwriter factors would be considered the least important

Education

Two situations:

Employer & employee relationship and Financial institution both have an insurable interest.

Someone who wants to accumulate a specific amount of cash value to be available at age 59 1/2 as well as have life insurance protection prior to reaching that age should consider buying

Endowment insurance

Endowment

Endowment policies in enDow prior to age 100. Endow means cash value equals the face amount or death benefit

Which of the following policies provides a constant face amount of life insurance coverage

Endowment policy

All the following are correct about taxation involving life insurance except

Income tax is payable by the primary beneficiary for life insurance proceeds

The death benefit payable in a lump sum to a beneficiary is received

Income tax-free

After a life insurance policy has been in effect for a specified period of time what policy provision prevents the insurer from denying coverage based on any error concealment or miss statement made by the insured

Incontestability

A life insurance policy owner has all the following legal rights except

Increase the amount of insurance

When life insurance is surrendered in the nonforfeiture option of extended term insurance is selected the cash value will be used to purchase term insurance with a face value

Equal to the original policy for as long a term as the premium supports

Aleatory contract

Equal value is not given by both parties. One party can benefit more than the other based on chance or occurrence of uncertain event. Example insured pays $200 premium suddenly dies insurance company pays out $1 million policy.

Annual reports

Every insurer must file an annual report exhibiting the financial performance for the previous year. The report must be filed electronically by March 1.

Biennial

Every two other year aka 2 years.

All of the following are true about the underwriting of group life insurance except

Evidence of insurability is usually not required for late enrollment

In a straight life policy which of the following nonforfeiture options has the highest death benefit

Extended term

Which of the following regulates the medical information bureau

Fair credit reporting act

What type of life insurance policy provides whole life insurance for the breadwinner plus term life insurance on all other family members

Family policy

Examinations

Financial audit

Which of the following insurance policies could be renewed without the insured proving insurability

Five year level term

OID must bylaw order an examination of all domestic, foreign and alien insurers every

Five years

All the following are types of annuity options except

Flex premium deferred

Jack has no current savings plan and is interested in an annuity for retirement income. Jack is currently age 25 and plans on receiving benefits at age 65 what type of annuity would you recommend

Flex premium deferred

Scott is age 45 and wants a tax-deferred savings plan for retirement Scott can afford to make dinner dollars per month payments and plans to retire at 62 which of the producer recommend

Flex premium deferred annuity

All of the following are types of annuities except

Flex premium immediate

Which type of annuity does not exist

Flexible premium immediate annuity

Examination reports

Following an examination, the chief examiner must file a report within 30 days of completion of the examination.

A life annuity with period Certain pays The annuitant

For the rest of his or her life with a guaranteed minimum number of years

A provision allowing the policy owner to inspect the policy and if the policy owner is not satisfied with the life insurance policy return the policy for a full refund is known as

Free look

Funding of the Oklahoma life & health guaranty (member insurer) association

Funded by assessments of its member insurers

Which type of life insurance policy provides a growing amount of insurance while the policy is in effect but terminates coverage upon expiration

Increasing term insurance

Producer agent licensing act

Governs the qualifications and procedures for the licensing of insurance producers

All of the following are true regarding group life insurance except

Group life insurance can be converted only with evidence of insurability

Regarding universal life policy the rate of cash value increase is

Guaranteed at a minimum rate but may earn excess interest above the guarantee

A participating straight life policy contract written by mutual insurance company will include all of the following information except

Guaranteed dividend chart

For an 18-year-old high school student graduate what writer would be best to protect future insurance needs

Guaranteed insurability rider

Jane's son back age 5 is aspiring to be a national at which Riderwood best provide to protect bucks ability to buy more insurance when he enters NASA's flight training

Guaranteed insurability rider

Which of the following best describes the guaranteed insurability rider

Guarantees the insured may purchase more amounts of insurance without proving insurability

An accidental death and dismemberment rider is

Hey is a lump sum benefit for death or dismemberment

Mable miss states her age on a life application and dies within six months which would describe the insurers action

Hey the death claim but adjust the amount of the death benefit

Bill purchased a $750,000 life insurance policy 28 months ago when he was employed as a corporate executive board with the corporate life he started a new career today as a stunt double if Bill was killed in an occupational accident the insurance company would

Hey the full death benefit

All of the following would be advantages for an employee covered by an employer's group insurance policy except

Higher premiums

Notice by OID

If revoked license. Notice must be given to licensee a.k.a. producer, all appointing insurers, national Association of insurance commissioners NAIC, other states where producers licensed. Customers will not know.

Which of the following statements regarding endowment policies is not true

If the insured dies during the endowment period The beneficiary is paid the cash value with no benefit

This accelerated death benefit would be available and which of the following

If the insured needs cash to pay for medical expenses due to a terminal illness

Jim Bob a high school teacher applied for an individual life insurance policy in the amount of $300,000 all of the following or sources of underwriting information except

Information gathered from the applicants employer

Material fact

Information that impacts the insurers decision to except or reject the offer made by the person applying for insurance. In other words it's a big deal exclamation material fact examples are high blood pressure, heart attack, cancer. Not a material fact examples Cold, flu.

Which of the following injuries would typically be covered by the accidental death and dismemberment policy

Injury received in plane crash on a commercial airliner

The Oklahoma insurance department has a major responsibility to protect against insurance company bankruptcy of insurance companies operating in Oklahoma

Insolvent means bankrupt or belly up

Selling crash and burn insurance for plane trip

Insurance does not cover you outside the United States

Joint life

Insurance policy covers two lives the full face amount definite fit is page of the beneficiary when the first insured dies the policy only pays one death benefit and terminates upon the first insured's death. A joint life policy premium is less expensive than the combined premium of two separate individual policies. Join lipolyses can either be term or permanent life insurance. Join life policies are commonly used to pay off the mortgage when the first insured dies. Payoff business lines when the first insured dies. If both insured's die simultaneously the policy will pay only one death benefit amount.

Survivorship life

Insurance policy covers two lives. The full face amount definite fit is paid to the beneficiary when the second insured dies the policy only pays one definite fit and pays nothing when the first insured dies. It survivorship life policy premium is less expensive than the combined premium of two separate individual policies. Survivorship life policies are generally permanent life insurance. Second to die is another name for this policy. To pay state taxes when the second your dies if both ensures that I simultaneously the policy will pay only one death benefit amount

The term. For all of the following types of insurance licenses is biennial.

Insurance producer a.k.a. agent, limited lines producer, temporary producer. All three of these work for the insurer.

An accidental death benefit would pay in which of the following situations

Insured dies while riding a go cart in heavy traffic

If their primary beneficiary in the contingent beneficiary die before the insured insurance proceeds will be paid to

Insured's estate

Concealment

Intentional failure to disclose a material fact.

The settlement option under which the principal never decreases until the beneficiary with draws is known as

Interest period

All of the following regulate to sell a variable products except

Internal revenue service

All the following are false regarding a collateral assignment of a life insurance policy except

Is a limited transfer of rights for a temporary period of time

Insurance producers have a Fuduciary responsibility to both the insurance company and the insured's they represent.

Is a person held in trust in this place the other parties interest above his or her own interest

Risk management

Is the process of 1.) Identifying exposure to risk and 2.) deciding how to handle the risk. The four (4) risk management techniques (options) are: 1. Reduce: decrease financial risk 2. Retain: assume financial risk 3. Avoid: eliminate financial risk 4. Transfer: purchase insurance to transfer the financial risk.

Risk

Is the uncertainty or possibility of financial loss.

When a revocable beneficiary is used

It can be changed at any time by the policy owner

Which of the following statements is not correct regarding the entire contract provision

It makes a policy incontestable after two years

Regarding a double indemnity rider which of the following is true

It pays double the death benefit resulting from an accidental cause of death

Jane is applying for a tuner $50,000 life insurance policy he has completed part one of the application with the producer pay the initial premium and received a conditional receipt part to the application Will be completed during the paramedic exam scheduled in four days Jane dies in an auto accident on the way to the pyramid exam which of the following is true

James beneficiary would receive a refund of premium without interest

Insurance commissioner for Oklahoma

John Doak easily remember Okie Doak

Insurance Policy

Legally binding contract between the insurance company and the policy owner that establishes the terms of the agreement. Two (2) parties to an insurance policy: 1. Insurer 2. Insured

Benefits under a credit life insurance policy are paid to the

Lending institution lending them money and a credit transaction

Which of the following annuity options would pay the largest monthly payments

Let income

Three types of term insurance policies illustration 20 year term

Level term face amount of policy level throughout term of the policy premium does not change throughout term of the policy. Constant same as level never changes test question. Decreasing term face amount of policy decreases throughout the term of the policy. Best use of decreasing term insurance is for mortgage protection premium does not change throughout term of policy. Mortgage protection in cancellation same meaning. Decreasing term is non-renewable. Increasing term face amount a policy increases throughout term of the policy premium does not change throughout term of the policy. Inflation protection is what this one's used for.

A life insurance policy that expires without value if the insured lives beyond the expiration date is

Level term life

Extended term

Maintains the original face amount death benefit for number of years day shown in the policy without any additional premium

Retain & Retentension

Mean the same thing

R&C

Means renewable and convertible

Law of Large Numbers

Mortality tables predicts how many people / claims each year. Mathematical principle called the "Law of Large Numbers" to statistically predict future losses. (Does not predict individual losses)

Incorrect answers

Must be citizen that is incorrect. No requirement for time of residency just a resident.

Which of the following is correct about group life conversion privilege

Must be made available for 31 days

Insurance producer a.k.a. agent

Must pass exam must complete CE

Insurance consultant

Must pass exam must complete CE. Solely represents client written agreement works for insured can't sell insurance.

Dividends

Mutual insurance company share profits with policy owners owners of the insurer in the form of dividends. Mutual insurance companies sell participating whole life insurance policies. Dividends are profits made from improved mortality, which is the difference between the premium charge, and the actual loss experience of the insurance company. Dividends paid to policy owners are considered a return of excess premium in or not subject to income taxes they are tax-exempt. Dividends are never guaranteed. A producer who states dividends are guaranteed would be misrepresenting The terms of the policy.

Incorrect answers

NOT: Additional CE Hours nor community service.

An underwriter for life insurance would consider all of the following except

Nationality of the proposed

Which of the following is not true about the group life insurance conversion option

No benefits are paid if they terminated employee dies before converting

Limited and lines producer

No exam no CE

Correct answers

No experience required, no minimum education requirement, no minimum residency, personal bankruptcy is OK, unpaid parking ticket is OK

Guaranteed values which accumulate in permanent life insurance policies are called

Nonforfeiture values

Frank a license insurance producer sells a life insurance policy to Scott. At the time of application Frank give Scott a conditional receipt. If Scott dies two days later what will insurer do

Pay the claim when the underwriter approves the application

Juvenile life insurance policies are often written with a provision that will waive future premium payments if the policy owner dies or becomes disabled before a specified date this premium waiver provision is also called

Payor benefit

The insurer being examined

Pays for the cost of examination.

All the following are true regarding the double in dimity writer available as a writer to a life insurance policy except

Pays if death if by accident or unexpected illness

For a person applying for life insurance the insurance company makes exclude all the following except

Person who frequently flies as a passenger on a commercial airline

When a permanent life insurance policy is surrendered prior to maturity any cash value accumulation maybe use to buy a lesser amount of the same type of insurance when this is done the new policy would be known as

Reduced paid up

Purpose of association

Protect the policy owners, insured's, and beneficiaries against financial loss caused by an insolvent (bankrupt) insurance company. Covered financial losses would include failure of insurer to 1) pay claims or 2) refund cash value, However, it would not cover the operating expense of the insurer.

Business Use:

Provide money for the financial loss created by the death of a key employee, i.e. owner, president, manager, or executive. *Key person life insurance*. Class of insurance sold must be individual and not credit or group.

The Oklahoma insurance commissioner

Publicly elected by the voters to a four-year term must be at least 25 years old, must have been a resident of Oklahoma for at least five years, must have a minimum of five years experience in the insurance industry, must have no financial interest in any insurer, agency, or insurance transactions except as policy owner or claimant under a policy. No education requirement, no continuing education requirement.

Fair Credit Reporting Act

Purpose: Provide the consumer the right to privacy regarding information gathered by the insurer for underwriting purposes is subject to the fair credit reporting act. There are two (2) kinds of reports: 1. Regular consumer reports *Example credit report 2. Investigative reports *Gathers data through personal interviews with neighbors and associates regarding a person's character, lifestyle, reputation, etc.

Regarding a loan on a whole life insurance policy how is the interest rate on the whole life policy loan determined

Rate specified in the policy

Insurance commissioner does not

Recruit producers, develop rates, and is not an enact laws.

Test question

Remember not bureau

Variable universal life

Resembles a universal life policy but cash value is invested insecurities

Variable life

Resembles a whole life policy but cash values invested insecurities

Types of endowment plans

Retirement endowment insurance policies. Policy endows cash value equals the face amount at age 65. If the insured dies between issue H and age 65, the face amount or death benefit would be paid to the beneficiary Juvenile endowment insurance policies. Policy endows cash value equals the face amount at a certain age usually 18 any funds can be used for the insured's education.

If a policy owner wants to maintain complete control of a policy but name their spouse as the beneficiary they would use which type of beneficiary designation

Revocable

The benefits payable any life insurance policy can be modified by

Rider

Which of the following would not appear on the policy face

Rights and duties of insured

Blue Cross Blue Shield's a.k.a. BC BS

Service organization pays directly to who provided medical service

All of the following can be used by the underwriter during the underwriting process except

Sexual orientation

Under the waiver of premium rider before the premiums are waived the insured must be disabled for what period time

Six months

A person who is practicing insurance a.k.a. transacting insurance in Oklahoma must be license in the appropriate line of insurance include any of the following

Soliciting or prospecting, preliminary negotiation a.k.a. quoting act of conferring, conferring is discussing the benefits of an insurance contract. Selling

Persons exempt from licensing

Someone who never speaks to the public about insurance such as receptionist, actuary, file clerk, underwriter are not licensed they don't have to be can't speak to the customer.

Scott is a male age 45 and is in good health and works out at the gym three days per week he smokes a cigar twice per week

Standard

Which of the following is correct

Statements made by the applicant are considered representations not warranties

Favorite son a married 35-year-old man is considering purchasing life insurance which of the following types of policies would have the lowest premium rate per $1000 face value

Straight pay whole life

If the policy owner cash surrender is a life insurance policy cash value upon receipt is

Subject to income taxes on the gain between cash value in premiums paid

A standard policy provision exclude coverage for the insured suicide within the first two years of the contract what is the standard policy provision included in all life insurance policies

Suicide increases the adverse selection for the insurance company

Jason White is concerned about an income for his family if you were to die his agent Barry Switzer's recommendation of a specific type of insurance policy should focus on

Suitability

Regarding universal life insurance policy all are flexible except

Tax rates

Went to much cash value is accumulated any life insurance policy and the policy becomes a modified endowment contract what is the policy owner lose

Tax-deferred advantage

When a person receives payment under an accelerated benefit which of the following is true

The amount is deducted from the policies definite but

All the following are true regarding the annuity options except

The annuitant can outlive the benefits in life income with a refund option

According to the common disaster death at who is considered to have died first if the insured in the primary beneficiary die simultaneously

The beneficiary

Limits (know amounts)

The benefits for which the Oklahoma life & health guaranty association shall be liable are: 1. Up to $100,000 in total cash value 2. Up to $300,000 in life insurance death benefit (face amount) 3. Up to $300,000 in health insurance benefits 4. Up to $300,000 in present value benefits of 1) fixed annuities and 2) equity indexed annuities (no coverage for variable annuities)

Regarding a variable life insurance policy which of the following statements is true

The cash value is determined by the investment experience of the separate account

Insurance commissioner

The insurance commissioner can hire independent attorneys, actuaries, and examiners to assist in the enforcement of the insurance code. They cannot have any interest in any insurance company or insurance agency, except as a policy owner or a claimant.

Who takes the investment risk on a fixed annuity

The insurance company

Contract of adhesion

The insurance policy, a legally binding contract is drafted written by only one party which is the insurance company. The insured must adhere to the contract terms without negotiation in other words, except or reject in full, to the contract terms. Insured cannot alter a policy provision. The courts will interpret any unclear ambiguity (means confusion) policy provisions in favor of the insured.

All the following are eligible beneficiary designations on the life insurance policy except

The insured

After signing the completed application and paying the first months premium and the producer gives the insured a conditional receipt coverage takes effect automatically upon

The insurer finding that the condition of insurability has been satisfied

Regarding the medical information bureau all the following are true except

The insurer is obligated to supply applicants with the information contained in the M I B file

Mortality

The likelihood of dying during a given year.

All of the following statements are correct regarding policy loans except

The loan must be paid back before insured dies

Which of the following best describes what happens to the monthly amount of payment from an annuity when life income period Certain is selected

The monthly payment will be higher than joint and survivor

Individual Use

The most common use of life insurance is to provide money for the financial loss created by the death of a family member. Other reasons would include 1) provide money for college education or 2) retirement income.

Features of both variable life and variable universal life

The policy owner selects the securities in an investment fund from a portfolio offered by the insurance company. Risk of investment is born by the policy owner. Cash values may be reallocated from one investment fund to another. Income tax-deferred growth within the cash value account no minimum guaranteed return. The amount of the cash value will vary according to the investment experience of the funds selected. No guarantee of cash value. Policy owner may borrow from the cash value

Which of the following events occurring in a tax year would create a taxable income

The policy owners receipt of the cash surrender value of a nonqualified annuity

The dividend paid on life insurance policies is

The policy owners share of the insurance companies excess funds

Prospective loss aka Loss Ratio

The portion of the rate which is projected to be paid out in insurance benefits. Not included are insurer expenses.

On the life insurance policy application the insured's age is stated as 30 in reality the insured is 32 if the insurance company discovers the mistake with the insured is alive what will happen

The premium will be adjusted upward

Rate

The price (cost) of life insurance quoted in thousands, I.E. Cost per unit of exposure

State regulations

The purpose of insurance regulation is to protect the public interest.

Which of the following is true about variable life

The return is not guaranteed

Nonforfeiture values you need to whole life these values are designed to protect the policy owner from the total loss of benefits when the policy owner wants to stop paying premiums non-forfeiture values represent accumulate savings or equity in the policy that must begin to accumulate by

The third year of the policy nonforfeiture values continue to increase throughout the life of the policy based on his schedule printed in the whole life policy.

All the following are true regarding the life income option except

The total benefits cannot exceed the principal plus interest

Universal life

The universal life policy was introduced in 1979 the universal life policy is a combination of two elements Turman Sharon's known as life insurance protection cash value account the amount of cash value fluctuates based on previous pay in interest earned credited flexible premium is level increase decrease skip interest earned guaranteed interest rate

The benefit any life insurance policy that allows for the payment by the insurance company of a portion of the death benefit during the lifetime of the insured is

accelerated death benefit

Whole life will always in endow

cash value equals the face amount at age 100

All of the following are true about universal life insurance except

cash values will increase but the death benefit is always a fixed amount

Credit life & disability insurance aka consumer credit insurance

credit life and disability insurance is purchased to protect installment loans and credit card debt. 1. Covers the death of a debtor, will pay off the loan in a lump sum. 2. Credit accident and health (A&H) covers the disability of a debtor, Will make the monthly payments on loans while the debtor is disabled.

Wording can't use

government issued full complete unlimited

The Oklahoma life & health guaranty (member insurer) association

is not funded by state, taxes, or insureds.

All admitted also known as authorized insurers operating in the state of Oklahoma are required to be

members of the guaranty association. Admitted authorized insurers would include domestic, foreign, and alien insurers.

Insurable Interest

must exist at the time of application and is not required at the time of a claim. Husband/wife at time life app insurable interest. Divorced you can still pay and collect insurance upon death. Employee/employer at time of life app insurable interest. No longer employed can still collect insurance.

Penalty for not complying with continuing education requirements

suspended or non-renewed license, Double the license renewal fee, civil fine up to $500.

Characteristics of credit life and accident and health

the amount of the loan determines the amount of life or disability insurance purchased. Credit life and disability cannot be written on loans over 15 years in length. (A&H) Creditor (aka lender) is the primary beneficiary (1st) for both life and disability insurance which means they will be paid to the lender first. Debtor aka insured pays the single premium at the time the loan is made. The life and disability insurance always terminates when the loan is repaid. Credit life and disability insurance is non-convertible, non-renewable term insurance. A credit insurance policy must terminate by law no later than 15 days after the loan is paid. Minimum of 10 - day free look

A terminally ill insured could benefit from selling his or her life insurance policy to a viatical settlement company because of all the following except

the cash values in the life insurance policy can be borrowed by the insured if necessary