LIFE INSURANCE

WHAT DOES THE LIFE AND DISABILITY INSURANCE GUARANTY ASSOCIATION GUARD AGAINST?

INSURER INSOLVENCY

VARIABLE WHOLE LIFE INSURANCE IS BASED ON WHAT TYPE OF PREMIUM

LEVEL FIXED

WHICH OF THE FOLLOWING SETTLEMENT OPTIONS IN LIFE INSURANCE IS KNOWN AS STRAIGHT LIFE?

LIFE INCOME

AN INSURED HAS A CONTINUOUS PREMIUM WHOLE LIFE POLICY. SHE WOULD LIKE TO USE THE POLICY DIVIDENDS TO PAY OFF HER POLICY SOONER THAN WOULD HAVE BEEN POSSIBLE OTHERWISE. WHAT DIVIDEND OPTION COULD SHE USE?

PAID UP OPTION

AN INSURED HAS HAD A LIFE INSURANC EPOLICY THAT HE PURCHASED 3 YEARS AGO WHEN HE WAS 40 YEARS OLD. HE IS KILLED IN AN AUTOMOBILE ACCIDENT, AND IT IS DISCOVERED THAT HE IS ACTUALLY 45 YEARS OLD, AND NOT 43, AS STATED ON THE APPLICAITON. WHAT WILL THE COMPANY DO?

PAY A REDUCED DEATH BENEFIT

IN WHICH OF THE FOLLOWING INSTANCES WOULD THE PREMIUM BE TAX DEDUCTIBLE?

PREMIUMS PAID BY AN EMPLOYER ON A $30,000 GROUP TERM LIFE INSURANCE PLAN FOR EMPLOYEES

THE PURPOSE OF INSURANCE REGULATIONS IS TO

PROMOTE THE PUBLIC WELFARE

WHICH OF THE FOLLOWING IS NOT TRUE OF LIFE SETTLEMENTS?

THE SELLER MUST BE TERMINALLY ILL

WHICH IS GENERALLY TRUE REGARDING INSUREDS WHO HAVE BEEN CLASSIFIED AS PREFERRED RISKS?

THEIR PREMIUMS ARE LOWER

IF A POLICY INCLUDES A 10 DAY FREE LOOK PERIOD, THE BUYERS GUIDE MAY BE DELIVERED TO THE APPLICANT NO LATER THAN?

WITH THE POLICY

WHICH OF THE FOLLOWING TYPES OF POLICIES ALLOWS THE POLICY OWNER TO SKIP PREMIUM PAYMENTS, PROVIDED THAT THERE IS ENOUGH CASH VALUE IN THE POLICY TO COVER THE PREMIUM AMT?

UNIVERSAL LIFE

ALL OF THE FOLLOWING ARE TRUE REGARDING THE CONVERTABILITY OPTION UNDER A TERM LIFE INSURANCE POLICY EXCEPT?

UPON CONVERSION, THE DEATH BENEFIT OF THE PERMANENT POLICY WILL BE REDUCED BY 50%

WHICH IS TRUE ABOUT THE CASH SURRENDER NONFORFEITURE OPTION?

FUNDS EXCEEDING THE PREMIUM PAID ARE TAXABLE AS ORDINARY INCOME.

THE TWO TYPES OF ASSIGNMENTS ARE?

ABSOLUTE AND COLLATERAL

A UNIVERSAL LIFE INSURANCE POLICY IS BEST DESCRIBED AS AN?

ANNUALLY RENEWABLE TERM POLICY WITH A CASH VALUE ACCOUNT.

AN INSURED AND HIS WIFE ARE BOTH INVOLVED IN A HEAD-ON COLLISION. THE HUSBAND DIES INSTANTLY, AND THE WIFE DIES 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

AN INSURANCE CONTRACT REQUIRES THAT BOTH THE INSURED AND INSURER MEET CERTAIN CONDITIONS IN ORDER FOR THE CONTRACT TO BE ENFORCEABLE. WHAT CONTRACT CHARACTERISTIC DOES THIS DESCRIBE?

CONDITIONAL

WHEN AN INSURED TRUTHFUL STATEMENTS ON THE APPLICATION AND PAYS THE REQUIRED PREMIUM IT IS KNOWN AS WHICH OF THE FOLLOWING?

CONSIDERATION

WHICH OF THE FOLLOWING IS NOT AN EXAMPLE OF A VALID INSURABLE INTEREST?

DEBTOR IN THE LIFE OF THE CREDITOR.

WHICH OF THE FOLLOWING TERMS DESCRIBES MAKING FALSE STATEMENTS ABOUT THE FINANCIAL CONDITION OF ANY INSURED THAT ARE INTENDED TO INJURE ANY PERSON ENGAGED IN THE BUSINESS OF INSURANCE?

DEFAMATION

WHICH OF THE FOLLOWING BEST DESCRIBES THE ALIATORY NATURE OF AN INSURANCE CONTRACT?

EXCHANGE OF UNEQUAL VALUES

IN A DIRECT ROLLOVER, HOW IS THE MONEY TRANSFERRED FROM ONE PLAN TO THE NEW ONE?

FROM TRUSTEE TO TRUSTEE

ALL OF THE FOLLOWING ARE BUSINESS USES OF LIFE INSURANCE EXCEPT

FUNDING AGAINS COMPANY'S GENERAL FINANCIAL LOSS.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF A PRODUCER'S FIDUCIARY RESPONSIBILITIES?

A PRODUCER PROMPTLY FORWARDING PREMIUMS TO THE INSURANCE COMPANY.

THIS STATE PROVIDED FOR A TEMPORARY LICENSE FOR ALL OF THE FOLLOWING EXCEPT?

A PRODUCER'S RETIREMENT

WHAT IS MAXIMUM FINE FOR VIOLATIONG THE COMMISSIONER'S CEASE AND DISIST ORDER?

$10,000

WHAT IS THE MAXIMUM PERIOD FOR A TEMPORARY LICENSE IN THIS STATE?

180 DAYS

WHAT IS THE # OF CREDITS REQUIRED FOR FULLY INSURED STATUS FOR SOCIAL SECURITY DISABILITY BENEFITS?

40 = 10 YEARS

ANNUALLY RENEWABLE TERM POLICIES PROVIDE A LEVEL DEATH BENEFIT FOR A PREMIUM THAT?

INCREASES ANNUALLY

A RETURN OF PREMIUM TERM LIFE POLICY IS WRITTEN AS WHAT TYPE OF TERM COVERAGE?

INCREASING

WHICH OF THE FOLLOWING IS NOT TRUE REGARDING A CERTIFICATE OF AUTHORITY?

IT IS ISSUED TO GROUP INSURANCE PARTICIPANTS

A POLICY WILL PAY THE DEATH BENEFIT IF THE INSURED DIES DURING THE 20 YEAR PERMIUM PAYING PERIOD, AND NOTHING IF DEATH OCCURS AFTER THE 20 YEAR PERIOD. WHAT TYPE OF POLICY IS THIS?

LEVEL TERM

YOUR CLIENT WANTS BOTH PROTECTION AND SAVINGS FROM THE INSURANCE, AND IS WILLING TO PAY PREMIUMS UNTIL RETIREMENT AT AGE 65. WHAT WOULD BE THE RIGHT POLICY FOR THIS CLIENT.

LIMITED PAY WHOLE LIFE

IF LIFE INSURANCE POLICY DEVELOPS CASH VALUE FASTER THAN A SEVEN PAY WHOLE LIFE CONTRACT, IF BECOMES A/AN

MODIFIED ENDOWMENT CONTRACT

AN INSURER NEGLECTS TO PAY A LEGITIMATE CLAIM THAT IS COVERED UNDER THE TERMS OF THE POLICY. WHICH OF THE FOLLOWING INSURANCE PRINCIPLES HAS THE INSURER VIOLATED.

CONSIDERATION

WHICH OF THE FOLLOWING BEST DESCRIBES FIXED-PERIOD SETTLEMENT OPTION?

ONLY THE PRINCIPAL AMT WILL BE PAID OUT WITHIN A SPECIFIED PERIOD OF TIME.

THE PREMIUMS PAID BY THE EMPLOYER IN A BUSINESS LIFE INSURANCE POLICY ARE?

TAX DEDUCTIBLE BY THE EMPLOYER

WHICH OF THE FOLLOWING ENTITIES KEEPS A FILE OF ALL OF AN INSURER'S ADVERTISEMENTS?

THE INSURER

AN INSURED HAS CHOSEN JOINT AND 2/3 SURVIVOR OPTION AS THE SETTLEMENT OPTION. WHAT DOES THIS MEAN TO THE BENEFICIARIES?

THE SURVIVING BENEFICIARY WILL CONTINUE RECEIVING 2/3 OF THE BENEFIT PAID WHEN BOTH BENEFICIARIES WERE ALIVE.

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.

THE PAID-UP ADDITION OPTION USES THE DIVIDEND

TO PURCHAS A SMALLER AMOUNT OF THE SAME TYPE OF INSURANCE AS THE ORIGINAL POLICY

IF AN INSURED CONTINUALLY USES THE AUTOMATIC PREMIUM LOAN OPTION TO PAY THE POLICY PREMIUM?

THE POLICY WILL TERMINATE WHEN THE CASH VALUE IS REDUCED TO NOTHING.

IF AN INSURER ISSUED A POLICY BASED ON THE APPLICATION THAT HAD UNANSWERED QUESTIONS, WHICH OF THE FOLLOWING WILL BE TRUE?

THE POLICY WILL BE INTERPRETED AS IF THE INSURER WAIVED IT'S RIGHT TO HAVE AN ANSWER ON THE APPLICATION.

WHICH PROVISION OF A LIFE INSURANCE POLICY STATES THE INSURER'S DUTY TO PAY BENEFITS UPON THE DEATH OF THE INSURED, AND TO WHOM THE BENEFITS WILL BE PAID

INSURING CLAUSE

WHICH NONFORTEITURE OPTION PROVIDES COVERAGE FOR THE LONGEST PEROID OF TIME?

REDUCED PAID-UP

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

WHICH TWO TERMS ARE ASSOCIATED DIRECTLY WITH THE WAY AN ANNUITY IS FUNDED.

SINGLE PAYMENT OR PERIODIC PAYMENTS

WHICH OF THE FOLLOWING IS CALLED "SECOND TO DIE" POLICY

SURVIVORSHIP LIFE