Life Insurance
An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax-free rollover?
$80,000 60 days
To appoint a producer as its agent, the appointing insurer must file a notice of appointment with the Commissioner within how many days from the date the agency contract is executed?
15 days
how soon must the insurer pay a death benefit claim after receiving proof of death
2 months
How many accounts must the Tennessee Life and Health Insurance Guaranty Association maintain?
3 accounts: life insurance, annuities, and health insurance
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
3 days
No examination is required of a person licensed as an insurance producer in another state who moves to Tennessee as long as application is made within how many days of establishing legal residence?
90 days
An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe?
Adhesion
Which requires a securities license?
Annuity
A Limited Insurance Representative is an individual, other than an insurance producer, who may solicit or negotiate contracts for certain types of insurance which includes all of the following EXCEPT
Automobile physical damage insurance.
Assuming that a policy does not contain unconditional refund provision of at least 10 days, when should the buyers guide and policy summary be provided?
Before accepting the initial premium
An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called
Considerations
An agent selling variable annuities must be registered with
FINRA
If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?
It is only taxable if the cash value exceeds the amount paid for premiums.
A producer authorized to offer insurance on personal effects carried as travel accident insurance sold in connection with transportation provided by a common carrier is known as which type of producer?
Limited lines producer
All of the following are true regarding insurance policy loans EXCEPT
Policy loans can be made on policies that do not accumulate cash value.
The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE?
The beneficiary will receive the greater of the money paid into the annuity or the cash val
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy.
Which of the following is NOT true regarding Equity Indexed Annuities?
They earn lower interest rate
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%.
Which of the following may obtain a producer's license, but may NOT sell, solicit, or negotiate a contract of insurance in Tennessee?
a business entity
why is extended term best as a nonforfeiture option?
allows for highest amount of insurance protection
Which of the following allows for lowest overall payment?
annual
Which of the following products will protect an individual from outliving his or her money?
annuity
When must insurable interest exist in a life insurance policy
at the time of application
n order to receive a commission, a person is required to
be licensed
Which of the following best describes fixed-period settlement option?
both the principal ad interest will be liquidated over time
All of the following are personal uses of life insurance except
buy-sell agreement
A tax-sheltered annuity is a special tax-favored retirement plan available to
certain groups of employees only
Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?
depreciation period
all are considered rebates except:
dividends
Which nonforfeiture option has the highest amount of insurance protection?
extended term
What does "level" refer to in level term insurance?
face amount
Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?
family-term rider
All of the following are dividend options EXCEPT
fixed period installments
Rules of replacement apply to all of the following EXCEPT
group life insurance
At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called
guarantee insurability
Why is an equity indexed annuity considered to be a fixed annuity?
guaranteed minimum interest rate
Concerning insurance, the definition of a fiduciary responsibility is
handling in trust capacity
The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the
incontestability clause
What type of insurance would be used for a Return of Premium rider?
increasing term
insurance producers do not perform:
issuing the policy
Premium in term policies is always _____
level
insurance producer is someone who is
licensed to sell insurance
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
life income with period certain
Which of the following is an example of a limited-pay life policy?
life paid up to age 65
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
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
paid up option
you can't give a temporary license to someone who hasnt
passed the exam
Which of the following riders would NOT cause the Death Benefit to increase?
payor benefit
Which nonforfeiture option provides coverage for the longest period of time?
reduced paid up
An insured committed suicide 6 months after his life insurance policy was issued. The insurer will
refund the premiums paid
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
signed waiver of premium
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
single premium policy for reduced face amount
a producer is helping a married couple determine the financial needs of their children in there premature death. this personal use of life insurance is known as
survivor protection
All of the following would be different between qualified and nonqualified retirement plans EXCEPT
taxation on accumulation
Which of the following may NOT be included in an insurance company advertisement?
that its policies are covered by the state Guaranty Association
In any controversy between the insured or the insured's beneficiary and the insurer that arises from the application for insurance or any policy issued in connection with the application, the producer is considered to be the agent of which of the following?
the insurer
commissioners do not have the power to make information available to
the public
which of the following arrangements would be appropriate for a parent buying a life insurance policy for a child and the parent is the policy owner
third-party ownership
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
universal life
If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant?
with the policy