Life Insurance Exam

Insurance regulations in this state require prompt initiation and completion of claims investigations, and delivery of necessary claims forms and assistance to the insured and claimants. What constitutes prompt action? a)10 consecutive days b)30 days c)the timeframe may be defined by each insurer d)5 business days

10 consecutive days

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to a)3 years b)5 years c)10 years d)12 years

10 years

An insurer terminates an agent's appointment. Within how many days of termination must the intermediary be notified? a)15 b)20 c)30 d)10

15

An intermediary holding a Wisconsin insurance license in any major line of insurance must complete how many credit hours of continuing education every 2 years? a)12 b)20 c)22 d)24

24

For how long is an insurance company allowed to defer policy loan requests? a)30 days b)60 days c)6 months d)1 year

6 months

A Universal Life Insurance policy is best described as a/an a)flexible premium variable life policy b)annually renewable term policy with a cash value account c)variable life with a cash account d)whole life policy with two premiums: target and minimum

Annually Renewable Term policy with a cash value account

A Universal Life Insurance policy is best described as a/an a) Variable Life with a cash value account b) Whole Life policy with two premiums: target and minimum c) Flexible Premium Variable Life policy d) Annually Renewable Term policy with a cash value account

Annually Renewable Term policy with a cash value account

Which of the following is INCORRECT regarding a $100,000 20-year level term policy? a)the policy premiums will remain level for 20 years b)if the insured dies before the policy expired, the beneficiary will receive $100,000 c)the policy will expire at the end of the 20-year period d)at the end of 20 years, the policy's cash value will equal $100,000

At the end of 20 years, the policy's cash value will equal $100,000

Which component increases in the increasing term insurance? a)interest on the proceeds b)premium c)death benefit d)cash value

Death benefit

Which policy component decreases in decreasing term insurance? a)face amount b)cash value c)dividend d)premium

Face amount

A person that markets insurance but does not include an insurer is called a a)firm b)broker c)solicitor d)conglomerate

Firm

What type of premium do both Universal Life and Variable Universal Life policies have? a)Increasing b)Flexible c)Level fixed d)Decreasing

Flexible

The death benefit under the Universal Life Option B a)Gradually increases each year by the amount that the cash value increases b)Decreases by the amount that the cash value increases c)Increases for the first few years of the policy, and then levels off d)Remains level

Gradually increases each year by the amount that the cash value increases

A Universal Life insurance policy has two types of interest rates that are called a)Option A and Option B b)Fixed and Variable c)Minimum and Target d)Guaranteed and Current

Guaranteed and Current

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following describes this practice? a)unfair discrimination b)defamation c)illegal d)a legal advertising strategy

Illegal

What two components does a universal policy have?

Insurance component (of a universal policy is always annual renewable term insurance) and cash account

Variable Whole Life insurance is based on what type of premium? a)graded b)level fixed c)increasing d)flexible

Level Fixed

In a single employer group plan, what is the name of the policy issued to the employer? a)certificate of authority b)master contract c)certificate of insurance d)employer-insurer contract

Master Contract

Which option for Universal Life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? a)option b b)corridor option c)variable option d)option a

Option B

Which of the following is a statement made in an insurance application by the insured that is the absolute truth? a)warranty b)oath c)claim d)representation

Representation

All of the following entities regulate variable life policies EXCEPT a)The Guaranty Association b)Federal government c)The SEC d)The Insurance Department

The Guaranty Association

An Adjustable Life policyowner can change which of the following policy features? a)the mortality expense b)the investment account c)the insured d)the coverage period

The coverage period

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change? a)the death benefit can be increased only when the policy has developed a cash value b)the death benefit can be increased only by exchanging the existing policy for a new one c)the death benefit can be increased by providing evidence of insurability d)the death benefit cannot be increased

The death benefit can be increased by providing evidence of insurability

All of the following are true regarding a decreasing term policy EXCEPT a)the contract pays only in the event of death during the term and there is no cash value b)the face amount steadily declines throughout the duration of the contract c)the payable premium amount steadily declines throughout the duration of the contract d)the death benefit is $0 at the end of the policy term

The payable premium amount steadily declines throughout the duration of the contract

All of the following are characteristics of a group life insurance EXCEPT a)There is a requirement to prove insurability on the part of the participants b)The participants receive a Certificate of Insurance as their proof of insurance c)A minimum number of participants is required in order to underwrite the plan d)The cost of the plan is determined by the average age of the group

There is a requirement to prove insurability on the part of the participants

Which of the following Life Insurance policies would be considered interest sensitive? a)adjustable life b)whole life c)increasing term d)universal life

Universal Life

A Straight Life policy has what type of premium? a)a variable annual premium for the life of the insured b)a level annual premium for the life of the insured c)an increasing annual premium for the life of the insured d)a decreasing annual premium for the life of the insured

a level annual premium for the life of the insured (and provide a level, guaranteed death benefit)

An Adjustable Life policyowner can change which of the following policy features? a)the insured b)the coverage period c)the mortality expense d)the investment account

the coverage period (following privileges for policyowner in adjustable life: increase or decrease premium, change premium paying period, increase or decrease the face amount of coverage, or change the period of protection)

All of the following are true about variable products EXCEPT a)the minimum death benefit is guaranteed b)the cash value is not guaranteed c)policyowners bear the investment risk d)the premiums are invested in the insurer's general account

the premiums are invested in the insurer's general account, insurers selling variable products invest their customer's monies in a separate account