Life Insurance Exam prac

Every policy of individual life insurance must include a notice of right to cancel the policy, stating the specific time frame for the free-look period. Once the insured has cancelled the policy, within how many days must the insurer refund all premiums and policy fees?

30 days

When an annuity is written, whose life expectancy is taken into account?

Annuitant

which concept is associated with the exclusion ratio

Annuity Payment

A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?

Immediate

A return of premium term policy is written as what type of term coverage

Increasing

Insurance is a contract by which one seeks to protect another from

Loss

To which of the following products does the Replacement Regulation apply?

Whole life Insurance

Employer contributions made to a qualified plan

Are subject to vesting requirements

Which of the following is true regarding a policy with a face value less than $10,000?

If it's returned during the free look period, the agreement will be void

If a retirement plan or annuity is "qualified", this means

It is approved by the IRS

A set of legal or regulatory conditions that affect an insurer's ability to collect premiums commensurate with the level of risk incurred would be considered a(n):

Legal Hazard

When the breadwinner that is insured by a Family Policy dies, what rights are provided to other family members that are covered under the policy?

May be converted to a permanent insurance without requiring evidence of insurability

An individual tendency to be dishonest would be an indicative of a

Moral Hazard

Which of the following is not correct regarding false statements by a person engaged in the business of insurance

Oral statements ae not considered fraud

When calculating the amount a policyowner may borrower from a variable life policy, what must be subtracted from the policy cash value?

Outstanding loans and interest

Which of the following statement is true regarding written binders

Prove that the insured has coverage, even though the policy has not been issued yet

In the event of loss, business overhead insurance will pay for

Rent

Which of the following is NOT a characteristic of pure risk?

The loss must be catastrophic

which of the following determine the cash value of a variable life policy?

The performance of the policy Portfolio

Whose responsibility is it to make certain that an application for an insurance is filled out completely and correctly?

The producer

Which of the following statements is true concerning irrevocable beneficiaries?

They can be changed only with with the written consent of that beneficiary

All of the following are true regarding the guaranteed insurability rider, except

This rider is available to all insureds with no additional premium

If found material for underwriting, a misrepresentation

it can void a contract.

Variable whole life insurance is based on what type of premium?

level-fixed premium

An agent is a legal person who acts on behalf of

principal

what method is used to determine the taxable portion of each annuity payment ?

the exclusion ratio

when an employee or dependent who currently receiving benefits qualifies for an extension of benefits due to a discontinuation which was followed by a replacement, which of the following is responsible for the disabled person's continuance of benefits?

the old insurer

In terms of parties to a contract, which of the following does NOT describe a component party?

the person must have at least completed secondary education

In a survivorship life policy, when does the insurer pay the death benefit?

upon the last death