LIFE INSURANCE- FINAL EXAM

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

a life insurance claim which involves a per capita distribution of policy proceeds would be payable to the

named living primary beneficiaries

which of the following is requirement to attain a nonresident producer license

Be licensed as a producer in the producer's state of domicile

which of the following constitutes grounds for suspending an arkansas producer's license

Felony conviction

which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary

interest only

an applicant's character and personal habits can be obtained for underwriting purposes from which source

investigative consumer report

no one is allowed to act as a producer for any insurance company in arkansas that

is unauthorized to do business in arkansas

which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them

life annuity certain

the suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid

minus indebtedness and without interest

a producer making an unfair comparison of two insurance policies is considered to be engaging in

misrepresentation

an insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of

misrepresentation

which unfair trade practice involves a producer suggesting that an insurance policy is like a share of stock

misrepresentation

which of the following is not information found in a life insurance buyer's guide

How to take legal action against an insurance company

Providing incorrect, misleading, incomplete, or materially untrue information in the license application is

Misrepresentation

what types of life insurance are normally used for key employee indemnification

term, whole, and universal life insurance

which of these statements regarding the annuitant is CORRECT

the annuitant's life expectancy determines the annuity payments

michael the insurance producer acts in a fiduciary capacity when conducting business with all of these principals except

the commissioner

what does the word "level" in level term describe

the face amount

what will the beneficiary receive if an annuitant dies during the accumulation period

the greater of the accumulated cash value or the total premium paid

what is a certificate of authority

the license required for an insurer to conduct business in the state

if an insured dies during the grace period with no premiums paid

the policy would be payable, minus the premium amount

a field underwriter's main task is

to ensure an applicant's medical information is accurate and complete

failing to promptly provide a reasonable explanation for the denial of a claim is considered to be a(n)

unfair claim settlement practice

under a traditional IRA, interest earned is taxed

upon distribution

which of these would be the best example of a limited pay life insurance policy

whole life policy with premiums paid up after 20 years

an insurance producer must notify the commissioner of a change in legal name, email, or address

within 30 days of the change

which of the following is not considered rebating

Sharing commission with an agent licensed in the same line of business

a foreign insurance company cannot conduct business in arkansas without

a certificate of authority to transact business in arkansas

a producer's license cannot be revoked without

a hearing given to producer

a producer's license CANNOT be revoked without

a hearing given to the producer

which of these is considered to be a living benefit option in a life insurance policy

accelerated death benefit

what is the responsibility of the commissioner

administer insurance laws

an insurance company formed in a country other than the united states is called a(n) __________ company

alien

an individual most likely will have an insurable interest in insuring a person's life if

an economic interest exists for the continuance of the insured's life

in arkansas, replacement forms are required to be obtained for the replacement of which of the following

annual renewable term (ART) insurance

With whom may a producer share commissions

another producer who is licensed in the same line of insurance

an insurer is best described as

any person, corporation, association, or society that writes insurance contracts

a producer may begin to solicit insurance ONLY when

appointed by an insurer

if dividends are illustrated in a life insurance advertisement, the advertisement must state that the dividends

are not guaranteed

how long must the commissioner maintain a complete record for every licensee inn arkansas for

as long as he/she deems necessary

a renewable term life insurance policy can be renewed

at a predetermined date or age, regardless of the insured's health

which of these is not a nonforfeiture option

automatic premium loan option

why are dividends from a mutual insurer not subject to taxation

because dividends are considered to be a return of premium

an individual covered under a group life insurance policy is considered to be a(n)

certificate holder

all of the following are elements of an insurance policy EXCEPT

claim forms

one definition of replacement is "the act of replacing an existing insurance policy with another". replacement is

closely regulated and requires full disclosure

which of the following basics is a producer's fiduciary responsibility

collecting premiums and paying them to the insurance company

which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents

human life value approach

The Arkansas Insurance Department may take each of the following actions EXCEPT:

incarceration

the Arkansas Insurance Department may take each of the following actions EXCEPT

incarceration

mike has inherited his father's traditional IRA. as a beneficiary, he will pay ____________ taxes on any money withdrawn

income

in arkansas, a named beneficiary will be taxed at a rate of __________ for death proceeds collected on a life insurance policy

0%

tonya has replaced her whole life policy with an annuity without incurring a tax penalty. this transaction is called a(n)

1035 exchange

Lapsed individual life insurance may be reinstated at any time within:

3 years

lapsed individual life insurance may be reinstated at any time within

3 years

in arkansas, an insurance company must notify the commissioner within _____ days to terminate a producer's appointment

30

a licensed producer must report any administrative action take against the licensee in another jurisdiction or by another agency department in Arkansas within how many days of the final disposition

30 days

a licensed producer must report any administrative action taken against the licensee in another jurisdiction or by another agency department in arkansas within how many days of final disposition

30 days

if an agent knows or suspects a fraudulent transaction, they must report it to the commissioner within

30 days

Greg had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy without needing to prove insurability?

31 days

what is Arkansas' REQUIRED grace period for a life insurance contract

31 days

The Commissioner must examine the financial affairs of each admitted insurer operating in Louisiana at least once every how many years?

5

a company shall reserve the right to defer payment of any cash surrender value for a period of _____ months after demand for payment of the cash surrender value and surrender of the policy

6

an insured may continue coverage under a group plan during their total disability if the premiums are paid for how long

6 months

a life policy loan in arkansas cannot charge a fixed rate of interest higher than

8%

pat is insured with a life insurance policy and karen is his primary beneficiary. they are both involved in an automobile accident where pat dies instantly and karen dies 5 days later. which policy provision will protect the rights of the contingent beneficiary to receive the policy benefits

common disaster clause

the beneficiary of any life insurance policy or annuity contract is protected from the ____________ of the insured

creditors

which of these is NOT subject to income taxation under Modified Endowment Contract (MEC)

death benefit

credit life insurance can be best described as insurance issued on a _________ to cover outstanding balanced on installment loans

debtor

making a statement that is false of maliciously critical of the financial condition of an insurer is known as

defamation

making a statement that is false or maliciously critical of the financial condition of an insurer is known as

defamation

what is the primary purpose of a rating service company such as A.M Best

determine financial strength of an insurance company

all of these are standard exclusions found in a life insurance policy EXCEPT

disability

a group life insurance policy can be converted to an individual whole life policy under which circumstance

employment termination

what is the name of the provision which states that a copy of the application must be attached to the policy when issued

entire contract

how often must an insurance producer's license be renewed

every 2 years

The act of an insurance company publishing misleading information about its policy's provisions is called

false advertising

in arkansas, an insurer licensed to conduct business in arkansas, but domiciled in new jersey, is called a(n)

foreign company

a producer who knowingly submits a false statement in support of a claim may be found guilty of

fraud

underwriters can acquire information from all of the following sources EXCEPT

genetic testing

A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Commissioner is required to

give written notice to the producer

the commissioner is appointed by the

governor

which of these is not a prerequisite for becoming a licensed resident producer in arkansas

high school graduate

a producer who sells insurance in Arkansas but resides in another state is called a(n)

nonresident producer

what must be signed by both the producer and applicant when an existing life insurance policy is being reissued with a reduction in cash value

notice regarding replacement

When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT

obtain the beneficiary's signature

an example of rebating would be

offering a client something of value not stated in the contract in exchange for their business

An example of unfair discrimination would be

offering different terms of coverage for different policyowners having the same risk classification

in Arkansas, anyone who lies under oath during a hearing is guilty of

perjury

which is the best way to describe controlled business

policies written on people that a producer has influence over

a producer who sells an individual life insurance policy in arkansas must deliver to the policyowner a(n)

policy summary and buyer's guide

a person who places insurance on behalf of anyone seeking insurance is required to be licensed as a(n)

producer

an individual who has a contract with an insurance company to represent it is called a(n)

producer

the _______ must provide an insured with proper disclosure concerning the replacement of a life insurance policy

producer

all of the following are considered appropriate uses of life insurance for business purposes EXCEPT

protecting the business by covering entry level employees with life insurance

what is the purpose of thee arkansas life and health insurance guaranty association

protects policyowners against insolvent insurance companies

which one of these options is NOT considered false advertising

putting a license number on a flyer

an insurance producer agrees to pay the first monthly premium for an insurance applicant. this is called a(n)

rebate

a producer who shares commissions with a client may be guilty of

rebating

the promise of a discount in premium as an inducement to purchase insurance is an unfair trade practice known as

rebating

in an insurance contract, the applicant's "consideration" is the

statements made in the application and the premium


Set pelajaran terkait

PrepU Ch 38: Rheumatic Disorders

View Set