LIFE INSURANCE

which of the following is true abount the premium on the childrens rider in life insurance policy

- remains same reguardless of number of children

all of the following can be described as twisting except

-explaining to clients the advantages of perminant insurance over term and suggesting changing policies -twisting is a misrepresentation, incomplete or fraudulent comparison of insurance policies that persuades an insured/owner to his or her detriment, to cancel lapse or switch policies from one to another

100000 life policy killed in an accident that is his fault has triple indemity

-paid 100000 to benefeciary -triple indemnity would pay triple if the accident was not his fault

how long is a license suspension period for a second offense of violation rules

1 year

before the commisioner will issue a brokers license they must obtain a bond for at least

15000

what is the requirement for continuing education

3 hours every 2 years

if the commish denies application for an agent how long does an applicant have to request a review

30 days

how long is the NC commish term

4 years

what is the max benefits one contract holder may recieve in benefits

5 million

Payor Benefit

A rider or provision, usually found in Juvenile policies, under which premiums are waived if the Payor of the premium (usually a parent) becomes disabled or dies while the child is still a minor. also does not cause death benefit to increase

Material Misrepresentation

A statement that, if discovered, would alter the underwriting decision of the insurance company.

An insured recieves an annual life insurance dividend check. what term best describes this arrangement>

Cash option

An agent selling variable annuities must be registered with

FINRA

What does a Guaranty association guard against

Insurer insolvency

what type of policy would you suggest if a client wants protection and savings from insurance and is willing to pay premiums until retirement

Limited pay whole life

under what option does your death benefit gradually increase each year by the amount of cash value has increased

Option B

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

SEC registration

Equity Indexed Annuities

Seek higher returns, invest on an aggressive basis. equity indexed

fixed period installments

The annuitant selects the time period for the benefits, and the insurer determines how much each payment will be, based on the value of the account and future earnings projections. This option pays for a specified amount of time only, whether or not the annuitant is living. not dividend options

Nonforfeiture Options

Three options available by law to policyowners that enable them to recover a policy's cash-value upon surrender of that policy. (1) Cash (2) Reduced Paid-Up Insurance (3) Extended Term Insurance

Equity Indexed Annuity

a fixed, deferred annuity that allows the owner to participate in the growth of the stock market and provides downside protection against the loss of principal and prior interest earnings if the annuity is held to term. earn higher interst rates than fixed

the 2 types of assignments are

absolute(entire policy and collateral (part or all benefits

Children's riders attached to whole life policies are usually issued as what type of insurance?

adjustable life insurance

Replacement rule

agent knows an applicant is going to cash in on an old policy and use the funds to purchase new insurance

universal life policy is best describeds as

an annually renrewable term policy with a cash value account

The death protection component of Universal Life Insurance is always what type of insurance

annually renewable term

what is not true reguarding an annuitant

annuitant cant be the same person as the annuity owner

During what period in an annuity does the accumulated money turn into income

annuization period

If a life insurance policy has a 10 day free look period when is the latest that buyers guide and summary can be delivered

at the time of delivery

which of the following statements concerning buy-sell agreements is true

buy sell agreements are normally funded with life insurance policy, buy sell is simply a contract that establishs what will be done w a business if an owner dies

what is the punishment for an agent who obtains info under false pretenses

class 1 misdemeanor

what rider will adjust the face amount based on a specific index such as CPI

cost of living rider

what happens when a policy is surrendered for its cash value

coverage ends and policy cant be reinstated

which of the following types of insurance policies is most common in credit life insurance

decreasing term, credit insuracne is a special type of coverage written to insure the life of debitor and pay off balance

what policy is your customer doesnt mind paying higher premiums as long as his cash value can grow fast

endowment. builds cash the fastest because funds are intended to be used while you are alive

what do u need to recieve social disability income benefits

fully insured status

which of the following terms best describes coverage provided by term policies compared to others

greatest

all of the following entities regulate variable life except

guaranee association

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

installments for a fixed period annuity

when entities protect policy owners, insured and benefeciaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment

insurance guaranty association

what happens to the benefits if an owner dies before a policy is insured

insureds estate

under which of the following circumstances would a pretext interview be permissable

insurer suspects criminal activity or fraud

Creditor requiring that a debtor buys insurance from a certain insurer

is not allowed in credit life insurance

which of the following statements is true regarding accidental death rider

it will pay double or triple the face amount if death is defined as an accident and in the first 90 days

if a life insurance policy increses significantly in the face amount when the insured reaches a specified age what type of policy is it

jumping juvenile policy

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

level term

which of the following is an example of a limited pay life policy

life paid up at age 65, policy endows when the insured turns 100. premium paying period taht is limited not the matuirty

life paid up at 65 is an example of a what type of policy

limited pay life policy

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, premium payments stop at 60 but coverage continues until death or 100

if an employee leaves her group life plan

may not choose to convert it to term or individual coverage

B just bought a new car and will be paid off in 4 years, wants to buy insurance but is cash strapped until car is paid, what policy is best

modified life, charges lower premium for the first few years than a higher premium for the remainder of the policy

A policyowner wants to name a loved one as the benefeciary of their policy but wants to retain all rights to policy, what should they do?

name loved one as revocable benefeciary

What is the official name of the social security program

old age survivors disability insurance

what happens if a deffered annuity is surrendered before annuizitation period?

owner will recieve the surrender value of the annuity

Incontestability Clause

policy clause that prevents an insurance company from denying payment of death claim after a specified period

what is not true regarding straight life policy

premium steadily decreases over time in responce to growing cash value

Key Person Insurance

protects against the loss of a key employee or key executive by making the business the beneficiary if a key person dies. The business is the owner, premium payor, and beneficiary.

Other Insured Rider

provides coverage for one or more family members other than the insured

policy owner pays life insuracne annually, collects nontaxable dividends check each year. she decides that she would rather use the dividend to hellp pay next premium, what option would allow her to do this

reduction of premium allows policy owner to apply dividend for next year

in a loss, indemnity provision in insurance policies

restores an insured person to the same financial status begfore the loss. indemnity is pretty much reimbursement. collect only the sate of the loss

what type of licensedoes a military sales agent need

restricted license

what are the 3 types of social security benefits

retirement, survivors, disability

what level of education is needed to be considered to be a competent party

sencondary education

what 2 terms are associated directly with the way an annuity is funded

single payment or periodic payments. periodic payments are level overtime other payments are flexable

which of the following would help prevent a universal life policy from lapsing

target premium, recommended amount that should be paid on a policy in order to cover cost

Extended Term Nonforfeiture Option

the default nonforfeigture option. The insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy

all of the following are true regarding a decreasing term policy except

the payable premium amount steadily declines throughout the duration of the contract. premiums remain level with a decreasing term

Under an extended term nonforfeiture option, the policy cash value is converted to

the same face amount

an agent may be suspended if

they dont pay state income tax

which of the following will not be appropriate use of a defered annuity

they grow tax defered, annuities do not create an estate but liquify if owner dies

Stating that an insurer's policies are guaranteed by the existence of the Life and Health Guaranty Association is

unfair trade practice

which of the following life insuracne policies would be considered interest sensitive

universal life, flexable premium and interest sensitive

Which has flexable premium and variable investments

variable universal life

which of the following is a key distinction between variable whole life and variable universal life

variable whole life has a guaranteed death benefit, universal may or may not have a minimum but whole life has a guaranteed min

Defamation

when a producer is reviewing potential customers coverage written by another company, the producer made several remarks that were critical of insurers.

how long may an annuity period last

whole life time