Life insurance

All of the following are periods of income except A) income dependency period B) family dependency period C) retirement period D) preretirement period

A

Business insurance may be the source of funds bu the use of what? A) policy loans B) face amount C) deatj benefit D) dividends

A

Example of limitated pay life policy A) life paid option B)straight life C) level term D) renewable term

A

Promising something to an insured is A) twisting B) controlled business C) rebating D) coercion

C

In terms of Social Security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse may receive retirement benefits? A) blackout period B) nonpayment period C) latent interval D) accumulation period

A

Solicitors are employed by A) agents B) insureds C) the executive director D) the public

A

Which of the following is not a penalty for willfull violation of a commissionar order by an insurer A) imprisonment B) a desist order C) revocation of the certificate of authority D)an admistrative file

A

Which univeral life option has a gradually increasing cash value an a level death benefit A) option A B) option B C) Term

A

Within how many days of requesting an investigative consumer report must an insurer notify the consummer in writing that the report will be obtained A)3 B)5 C)7 D)14

A

A morale hazard may exist due to A) tendency towards alcoholism B) indifference to loss C) pst fraudulent claims against the insurer D)past medical history

B

An insurer receives a potential insured that includes financial status, hobbies, an habits. What report is this? A) underwriting report B) inspection report C) mib report D) agents report

B

If a life insurance policy increases significantly in face amount when rhe insured reaches a specific age what policy is this A) single premium B) jumping juvenile C) limited pay whole life D) modified life

B

The commissionar has the power and authority to perform all of the following except A) Personally supervise the operations of the office of insurance B) write insurance statutes C) establish branch offices D) conduct investigations an hearings

B

What insurance comcept is associated with weiss and fitch? A) index used by stock companies B) guides describing company financial integrity C) policy dividends D) types of mutual companies

B

What is the clause that describes the method of paying the death benefit in the wven both the insured and beneficiary dies in the same accident A) non forfeiture clause B) common disaster clause C) spreadthrift clause D) settlement clause

B

Which of the folliwing is the closest term to an authorized insurer? A) legal B) admitted C) certified D) licensed

B

Which of the following best describes aleatory nature of an insurance contract A) policies are submitted to the insurer on a take it or leave it basis B) exchange of unequal values C) only one of the parties is bound by contract

B

Which of the following is not a goal of risk retention? A) to fund losses that cant be insured B) to minimize the insureds level of insurability in the event of a loss C) to reduce expenses and improve cash flow D) to increase control of claim reserving and claim settlements

B

Which of the following isnt a factor in determining if dividends ate paid to the policy owner A) investment premium B) outstanding loans C) lower operating expenses D) lower morality risks

B

Which of the following statements is true regarding a market value adjusted annuity A) it provides a level death benefit B) the owner is guaranteed a fixed intrest rate for a specific amount of time C) the insurer bears all the market risk of changing interest rates D) there is no penalties

B

Who owns an excutive bonus contract A) company B) employee

B

All of the following entities regulate variable life policies except A) the sec B) the insurance company C) the guaranty association D) federal government

C

Amount of retirement benefits a worker receives under social security based on workers earnings and retirement age? A)qasdi B) qc C) pia D) fica

C

Another name for substandard risk is A) declined B) elevated C) rated D) controlled

C

How are contributions to a tax-sheltered annuity treated with regards to taxation? A) taxed as income for the employee B) they are taxed as income for the employee but are tax free upon withdrawal C) they arent included as income for the employee but are taxed upon withdrawl D) not taxed

C

If a policy has lapsed due to nonpayment how long of a written notice of cancellation will the policy owner get? A) 10 B) 14 C) 30 D) 5

C

The factor added to the net premium to cover the cost of the insurer in obtaining an maintaing the business A) divdend accumulation B) premium tax C) expenses D) legal reserve

C

The validity of coverage under a life insurance policy may not be contested except for nonpayment of premiums after its been in forced for how long? A) 1 yr B) 2 yr C) 3yr D) 4yr

C

What is false about the installments of a fixed amount A) the option pays a specific anount until the funds are gone B) the annuitant may select how big the payments are C) the payments will stop when the annuitant dies D) value of the account and future earnings will determine the time period for benefits

C

What percentage of a companys employees must take part in a contributing group plan A) 0 B) 25 C) 75 D) 100

C

Whats the maximum penalty for habitual willfull noncompliance with the fair credit reporting act? A) $100 fine B) revocation of license C) $2500 fine D) $1000 fine

C

Whenever an agent is acting in the scope of his or her autho the knowledge an acts of that agent are deemed to be those of? A) the insured B) the agent only C) the insurer D) the office of the insurer

C

Which of the following is considered a non qualified plan A)keogh plan B) roth ira C) split dollar plan D) 401k

C

Which of the following produces evaluation of insurers financial status often used by state departments of insurance A) consumers guide B) sec C) am best D) naic

C

Which of the following would be considered a non qualified retirement plan? A) keogh plan B) roth ira C) split dollar plan D) 401k

C

Which provision of a life insurance policy states the insurer duty to pay benefits upon the death of the insured and to whom the benefits will be paid? A) beneficiary clause B) consideration clause C) insuring clause D) entire contract clause

C

Which special policy combines decreasing term insurance with whole life insurance to provide the insurereds family w a monthly income upon death of the insured while maintaining permanent coverage until the end of the income payments? A) family maintenance policy B) survivorship life C) family income policy D) family protection policy

C

Who makes up the mib A) former insured B) physicians and paramedics C insurers D) hospitals

C

In a deinfed contribution plan what is known

Contribution is know an benefit isnt

A maxium family benefit is updated annually an is established for each level of A) maximum earnings B) total earnings C) minimum earings D) average earnings

D

The insurer returns all the premiums payments to the owner except for a predetermined percentage whats the percentage called? A) termination policy B)bail out charge C) inflation adjustment D) surrender charge

D

The premium is guaranteed for an initial period an then the insurer can chnarge up to a maximum premium charge in what policy type? A) increasing B) variable C) graded D) indeterminate

D

What percantage of a company's employees must take part in a noncontrobutory plan? A) 0 B) 25 C) 75 D) 100

D

What to documentation grants express authority to an agent A) agents insurance license B) fiduciary contract C) state provisions D) agents contract with principal

D

Which of the following statements regarding the taxation of modified endowment contract is false? A) distributions before the 59.5 incur a 10% penalty on policy gains B) policy loans are tax deductible C) accumulations are tax deferred D) withdrawals arent tax deductible

D

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? A)reinstatement rule B)conversion rule C)disclosure rule D)replacement rule

D

Which typer of misrepresentation persuades an insured to his or her detriment to cancel lapse or switch policies from one to another? A) switching B) flase advisertising C) rebating D) twisting

D

Which would be considered a non qualified plan? A) roth ira B) keogth plan C) 401k D) split dollar plan

D

Nonqualified Plans require or dont require vesting

Dont

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.