Life insurance missed questions

Payor Benefit

A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend?

A policy is reissued with a reduction in cash value

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

Proof of insurability must be provided at each renewal

All of the following are true of annually renewable term insurance EXCEPT

The premium is based on the age of each insured

All of the following are true of the survivorship Life policy except?

The Guaranty Association.

All of the following entities regulate variable life policies EXCEPT

The coverage Period

An Adjustable Life policyowner can change which of the following policy features?

No notice is ever required at the initial completion of the application

An agent is completing an application of insurance for a client. The agent is required to provide the client a "notice of information practices" at all of the following times EXCEPT

FINRA

An agent selling variable annuities must be registered with

A portion of the benefit up to a limit is tax free; the rest is taxable income

An individual has been diagnosed with Alzheimers disease. He is insured a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?

10 business days

An insurance agent changes his address. How long will the agent be given to notify the Department of Insurance

Damages sustained by the individual to whom the information relates

An insurance institution or agent that discloses info in violation of the information privacy and disclosure statutes of north carolina will be liable for?

Reduction of premium

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's' premium, thus reducing it to $900. What option does this describe?

Pay the death benefit

An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at that time that the insured had misstated information about her insurance history on the application. What will the insurer do?

Modified Life

B just bought a new car, which he anticipates will be paid for 4 years from now. He also wants to buy a life insurance policy, but is financially limited until the car is paid off. Which of the following types of policies would be best for B?

Waiver of Premium Rider

Because of an injury, an insured has been unable to work for 7 months. When his life insurance premium came due, he was unable to pay, yet the policy remained. The policy includes?

The governor appoints a replacement.

If the Commissioner of Insurance is unable to complete their term,

The beneficiary

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

Annuitization period

In an annuity, the accumulated money is converted into a stream of income during which time period?

Before accepting the initial premium deposit

In life insurance, when must the policy summary be presented?

It is level at the beginning and increases after the first few years

In modified life policies, what happens to the premium

submit the request for licensure in the form prescribed by the commissioner and pay the applicable fees

In order to get a nonresident license in the form prescribed by the commissioner and pay the applicable fees

Premiums paid by an employer on a $30,000 group term life insurance plan for employees

In which of the following instances would the premium be tax deductible?

Annually renewable term policies provide a level death benefit for a premium that

Increases annually

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

Increasing

15

Insurance companies are required to provide proof of loss forms to the claimant within how many days after receipt of notice of loss?

Only one party makes a promise

Insurance contracts are unilateral in nature. What does that mean?

Simplified Employee Pension (SEP)

S set up an individual retirement account that her employer is now contributing to. Her employers contributions are not included in her gross income. What kind of retirement plan does S have?

It is illegal for an insurer to advertise that policies are covered by the Life and Health Guaranty Association

TRUE

Both the principle and interest will be liquidated over a selected period of time

Which of the following best describes fixed period settlement options?

Those who have been insured under the plan for at least 5 years

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

The employees receive individual policies.

Which of the following is INCORRECT concerning a noncontributory group plan?

Benefits are determined solely based on the policy premium

Which of the following is NOT a characteristic of variable insurance and annuities

5% minimum interest paid on cash value

Which of the following is NOT a mandatory provision in a life insurance contract?

The annuitant cannot be the same person as the annuity owner

Which of the following is NOT true regarding the annuitant?

The annuitant assumes the risks on investment.

Which of the following is TRUE regarding variable annuities?

Annuity Certain

Which of the following is a short term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated ?

Death Benefit

Which of the following is not fundable by annuities?

Application

Which of the following is the basic source of information used by the company in the risk selection process?

Variable universal life

Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?

Contributions and earnings are tax-differed until funds are withdrawn

Which of the following statements is true regarding SIMPLE plans?

Straight Life

Which of the following types of annuities will generally provide the highest monthly income

Whole life

Which of the following types of insurance policies would perform the function of cash accumulation?

Buy-Sell Agreement

Which of the following would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount?

Replacement rule

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?

The premium increases each year with the age of the insured

With annually renewable term insurance what happens to the premiums as one's age increases

24

Within how many months must a person be expected to die from a sickness in order to be classified as terminally ill?

Joint and Survivor

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policy owner select?

Representations

all statements of the insured in any application for a policy of insurance are deemed

provide income for retirement

An annuity would normally be purchased by an individual who wants to?

Annually Renewable Term

The death protection component of Universal Life Insurance is always

Interest only option

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

Lower

The premium of a survivorship life policy compared with that of a joint life policy would be

5

The reinstatement provision in life insurance policies in this state allows an owner of a lapsed policy to reestablish it within how many years?

Waiver of premium.

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Credit life

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called

Insurable Interest

To purchase insurance, the policy owner must face the possibility of losing money or something of value in the event of loss. What is this concept called?

If there is a transfer for value

Under which of the following conditions would life insurance proceeds be taxable by the federal government?

Insurance insolvency

What does the Guaranty Association guard against?

Coverage ends and the policy cannot be reinstated

What happens when a policy is surrendered for its cash value?

up to 1 year

What is a license suspension period for a second of violating state rules regarding records and reports?

Time to be set by commissioner

When a licensee is accused of any act, omission, or misconduct that would subject the licensee to a license suspension or revocation , with the approval of the Commissioner, the license may be surrendered for a period of?

Extended term

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Annuitant

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

Furnish a blank form to be used for that purpose.

When an insurer requires a written proof of loss after notice of such loss has been given by the insured or beneficiary, the company must

Joint life has a lower premium than the total of the two individual policies

When comparing a Joint Life policy to the two individual life policies of the same amount on the same insureds, which condition is true?

At the time of application

When must insurable interest exist in a life insurance policy?

which of the following features of the Indexed Whole Life policy is NOT fixed?

Cash value growth

Face Amount

What does "level" refer to in level term insurance?

which two terms are associated directly with the premium?

level or flexible

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

other-insured rider

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

term

Minimum Death Benefit

which of the following is guaranteed under a variable whole life insurance policy?

One party accepts the exact terms of the other party's offer

which statement best describes agreement as it relates to insurance contracts?

6 months

Policy loan requests, except for loan requests for payment of due premiums, may be deferred for a period up to

indemnity

Restoring an insured financially after a claim is known as

Guaranteed and Current.

A Universal Life insurance policy has two types of interest rates that are called

Whole life

A graded premium life insurance policy is a modified form of?

A family Policy

A life insurance policy that provides coverage to every family member in a single policy, with permanent insurance on the breadwinner and convertible term on other family members is called?

Required a premium increase each renewal.

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Nonforfeiture Options

Cash value guarantees in a whole life policy are called

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount

up to 180 days

For how long can a commissioner issue a temporary insurance agent license

By their members - authorized insurers

How are state Insurance Guaranty Associations funded?

The commissioner may suspend or revoke the person's license

If a licensee fails to notify the Commissioner of insurer insolvency, if known or suspected, and to provide a statement of relevant facts, which of the following is TRUE?

It means there is no cash value

If a policy offers pure death protection what does this mean?

Lump Sum

If a settlement option is not chosen by the policyowner or the beneficiary, which option will be used?

settlement option

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

Discrimination

When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered

The rider is usually level term insurance

Which is true about a spouse term rider?

Cash value growth

Which of the following features of the Indexed Whole Life policy is NOT fixed?