Life insurance state exam
Ten years ago, an insured purchased a life insurance policy designed to pay his family 500.00 a month for 20 years. Last month. he was killed in an auto accident. The insurance company told his widow she would get 500 a month for 10 remaining years on the policy. What kind of policy is this?
Family income policy
which of the following best describes life annuity with period certain?
It guarantees benefit payments for the rest of the annuitant and for the specified period of the beneficiary.
Insurers and intermediaries must provide a copy of the current edition of Wisconsin Buyer's Guide to Annuities and a Preliminary Contract Summart at what point?
Prior to accepting the applicant's initial premium
which annuity is purchased with a single payment and begins annuity payments within one year
SPIA
What does the application of contract adhesion mean?
Since the insured doesn't participate in preparing the contract, and ambiguities would be resolved in favor of the insured.
Which provision may be added to a permanent life policy , at no cost , that insures that the policy will not lapse so long and there is cash value
automatic premium loan option
Which of the following terms refers to the nontaxable portion of each annuity benefit payment?
cost base
In which of the following qualified plans are the benefits linked to the employees number of years of service and /or the compensation earned
defined benefit plan
In a defined benefit plan
the benefit is known and the contribution is unknown
Cash Value guarantees in a wholelife policy are called
Nonforfeiture values
What is effect of negotiations for a contract?
The time when a statement made by an insured can affect the insurer's obligations
According to the life insurance replacement regulations, which is the following would be an example of the policy replacement?
a policy is reissued with a reduction in cash value
An insurer recently used an illustration during the sale of an insurance policy. Because of this illustration the insurer will be required to provide the policyowner with an annual report on the status of the policy. This report must contain all of the following EXCEPT
dates of the illustrations use
The policy summary must state the effective policy loan annual percentage interest rate for at least
20 years
When an annuity is used to provide savings for the education expense , a last in first out (LIFO) is used, what is the last money to go into the annuity?
Intrest
Which the following is False regarding a proposal of a life policy in connect with a security
It must show all the policy charges as an aggregate amount.
The maximum annual billing for any insurer cannot exceed what percentage of net premiums earned?
1%
In order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least what percent of the business?
10%
Which of the following best describes industrial life insurance
1000.00 or less in coverage and premiums collected by agent
An intermediary changed his residential address. Within how many days must the Commissioner be notified of the charge?
30
Suitability of annuity sales to senior consumers requirements would apply to all of the following EXCEPT
A direct response solicitation.
which of the following is not an allowable reason for policy cancellation prior to expiration date?
Any misrepresentation by the insured
Which of the following would be TRUE of both the fixed period and the fixed amount settlement options
Both guarantee that the principal and interest will be fully paid.
When life insurance proceeds are used to pay inheritance taxes and the federal estate taxes it is known as what
Estate conversion
When a whole life insurance policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
A married couple wants to include the entire family in their whole life policy under one rider
Family term
All of the following are true about key person insurance EXCEPT
The death benefit is table to the business
All of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?
They are received tax free
An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as
Twisting
which of the following is incorrect
an illustration must contain the name and address of the insurer and agent, but it must contain only the name of the proposed insured.
what type of interest rate is guaranteed in universal life policies?
contract interest rate
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 premium payments due to death or disability/ Which policy rider should their agent recommend?
payor benefit
An Equity Indexed Annuity will grow based upon
performance of recognized index
Annuities Certain limit the amount paid by the annuity to a certain fixed
period or fixed amount
Which of the following will be eligible for tax-sheltered annuity?
public school teachers
A whole life policy that will generate immediate cash value is a
single premium policy
