Life Insurance Tests

With a traditional whole life policy, the death benefit

remains constant over time

Representation are statements made by the applicant that are

Considered to be true to the best of the applicants knowledge

The insured is also the policy owner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

100

If a licensee changes his or her residence address, within how many days must the department be notified?

30 days

What is the free look period on a replacement policy?

30 days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

How long must records be kept for a replacement policy?

5 years

Which of the following includes information regarding a person's credit, character, reputation, and habits?

Fair credit report

The term "illustration" in a life insurance policy refers to

A presentation of no guaranteed elements of a policy

What is a material representation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

What is also an authorized insurer?

Admitted

If a producer's license was revoked for a violation of the Insurancd Code, when can the producer apply for a new license?

After 2 years

Over several years, a policy owner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristics of an insurance contract does this describe?

Aleatory

Who is considered a field underwriter?

An agent

What is an example of uninsurable interest?

An insured's best friend

Whose life expectancy is taken into consideration in an annuity contract?

Annuitant

What is the main source of underwriting information used by the company in the risk selection process?

Application

What is not fixed in a Indexed while life policy?

Cash value growth

What does the term "employer" with respects to group insurance policy coverage include

Counties, cities, incorporated towns,school districts, and other political subdivisions of this state

If an agent fails to obtain an applicant's signature of the insurance application, the agent must

Return the application to the applicant for signature

An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin?

Date of application

When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. Which of the following policies is best suitable for that need?

Decreasing term

An individual inherited a large sum of money at age 40 and wants to use it to provide a guaranteed income after his retirement at age 60. What type of annuity would best meet this need?

Deferred meaning later

In an insurance contract, consideration refers to

Exchange of something of value by both parties

What is an example of a producer's fiduciary responsibilities?

Forwarding premiums to the insurer

The regulation regarding replacement do not apply to which policies

Group life, group annuities, credit line, or non convertible term

What is considered a disadvantage of term insurance?

If the insured dies after the end if the term, there is no death benefit to the beneficiary

If the agent feels that there could be misrepresentation on the part of the applicant for insurance, what must the agent do?

Inform the insurance company

As a field writer, a producer DOES NOT

Issue the policy that is requested

Life Paid-Up at age 65 is an example of?

Limited-Pay life policy.

As a field underwriter, a producer is responsible for all of the following tasks..

Obtain appropriate signatures on the application for insurance, help prevent adverse selection, and solicit business that will fall within the insurer's underwriting guidelines

If no receipt is issued at the time of application, a statement of good health is usually required at the time of

Policy delivery

What is true regarding a joint life policy?

Premium is based on the average age of the insureds

When must a replacement notice be given

Prior to the application

An agent who offers a cash reward to a prospect for buying a policy if guilty of

Rebating

An annual renewable policy

Renews each year with an increased premium

What is the main responsibility of a company's underwriting unit?

Risk selection and classification

Commissioner of Insurance is not responsible for

Setting premium dates

Which type of life insurance policy generates immediate cash value?

Single premium

The time period during which an annuitant contributes to an annuity is called

The accumulation period

What is something that can be true about a universal life policy?

The premium can be decreed by the insured

The Medical Information Bureau

The source of medical information to alert insurers to adverse medical history

When must insurable interest exist?

Time of application or issue date

Which of the following best describes the purpose of the USA PATRIOT Act with regards to the insurance industry?

To prevent terrorism activities through monitoring of finacial transactions

What is the timeframe for filing relevant Sisoicious Activy Reports?

Within 30 days of the suspicious transaction

The renewable provision allows the policy owner to renew the coverage at the expiration date

Without evidence elf insurability

An insurer who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called..

defamation

On an annual renewable level term policy, the premium will increase

every year, although the face amount will remain the same.

An insured receives a monthly summary of his life insurance policy. The cash value this month is significantly lower than it was last month. What type of policy is it?

variable