Life License Guaranteed Exam

Cash Value guarantees in a whole life policy are called

Nonforfeiture values

What is the difference between a straight life policy and a 20-pay whole life policy?

Premium payment period

Which dividend option will increase the death benefit?

Paid-up additions

J is receiving fixed amount benefit payments his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

Fixed amont

When an annuity is used to provide savings for the educational expenses, a Last In First Out (LIFO) arrangement is used. What is the last money to go into an annuity?

Interest

Which of the following is NOT a standard exclusion in life insurance policies?

Disability

Which of the following is NOT true regarding a deferred annuity?

Income payments begin within 1 year from the date of purchase

A viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?

A percentage of the face amount of the policy

What does an annuity protect the contract owner against?

Living longer than expected

According to the Oklahoma Insurance Code, a "qualifying event" means any of the following EXCEPT

Any condition which requires continuous supervision at home and requires weekly home health visit by a licensed health care provider

An individual has a $200,00 convertible term life insurance policy. If he chooses, he can

Convert to a whole life policy for the same face amount without proof of insurablity

All of the following are required for HIV testing EXCEPT

If HIV is present, the person may be rated, but they cannot be declined

Where are premiums from fixed annuities invested?

a general account

Dividends received on participating life insurance policies are

not taxable because they are a return of unused premiums

An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered

delivered

Which of the following is a correct statement about annuities?

fixed annuities do not provide protection agains inflation

In Credit Life Insurance, who is responsible for paying the policy premiums?

Borrower only

According to the "Common Disaster" clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

The primary beneficiary died before the insured

To what type of insurance policies does the Policyholders Protection Act apply?

Life Insurance and annuities

Which of the following has the right to change a settlement option in a life insurance policy?

The policy owner at any time during the life of the insured

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

proof of insurability must be provided at each renewal

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

A policy is reissued with a reduction in cash value

The renewable provision allows the policyowner to renew the coverage at the expiration date

without evidence of insurability