Life

which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy

an accidental death rider

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

being permanently disabled

Information about a policy's free-look period must appear

on the first page of the policy

which of the following would NOT trigger the payment of Accelerated Death Benefits

requiring an organ transplant for the insured to survive

which of the following is NOT true of the agent's implied authority?

it is specifically stated in the contract

All of the following are considerations under the needs approach planning for life insurance EXCEPT

insureds income

How many hours of approved continuing education must a licensee complete every 2 years

24

upon surrender, how long must a whole life insurance policy be in force before it will pays a cash surrender value in lieu of any paid-up nonforfeiture benefit?

3 years

variable life insurance is regulated by all of the following entities EXCEPT

the US Department of Treasury

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

6 months

The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXECPT

purchase of a new home

All of the following are descriptions that group life insurance policies must conform to EXCEPT

seekers of insurance

Life Insurance can provide which of the following?

Survivor protection

Jane was granted a temporary license for her deceased's husband's agency on March 1. On May 1 she processed an application for life insurance on a new applicant Which of the following is TRUE?

The application was processed without a valid license

what term is used for insurance companies that have a Certificate of Authority to transact insurance?

admitted

A whole life policy is surrendered for a reduced paid-up policy. The cash value in the new policy will

continue to increase

While completing a life insurance application the applicant realizes that she should have answered an earlier question differently. what should she do

cross out the incorrect information wire in the correct and have the applicant initial the change

Credit life insurance protects lenders against financial loss due to a borrower's

death

An important fact about the financial status of an insurer was deliberately withheld. Which of the following terms best describes this action?

false financial statement

Which of the following is a correct statement about annuities?

fixed annuities do not provide protection against inflation

At what point would an automatic premium loan be generated?

following the grace period

Because of the imposed blackout period, the surviving spouse will not receive social security benefits until

he or she qualifies for retirement benefits

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

one party accepts the exacts terms of the other party's offer

What is the main reason for purch asing an industrial life policy?

to cover funeral expenses

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT

cash surrender values

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he know would be possible. what term describes?

misrepresentation

an insurance company that is owned by the policyholders is called a

mutual insurer

if an insured purchase an insurance policy with a large deductible, what risk management technique is the insured exercising?

retention

what happens to the face amount of a whole life policy if the insured reaches the age of 100

the face amount is paid to the insured

With Adjustable Life, the owner can change all of the following EXCEPT

the insured

which of the following is true regarding a joint life annuity?

the payments stop at the first death

All of the following are true of the Survivorship Life policy EXCEPT

the premium is based on the age of each insured

Which of the following is TRUE regarding premium in a 10 year level premium policy?

the premium will remain level for 10 years

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

whole life

When an insured terminates membership in the insured group, the insured can convert to

whole life without proof of insurability

Which of the following indicates the person upon whose life the annuity income amount is determined?

annuitant

When the owner of a participating whole life poIicy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?

paid-up options

all of the following statements about mutual insurance companies are correct EXCEPT

policy dividend issued by mutual companies are guaranteed and not taxable

the needs approach to calculating the amount of life insurance needed is based on

predict needs of a family after the premature death of the insured

If a policy is being replaced, the replacement company must be notified by the

producer

an annuity world normally be purchased by an individual who wants to

provide income for retirement

considering the principles of liquidity, how would the policyowner use today's cash values in a life insurance policy?

use it for emergency expenses

which of the following types of insurance is investment based, has a level fixed premium, and nongaurnteed cash value?

variable whole life

if a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

prior to performance of the test

An insured worked for a company that provided a group life policy covering each employee for $25,000. Twenty days being terminated from his job was killed in an auto accident. how much will his beneficiary receive?

$25,000 , less the premium required for 20 days of coverage

An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive

$70,000

When must a producer notify the Commissioner of Insurance of a change of place of business address?

10 days

A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal

Family term

The purpose of the Fair Credit Reporting Act is to

protect consumers against the circulation of inaccurate or obsolete personal or financial information

Which of the following is considered a field underwriter?

an agent

When a hearing regarding an insurance matter is requested, all parties affected must be nc tified within what time period of the hearing?

10 days

when must a producer notify the Commissioner of Insurance of a change of place of business address?

10 days

What is the tax penalty for withdrawing money ' from an annuity prior to age 59 ½?

10%

A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount of premium paid exceeds the amount that would have provided paid-up insurance in how many years?

7 years

The provision that sets forth the basic agreement between the insurer and the insured and states the insurer's promise to pay the death benefit upon the insured's death is called the

insuring clause

a producer advises a policyholder that he should replace his life insurance policy with another, similar policy. the agent is advising this for the sole purpose of earning a commission. what violation has the agent committed?

churning

According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT

if declined for an insurance policy, an applicant has no right to the information in the report

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

insurable interest

An insured has a life insurance policy in the amount of $250,000 naming his wife as beneficiary. Upon his death, his beneficiary decides not to receive the death benefit for some time. When she finally receives the death benefit check, it's in the amount of $250,530. Is any portion of the proceeds that the beneficiary receives taxable?

Yes, proceeds in excess of face amount are taxable