Life review 2

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

warranty

The death protection component of Universal Life Insurance is always

Annually Renewable Term

Which of the following policy components contains the company's promise to pay?

insuring clause

All group life insurance policies must be incontestable after how many years?

2

Each viatical settlement contract entered into in this State must provide the viator with an unconditional right to rescind the contract for at least how many days?

15 days

If the provider of a viatical settlement transfers ownership or changes the beneficiary of the insurance policy, the provider must communicate the change in ownership or beneficiary to the insured within how many days after the change?

20 days

The maximum civil penalty that may be assessed for a willful violation of the insurance code is

25,000

When a licensee changes his residence address, the Insurance Department must be notified within

30 days

According to the Entire Contract provision, a policy must contain

a copy of the original application

Which term describes an individual who is domiciled and licensed as a resident producer in a state other than Alaska?

non resident

In insurance, an offer is usually made when

In insurance, the offer is usually made by the applicant in the form of the application. Acceptance takes place when an insurer's underwriter approves the application and issues a policy.

How are contributions to a tax-sheltered annuity treated with regards to taxation?

They are not included as income for the employee, but are taxable upon distribution.

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

joint and survivor

Are dividends taxable?

no

All of the following would be considered an insurance transaction EXCEPT

obtaining a license

what would be considered an unfair claims settlement practice?

A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?

Premiums are not tax deductible as a business expense.