Practice certificate exam results

An annuity owner receives the same guaranteed payment every month. What type of annuity is it?

fixed

How long is the grace period for an individual life insurance policy?

1 month

An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?

3 days

Which of the following losses would likely be covered under the Accidental Death rider?

Death caused by a head-on collision

In this state the owner gets a "free look" of a specified number of days from

Delivery of the policy

If an insurance company issues a policy even though some of the questions on the application were unanswered, when can the insurer get the answers to those questions?

Never; the insurer has waived its right to those answers by issuing the policy

cash value guarantees in a whole life policy are called

Nonforfeiture values

Which of the following is consideration on the part of the insurer?

Paying a claim

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 annuity would normally be purchased by an individual who wants to

Provide income for retirement

Which of the following policies would NOT offer a policy loan option?

Term life

When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a

Term rider

Which of the following statements regarding HIV testing is NOT true

Test results must be sent to the Department of Insurance.

All of the following are consideration in an insurance policy EXCEPT

The cash value of the policy

All of the following are true of group life insurance EXCEPT

The insureds each own their own contract

All of the following are general requirements of a qualified plan EXCEPT

The plan must be temporary

Which of the following policies can be described as a flexible premium adjustable life policy?

Universal Life

An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?

grace period

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

insured

In the event an annuitant dies during the accumulation period, and there is a beneficiary named in the annuity, annuity benefits would be paid to the

named beneficiary

Which statement below is incorrect regarding the type of term insurance that fits best with the applicants needs?

Applicants who may require a larger death benefit in the future should buy convertible term insurance

What is the cost of coverage based on for group life insurance?

The average age and the ratio of men to women

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

continue to increase

An annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement?

level

For a contract to be enforceable by law, the purpose of the contract must be

Legal and not against public policy

The manner and/or frequency that the policyowner pays the policy premium is called

Premium Mode

All of following are true about key-person insurance EXCEPT

The death benefit is taxable to the business

All of the following are true about Group Life insurance EXCEPT

The employer is the beneficiary

The policyowner has an option to pledge the life insurance policy as collateral for a bank loan. This is called

collateral assignment

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

whole life insurance

Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death, whenever that may be.

If a replacement is involved, the replacing agent must:

*Present to the applicant at the time of application a Notice Regarding Replacement which must be signed by both the agent and the applicant *Collect and provide a list of life insurance policies or annuities to be replaced along with the names of the insurers and contract numbers *Leave with the applicant the originals or copies of all written or printed communication used for presentation—including sales proposals and comparisons of policies

When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as

Estate conservation

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

All of the following are true of the survivorship life policy EXCEPT

The premium is based on the age of each insured

A whole life policy that will generate immediate cash value is a

single premium policy

Which of the following are characteristics of term life insurance?

temporary protection, renewability, no cash value

In life insurance, which of the following is NOT required to have an insurable interest in the insured?

beneficiary

Under which of the following conditions would life insurance proceeds be taxable by the federal government?

If there is a transfer for value

As an insurer's field underwriter, a producer has all of the following responsibilities EXCEPT

Issuing policies on behalf of the insurer

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policy owner select?

Joint and survivor

An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?

10%

Where are premiums from fixed annuities invested?

A general account

Which provision may be added to a permanent life policy, at no cost, that insures that the policy will not lapse so long as there is cash value?

Automatic Premium Loan Option

Variable insurance and variable annuities are regulated by

SEC, FINRA, and Departments of Insurance

Which of the following types of insurance is investment based, has a level-fixed premium, and a non guaranteed cash value?

Variable Whole Life

The purpose of the Fair Credit Reporting Act is to

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

A loss resulting from which of the following would qualify for the accidental death rider coverage

an automobile accident

An Equity Indexed Annuity will grow based upon

Performance of a recognized index

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

Without evidence of insurability