Primerica
Which of the following would NOT be considered an exception to the National Do Not Call List?
Calls based from outside of the United States
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash Option
Which of the following features of the Indexed Whole Life policy is NOT fixed?
Cash value growth
What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?
Common Disaster Clause
Which of the following is a requirement that must be satisfied before an applicant can receive an insurance producer license in Alabama?
Complete relicensing classroom instruction, unless otherwise exempt by the Commissioner
What term best describes the act of withholding material information that would be crucial to an underwriting decision?
Concealment
Which of the following will NOT be an appropriate use of a deferred annuity?
Creating an estate
Concerning Juvenile Life insurance, which of the following statements is INCORRECT?
Juvenile life is classified as any life insurance purchased by a minor
Which of the following settlement options in life insurance is known as straight life?
Life Income
Insurance is a contract by which one seeks to protect another from
Loss
After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit Rider. Which of the following benefits will he receive?
Monthly premium waiver and monthly income
Traditional IRA contributions are tax deductible based on which of the following?
Owner's income
Which OPTION is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
Paid-up option
A insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at that time that the insured had misstated information about her insurance history on the application. What will the insurer do?
Pay the death benefit
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor Benefit
Which of the following would NOT be a violation of state insurance regulations?
Producer C uses her license to write only business other than controlled.
Which of the following insurance options would be considered a RISK- sharing arrangement?
Reciprocal
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
Installing deadbolt locks on the doors of a home is an example of which method of handling risk?
Reduction
Insurance is the transfer of
Risk
A certificate of authority is NOT required for an insurance company that writes only
Surplus lines insurance
Which of the following is called a "second-to-die" policy?
Survivorship Life
The interest earned on policy dividends is
Taxable
Which of the following is TRUE regarding variable annuities?
The annuitant assumes the risks on investment
An adjustable life Policyowner can change which of the following policy features?
The coverage period
If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefits from the policy?
The death benefit will be smaller
Which of the following best describes the tax advantage of a qualified retirement plan?
The earnings in a qualified plan accumulate tax deferred
Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Alabama within how many days of the final disposition of the matter?
30 days
Telemarketing organizations are required to consult the National DO NOT CALL registry at least every
31 days
What is the waiting period on a Waiver of Premium ride in life insurance policies?
6 months
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time.
A business entity acting as an insurance producer is required to do all of the following except
Be a publicly owned company
Which of the following is TRUE about a class designation?
Beneficiaries are not identified by name
Which of the following features on a variable life insurance policy is guaranteed?
Death benefit up to the policy face value
Under a defined benefit retirement plan, who determines what benefits a retired employee will receive?
Employer
When an insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase
Which of the following is NOT a type of information that needs to be gathered in order to determine the value of someone's life when using the needs approach?
Estimated longevity
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
Which nonforfeiture option has the highest amount of insurance protection?
Extended Term
The requirement that agents not commingle insurance monies with their own funds is known as
Fiduciary responsibility
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?
Foreign
Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?
Human Life value approach (HLVA)
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?
Indemnity
Which of the following is TRUE about the 10-day free-look period in a Life Insurance policy?
It begins when the policy is delivered.
Which of the following best describes annually renewable term insurance?
It is a level term insurance
Which of the following is true about the premium on the children's rider in a life insurance policy?
It remains the same no matter how many children are added to the policy
In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium?
It will likely be higher because the applicant is a substandard risk
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?
Jumping Juvenile Policy
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?
The policy will be interpreted as if the insured waived its right to have an answer on the application
All of the following are characteristics of a group life insurance plan EXCEPT
There is a requirement to prove insurability on the part of the participants
Which of the following insurance arrangement will be appropriate for a parent buying a life insurance policy on a child where the parent is the Policyowner?
Third-party ownership
What is the purpose of a fixed-period settlement option?
To provide a guaranteed income for a certain amount of time
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?
Unilateral
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy cash value. There is a limit for a withdrawal and the insured charges a fee. What type of policy does the insured most likely have?
Universal Life
The Waiver of Cost of Insurance rider is found in what type of insurance?
Universal Life
Which of the following products requires a securities license?
Variable Annuity
Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?
Withdraws are NOT taxable