PRIMERICA EXAM
Increasing.
A Return of Premium term life policy is written as what type of term coverage?
Surplus lines insurer.
A nonadmitted insurer who provides insurance coverages that are not available from an admitted insurer is called
The policyholder.
A person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership under the policy to any of the following EXCEPT
Participating.
A policy which stipulates that the company will return any unused premiums to policyowners is called
Participating.
A policy which stipulates that the company will return any unused premiums to policyowners, is called
Automatic premium loan.
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to
24
A producer holds a life and accident and health or sickness insurance license and a property insurance license. How many hours of continuing education must the producer complete every license renewal period?
Reciprocity
A producer in another state wants to become a producer in Hawaii. The other state gives the same privileges to Nebraska producers wanting to be licensed in that state as it does its own producers. Hawaii therefore extends the privileges of its producers to the prospective producer of the other state. What is this called?
Pay the policy proceeds only if it would have issued the policy.
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will
Premium.
All fees, charges, commissions, and other considerations charged for insurance must be stated in the
The plan is funded by permanent insurance only.
All of the following are true of key person insurance EXCEPT
Dividends from a mutual insurer.
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer.
All of the following could be considered rebates, if offered to an insured in the sale of insurance EXCEPT
Beneficiary's age.
All of the following information about a customer must be used in determining annuity suitability EXCEPT
Beneficiary's age.
All of the following information about a customer must be used in determining annuity-suitability EXCEPT
The annuitant receives a fixed amount of return.
All of the following statements about equity index annuities are correct EXCEPT
Applicants must pass a state-licensing exam.
All of the following statements are false regarding licensing EXCEPT
The policy is owned by the company.
All of the following statements concerning the use of life insurance as an executive bonus are correct except
The date of medical exam.
An individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
Guaranteed insurability option
An individual is purchasing a permanent life insurance with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
$9,800.
An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?
$200,000
An insured purchased a 15 year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?
Illegal
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
Rebating.
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice of
Are subject to vesting requirements.
Employer contributions made to a qualified plan
5 years
For how long are insurers and producers required to keep the records related to replacement transactions?
They are not included as income for the employee, but are taxable upon distribution.
How are contributions to a tax-sheltered annuity treated with regards to taxation?
The producer must provide the applicant with a Notice Regarding Replacement.
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
Modified endowment contract.
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an
3rd policy year
If a policyowner has participating policy, when is the insurer required to start payment of dividends?
$5,000 for each violation, not to exceed $50,000 in a 6-month period.
If after a hearing the commissioner determines that the person charged has violated insurance regulations and knows or should have known he/she was in violation the amount of the fine will be
The policy will be interpreted as if the insurer waived its right to have an answer on the application.
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?
The beneficiary.
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
Between $100 and $10,000 per violation or imprisonment of not more than one year, or both.
In Hawaii, a person who intentionally violates any insurance rule or statute is subject to a penalty of
The insured must show proof of insurability.
In conversion of group life insurance to individual insurance, all if the following are true EXCEPT
The insured must show proof of insurability.
In conversion of group life insurance to individual insurance, all the following are true EXCEPT
Adhesion.
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?
XYZ is considered authorized.
Insurer XYZ is planning to start issuing variable contracts in this state. XYZ is a subsidiary of a larger insurance company authorized to transact variable insurance. Which of the following statements is true?
Febuary 28th, or 10 days after the time the policy is delivered.
J applied for a life insurance policy on january 10. The policy was issued on january 31. J's agent was vacationing at the time the policy was issued, and did not receive policy until february 18. J decides that he does not want the policy. When would J need to return policy to the insurer in order to receive a full refund ?
The seal of the state of Hawaii.
Orders by the Commissioner must include all of the following EXCEPT
$300,000
The Hawaii Insurance Guaranty Association is obligated to pay covered claims only if under the amount of
Levy a fine for a violation of the insurance code.
The commissioner has the authority to do any of the following EXCEPT
Are affiliated with the management or owns a monetary interest in any person being examined.
The commissioner will adopt a system of examination necessary for the administration of insurance and insurance-related laws at the time of examination
Regulates consumer reports.
The federal fair credit reporting act
$100,000.
The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?
Interest only option.
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
Premiums must be paid in full by the covered employee.
Under Spouses and Dependent Coverage legislation in Hawaii, all of the following statements are true EXCEPT
Signed waiver of premium.
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
30 days.
When an individual life insurance policy is being replaced by an insurer using a producer, the policyowner must be given an unconditional __ if the policy is returned within
When the application is signed and a check is given to the agent.
When is the earliest a policy may go into effect?
The beneficiary must have insurable interest in the insured.
Which is NOT true about beneficiary designations?
Reduced paid-up.
Which nonforfeiture option provides coverage for the longest period of time?
Payor 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?
Both the principal and interest will be liquidated over a selected period of time.
Which of the following best describes fixed-period settlement option?
It would not occur in a deferred annuity.
Which of the following is NOT true regarding the accumulation period of an annuity?
Failure to promptly settle a claim when liability has been clearly established.
Which of the following is an example of an unfair claims settlement practice?
Pay-in period.
Which of the following is another term for the accumulation period of an annuity?
Automatic premium loan.
Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?
Life income.
Which of the following settlement options in life insurance is known as straight life?
Buy-sell agreements are normally funded with a life insurance policy.
Which of the following statements concerning buy-sell agreements is true?
The policyowner is entitled to policy loans.
Which of the following statements is correct regarding a whole life policy?
Defamation
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Paid-up option.
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?
Option A.
Which universal life option has a gradually increasing cash value and a level death benefit?
It has a guaranteed minimum interest rate.
Why is an equity indexed annuity considered to be a fixed annuity?