State Exam

What is the maximum penalty for habitual willful noncompliance with the fair credit reporting act?

$2,500

The Commissioner believes that an insurance rule or regulation has been violated, and decides to call a disciplinary hearing. How many days before a hearing just the Commissioner issue a notice to the person charged with a violation?

10 days

If an insured, cancels and agency contract, it must notify the commissioner in writing within how many days?

15

If a credit life policy lapses for nonpayment before the debt is satisfied, within how many days must the creditor either refund the premium paid or apply it against the debt?

60

If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence?

8 am

To legally transact insurance in this state, an insurer must obtain which of the following?

Certificate of Authority

Which of the following types of insurance policies is most commonly used in credit life insurance?

Decreasing term

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer.

In a direct transfer, how is money transferred from one retirement plan to a traditional IRA?

From trustee to trustee

Which of the following best describes the MIB?

It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

What significance did Paul versus Virginia have on the insurance industry?

It was decided that insurance was not interstate commerce, and could not be regulated by the federal government

Your client wants both protection and savings from the insurance and is willing to pay premiums until retirement at age 65. What would the right possibly be for this client?

Limited pay whole life

Which of the following writers added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?

Long-term care

A nonresident license producer decides to conduct business under an assumed name. Which of the following is true?

Non-resident producers, may not conduct business under any name besides legal names

And insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Paid up option

Which option is being utilized when the ensure accumulates dividends on interest and then uses the accumulated dividends plus interest and the policy cash value to pay the policy up early?

Paid up option

All of the following are true regarding insurance policy loans, except

Policy loans can be made on policies that do not accumulate cash value.

Which of the following documents delivered to the policyowner includes information about premium accounts, cash values, surrender values and death benefits for specific policy years?

Policy summary

When a whole life policy, lapses or surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insureds age 100 is called

Single premium whole life

Which of the following is called a "second-to-die" policy?

Survivorship life

The premiums paid by the employer in a business life insurance policy are

Tax deductible by the employer

Children's riders attached a whole life policies are usually issued as what type of insurance?

Term

The initial amount of credit life insurance may NOT exceed

The amount to be repaid under the contract

Which of the following is incorrect concerning a non-contributory group plan?

The employees receive individual policies

The least expensive first year premium is found in which of the following policies?

annually renewable term