WFG

Which of the following statements about the reinstatement provision is true?

@It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated

What is the maximum percentage of the face amount of a life insurance policy that can be paid in an acceleration of benefits?

@75%

All other factors being equal, the least expensive first-year premium payment is found in

@Annually Renewable Term

In an annuity, the accumulated money is converted into a stream of income during which time period?

@Annuitization period

Which of the following outlines the features of various policies and outlines the advantage and disadvantages to both

@Buyer's Guide

What does "liquidity " refer to in a life insurance policy?

@Cash values can be borrowed at any time

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

@Convertible Term Policy

When the 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

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called

@Guaranteed insurability

Which of the following is an eligibility requirement for all Social Security Disability Income benefits?

@Have attained fully insured status

When would a misrepresentation on the insurance application be considered fraud?

@If it is intentional and material

What type of insurance would be used for a Return of Premium rider?

@Increasing term

The Federal Fair Credit Reporting Act

@Regulates consumer reports

What is the purpose of the buyer's guide?

@To allow the consumer to compare the costs of different policies.

The interest earned on policy dividends is

@taxable

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant

@with the policy

Within how many days may a person who is being examined by the Director for nonfinancial business practices request a hearing after receiving the examination report?

@10 days

What is the minimum age that a person can obtain a producer's license?

@18

What is the minimum number of study hours required of a candidate for a casualty producer's license?

@20

Before each license renewal, an insurance producer must complete at least how many hours of continuing education?

@24

If a consumer request additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

@5 days

Ronald is buying life insurance policies. He is unclear which one to buy, and his insurer explains the costs of similar plans, in addition to their basic features. Which rule requires the insurer to disclose such information?

@Life Solicitation Rule

To which of the following situations does the Replacement Regulation apply?

@Nonrenewable coverage expiring in 8 years

If the policyowner, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?

@Policyowner

Who must inform the Director of a producer's felony conviction?

@The producer

What consequences will occur if a producer acts without a bond that is required?

@The producer's license may be revoked

Why should the producer personally deliver the policy when the first premium has already been paid?

@To help the insured understand all aspects of the contract

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

@Upon conversion, the date benefit of the permanent policy will be reduced by 50%

What is the name of the insured who enters into a viatical settlement?

@Viator

The Replacement Regulation does NOT apply to situations in which the Total existing coverage to be replaced represents less than how much of the face amount?

@$5,000

The Replacement Regulation minimizes

@Misrepresentation

An applicant receives a temporary insurance producer license. After 80 days, the owner of the insurance company decides to sell the business. Which of the following is TRUE?

@The license will automatically terminate

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 insurer waived its right to have an answer on the application

All of the following are TRUE about variable products EXCEPT

@The premiums are invested in the insurer's general account

Which of the following best describes a misrepresentation?

@Issuing sales material with exaggerated statements about policy benefits

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

@Paid-up additions

Which of the following is another term for the accumulation period of an annuity?

@Pay-in period

If an actuary would like to sell life insurance policies, what licensure is needed?

@Producer's license for life insurance

An inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

@Rebating

Which nonforfeiture option provides coverage for the longest period of time?

@Reduced Paid-Up

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe?

@Reduction of Premium

A new life insurance policy is derived from a policy that was recently terminated. Which of the following terms best describes this policy?

@Replacement

A domestic insurer issuing variable contracts must establish one or more

@Separate accounts

Which of the following is not a duty of the Director of Insurance?

@Setting premium rates

Which two terms are associated directly with the way an annuity is funded?

@Single payment or periodic payments

Which of the following statements about a suicide clause in a life insurance policy is TRUE?

@Suicide is excluded for a specific period of years and covered thereafter.

Which of the following is correct regarding the Director's ability to revoke or suspend a producer's license?

@The producer must be given the reason, in writing for the nonrenewal, suspension, or denial of a license, and has the right to request a hearing within 30 days.

Producers who broker insurance must file a bond along with the application for license. The bond must be issued in favor of the people of Illinois, and must be on a continuous form and for an amount equal to 5% of the premium brokered the previous year, NOT to exceed

@$50,000

What are the general duties of the Director of Insurance?

@1. Make rules to implement the insurance code 2. Conduct investigations 3. Enforce Illinois insurance laws

A producer whose license is revoked or whose application for a license is denied will be ineligible to reapply for any license for at least

@3 years

The Illinois Life and Health Insurance Guaranty Association is obligated to pay covered claims only if under the amount of

@300,000

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

@50,000

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?

@9,800

According to the Entire Contract provision, a policy must contain

@A copy of the original application for insurance

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

@A policy is reissued with a reduction in cash value

Which of the following is the closest term to an authorized insurer?

@Admitted Insurers who meet the state's financial requirements and are approved to transact business in the state are considered authorized or admitted into the state as a legal insurer.

All of the following would be considered rebating EXCEPT

@An agent misrepresents policy benefits to convince a policyowner to replace policies

In insurance, an offer is usually made when

@An applicant submits an application to the insurer.

The minimum interest rate on an equity indexed annuity is often based on

@An index like Standard & Poor's 500

Who can make a fully deductible contribution to a traditional IRA?

@An individual not covered by an employer-sponsored plan who has earned income

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

@An unfair trade practice.

In classifying a risk, the Home Office underwriting department will look at all of the following EXCEPT

@Applicants past income

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an

@Authorized insurer

What must an insurer present to a prospective policy purchaser before the initial premium is paid?

@Buyer's Guide

What must an insurer present to a prospective policy purchaser before the initial premium paid?

@Buyer's Guide

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?

@Consumer report

Which of the following is NOT typically excluded from life policies?

@Death due to plane crash for a fare-paying passenger

Which of the following is not a term for the period of time during which the annuitant or the beneficiary receives income

@Depreciation Period

If a changed needs to be made to the application for insurance, the agent may do all of the following EXCEPT

@Erase the incorrect answer and record the correct answer

In the Executive Bonus plan, who is the owner of the the policy, and who pays the premium?

@Executive is the owner, and the executive pays the premium

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

@Fixed period

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

@For 20 years or until death, whichever occurs first

Which is true about the cash surrender no forfeiture option?

@Funds exceeding the premium paid are taxable as ordinary income

An individual is purchasing a permanent life insurance policy 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?

@Guaranteed insurability option

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

@Guaranteed insurability rider

Which of the following is not TRUE regarding a Premium Fund Trust Account

@It could be used as a claim payment account

Which of the following is not TRUE regarding a certificate of Authority?

@It is issued to group insurance participants

Which of the following is NOT true regarding a nonqualified retirement plan?

@It needs IRS approval

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

@Joint Life

Which of the following is an example of a limited-pay life policy?

@Life Paid- up at Age 65

Which of the following settlement options in life insurance is known as straight life?

@Life income

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

@Limited pay whole life

What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result ____ or while serving in the military?

@Military service or war

Which of the following is NOT true regarding policy loans?

@Money borrowed from the cash value is taxable.

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

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

@Pay a reduced death benefit

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?

@Pay the death benefit

Which of the following riders would NOT Cause the Death Benefit to increase?

@Payor Benefit Rider

Of the following persons which one would be required to hold a producer's license?

@Person soliciting policies of Insurance

All of the following are characteristics of group life insurance EXCEPT

@Premiums are determined by the age, sex and occupation of each individual certificate holder.

Under standard circumstances, at what point should a Buyer's Guide be distributed to a prospective buyer?

@Prior to the initial premium

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

@The balance of the loan will be taken out of the death benefit

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

@The contingent beneficiary

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?

@The date of medical exam

Which of the following describes the tax advantage of a qualified retirement plan?

@The earnings in the plan accumulate tax deferred

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?

@The employer is the owner and beneficiary

A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy?

@The full death benefit

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

@The insured may choose to convert to term or permanent individual coverage

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

@The insured may renew the policy for another 10 years, but at a higher premium rate

All of the following are true about variable products EXCEPT

@The premiums are invested in the insurer's general account

Under an extended term nonforfeiture option, the policy cash value is converted to

@The same face amount as in the whole life policy

Which of the following statements is TRUE concerning irrevocable beneficiaries?

@They can be changed only with the written consent of that beneficiary

Which of the following statements is TRUE concerning irrevocable beneficiaries?

@They can be changed only with the written consent of that beneficiary.

All of the following are requirements for life insurance illustrations EXCEPT

@They must be part of the contract

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

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

@Upon conversion, the death benefit of the permanent policy will be reduced by 50%

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

@Warranty

An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?

@When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health

Which of the following types of insurance policies would perform the function of cash accumulation?

@Whole life

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

@convertible term policy

When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered

@discrimination

When must insurable interest exist in a life insurance policy?

@At the time of application

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

@Contracts of Adhesion

The term "fixed " in a fixed annuity refers to all of the following EXCEPT

@Death benefit

When a producer was reviewing potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of

@Defamation

With which entity must a corporation registered before it will be allowed to operate as an insurance agency?

@Director

Which policy component decreases in decreasing term insurance?

@Face Amount decreasing term policies feature a level premium and a death benefit that decreases each year over the duration of the policy term.

J applied for a life insurance on January 10. The policy was issued on January 31. J's agent was vacationing at the time the policy was issued, so J did not receive the policy until February 18. J decides that he does not want the policy. When would J need to return the policy to the insurer in order to receive a full refund of premium paid?

@February 28th, or 10 days after the time the policy is delivered

Stranger-originated life insurance policies are in direct opposition to the principle of

@Insurable interest

What are the two components of a universal policy?

@Insurance and cash account

All of the following are true about the bond requirements in the state of Illinois EXCEPT

@Insurance producers with insurance companies that take responsibility for their actions are still required to post a bond

Which of the following defines the term controlled business?

@Insurance written on the interests of the producer who solicits a policy

When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income?

@Interest only

A producer conducts business ethically and receives high praise from most customers. The producer pays all of the required license renewal fees, but receives a notice that its license has been terminated. What is the most likely reason for this?

@Lack of continuing education