WV Life Insurance

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?

$100,000

A producer's license has been nonrenewed. How long does the producer have to request a hearing?

10 days

An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?

Application

Which of the following is TRUE regarding the premium in term policies?

The premium is level.

Replacement regulations would apply to which of the following policies?

Whole life policy

According to the disclosure rules in life insurance solicitation, insurer must maintain in their home office copies of all documents used in insurance transactions for a minimum of how many years?

3 years

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

5

According to the Entire Contract provision, a policy must contain

A copy of the original application for insurance.

All of the following would be exempt from the licensing requirement EXCEPT

An employee of an insurance company involved in the effectuation of the insurance contract.

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

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 what provision?

Automatic premium loan

Before Producer Pete delivers a contract to Consumer Cathy, a written proposal must be provided. It is NOT required to include

Cathy's full name.

Which of the following must an insurer obtain in order to transact insurance within a given state?

Certificate of authority

All of the following are duties and responsibilities of producers at the time of application EXCEPT

Change any incorrect statement on the application by personally initialing next to the corrected statement.

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration.

An applicant wants to receive a license so he can write policies for his family and his co-workers. This is called

Controlled business.

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing term

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

Equal to the original policy for as long a period of time that the cash values will purchase.

Which nonforfeiture option has the highest amount of insurance protection?

Extended Term

Which of the following is required to determine an applicant's eligibility for becoming licensed as an insurance producer in this state?

Fingerprints

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed amount

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.

The purpose of the Life and Health Insurance Guaranty Association is to

Help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company.

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

Incontestability clause.

Which of the following policy components contains the company's promise to pay?

Insuring clause

What is the benefit of choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection.

Which of the following is TRUE regarding the accumulation period of an annuity?

It is a period during which the payments into the annuity grow tax deferred.

In West Virginia, in order to be eligible for a license as an insurance producer, an applicant must meet which of the following educational requirements?

No educational requirement

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

One-year term option.

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

Pay-in period

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of premium

An insured committed suicide one year after his life insurance policy was issued. The insurer will

Refund the premiums paid.

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

Settlement option.

Nonforfeiture values guarantee which of the following for the policyowner?

That the cash value will not be lost

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

The annuitant must be a natural person.

In insurance, an offer is usually made when

The completed application is submitted.

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability.

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

The earnings in the plan accumulate tax deferred.

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 of key person insurance EXCEPT

The plan is funded by permanent insurance only.

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.

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

The same face amount as in the whole life policy.

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?

Viatical settlement