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The automatic premium loan provision is activated at the end of the

GRACE PERIOD

Methods used to pay the death benefits to a beneficiary upon the insured's death are called

settlement options

What type of premium do both Universal Life and Variable Universal Life policies have?

Flexible

Which of the following features of the Indexed Whole Life policy is NOT fixed?

cash value growth

What percentage of a company's employees must take part in a noncontributory group life plan?

100%

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

How many days do producers have to report administrative actions taken against them in another jurisdiction?

30 da

All insurers that terminate employment with a producer are required to notify the Commissioner within how many days following the effective date of the termination?

30 day

An insured decides to replace his life insurance policy with one offered by a new insurer. After receiving the policy, he is unsatisfied with the provisions and decides to return it. Within how many days must he return the policy to receive a full premium refund? Colorado

30 days

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

5 days

The minimum number of credits required for partially insured status for Social Security disability benefits is

6

Which of the following is the required number of participants in a contributory group plan?

75%

In order to get a nonresident license in this state, a producer must

Apply and pay a fee to a nonresident state that reciprocates

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?

Interest only

Which statement is NOT true regarding a Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

Misrepresentation

All of the following are the duties of the replacing producer where replacement is involved EXCEPT

Send a letter to the policyowner of the right to receive information regarding the existing policy

The Ownership provision entitles the policyowner to do all of the following EXCEPT

Set premium rates

Nonforfeiture values guarantee which of the following for the policyowner?

That the cash value will never be lost

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

The policy is owned by the company

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 owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Universal

What kind of policy allows withdrawals or partial surrenders

Universal life

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

Viator

Which of the following is a feature of a variable annuity?

benefit payments are not guaranteed

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

common disaster

What happens when a policy is surrendered for its cash value

coverage ends and policy cannot be reinstated

In a direct rollover, how is the money transferred from one plan to the new one?

from trustee to trustee

A Return of Premium term life policy is written as what type of term coverage?

increasing

Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?

medical information

Another name for a substandard risk classification is

rated

An insured committed suicide 6 months 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

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

survivor protection