DH-primerica

Which is true about a spouse term rider

The rider is usually level term insurance.

Which of the following will be included in the policy summary?

Premium amounts and surrender values

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years

Insurance is the transfer of..

Risk.

The minimum number of credits required for partially insured status for social security disability benefits is

6 credits

Which of the following is an example of a nonqualified retirement plan?

Executive bonus plan

K purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?

Immediate

What type of insurance would be used for a return of premium rider?

Increasing term

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

Insurable interest

What is not a requirement for life insurance illustrations?

Must be part of the contract

What individual must have insurable interest?

Policyowner

Upon policy delivery, the agent must require to obtain any of the following except..

Signed waiver of premium

Upon policy delivery, the agent may NOT be required to obtain...

Signed waiver of premium.

What is correct regarding a whole life policy?

The policyowner is entitled to policy loans.

What is true regarding the premium in term policies?

The premium in any type of term policy is usually level.

All of the following would be eligible to establish a Keogh retirement plan except

The president and employee of one family's corporation

If a change needs to be made to the application, it would NOT be accomplished by..

erase or white-out the incorrect answer and record the correct answer

The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is..

A non qualified annuity plan

What is true regarding variable annuities?

An annuitant assumes the risk on investment.

Periodic payments of accumulated funds best describes

An annuity

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

Annually renewable term

An agent selling variable annuities must be registered with

FINRA

If the owner of a whole life policy, who is also the insured, dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

Full death benefit

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

It has the highest amount of insurance protection.

What license(s) must a person hold in order to legally sell variable whole life insurance?

Life insurance & securities

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 policy up early

Paid up addition option

Unlike the traditional whole life policy, a variable whole life policy does NOT guarantee the

Cash value

Which of the following terms is used to name the nontaxed return of unused premiums?

Dividend

What is true about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income.

Under the fair credit reporting act, if the consumer challenges the correctness of the information in his/her report, the reporting agency must

Respond to the consumer's complaint

In comparison to consumer reports, what describes the unique characteristic of investigative consumer reports?

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

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.

The death protection component of universal life insurance is always..

Annually renewable term.

The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husband's death. Who will select the settlement option in this case?

Beneficiary

A partnership buy-sell agreement in which each partner purchases on the life of each of the other partners is called

Cross-purchase plan

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 option

What is true regarding the annuity period?

It may last for the lifetime of the annuitant.

Which option for universal life allows the beneficiary to collect both the death benefit and cash value upon death of insured?

Option B

What risk classification pays the lowest premium?

Preferred

If an agent fails to obtain an applicant's signature on the application, the agent must...

Return the application to the applicant for a signature.

What IS NOT the agent's duty & responsibility at the time of application?

The agent should change an incorrect statement on the application by personally initialing next to the correct statement.

Beneficiaries who would NOT be able to receive the death benefit directly from the insurer in the event of the insured's death?

A minor son of the insured

What feature of the equity indexed whole life policy is NOT fixed?

Cash value growth

When a policy is surrendered for its cash value

Coverage ends and the policy cannot be reinstated.

An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of heart attacks last year which she sought medical attention. Explain a reason the death benefit claim would be denied

Material misrepresentation

What best details the underwriting process for life insurance?

Selection, classification, and rating of risks

An insurer is helping a married couple determine their children's needs, assets, and liabilities, in the event that one or both of the spouses should die. What is the term most closely associated with this?

Survivor protection

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

Single payment or periodic payments.

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

5 days

What is material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company.

What best describes the process of policy delivery?

After the insurer receives the application, it is forwarded to the underwriting department. After the application is approved and the policy is issued, the policy is delivered either in person or by mail.

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

The amount of premium payment

The medical information bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons

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

5