exam
a contract that is prepared by only the insurer
adhesion
when an annuity is written, whose life expectancy is taken into account
annuitant
what happens if a deferred annuity is surrendered before the annuitization period
the owner will recieve the surrender value of the annuity
which is generally true regarding insureds who have been classified as preferred risks
there premiums are lower
what document grants express authority to the agent
agents contract with the principal
an agent selling variable annuities must be registered with
FINRA
which of the following can surrender a deferred annuity contract
the annuity owner
the risk management technique that is used to prevent a specific loss by not exposing oneself to the activity is called what
avoidance
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?
it is a percentage of the cash value and decreases over time
which of the following is usually true of a participating life insurance policy
it pays dividends to the policy owner
which of the following best describes gross annual premium
net premium plus expenses
all of the following statements concerning the use of life insurance as executive bonus are correct except
the policy is owned by the company
Why should the producer personally deliver the policy when the first premium has already been paid?
to help the insured understand all the aspects of the contract
if an insurer becomes insolvent, which of the following would pay the benefits to the policy owner
The guaranty association
which of the following statements is not true concerning insurable interest as it applies to life insurance
a debtor has an insurable interest in the life of a lender
a couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy
joint life
before a variable contract may be issued, for how long must a copy of this form be on file with the commissioner
30 days
in insurance, an offer is usually made when
an applicant submits an application to the insurer
which of the following applicants could the insurer charge a higher rate of premium for an not violate any rules
an applicant who smokes
which of the following is another term for the accumulation period of an annuity
pay in period
which of the following is the best reason to purchase life insurance rather than annuities
to create an estate
which of the following is an example of a producers fiduciary duty
the trust that a client places in the producer in regard to handling premiums
what is the purpose of key person insurance
to lesson the risk of financial loss because of death of key employee
which of the following products requires a securities license
variable annuity
if an annuitant dies before annuitization occurs, what will the beneficiary receive
either the amount paid into the plan or the cash value of the plan, whichever is greatest amount
a married couple's retirement annuity pays them 250 per month. The husband dies and his wife continues to receive 125.50 per month for as long as she lives. When wife dies the settlement stops
joint and survivor
which of the following statements is an accurate comparison between private and government insurers
private insurers may be authorized to transact insurance by state insurance departments
an insurance producer who by contract is bound to write insurance for one comapany is classified as what
captive agent
liquidy is what
cash value
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is
conditional
best describes an insurance comnpany that has been formed under the laws of state
domestic
the authority granted to an agent through the agent's contract is referred to as
express authority
which of the following is not started in an agents contract but is required for the agent to conduct business
implied
the insurer may suspect that a moral hazard exists if the policyholder
is not honest about his health on an application for insurance
equity indexed annuities
seek higher returns
After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. The insurer returns all the premium payments to the owner, except for a predetermined percentage. What is this percentage called?
surrender charge
which of the following best decribes what the annuity period is
the period of time during which accumulated money is converted into income payments
most agents try to collect the initial premium for submission with the application. when an agent collects the initial premium from the applicant, the agent should issue the applicant a
premium receipt
under which of the following annuity options does the annuitant select the time period for the benefits and the insurer determines how much each payement will be
installments for a fixed period
the mode of premium payment
is defined as the frequency and the amount of the premium payment
which of the following is not true regarding a certificate of authority
it is issued to group insurance participants
life settlement brokers or providers are required to give the owner a separate disclosure document no later than when
the date of the application
An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?
the insured will need a written consent of the insurer
annuities can be used to found
retirement plans