exam fx 2
FINRA
An agent selling variable annuities must be registered with..
viator
What is the name of the owner of a lufe insurance policy who enters into a viaticial settlement contract
fixed period installments
All of the following are dividend options EXCEPT
Insurance and cash account
What are the two components of a universal policy?
terminally ill
a viatical settlement is arranged between a viatical company and and a
the insured's estate
A 40 year old man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 years later. He never remarried and dies at age 61, leaving 2 grown-up children. Assuming he never changed his beneficiary, the policy proceeds will go to...
Inspection Report
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?
They are not included as income for the employee, but are taxable upon distribution
How are contributions to a tax-sheltered annuity treated with regards to taxation
fixed period
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?
The producer must provide the applicant with a notice regarding replacement
The producer must provide the applicant with a notice regarding replacement
Waiver of Premium
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Family Income Policy
W owns a policy in which she is covered as the bread-winner with permanent insurance and with decreasing term insurance in the form of a rider. What type of policy is this?
Death Benefit
Which component increases in the increasing term insurance?
Exchange of unequal values
Which of the following best describes the aleatory nature of an insurance contract?
aleatory
Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?
Insurance Guaranty Association
Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?
Benefit payment amounts are not guaranteed
Which of the following is a feature of a variable annuity?
variable whole life has a guaranteed death benefit
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable Universal Life
Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?
Payor Benefit Rider
Which of the following riders would NOT cause the Death Benefit to increase?
Term Rider
Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?
Paid-up option
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?
interest only
all of the following are nonforfeiture options except
the premiums are invested in the insurers's general account
all of the following are true about variable products except
the annuitant receives a fixed amount of returns
all of the following statements about equity index annuities are correct except
the interest rate is tied to an idex such as the standard & poor 500
all of the following statements about equity indexed annuites are correct except
the surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
an insured has chosen joint and 2/3 survivor as a settlement option. What does this mean to the beneficiaries.
Obtain a list of all life insurance policies that will be replaced
during replacement of a life insurance, a replacing insurer must do which of the following
$50
failure to notify the commissioner of changed to a licensee's address within 10 business days may result in an administrative fee of
at the time the policy is delivered
if a life insurance policy contains a minimum 10-day unconditional refund provision(free look), when is the latest the buyers guide and policy summary must be delivered.
Annually Renewable Term
the least expensive first-year premium is found in which of the following policies
Annually Renewable Term
the purest form of term insurance. The death benefit remains level, and the policy may be guaranteed to be renewable each year without proof of insurability, but the premium increases annually according to the attained age, as the probability of death increases.
12 months
the required privacy disclosure notice must be provided by insurer to current policyholders at least once in any period of
False Financial Statements
when an insurance agency published an advertising brochure, it emphasized the companys financial stability and sound business practices. In reality its financial health is terrible, and the company will soon have to file for bankruptcy. which of the following terms describes the advertisement
It does not guarantee that the entire principal amount will be paid out
which of the following is not true regarding the life with guaranteed minimum annuity settlement option
single payment of periodic payments
which two terms are associated directly with the way an annuity is funded
provider
who is a person, other than a viator, that enters into a viatical settlement contact
the insurer
who pays the annual agent appointment fee