exam questions

For the purpose of examination by the department, insurers must keep a record of all financial files for at least

5 years

If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence?

8

The Commissioner of Insurance is placed in office by which means?

An appointment by the Governor

Which of the following authorities is authorized to issue a temporary insurance producer's license?

Commissioner

Which of the following requires certain qualifying factors be met in order for an insured to receive accelerated death benefits?

Conditions for Payment Form

Which of the following would be considered an illegal inducement to purchase insurance?

Confirming future dividends in a life insurance proposal

How often must the Commissioner examine rating organizations?

Every 5 years

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?

Fraud

A Universal Life insurance policy has two types of interest rates that are called

Guaranteed and Current.

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

Illegal

Annually renewable term policies provide a level death benefit for a premium that

Increases annually.

What type of insurance would be used for a Return of Premium rider?

Increasing Term

Which of the following best describes annually renewable term insurance?

It is level term insurance.

Which of the following is true about the premium on the children's rider in a life insurance policy?

It remains the same no matter how many children are added to the policy.

When calculating the amount a policyowner may borrow from a variable life policy, what must be subtracted from the policy's cash value?

Outstanding loans and interest

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?

Proof of insurability is not required.

The Gramm-Leach-Bliley Act was passed to

Protect private customer information filed with a financial institution.

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?

Sexual orientation

Which of the following would help prevent a universal life policy from lapsing?

Target premium

If an insured continually uses the automatic premium loan option to pay the policy premium,

The policy will terminate when the cash value is reduced to nothing.