Exam Review 2
Failure to notify the commissioner of changes to a licensee's address within 10 business days may result in an administrative fee of
$50
The validity of the policy cannot be contested once it has been in force for at least how many years after its date of issue?
2 years
How long is a free-look period for replacement policies?
30 days
The commissioner must examine every domestic insurer at least once every
5 years
All of the following statements concerning dividends are true except
Dividend amounts are guaranteed in the policy
Which of the following best describes an insurance company that has been formed under the laws of this state?
Domestic
A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy?
Family Protection Policy
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?
Fixed period
Which of the following terms best describe the coverage provided by term policies as compared to any other form of protection?
Greatest
What are the two components of a universal policy?
Insurance and cash accounts
What does the Guaranty Association guard against?
Insurer insolvency
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an
Interest-sensitive Whole life
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Pay a reduced death benefit
All of the following are true regarding insurance policy loans except
Policy loans can be made on policies that do not accumulate cash value
If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?
Policyowner
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount
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
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
All of the following entities regulate variable life policies except
The Guaranty Association
If a licensee fails to notify the Commissioner of insureer insolvency, if known or suspected and to provide a statement of relevance..
The commissioner may suspend or revoke the person's license
All of the following are true of key person insurance except
The plan is funded by permanent insurance only
Which of the following statements is true concerning irrevocable beneficiaries?
They can be changed only with the written consent of that beneficiary
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of premium
