ExamFX: Life Insurance Certification Quizzes.

(CH6) Any person investigating or settling a claim must inform the claimant in writing if the claim was accepted or denied within how many working days after all evidence of loss is received?

15.

(CH5) When a licensee changes his residence address, the Insurance Department must be notified within?

30 days.

(CH5) An insurance license cannot be issued to a person who would, during the first year, earn an aggregate amount in commissions that would exceed what percentage of the aggregate amount represented by all other insurance business that would be procured through the applicant?

50%

(CH6) A paid-up nonforfeiture benefit will become effective as specified in the policy unless the person entitled elects another available option within how many days after the due date of the premium in default?

60.

(CH6) Life insurance policies that have been in force for three years must provide for maximum policy loan interest rate of not more than?

8% per year.

(CH5) An initial temporary license in this state may be issued for up to?

90 days.

(CH4) 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.

(CH6) Which of the following is a required annuity suitability training for producers who want to sell annuities in this state?

A one-time 4-hour course.

(CH5) Concerning insurance, the definition of a fiduciary is?

A producer who handles insurer funds in a trust capacity.

(CH2) Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be?

Adjusted to the insured's age at the time of renewal.

(CH3) An insured misstates her age at the time of the life insurance application is taken. This misstatement may result in?

Adjustment in the amount of death benefit.

(CH5) Which of the following is another term for an authorized insurer?

Admitted.

(CH1) 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?

Aleatory.

(CH3) Under which of the following circumstances would an insurer pay accelerated benefits?

An insured is diagnosed with cancer and needs help paying for her medical treatment.

(CH2) The death protection component of Universal Life Insurance is always?

Annual Renewable Term.

(CH4) Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Any form of life insurance.

(CH5) If the licensee wants to appeal an order issued by the Director against him, what option does the licensee have?

Appeal the order to the superior court.

(CH5) If a licensee wants to appeal an order issued by the Director against him, what option does the licensee have?

Appeal to the superior court.

(CH5) How does an individual become the Insurance Director in this state?

Appointed by the Commissioner.

(CH4) SIMPLE Plans require all of the following EXCEPT?

At least 1,000 employees.

(CH4) Which of the following statements concerning buy-sell agreements is true?

Buy-sell agreements are normally funded with a life insurance policy.

(CH3) An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

Common Disaster.

(CH5) An insurance producer just sold an insurance policy to his sister. What kind of business is this?

Controlled.

(CH4) A key person insurance policy can pay for which of the following?

Cost of training a replacement.

(CH2) An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited for this situation?

Decreasing term.

(CH5) Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

Defamation.

(CH6) An insurer's employee is investigating a claim and documents each action that is taken in the investigation. The insured believes that the employee's methods violated his constitutional rights. Which of the following entities should be consulted?

Director.

(CH4) When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)?

Executive bonus.

(CH3) Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider.

(CH5) Insurance producers act in what capacity in the conduct of their business when handling premium funds?

Fiduciary.

(CH3) 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.

(CH5) When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

Foreign.

(CH5) Which of the following is an example of a producer's fiduciary responsibilities?

Forwarding premiums to the insurance company.

(CH4) In a direct transfer, how is money transferred from one retirement plan to a traditional IRA?

From trustee to trustee.

(CH5) Which of the following is NOT a penalty for violating the Insurance Code in this state?

Imprisonment.

(CH5) All of the following would qualify as a firm EXCEPT?

Individual person.

(CH1) The Medical Information Bureau (MIB) was created to protect?

Insurance companies from adverse selection by high risk persons.

(CH5) All advertisements, regardless of their source of creation, are the responsibility of the?

Insurer.

(CH6) Which of the following does NOT apply to variable contracts?

Insurers do not have to provide any financial information or history of the company.

(CH3) The policy owner 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 the children when they reach a certain age. Which settlement option should the policy owner choose?

Interest only option.

(CH3) What would be an advantage to naming a contingent (or secondary) beneficiary in a life insurance policy?

It determines who receives policy benefits if the primary beneficiary is deceased.

(CH2) A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if the death occurs after the 20-year period. What type of policy is this?

Level term.

(CH1) Which of the following documents must be provided to the policy owner or applicant during policy replacement?

Notice Regarding Replacement.

(CH3) A rider attached to a life insurance policy that provides coverage on the insured's family members is called the?

Other-insured rider.

(CH4) Traditional IRA contributions are tax deductible based on which of the following?

Owner's income.

(CH6) Who has the ability to reassign a policy?

Policyowner.

(CH5) Which of the following entities is appointed by an insurer to sell, negotiate, deliver, or renew insurance policies?

Producer.

(CH4) An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money wherever a profit is realized. What is this called?

Profit sharing plan.

(CH6) Who is a person, other than a Viator, that enters into a viatical settlement contract?

Provider.

(CH1) If an agent fails to obtain an applicant's signature on the application, the agent must?

Return the application for the applicant for a signature.

(CH4) An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan.

(CH2) An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age of 100 is called?

Single premium whole life.

(CH3) The interest earned on policy dividends is?

Taxable.

(CH5) Which of the following is an example of a producer being involved in an unfair trade practice of rebating?

Telling a client that his first premium will be waived if he purchases the insurance policy today.

(CH3) 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?

Term rider.

(CH6) A viatical settlement is arranged between a vatical company and a/an?

Terminally ill insured.

(CH6) Who has the authority to regulate the issuance and sale of variable contracts?

The Director.

(CH2) Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

(CH1) Which of the following is NOT the consideration in a policy?

The application given to a prospective insured.

(CH2) If the annuitant dies during the accumulation period, who will receive the annuity benefits?

The beneficiary.

(CH6) The suitability of annuity for a client is based on all of the following EXCEPT?

The client's initial premium.

(CH4) Which of the following is INCORRECT concerning a noncontributory group plan?

The employees receive individual policies.

(CH6) Which of the following would NOT be relevant in helping the producer determine if his annuity recommendation is suitable for a client?

The information in the buyer's guide.

(CH4) All of the following are examples of third-party ownership of a life insurance policy EXCEPT?

The insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

(CH6) In a Viatical Settlement, who is considered the Viator?

The insured.

(CH6) In a vatical settlement, who is considered the Viator?

The insured.

(CH2) Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments.

(CH4) All of the following are true of key person insurance EXCEPT?

The plan is funded by permanent insurance only.

(CH1) If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application.

(CH2) Which of the following is TRUE regarding the premium in term policies?

The premium is level.

(CH6) Whose responsibility is it to determine if an annuity is suitable for an applicant?

The producer.

(CH2) Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime.

(CH3) Under an extended term of nonforfeiture option, the policy cash value is converted to?

The same face amount as in the whole life policy.

(CH6) Any person investigating a claim may not make statements requiring a claimant to give written notice of loss within a specified time limit EXCEPT when?

There is a time limit specified in the policy.

(CH4) Which of the following is true regarding taxation of accelerated benefits under a life insurance policy?

They are tax-free and terminally ill insured.

(CH5) Which of the following statements is true regarding requirements for applicants for an insurance license?

They must provide information about their personal history and experience.

(CH3) All of the following are true regarding the guaranteed insurability rider EXCEPT?

This rider is available to all insured with no additional premium.

(CH1) What is the purpose of the buyer's guide?

To allow the consumers to compare the costs to different policies.

(CH5) Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of?

Twisting.

(CH1) If only one party of an insurance contract has made a legally enforceable promise, what kind of contract is it?

Unilateral.

(CH2) Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?

Universal Life.

(CH6) Which of the following terms is used to describe a person, other than a Viator, that enters into or effectuates a viatical settlement contract?

Viatical settlement provider.

(CH6) An insured with a life insurance policy is diagnosed with a terminal illness. Which of the following could be a suitable option for this insured?

Viatical settlement.

(CH6) A viatical settlement provider may disclose the identity of a Viator to another party, only if the...

Viator signs a written waiver.

(CH4) What is the name of the insured who enters into a vatical settlement?

Viator.

(CH3) 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.

(CH1) Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty.

(CH1) In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage.

(CH3) When may an insurance company use suicide as a defense against paying a death claim?

When death occurs within a specified period o time after the policy was issued.

(CH1) If an application for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about?

Whether an insurable interest exists between the individuals.

(CH1) If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than?

With the policy.

(CH6) Each viatical settlement contract entered into in this State must provide the Viator with an unconditional right to rescind the contract for at least how many days?

15.

(CH6) In Alaska, the minimum number of lives covered by a group life insurance policy at the date of issue must be at least?

2.

(CH6) Each policy must contain a table showing the loan value in figures, as well as any options available if a default occurs in the payment of premiums, either during the term of the policy or during the first?

20 years.

(CH6) Life insurance policy loans can be issued after the policy has been in force for?

3 years.

(CH6) How many years must a policy have been in force in order for an insurer to loan an amount equal to the cash surrender value of the policy?

3.

(CH6) How many days are insured given to investigate or settle life insurance claims?

30.

(CH6) If the insurance provider to an individual ceases because of termination of employment, the insured will be entitled to have an individual life policy issued without evidence of insurability if the application is made within how many days of termination?

31 days.

(CH2) Which of the following best describes annually renewable term insurance?

It is level term insurance.

(CH2) An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?

It will increase because the insured will be 5 years older than when the policy was originally purchased.

(CH5) A producer in California wants to become a producer in Alaska. The Department will waive certain examination requirements, provided that California would wave these same requirements if an Alaska producer sought licensure in California. What term is used to describe this arrangement?

Reciprocity.

(CH5) What is the minimum age for insurance license applicants in this state?

18.

Licensees must complete how many hours of continuing education every 2 years?

24.

(CH6) Any surplus premiums are payable to the insured in cash or may be applied to other dividend options as provided by the policy, beginning no later than which policy year?

3rd.

(CH5) Of a firm terminates a producer, for how long must the firm retain the producer's employment contract after the producer the termination for the Director's inspection?

5 years.

(CH2) An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Universal life.

(CH6) An insurance promptly submits a life insurance claim to his producer. The producer neglects to inform the insurer of the claim. After not receiving notice of the claim's status, the insured calls the insurer, who says that the allotted time for submitting a claim has passed and the loss will not be covered. Which of the following is true?

The insurer's actions are illegal.

(CH3) Children's riders attached to whole life policies are usually issued as what type of insurance?

Term.

(CH6) All group life insurance policies must be incontestable after how many years?

2.

(CH5) How many continuing education credits must be completed every 2 years?

24.

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an?

Authorized insurer.

(CH5) If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be?

Authorized.

(CH5) All of the following are prerequisites to becoming an insurance producer in this state EXCEPT?

Be registered with the Federal Securities and Exchange Commission.

(CH1) An insurance contract must contain all of the following to be considered legally binding EXCEPT?

Beneficiary's consent.

(CH2) Which type of life insurance policy generates immediate cash value?

Single Premium.

(CH1) If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days.

(CH5) After being placed on a noncompliance list, an obligor may be eligible for a temporary license, lasting no longer than?

150 days.

(CH6) What is the earliest age that a beneficiary can receive a limited death benefit from a life insurance policy?

16.

(CH5) The Director has a question for a producer about a transaction that occurred under an employment contract with a former firm. The producer must respond to the Director within?

3 days.

(CH5) After the examination of a producer's insurance transactions and affairs has been completed, the Director will record the findings in an examination report. The Director will give a copy to the producer examined and allow up to how many days of a rebuttal?

30 days.

(CH1) If a change needs to be made to the application for insurance, the agent may do all the following EXCEPT?

Erase the incorrect answer and record the correct answer.

(CH5) Insurer examinations occur?

Every 3 years.

(CH5) A producer who was born in 1990 became licensed in 2015. When will the producer be required to renew his license?

Every even-numbered year.