G exam #2

If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure? a) Prior to ordering a physical examination b) Prior to solicitation of the policy c) Prior notice is not required d) Prior to performance of the test

Continue to increase

The manner and/or frequency that the policyowner pays the policy premium is called a) Premium mode. b) The grace period. c) Premium clause. d) Premium consideration.

Premium mode.

What does an annuity protect the annuitant against? a) Living longer than expected b) Leaving beneficiaries without income c) Estate taxes d) The financial impact caused by premature death

Living longer than expected

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be a a) Representation. b) Warranty. c) Concealment. d) Fraudulent answer

Representation

As an insurer's field underwriter, a producer has all of the following responsibilities EXCEPT a) Soliciting insurance contracts. b) Collecting premiums. c) Issuing policies on behalf of the insurer. d) Completing applications.

Issuing policies on behalf of the insurer

What guarantees that the information explalned in the insurance contract is true? a) A binder b) A warranty c) A representation d) Utmost good faith

A warranty

All of the following are viatical settlement contracts EXCEPT a) The bequest of a life insurance policy's death benefit. b) A written agreement between a viator and a person having an insurable interest in the viator's life. c) A contract for a loan with a viator and secured by a life insurance policy. d) A contract for compensation for a policy's death benefit in exchange for the viator's assignment.

A written agreement between a viator and a person having an insurable interest in the viator's life

When a whole Iife policy is surrendered for its nonforfeiture value, what is the automatic option? a) Reduced paid up b) Extended term c) Paid up additions d) Cash surrender value

Extended Term

An Insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done? a) Misrepresentation b) Rebating c) Twisting d) Defamation

Misrepresentation

Contributions to Roth IRAs are a) Always subject to a 6% tax penalty. b) Paid with pre-tax dollars. c) Not tax deductible. d) Tax deductible.

Not tax deductible

What is the purpose of requiring licenses for persons who transact insurance? a) Protect insurance companies from incompetent insurance producers b) Protect the general public c) Be able to collect commissions d) Generate income for the Department of Insurance

Protect the general public

When a producer's license is revoked, how soon must the License be returned to the Director? a) 3 business days b) 7 days c) 10 days d) 1 month

3 business days

An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request? a) 3 days b) 5 days c) 10 days d) 30 days

3 days

Annuity suitability Is based on all of the following EXCEPT a) Each family's current needs. b) Each family's future needs. c) Each Individual's gross Income, compared to a national average. d) Each individual's needs.

Each Individual's gross Income, compared to a national average.

Which of the following is consideration on the part of an insurer? a) Paying the premium b) Underwriting c) Paying a claim d) Decreasing premium amounts

Paying a claim

After a reinsurance transaction is made by a licensee, how long must that transaction remain on record? a) 5 years b) 10 years c) 20 years d) 5 years after the expiration of the policy

10 years

How many days' notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans? a) 7 days b) 10 days c) 15 days d) 30 days

30 days

The interest on life policy loans may not exceed a) 3%. b) 5%. C) 8%, d) 10%

8%

In a life insurance application, all of the following signatures will be required EXCEPT a) The owner (if different from the insured). b) The agent. c) The home office underwriter. d) The insured.

The home office underwriter

According to the life insurance replacement regulations, which of the following would be an example of policy replacement? a) A term policy expires, and the insured buys another term life policy, b) Term insurance is changed to a Whole Life policy. c) A lapsed policy is reinstated within a specific timeframe. d) A policy is reissued with a reduction in cash value

A policy is reissued with a reduction in cash value

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will a) Remain the same. b) Decrease over time. c) Reduce to the pre-surrender value. d) Continue to increase.

Continue to increase

During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes It sounds worse than it is. This Is an example of an unfair trade practice of a) Misrepresentation. b) Defamation. c) Twisting. d) False advertising.

Defamation

Twelve artists meet at a convention and decide that they will form a group in order to obtain group life Insurance coverage. They apply for a policy but are denied coverage. Which of the following is the most likely reason? a) Ineligible group type b) The group has not been together long enough. c) The group is not earning an income. d) Not enough members

Ineligible group type

To purchase insurance, the policyowner must face the possibility of losing money or something of value in the event of loss. What is this concept called? a) Indemnity b) Exposure c) Pure loss d) Insurable interest

Insurable interest

Which of the following terms refers to solicitation, negotiation, effectuation or advising related to an insurance contract? a) Advertising b) Rescission c) Insurable Interest d) Insurance transaction

Insurance transaction

If life insurance policy is purchased by someone who has no Insurable interest In the Insured, it is considered a) Third-party ownership. b) Controlled business. c) STOLI. d) Estate liquidation.

STOLI

What happens to the face amount of a whole life policy if the insured reaches the age of 100? a The cash value and the face amount are paid to the insured. b) The face amount is paid to the insured. c) It is paid to the insured's estate and the policy is terminated. d) It is paid to the beneficiary in full.

The face amount is paid to the insured

When an insured terminates membership in the insured group, the insured can convert to a) Term with proof of insurability. b) Whole life without proof of insurability c) Whole life with proof of insurability. d) Term without proof of insurability.

Whole life without proof of insurability

The Director receives a written request that a trial be held to contest an order written against an insurer. The trial will be held before the order is to be executed. The trial lasts longer than expected, extending into the period during which the order would take effect. Which of the following is true? a) The insurer will be suspended until the trial is complete. b) The order will be suspended until the court case is completed. c) The order will be suspended until the end of the trial, provided that all insurance transactions are reviewed by the Director during that time. d) The order will go into effect during the trial.

The order will be suspended until the court case is completed.

According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed? a) The estate of the primary beneficiary and the contingent beneficiary split benefits equally. b) The insured died before the primary beneficiary. c) The primary beneficiary died before the insured. d) The deaths occurred at the same time.

The primary beneficiary died before the insured

#28. All of the following statements about indexed whole life insurance are correct EXCEPT a) The premium is fixed. b) There is a guaranteed minimum interest rate. c) The cash value depends on the performance of the equity index. d) The policy face amount remains level throughout the life of the policy.

The policy face amount remains level throughout the life of the policy.

Which of the following persons would not be considered a resident producer of Alaska? a) Stephen, who, after he received his life license in Montana, recently moved to Alaska. Stephen's intent is to remain in Alaska while licensed. b) Edward, who recently purchased a summer home in Alaska, but resides primarily in California. His principal place of business is in California, but he intends to transact insurance in Alaska. C) Jason, who recently purchased a summer home in Michigan, but resides primarily in Alaska. His principal place of business is in Alaska, but he also intends to transact insurance in Michigan. d) Matthew, a licensed life producer, whose principal business is in Alaska, but who also transacts insurance in Washington and Oregon.

Edward, who recently purchased a summer home in Alaska, but resides primarily in California. His principal place of business is in California, but he intends to transact insurance in Alaska.