insurance

If a producer has been engaged in an administrative action by any government agency, within how many days following the final deposition must the producer report the action to the Insurance Commissioner?

30

In West Virginia, an alien insurance company is defined as one formed in

a country other than the United States

In West Virginia, an individual producer is considered to represent

an insurance company

A foreign company operating in West Virginia is a company incorporated or organized under the laws of

any jurisdiction within the United States other than West Virginia

In West Virginia, a domestic insurance company is defined as a company that

is incorporated and formed in West Virginia

Credit Life insurance is

issued in an amount not to exceed the amount of the loan

Replacement regulations apply to which of the following types of contracts?

Ordinary Life

Continuing education requirements in West Virginia apply to which of the following persons?

Resident producers

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

$20,000 death benefit

A replacement of an existing Life insurance policy occurs when the cash value is subjected to loans exceeding

25%

N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase?

30 Pay Life

One becomes eligible for Social Security disability benefits after having been disabled for

5 months

The maximum fixed interest rate charged by insurers in West Virginia is

8%

P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?

Accidental Death and Dismemberment provision

Which of these do NOT constitute policy delivery?

Policy issued with a rating

In West Virginia, unless otherwise excepted, a prelicensing education course is required for

resident producers

Which of these are NOT an example of a Nonforfeiture option?

Life Income

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

Deferred

Which of these arrangements allows one to bypass insurable interest laws?

Investor-Originated Life Insurance

A policy of adhesion can only be modified by whom?

The insurance company

Under a trustee group life policy, who would be eligible for a certificate of coverage?

Employee

Which of these Nonforfeiture Options continue a build-up of cash value?

Reduced Paid-Up

What is the Suicide provision designed to do?

safeguard the insurer from an applicant who is contemplating suicide

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for

Modified Whole Life

Which policy is EXEMPT from replacement regulations?

Group Life policy

Which of the following statements is CORRECT about the West Virginia Life and Health Insurance Guaranty Association?

It is funded by insurance companies through assessments

The West Virginia Life and Health Guaranty Association guarantees life insurance death benefits up to

$300,000

G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?

10 years

Under a Group Life insurance policy, an insured may assign a MAXIMUM of what percentage of the insured's coverage?

100%

Which of these require an offer, acceptance, and consideration?

Contract

Courses are approved for continuing education credit by the

Insurance Commissioner and the Board of Insurance Agent Education

T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?

Renewable

What is Old Age and Survivors Health Insurance (OASDHI) also known as?

Social Security

An insurance company licensed in West Virginia and domiciled in Pennsylvania is known as

a foreign company

A person who is insured within a group contract will be given a

certificate

The Insurance Commissioner may examine the records of an insurance company in order to

determine the solvency of the company

All of the following actions are considered rebating EXCEPT

sharing commissions with other licensed and appointed agents

An individual who purchases a Life annuity is given protection against

the risk of living longer than expected

Under West Virginia insurance law, an insured or insurer must ask for a rehearing based on a decision by the Insurance Commissioner within how many days?

30

An insurance policy has the right to defer granting a policy loan for a maximum of how many months after receiving the loan application?

6

A policy loan is made possible by which of these life insurance policy features?

Cash value provision

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?

Claim will be denied

Which of the following violations is considered an unfair trade practice?

Coercion

Continuing education is required of individuals in the sale of all of the following types of insurance EXCEPT

Credit Accident and Sickness insurance

What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

Decreasing term

What type of life policy covers 2 lives and pays the face amount after the first one dies?

Joint Life Policy

Which plan is intended to be used by a sole proprietor and the employees of that business?

Keogh Plan

In West Virginia, which of the following actions by an insurance company or a producer is considered rebating?

Offering a prospect something of value that is not specified in a contract to induce the purchase of that contract

In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?

Owner's Rights

J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions?

Reinstatement provision

J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?

Revocable

An insurance company must do which of the following to terminate an producer's appointment?

Send notice of the termination to the Commissioner

What type of life policy covers two people and pays upon the death of the last insured?

Survivorship

Under West Virginia law, a group life policy must cover a minimum of how many employees?

Two

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?

Upon completion of the application

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds

Variable

Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?

Variable Universal Life

The West Virginia Life and Health Guaranty Association is funded by

assessments on member companies

All of the following circumstances are grounds for revocation of a license EXCEPT

being charged with a misdemeanor unrelated to insurance activity

A life insurance application must be signed by all of these EXCEPT

beneficiary

Additional coverage can be added to a Whole Life policy by adding a(n)

decreasing term rider

Individual life insurance proceeds are exempt from creditor's claims when they are payable to any of the following entities EXCEPT the insured's

estate

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This life insurance policy may be issued with a(n)

extra premium

In West Virginia, an insurance company that publishes misleading information about insurance coverage may be found guilty of

false advertising

stock insurance company is BEST defined as an incorporated company that has its capital divided into shares and

is owned exclusively by its shareholders

An agent who tells a client that dividends are guaranteed may be guilty of

misrepresentation

Anyone who makes a fraudulent statement on an insurance application in order to obtain money benefits from an insurance company has committed an act of

misrepresentation

Making an unfair comparison of two policies is defined as

misrepresentation

All of these are considered to be a benefit under Social Security EXCEPT for

unemployment

A group life policy may be issued to a labor union if it has at least how many members?

25

Policyholders elect the governing bodies of which of the following types of insurance companies?

Mutual

Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance company?

The producer who sells the new insurance policy

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

Conversion

At the date of issue, an employee group life insurance policy must cover a MINIMUM of how many employees?

Two

A producer is suggesting replacement if a prospective insured is given all of the following advice EXCEPT

Convert your Term insurance to Whole Life

Which of the following statements is CORRECT about the replacement of one insurance policy with another?

It is strictly regulated and requires full disclosure by both the producer and the replacing insurance company

D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?

Level term

K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?

Modified Whole Life

Which statement is correct regarding the premium payment schedule for whole life policies?

Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured

In West Virginia, if an insurance producer charges a fee for placing an insurance policy, which of the following statements is CORRECT?

The producer must report the placement to his primary insurance company

If a producer sells an insurance policy for an insurer not licensed in this state, which of the following is responsible for unpaid claims?

The selling producer

An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age?

Traditional Individual Retirement Account (IRA) withdrawals are normally subject to a tax penalty if they are made before the owner reaches age 59 1/2

Replacement is involved in all of the following situations EXCEPT when

a Term policy is converted to a permanent plan with the same insurance company

Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?

Entire cash surrender value is taxable

E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to?

F

Under the Unfair Trade Practice law, producers may be found guilty of defamation if they make a false statement that is intended to

malign another insurance company

In West Virginia, life or health insurance offered through direct-response solicitation by a sponsoring organization, under which the insured person pays all of his insurance costs, is known as

mass marketed insurance

When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT

obtain the beneficiary's signature on a summary of all policies to be replaced

If a producer knowingly violates a cease and desist order issued by the West Virginia Commissioner for unfair trade practices, the producer may receive which of the following penalties for each violation?

A $5,000 fine

If a producer knowingly violates the Unfair Trade Practices laws of West Virginia, the Office of the Insurance Commissioner may fine the producer a MAXIMUM of which of the following amounts per violation?

$5,000

T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay?

$50,000

The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called

Reinstatement

A producer may legally make which of the following statements to an insured about a Whole Life policy?

The policy will have Nonforfeiture benefits after a period of time

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a

$25,000 individual whole life policy

What provision in a life insurance policy states that the application is considered part of the contract?

Entire Contract provision

Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?

Evidence of insurability is required when the option is exercised

If the West Virginia Insurance Commissioner calls a hearing on a producer's license, the affected producer must be given at LEAST how many days advance written notice?

Fifteen

The life insurance and annuity replacement regulation defines replacement as

exchanging an existing policy for a new policy

Which statement is true concerning a Variable Universal Life policy?

Policyowner controls where the investment will go and selects the amount of the premium payment

The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of the

policyowner

Which of these life products is NOT considered interest-sensitive?

Modified Whole Life

Individual Life and Accident & Sickness insurance policies other than Medicare Supplements and direct-response policies, must state that the policyholder has a right to return the policy within a MAXIMUM of how many days after policy delivery?

Ten

Which of the following statements is CORRECT if an insured converts his Life policy to Paid-Up Insurance and buys new insurance?

The transaction is considered replacement

Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?

Variable Life

When a producer reports a final disposition of an administrative action against the producer to the Insurance Commissioner, the report must include

a copy of the order

Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company?

annuity

To be eligible for Social Security disability benefits, an employee must be unable to perform

any occupation

During a sales presentation for an ordinary life insurance policy, a producer may legally state that the insurance company guarantees

cash values

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

the initial premium

The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and

the initial premium

An insured who is covered under an employer's Group Life policy for $15,000 has resigned. All of the following statements about conversion privileges are true EXCEPT

the insured can convert to a $15,000, 15-Year Level term policy

In group life insurance policies, assignment of benefits is permitted in West Virginia if the assignment is made to all of the following EXCEPT

the insured's employer

Which of the following statements is CORRECT about accelerated death benefits?

Must have a terminal illness to qualify

When an existing life insurance policy is being reissued with a reduction in cash value, the producer must sign the

Notice Regarding Replacement of Life Insurance or Annuity". When a policy has been reissued with any reduction in cash value, that is considered a replacement. A Notice Regarding Replacement must be signed by both the producer and applicant

When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?

Void the policy only if it is discovered during the Contestable period and proven to be material

When does a life insurance contract become effective if the initial premium is not collected during the application process?

When producer delivers policy and collects initial premium

What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?

Whole Life

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

P only

The underwriting process involves all of these EXCEPT for

Policy loan

The conversion period for a terminated employee to convert group life coverage to an individual plan is

31 days

Which of the following statements is correct about the Insurance Commissioner's authority to examine the business records of a producer?

The Commissioner may examine them whenever it's deemed necessary

All of the following activities may result in the revocation or suspension of a producer's license EXCEPT

Representing a foreign insurance company

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?

Single Premium

What is being delivered during a policy delivery?

Insurance contract to the proposed insured

A policyowner's rights are limited under which beneficiary designation?

Irrevocable

A policyowner is allowed to pay premiums more than once a year under which provision

Mode of Premium

Within thirty days of the initial pretrial hearing in a criminal prosecution, the producer must submit to the Insurance Commissioner a copy of all of the following EXCEPT

the bond posted

When recommending a purchase or exchange of an annuity, the producer or insurer must have a reasonable basis for believing that a recommendation is suitable based on all of the following facts disclosed by an applicant EXCEPT the applicant's

county of residence

Which of the following statements is CORRECT about the authority of the Insurance Commissioner to review Life, Accident & Sickness policy forms for use in West Virginia?

The Commissioner has authority to review these forms if they will be issued for delivery in West Virginia

Which of the following qualifications is required for a producer's license in West Virginia?

Trustworthiness and competence