insurance

teachers and non profit organizations

403(b) plan, commonly referred to as a TSA, is available to be used by

increasinf

A Return of Premium term life policy is written as what type of term coverage?

guarantee and current

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

15 days

After appointing an agent, how long does an insurer have to file with the Commissioner a notice of appointment?

15,000

Before the Commissioner will issue a broker's license, the licensee must obtain a bond for at least

grow tax deffered

In life insurance policies, cash value increases

Gradually increases each year by the amount that the cash value increases.

The death benefit under the Universal Life Option B

the insurer suspects criminal activity or fraud

Under which of the following circumstance would a pretext interview be permissible?

Face Amount

What does "level" refer to in level term insurance?

pure life

What form of the annuity settlement options provides payments to an annuitant for the rest of the annuitants life and ceases at the annuitants death?

twisting

Which type of misrepresentation persuades an insured, to their detriment, to cancel, lapse, or switch policies from one to another?

5 years

after an insurance contract ends the insurer must maintain records regarding the transaction for at least

The president and employee of a family corporation.

All of the following would be eligible to establish a Keogh retirement plan EXCEPT

the primary beneficiary predeceased the insured

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefits

100% participation of members is required in noncontributory plans.

Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?

set premium rates

The Ownership provision entitles the policyowner to do all of the following EXCEPT

expenses

The factor added to the net premium to cover the costs of the insurer in obtaining and maintaining the business is called

Life income with period certain.

The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called

To purchase a smaller amount of the same type of insurance as the original policy.

The paid-up addition option uses the dividend

At the end of 20 years, the policy's cash value will equal $100,000

which of the following is incorrect regarding a 100,000 20 year level term policy

Current assumption life

What is another name for interest-sensitive whole life insurance?

Survivorship Life

Which of the following is called a "second-to-die" policy?

target premium

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

Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?

50,000

Reciprocity

An agent in Ohio wants to become an agent in North Carolina. The Commissioner will waive certain examination requirements, provided that Ohio would waive these same requirements if a North Carolina agent sought licensure in Ohio. What term does this describe?

30 days

How long is a free-look period for replacement policies.

policyowner

In a viatical settlement, who is considered the viator?

unemployment income

Social Security was created to provide all of the following benefits EXCEPT

policy holder

The Commissioner is empowered to adopt rules and regulations governing the transactions by all of the following individuals and entities EXCEPT

Annually Rerjewable Term

The death protection component of Universal Life Insurance is always

3 hours every 2 years

What is the continuing education requirement in Ethics for agents in this state?

to establish fair marketing advertisements procedures

all of the following identify purposes of the Insurance Information and Privacy Act EXCEPT

The face amount remains the same throughout the life of the policy

all of the following statements are true regarding mortgage protection insurance except

It is only taxable if the cash value exceeds the amount paid for premiums

if an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy

1,000

maximum face amount on an industrial life policy

Annually Renewable Term

the LEAST expensive first-wear premium is found in which of the following policies

The rider is usually level term insurance

which is true about a spouse term rider?

family protection policy

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?

Benefits are paid to the borrower's beneficiary.

All of the following statements are correct regarding credit life insurance EXCEPT

An agent misrepresents policy benefits to convince a policyowner to replace policies.

All of the following would be considered rebating EXCEPT

Pay a reduced death benefit

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?

A group needing low cost life insurance.

Al of the follonling could own group Iife insurance EXCEPT

The insured may be ordered to pay restitution (i.e., pay the amount of claim back to the insurer).

An insured has submitted a fraudulent claim on a health insurance policy 1 year after the policy issue. The insurer paid the claim, but a year later discovered that the claim was fraudulent. The insured was convicted of a felony. Which of the following statements is true regarding the payment of claim?

50,000

An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined, and the cash value fell to $10.000. If the insured dies how much will be paid out?

unilateral

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe

HR-10 (Keogh Plan).

Two attorneys operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for themselves and three emplovees. They would likely choose

Family income policy

W owns a policy in which she is covered as the bread-winner with permanent insurance and with decreasing term insurance in the form of a rider. What type of policy is this?

Old Age Survivors Disability Insurance

What is the official name for the Social Security program?

Submit a request for change to the home office of the insurer

When changing a beneficiary through an endorsement method, what is the policyowner required to do?

When the insured reaches age 100

When would a 20-pay whole life policy endow?

Variable whole life has a guaranteed death benefit.

Which of the following is a key distinction between variable whole life and variable universal life products?

Keogh Plan

Which of the following is an IRS qualified retirement program for the self-emploved?

insures the life of a debtor,

Which of the following is correct regarding credit life insurance?

variable universal life

Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?

universal life option A

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

decreasing term

Which of the following types of insurance would be most suitable for mortgage protection?

Discriminating in benefits and coverages based on the insured's habits and lifestyle

Which of the following will NOT be considered unfair discrimination by insurers?

the insurance company

Who bears all of the investment risk in a fixed annuity?

An individual not covered by an employer-sponsored plan who has earned income

Who can make a fully deductible contribution to a traditional IRA?

interest only

All of the following are Nonforfeiture options EXCEPT

fixed period installments

All of the following are dividend options EXCEPT

Dividends from a mutual insurer.

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Educate the buyer about policy protection by the Guaranty Association.

All of the following describe the purpose of the North Carolina regulations governing the solicitation of life insurance EXCEPT

The owner will receive the surrender value of the annuity.

What happens if a deferred annuity is surrendered before the annuitization period?

flexible

What type of premium do both Universal Life and Variable Universal Life policies have?

Issue the policy anyway and pay the face value to the beneficiary.

When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will

It is reduced to the amount of what the cash value would buy as a single premium.

When a reduced paid-up nonforfeiture option is chosen, what happens to the face amount of the policy?

Discrimination.

When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered

Universal life option A

Which of the followine policies would have an irs corridor or gap between the cash value and death benefit

The performance of the policy portfolio

Which of the following determines the cash value of a variable life policy?

size of each installment

Which of the following determines the length of time that benefits will be received under the fixed amount settlement option

cash value growth

Which of the following features of the Indexed Whole Life policy is NOT fixed?

At the end of 20 years, the policy's cash value will equal $100.000

Which of the following is INCORRECT regarding a $100.000 20-year level term policy?

The application given to a prospective insured

Which of the following is NOT the consideration in a policy?

They earn lower interest rates than equity indexed annuities

Which of the following is NOT true regarding Equity Indexed Annuities?

Benefits stop at the annuitant's death.

Which of the following is NOT true regarding an annuity certain?

Money borrowed from the cash value is taxable.

Which of the following is NOT true regarding policy loans?

Variable whole life has a guaranteed death benefit

Which of the following is a key distinction between variable whole life ad variable universal life product

Variable whole life has a guaranteed death brnefit.

Which of the following is a key distinction between variable whole life and variable universal life products?

Creating an estate

Which of the following will NOT be an appropriate use of a deferred annuity?