Iowa life insurance only course pt.2
If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?
Insured's contingent beneficiary
A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?
Irrevocable
Which plan is intended to be used by a sole proprietor and the employees of that business?
Keogh Plan
An individual life insurance policy issued in lowa must have a free-look period of at least _________days
10
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?
20-Pay Life accumulates cash value faster than Straight Life
Which of the following statements about noncontributory employee group life insurance is FALSE?
A minimum number of employees is required to participate
Which of these is NOT a reason for a business to buy key person life insurance?
A pension deficiency if the key employee dies
Which of the following is NOT included in an annuity contract?
AD&D rider
A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value?
Life settlement contract
Which of these is NOT considered to be a right given to a policyowner?
Modify a provision in the insurance contract
When funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld?
None
Which premium schedule results in the lowest cost to the policyowner?
Annual
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage on himself under the same policy. What kind of policy should Q purchase?
OWhole life policy with other insured rider
An incomplete life insurance application submitted to an insurer will result in which of these actions?
Application will be returned to the writing agent
Who is NOT required to sign a life insurance application?
Beneficiary
Which of the following consists of an offer, acceptance, and consideration?
Contract
Which of these require an offer, acceptance, and consideration?
Contract
The insurance company that Jack represents has been placed into rehabilitation, but Jack continues to tell his clients the company is "financially strong" and he uses an outdated financial rating to back up his claim. What unfair trade practice has Jack committed?
False financial statements
An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?
Full face amount minus any past due premiums
W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices, EXCEPT a(n):
Immediate annuity
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
Inspection report
Which of these provisions require proof of insurability after a policy has lapsed?
Reinstatement
Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary?
Spit-dollar plan
Which statement regarding a Key Employee Life policy is NOT true?
The beneficiary is named by the key employee
A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need?
Universal Life
What type of life insurance incorporates flexible premiums and an adjustable death benefit?
Universal Life
A(n) _________Life policy offers the owner investment in products such as money-market funds, long- term bonds and equities.
Variable
A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached?
Waiver of Premium
When is the face amount of a Whole Life policy paid?
When the insured dies or at the policy's maturity date, whichever happens first
A life insurance policy that provides a policyowner with cash value along with a level face amount is called:
Whole life
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the:
applicant's physician
lowa's 10-day free-look period for life insurance policies begins at the
date of delivery
In life insurance, the needs approach is used mostly to establish:
how much life insurance a client should apply for
Insurance policies are considered aleatory contracts because
performance is conditioned upon a future occurrence
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called:
representations
What type of life insurance are credit policies issued as?
term
Ti is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert
to an individual policy upon employment termination
A producer's license may be suspended or revoked if the licensee
writes primarily controlled business