IVENS INSURANCE EXAM
An insured purchased a variable life insurance policy with a face amount of 50k. Over the life of the policy, stock performance declined and the cash value fell to 10k. If the insured dies, how much will be paid out?
$50,000
The commissioner has the power to preform ...
-Administer interpret and enforce the state insurance laws -examine and investigate any licensed person and insurer. - hold disciplinary hearing and issue orders.
In order to qualify for conversation from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
All other factors being equal, which of the following individuals would receive the largest monthly check from a single premium straight life immediate annuity?
A 60 year old man
what documentation grants express authority to an agent?
Agents contract with the principal
what 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
What agent authority is also called "perceived authority?"
Apparent
Annuities differ from life insurance in what way?
Both annuities and life insurance are purchased with either singe or periodic premiums
What describes a situation in which an agent and policyholder act together to defraud the insurer?
Collusion
What includes info regarding a persons credit, character, reputation, and habits?
Consumer report
When does an agents license expire?
Every 2 years
what is true regarding the annuity period?
It may last for the lifetime of the annuitant
If a contract provides a set amount of income for 2 or more income with the persons stopping upon the first death of the insured, it is called a ...
Joint life annuity
An agent is selling a client a Variable life insurance policy and as an inducement shows the client a projection based upon shares dividends paid on a similar policy. This is
Misrepresentation
An individuals tendency to be dishonest would be indicative of a
Moral hazard
What is a definition of a unilateral contract?
One-sided: only one party makes an enforceable promise
Hazard is best described as...
Something that increases the risk of loss
What is the annuity period?
The period of time during which accumulated money is converted into income payments
What defines target premium in a universal life policy?
The recommended amount to keep the policy in force throughout its lifetime
Which of the following life insurance policies would be considered interest sensitive?
Universal Life
which of the following products requires a securities license?
Variable annuity
How often must insurers provide a current copy of the privacy policy and practices to each customer?
annually
What is a reinsurance manager?
any person who has authority to bind, or manages all of part of the assumed reinsurance business of a reinsurer and acts like an agent for the reinsurer.
Why is an equity indexed annuity considered to be a fixed annuity?
both types of annuities guarantee a specific minimum interest rate
an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principals has the insurer violated?
consideration
which component increases in the increasing term insurance?
death benefit
what is NOT fundable by annuities?
death benefits
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. what type of annuity products are they likely to use to provide those benefits?
immediate annuity
Annual renewal term policies provide a level death benefit for a premium that
increases annually
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?
installments for a fixed period
what are equity indexed annuities?
invest on a aggressive basis to aim for higher returns. the current interest rate that is actually credited is often tied to a familiar index like the standard and poor's 500
A married couple's retirement annuity pays them $250 per month. the husband dies and his wife continues to receive $125 .50 per month for as long as she lives. when the wife dies, payments stop. what settlement option did they select?
joint and survivor
An insurance policy is considered a "new policy" if it has been in effect for what maximum time period?
less than 60 days since the issue
Which of the following is an example of a limited pay life policy?
life paid up at age 65
Under a pure life annuity, an income is payable by the company
only for the life of the annuitant
which of the following is another term for the accumulation period of an annuity?
pay-in period
an individual buys a flexible premium differed life annuity with 20 year period certain. what would his beneficiary receive if he died 5 years after beginning the annuity phase
payments for 15 years
The Gramm-Leah-Bliley Act was passed to
protect private customer info filed with a financial institution
installing deadbolt locks on the door of a home is an example of which method of handling risk?
reduction
Annuities can be used to fun which of the following?
retirement palns
What are examples of risk retention?
self insurance deductibles copayments
An insurance policy that only requires a payment of premium at it inception, provides insurance protection for the life of the insured, and matures at the insureds age 100 is called...
single premium whole life
Which of the following is a risk classification used by underwriters for life insurance?
standard
In a group policy, the employer may select all of the following...
the amount of insurance, the premium payor, and the type of insurance
When an annuity is written, whose life expectancy is taken into account?
the annuitant
When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?
the insurance company's general account
An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?
the insured will need a written consent of the insurer
Any person who violates and effective order may be required to pay ....
twice the amount of any profit gained from violation
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
if only one part to an insurance contract has made a legally enforceable promise, what kind of contract is this?
unilateral
What statement made in an insurance application by the insured that is the absolute truth?
warranty