Life

how many hours per year must a person work to be eligible for a Keogh Plan

1000

The required privacy disclosure notice must be provided by insurer to current policyholders at least once in any period of

12 months

insurance companies are required to provide proof of loss forms to the claimant within how many days after receipt of notice of loss

15

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

15,000

unless exempt, individuals applying for an insurance agent's license must first complete an approved course of study of how many hours

20

after a claim has been settled, insurance companies are required to keep records pertaining to the claim for at-least how many years

5 years

what is another name for interest-sensitive whole life insurance

Current assumption life

An agent selling variable annuities must be registered with

FINRA

Policy owned by breadwinner who is covered with permanent insurance with decreasing term insurance in the form of a rider

Family Income Policy

A 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?

Family protection policy

an insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming

Foreign

how do taxes affect money borrowed from the cash value

Money borrowed from the cash value is not taxable

what are policy dividends

Return of unused premiums

What entities regulate variable life policies

The SEC, The Insurance Department, and the Federal government.

which policy would have an IRS required corridor or gap between the cash value and the death benefit

Universal Life - Option A

how are buy-sell agreements normally funded

a life insurance policy

if someone is insured under a life insurance policy with the accelerated benefits rider what would happen in regards to taxation of the accelerated benefits

a portion of the benefit up to a limit is tax free, the rest is taxable income

Stating that an insurer's policies are guaranteed by the existence of the Life and Health Guaranty Association is

an unfair trade practice

When an annuity is written, whose life expectancy is taken into account?

annuitant

who assumes the risk in variable annuities

annuitant

what type of insurance policy may be used to fund a buy-sell agreement

any form

the commissioner reports any violations of insurance laws and regulations to the

attorney general

a person who knowingly obtains information about an individual from an agent or the insurer under false pretenses has committed a(n)

class 1 misdemeanor

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases an insurance policy from the bank in the amount of the loan. This is an example of

coercion

what rider adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living

cost of living rider

what type of insurance policy is most commonly used in credit life insurance

decreasing term

with the reduction of premium dividend option, how is the dividend used

dividend is applied to the next year's premium (reduces next years premium)

in which of the following methods of changing a beneficiary does the policyowner send the contract to the home office of the insurer for approval and change

endorsement method

two main categories of policy loan interest rates

fixed or variable

what type of premium do both universal life and variable universal life policies have

flexible

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

foreign

whats an eligibility requirement for all Social Security Disability income benefits

have attained fully insured status

when is a pretexted interview permissible

if the insurer suspects criminal activity and fraud

a return of premium term life policy is written as what type of term coverage?

increasing

A life insurance policy has a legal purpose if both of which of the following elements exist

insurable interest and consent

what ultimately determines the interest rates paid to the owner of a fixed annuity

insurer's guaranteed minimum rate of interest

what is used to determine interest rates on variable products

interest rate index

why is an equity indexed annuity considered to be a fixed annuity

it has a guaranteed minimum interest rate

what can be changed by the policy owner in an adjustable life policy

length of coverage, amount of insurance, the premium

variable whole life insurance is based on what type of premium

level fixed

which two terms are associated directly with the premium

level or flexible

When an insurance producer conducts business under any name other than the producer's legal name, they must notify the commissioner when?

notify the commissioner before using the assumed name

the dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as

one-year term option

which option for universal life allows beneficiary to collect both the death benefit and cash value upon the death of insured

option B

in regards to taxation, how are premiums looked at in a key person insurance policy

premiums are not tax deductible as a business expense

the paid-up addition option uses the dividend to

purchase a smaller amount of the same type of insurance as the original size

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

rebating

what option would allow policyowner to use dividends to help pay for next premium

reduction of premium

where are premiums invested with respect to variable products

separate account, like a mutual fund

who bears all investment risk in a fixed annuity

the insurance company

who bears all of the investment risk in a fixed annuity

the insurance company

insurance agents licensed in this state must complete continuing education every 2 years by

the last day of the licensee's birth month

what happens if a deferred annuity is surrendered before the annuitization period

the owner will receive the surrender value of the annuity

the commissioner is empowered to examine the records of any person transacting insurance in the state as an agency, an agent or broker of record. If the commissioner does examine a person, the expense of that examination will be paid by

the person examined

what happens if an insured continually uses the automatic premium loan option to pay the policy premium

the policy will terminate when the cash value is reduced to nothing

Under a SIMPLE plan, what applies regarding taxation on both contributions and earnings?

they are taxed deferred until withdrawn

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

unilateral

what kind of policy allows withdrawals or partial surrenders

universal life

between variable universal life and variable who life, which has a guaranteed death benefit

variable whole life