Life and Annuity License
As an insurance field underwriter, a produce has all of the following responsibilities EXCEPT A issuing policies on behalf of the insurer B Completing applications C Soliciting insurance contracts D collecting premiums
A issuing policies on behalf of the insurer
Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select? A joint and survivor B fixed amount installment C fixed period installment D life income
A joint and survivor
Which of the following statements is true regarding SIMPLE plans? A. CONTRIBUTIONS AND EARNINGS ARE TAX DEFERRED UNTIL FUNDS ARE WITHDRAWN B. THE EMPLOYER CANNOT CONTRIBUTE TO THE PLAN C. THE EMPLOYER CAN CONTRIBUTE UP TO 5% OF THE EMPLOYEES COMPENSATION D. THE EMPLOYEE CANNOT CONTRIBUTE TO THE PLAN
A. CONTRIBUTIONS AND EARNINGS ARE TAX DEFERRED UNTIL FUNDS ARE WITHDRAWN
In which of the following situations is it legal to limit coverage based on marital status? A. It is never legal to limit coverage based on marital status B. Excessive number to horses of divorces, as defined by the insurance code. C. Legal separation during the application process. D. Divorce within the last six months of applying for insurance.
A. It is never legal to limit coverage based on marital status.
And insured purchased an insurance policy five years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year she did not receive a check from the insurer. From what type of insurer did the insured purchased the policy? A. Mutual B. Reciprocal C. Non profit D. Stock
A. Mutual
Which of the following is NOT considered eligible for group life insurance? A a Public employer group of five members B a credit union and his coverage only for his top 10 employees C a debtor group D a labor union
B a credit union and his coverage only for his top 10 employees
An adjustable life policy, can assume the form of A only permanent insurance B either term insurance or permanent insurance C neither term insurance nor permanent insurance D only term insurance
B either term insurance or permanent insurance
Who examines the books and records of insurance companies in Florida? A. The governor. B. The chief financial officer. C. The NAIC. D. The commissioner of insurance.
B. The chief of financial officer.
What is reinsurance? A. an agreement between an insurer and insured. B. an agreement between a ceding insurer and assuming insurer C. an agreement between an originating insurer and a ceding insurer D. an agreement between a domestic insurer and a foreign insurer
B. an agreement between a ceding insurer and assuming insurer
Which nonforfeiture option provides coverage for the longest period of time? A. Accumulated at interest. B. Reduced paid up. C. Extended term D. Paid up option.
B. reduced paid up
Within how many days after receiving a written communication, a replacement existing insurance provide a policy owner with a policy summary? A 5 days B 7 days C 10 days D 15 days
C 10 days
The Ownership provision entitles the policy owner to do all the following, except A. Assign the policy. B. Designate a beneficiary C. Set premium rates. D. Receive a policy loan.
C. Set premium rates.
An applicant for an agents life only license must complete a minimum of how many hours of pre licensing education? A 18 B 20 C 30 D 40
D 40
And insured receives an annual life insurance dividend check. What term best describes this arrangement? A. Reduction of premium. B. Annual dividend provision. C. Accumulation at interest D. Cash option.
D. Cash option
All the following are the general qualifications for an agents license, except A. Be found competent and trust worthy. B. Be a state resident. C. Pass a criminal background check. D. Have a high school diploma.
D. Have a high school diploma.
Which of the following statements about the reinstatement provision true? A. It permits me a statement within 10 years after a policy has lapsed. B. It provides for reinstatement of a policy, regardless of the insurance health. C. A guarantees, the reinstatement of a policy that has been surrendered for cash. D. It requires the policy owner to pay all overdue premiums for the interest before the policy is reinstated.
D. It requires the policy owner to pay all overdue premiums with interest before the policy is reinstated.
Variable insurance and variable annuities are regulated by
SEC, FINFRA and Departments of Insurance
An employer offers group life insurance to its employees for the amount of $10,000. which of the following is true A the cost of coverage is a deductible, expense by the employer B the value of insurance will be deducted from employees compensation C the cost of coverage paid by the employer is taxed to the employees D the cost of coverage paid by the employer is tax-deductible by the employees
A the cost of coverage is a deductible expense by the employer
Considering the principles of liquidity, how would owner used today's cash values in a life insurance policy? A use it for emergency expenses B secure a car loan next year C make a down payment on a home in five years D fund a retirement
A use it for emergency expenses
Which of the following terms refers to solicitation negotiation, effectuation with advising related to an insurance contract? A insurance interest B insurance transaction C advertising D rescission
B insurance transaction
During replacement of life insurance, replacing insurer must do which of the following A. Designate a new producer for a replaced policy. B send a copy of the notice regarding replacement to the department of insurance C Obtain a list of all insurance policies that when we were replaced D guarantee a replacement for each existing policy see
C Obtain a list of all insurance policies that when we were replaced
When are premiums from fixed annuities invested? A a variable annuity B a hedge fund C a separate account D a general account
D a general account
All of the following could qualify as a group for the purpose of purchasing group life insurance except A an association formed 1 year ago B a labor union C a multiple employer trust D a single employer with 14 employees
A an association formed 1 year ago
Which of the following best describes a difference between joint life and joint and survivor annuity payment options? A in joint life option, the benefits stop after the first death B joint life covers two or more annuitants C joint and survivor is a life contingency option D joint and survivor pays out a smaller benefit
A in joint life, the benefits stop at the first death
An agent who knowingly, misrepresent material information for the purpose of inducing and insured to lapse, forfeit, changed, or surrender, a life insurance policy or annuity, has committed a legal practice known as A twisting B fraud C concealment D misrepresentation
A twisting
if agent does not notify the insurer of an address change, what is the maximum penalty that can be imposed for a one time offense? A 180 B 250 C 500 D 1500
B 250
Which statement best describes agreement as it relates to insurance contracts? A EACH PARTY MUST OFFER SOMETHING OF VALUE B ONE PARTY EXCEPT THE EXACT TERMS OF THE OTHER PARTIES OFFER C the INTENT OF the CONTRACT MUST BE LEGALLY ACCEPTABLE TO BOTH PARTIES D all parties must be capable of entering into a contract
B ONE PARTY EXCEPT THE EXACT TERMS OF THE OTHER PARTIES OFFER
An individual purchases a life insurance policy and lists his parents as the beneficiaries. He's is able to change beneficiaries at any time. What type of beneficiary designation does the policy have? A Primary B Revocable C Irrevocable D Contingent
B Revocable
What does the Guaranty Association guard against? A Rebating B Insurer insolvency C insurance fraud D double indemnity
B insurer insolvency
Which of the following is a correct statement about annuities? A. Fixed annuities have the annuitant assume the risk of investment B. Fixed annuities do not provide protection against inflation. C. Variable annuities provide minimum guaranteed rate of interest. D. Variables annuities place to fund in the companies general account.
B. Fixed annuities do not provide protection against inflation.
A paid up of nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default? A 15 B 30 C 60 D 90
C 60
According to the life insurance replacement regulations, which of the following would be an example of policy replacement A Term insurance is changed to a whole life policy B A lapsed policy is reinstated within a specific time frame C A policy is reissued with a reduction in cash value D a term policy expires, and the insured buys another term life policy
C a policy is reissued with a reduction in cash value
Answers to questions in insurance application I called representations, and as such, they are A not true B warranties C believe to be true to the best of the applicants knowledge D absolutely true
C believed to be true to the best of the applicants knowledge
Which of the following is true regarding pure life annuity settlement option? A the beneficiary will receive a refund of the principal B it guarantees income for a specified period of time C it provides the highest monthly benefit D it guarantees that all the proceeds will be paid out
C it provides the highest monthly benefit
Which of the following is guaranteed under available whole life insurance policy? A cash value B stock performance C minimum death benefit D interest rates
C minimum death benefit
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option? A paid up additions B cash surrender value C reduced paid up D extended term
D extended term
And insured has chosen joint and 2/3 survival as the settlement option. What does this mean to the beneficiaries? A. one of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured dies B. The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive. C. The beneficiary will receive 2/3 of a lump sum up front, and the remaining ones they will be paid overtime
B. The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
