Life Exam (Primerica)
Which of the following best details the underwriting process for life insurance?
Selection, classification, and rating of risks
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
A participating insurance policy may do which of the following?
Pay dividends to the policy owner
Which of the following describes the tax advantage of a qualified retirement plan?
The earning in the plan accumulate tax deferred
In accordance with the code of ethics, agents must provide a complete application to...
The prospective insured and the insurer
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
An employee quits her job where she has a balance of $10,000 in her qualified plan. How much will she receive from the plan administrator and how long does she have a complete the tax-free rollover?
$8,000, 60 days
In order for a debtor to qualify for group life insurance, what should be he minimum number of participants joining the plan every year?
100
The minimum age for purchasing life insurance policy in Florida is...
15
An insured pays a $100 premium every month yet the insurer promises to pay $10,000 for a covered loss. What characteristics of an insurance contract does this describe?
Aleatory
How often must domestic insurance companies be examined by the chief financial officer in Florida?
At least every 5 years
An individual has just borrowed $10,000 from his bank on a 5-year installment loan required monthly payments. What type of life insurance policy would be best suited to his situation?
Decreasing Term
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Defamation
The policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principle will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose?
Interest only option
Which of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
Death benefit payable to a beneficiary under a life insurance policy are generally
Not subject to income taxation by the federal givernment.
An employee is insured under employers group life plan. If she terminated her group coverage, which of the following statements is incorrect?
The insured may choose to convert to term or permanent individual coverage
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination
All of the following are duties and responsibilities of producers at the time of application EXECPT...
Change any incorrect statement on the application by personally initialing next to sh correct statement.
Variable life insurance is based on what kind of premium?
Level Fixed
The policy owner pays for her life insurance annually. Until now, she has collected a non taxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would you allow her to do this?
Reduction of Premium
A policy owner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policy owner should have her husband named as the...
Revocable Beneficiary
If an annuitant dies before annuitilzation occurs, what will the beneficiary receive?
Either the amount pain into the plan or the cash value of the plan, whichever is the greater amount.
An agent selling variable annuities must be registered with
FINRA
