Life Insuance

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

The contingent beneficiary

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant

With the policy

How is the Commissioner selected for office?

Appointed by the Governor

When both parties to a contract must perform certain duties and follow rules of conduct to make the contracts enforceable, the contract is

Conditional

Annually Renewable term insurance

It is level term insurance

Which of the following statements is TRUE concerning the Accidental Death Rider?

It will pay double or triple the face amount

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?

Joint Life Policy

All of the following would be considered an insurance transaction EXCEPT

Obtaining an insurance license

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Paid-up option

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

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?

Reinstatement provision

All of the following could own group life insurance EXCEPT

A group needing low cost life insurance

Who is a third-party owner?

A policy-owner who is not the insured

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

For 20 years or until death, whichever occurs first

Concerning insurance, the definition of a fiduciary is

A producer/broker who handles insurer funds in a trust company

An applicant who lives in a state in which a producer is not licensed travels to the state in which the producer is licensed to apply for a policy. This is considered to be

Legal

If an agent fails to obtain an applicant's signature on the application, the agent must

Return the application to the applicant for a signature

Which of the following is true regarding taxation of accelerated benefits under a life insurance policy?

They are tax free to terminally ill insured

The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to commingle those funds with their own funds, is known as

Fiduciary responsibility

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The producer must provide the applicant with a Notice Regarding Replacement

What percentage of a company's employees must take part in a noncontributory group life plan?

100%

Who is protected from financial loss by the Life and Disability Insurance Guaranty Association?

Policyholders