life insurance
A producer who fails to renew a license may reapply for a license w/o examination within____ year with____
1 year/ no renewal with $50 late fee
How long is the Suicide clause period?
1-2 years
The Commission of Insurance MUST give ___ days notice before holding a hearing regarding a producer's unfair practice
10
What is the income tax withholding requirement for a profit-sharing plan?
20% is withheld for income taxes
When was the USA Patriot Act enacted
2001
A producer must notify the Commissioner of Insurance within___days of an address change.
30
How long does an individual have to "rollover' funds from an IRA or qualified plan?
60 days
A plan is considered "top heavy " if more than ___ of plan assets are attributable
60%
Characteristics of an Adjustable Life policy
Adjustable premiums, adjustable premium payment period, and combination of term and whole life insurance
Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance compant?
Annuity
Traditional individual retirement annuity (IRA) distributions must start by:
April 1st of the year follwing the year the participant attains age 70 1/2
What provision keeps a Whole Life policy in force if a required premium payment is not made and there is sufficient cash value?
Automatic policy loan
What kind of receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect?
Conditional
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
Contributory
What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?
Convertible Term
Credit life insurance is typically issued with which of the following types of coverage?
Decreasing Term
A policy that provides an income for a specific period starting at the death of the insured
Family Maintenance Policy
An annuity that pays out a fixed amount for life starting at a future date
Fixed Deferred
Who makes the legally enforceable promises in a unliateral insurance policy?
Insurance company
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
Which combination plan is designed to protect an insured from an unpaid mortgage balance upon premature death?
Joint life
What kind of premium does a Whole Life policy have?
Level
What enables a policyowner to sell a policy for more than its cash value?
Life settlement contract
Life insurance that covers an insured's whole life with level premiums paid over a limited time is called:
Limited Pay Life
an insured's inability to perform two or more activities of daily living may trigger which type of policy rider?
Long term care
Which type of policy is considered to be overfunded, as stated by IRS guidelines
Modified-Endowment Contract
What is the consideration given by an insurer in th Consideration clause of a life policy?
Promise to pay a death benefit to a named beneficiary
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called:
Representations
An arrangement where an employer and employee share in the cost of purchasing a life insurance policy on employee:
Split-dollar plan plan
The annuity that represents the largest possible monthly payment to an individual annuitant is___
Straight Life annuity
What Life Insurance rider allows an applicant to have excess life insurance coverage?
Term rider
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?
Universal Life
A _____ Life policy offers the owner investment in products such as money-market funds, long term bonds and equities
Variable
Which policy requires an agent to register with the National Association of Securities Dealer before selling?
Variable Life
Which policy requires an agent to register with the National Association of Securities Dealers before selling?
Variable Life
Which policy is characterized by a guaranteed minimum death benefit?
Variable life
At what point does the Life and Health Insurance Guaranty Association become involved with an insurer's affairs?
When the insurer becomes insolvent (unable to pay debt)
What type of insurance offers permanent life coverage with premiums that are payable for life?
Whole Life
A Return of Premium life insurance policy is:
Whole life and increasing term
What kind of policy is a Return of Premuim Life?
Whole life and increasing term
contract of adhesion
a contract (also known as a contract of adhesion) between two parties, where the terms and conditions are drafted by the party with superior bargaining power (typically a business) and the other party
A producer is attempting to replace an existing life insurance policy with a new one. What must this producer submit as part of the application?
a signed statement by the applicant regarding the replacement
aleatory
an agreement whereby the parties involved do not have to perform a particular action until a specific, triggering event occurs.
What does the insuring agreement in a Life insurance contract establish?
an insurer's basic promise
When can a policyowner change a revocable beneficiary?
anytime
What action can a policyowner take if an application for a bank loan requires collateral?
assign policy ownership to the bank
The automatic premium loan provision is designed to__
avoid a policy lapse
Any policy that includes "variable" indicates___
cash savings value being invested
A person who is insured within a group contract will be given a:
certificate
What is the purpose of the U.S.A Patriot Act
detect and deter terrorism
Prior to a hearing for a suspended producer's license, the Commissioner of Insurance is required to___
give written notice to the producer
The Life and Health Insurance Guaranty Association is funded by
insurance companies through assessments
Life insurance replacement regulation is designed to protect the interests of the _____
policy owner
Life insurance replacement regulation is designed to protect the interests of the:
policyowner
A producer has returned part of his commission to the insured as an inducement to purchase the insurance. This illegal action is called___
rebating
The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and ____
the initial premium
ANy policy that includes "universal" indicates____
the policy has flexible or adjustable premiums
Characteristic of a variable annuity
underlying equity investments
A term life insurance policy matures:
upon the insured's death during the term of the policy
Which policy is characterized by a guaranteed minimum death benefit?
variable life
When must insurable interest be present in order for a life insurance policy to be valid?
when the application is made
