Life insurance exam
Agent J offers his clients free tickets to sporting events in exchange for the purchase of an insurance policy. J is guilty of
Rebating
All of the following statements are true regarding installments for a fixed amount EXCEPT
The payments will stop when the annuitant dies.
When an agent is soliciting a policy through an insurer, whose responsibility is it to determine that the insurer is authorized to transact business in this state?
The company's
An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?
$3,000
A tornado that destroys property would be an example of which of the following?
A peril
Once a producer's appointment is filed, within how many days will the Commissioner verify the appointment (for eligible producers
30 days
If the State Insurance Department believes that a producer may be in violation of an insurance law or regulation, what may be issued?
Cease and desist order
Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance?
Only written statements can be considered fraud.
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 are requirements for life insurance illustrations EXCEPT
They must be part of the contract
The document that indicates that an insurer has been approved and is authorized to transact insurance in a particular state is known as
certificate of authority
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)
executive bonus
All advertisements are the responsibility of the
insurer
How long does any person receiving written notification of the Commissioner's order have to respond and request a hearing?
90 days
Which of the following elements in an Indexed Universal Life policy is tied to an index?
Cash values
