Life Insurance Exam prac
Every policy of individual life insurance must include a notice of right to cancel the policy, stating the specific time frame for the free-look period. Once the insured has cancelled the policy, within how many days must the insurer refund all premiums and policy fees?
30 days
When an annuity is written, whose life expectancy is taken into account?
Annuitant
which concept is associated with the exclusion ratio
Annuity Payment
A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?
Immediate
A return of premium term policy is written as what type of term coverage
Increasing
Insurance is a contract by which one seeks to protect another from
Loss
To which of the following products does the Replacement Regulation apply?
Whole life Insurance
Employer contributions made to a qualified plan
Are subject to vesting requirements
Which of the following is true regarding a policy with a face value less than $10,000?
If it's returned during the free look period, the agreement will be void
If a retirement plan or annuity is "qualified", this means
It is approved by the IRS
A set of legal or regulatory conditions that affect an insurer's ability to collect premiums commensurate with the level of risk incurred would be considered a(n):
Legal Hazard
When the breadwinner that is insured by a Family Policy dies, what rights are provided to other family members that are covered under the policy?
May be converted to a permanent insurance without requiring evidence of insurability
An individual tendency to be dishonest would be an indicative of a
Moral Hazard
Which of the following is not correct regarding false statements by a person engaged in the business of insurance
Oral statements ae not considered fraud
When calculating the amount a policyowner may borrower from a variable life policy, what must be subtracted from the policy cash value?
Outstanding loans and interest
Which of the following statement is true regarding written binders
Prove that the insured has coverage, even though the policy has not been issued yet
In the event of loss, business overhead insurance will pay for
Rent
Which of the following is NOT a characteristic of pure risk?
The loss must be catastrophic
which of the following determine the cash value of a variable life policy?
The performance of the policy Portfolio
Whose responsibility is it to make certain that an application for an insurance is filled out completely and correctly?
The producer
Which of the following statements is true concerning irrevocable beneficiaries?
They can be changed only with with the written consent of that beneficiary
All of the following are true regarding the guaranteed insurability rider, except
This rider is available to all insureds with no additional premium
If found material for underwriting, a misrepresentation
it can void a contract.
Variable whole life insurance is based on what type of premium?
level-fixed premium
An agent is a legal person who acts on behalf of
principal
what method is used to determine the taxable portion of each annuity payment ?
the exclusion ratio
when an employee or dependent who currently receiving benefits qualifies for an extension of benefits due to a discontinuation which was followed by a replacement, which of the following is responsible for the disabled person's continuance of benefits?
the old insurer
In terms of parties to a contract, which of the following does NOT describe a component party?
the person must have at least completed secondary education
In a survivorship life policy, when does the insurer pay the death benefit?
upon the last death