Life Insurance Terms I missed
Applications for a producer license must be accompanied by a licensing fee of
$50
Which of the following would NOT trigger the payment of Accelerated Death Benefits?
Being permanently disabled
An IRA contribution can be made from which of the following?
cash
Which of the following types of insurance products would be appropriate for an individual with low income and high insurance needs?
term insurance
Which of the following is correct regarding continuing education requirement for producers in Iowa?
36 hours including 3 hours of ethics every 3 years
Where are premiums from fixed annuities invested?
general account
Who supervises the Iowa Life and Health Guarantee Association
Insurance Commissioner
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party's offer
An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the ACCUMULATION phase. The beneficiary receives:
$70,000
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
a policy is reissued which a reduction in cash value
An adjustable life policy can assume the form of
either term insurance or permanent insurance
A viatical settlement is a transaction outside the life insurance compnay where the owner sells the life insurance policy for which of the following?
A percentage of the face amount of the policy
The provision that sets forth the basic agreement between the insurer and the insured and states the insured's promise to pay the death benefit upon the insured's death is called the
Insuring clause
The owner of a whole life policy with an accidental death rider intentionally kills himself after having the policy for 18 months. What Is the insurance company's course of action?
Deny any payment of death benefit
Life insurance can provide which of the following?
Survivor protection
The reduction of premium option uses the dividend to reduce
next year's premium
Upon the surrender of a life insurance policy, any cash value accumulated in excess of the premium payment is...
taxed as ordinary income
If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of this procedure?
Prior to performance of the test
An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. 10 days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?
Grace period
Which of the following statements would be allowed in advertising of a life insurance policy?
The person giving an endorsement will be paid
Policies written on a third-party ownership basis are usually written to cover which of the following?
Policyowner's minor children or business associates
In credit life insurance, who is responsible for paying the policy premium?
Borrower only
Which of the following types of insurance is investment based, has a level fixed premium, and a nonguaranteed cash value?
variable whole life
A whole life policy is surrendered for a reduced-paid up policy. The cash value of the new policy will
continue to increase
When an insured terminates membership in the insured group, the insured can convert to
whole life without proof of insurability
Which of the following elements of an insurance contract requires paying premium and providing a statement of good health?
consideration
Which of the following would be included in a policy summary?
Premium amounts and surrender value
The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT
Purchase of a new home
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
the death benefit can be increased by producing evidence of insurability
Adjustable maximum interest reates for policy loans taken out on life insurance policies may not exceed
the published montly average for the calendar month 2 months before the rate is determined
All of the following are true of credit life EXCEPT
The insured names the beneficiary
A viatical settlement is a transaction outside of the life insurance company where the owner sells the life insurance policy for which of the following?
A percentage of the face amount of the policy
According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT
If an applicant is declined for an insurance policy, he or she has no right to know what was in the report
