Life Pass Now Exam
Who is responsible for reporting termination of debt to insurer
Creditor
term fixed in fixed annuity refers to all except
Death Benefit
Which of the following in NOT true regarding Certificate of Authority
It is issued to a group of insurance participants
Insured owns $50,000 whole life policy. At age 47, decides to cancel his policy and exercise the extender term option for policy's cash value which is $20,000. What is face amount?
$50,000
minimum percentage of a licensee's total volume of premiums in a calendar year that must come from business other than controlled business?
25%
Commissioner issues cease and desist order and immediately request hearing, how many days must hearing be held?
30
Number of credits required for fully insured status for social security disability benefits
40 Credits
How long can insurance company defer loan request?
6 Months
Commissioner of insurance issues a cease and desists order to an agent, if agent wishes to contest, how many days do they have to request?
60 Day
What is the required number of participants in a contributory group plan?
75%
Another term for authorized insurer?
Admitted
Lease expensive first-year premium
Annually Renewalable TErm
All of the following are duties and responsibilities of producers at the time of application except?
Change any incorrect statement on application by personally initialing next to the corrected statement
Insurance professional that advises a client regarding the benefits of the policy for a fee is called a?
Counselor
What happens when a policy is surrendered for its cash value?
Coverage ends and policy cant be renewed
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered
Discrimination
Fixed annuities provide all except?
Hedge against inflation
Annually renewable term polices provide a level death benefit for a premium that?
Increases Annually
Components of a universal policy?
Insurance and cash account
Which is not an example of third party ownership?
Insured borrowers money from the bank and makes collateral assignment as part of the benefit to secure the loan
Temporary license holder can receive a commission from a sale made to all of the following except?
License holder's sister-in-law
Client wants both protection and savings from insurance, and is willing to pay premiums until age 65, what is the right policy?
Limited Pay whole life
On a participating insurance policy issued by a mutual insurance company, dividends paid to policy holders are?
Not taxable since IRS treats them as a return of the portion of the premiums paid
Which of the following best describes what the annuity period is?
Period of time during which accumulated money is converted into income payments
All the following would be the difference between qualified and nonqualified retirement plans except
Taxation on accumulation (always deferred in both)
The policy owner 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 providing proof of insurability
All of the following statements apply to temporary licenses except
They allow licensees to sell new polices
In a survivorship life policy, when does the insurer pay the death benefit
Upon the last death
Which of the following products requires a security licenses?
Variable Annuity
If a policy owner surrenders his life insurance policy that has been in force for 5 years within 60 days after premium date, what will the insurer be required to pay?
cash surrender value
If an employee terminates their group coverage, they cannot?
convert to permanent individual coverage (only if employer terminates)
All of the following are requirements of a qualified plan except
plan must provide offset for social security benefits
