max for candy policy

if a life insurance policy is purchased by someone who has no insurable interest in the insured, it is considered a. third-party ownership b. a specialized policy c. a STOLI policy. d.estate liquidation

C. A STOLI POLICY.

A legally acceptable attempt by an existing insurer to dissuade a current policy owner from the replacement of existing life insurance is called A. rebating B. retention C. conservation. D. solicitation.

C. conservation. conservation means any attempt by the existing insurer or its producers, or by a broker to dissuade a current policy owner from the replacement of existing life insurance or annuity.

a whole life policy is surrendered for a reduced-paid up policy. the cash value in the new policy will A. remain the same. B. decrease over time. C. reduce to the pre-surrender value. D. continue to increase.

D. continue to increase. the new policy continues to build its own cash value and will remain in force until the insured's death or maturity.

an agent delivers a policy to an applicant, who pays the initial premium but refuses to submit a statement of good health, which of the following terms test describes what the applicant has vidated? a. adhesion b. contractual agreement. c. consideration d. representation

c. consideration. the binding force in any contract is consideration. consideration on the part of the insured is the payment of premiums and the health representations made in the application, consideration on the part of the insurer is the promise to pay in the event of loss

an individual purchases a life insurance policy and lists his parents as the beneficiaries, he is able to Chang beneficiaries at any time, what type of beneficiary designation does the policy have? a. irrevocable b contingent c. primary d.revocable

d.revocable a revocable beneficiary can be changed by the policy owner at any time.

A distribution from an employer-sponsored retirement plan or from an IRA is eligible for a tax-free rollover if it is reinvested in an IRA within A. 60 DAYS. B. 90 DAYS. C. 100 DAYS. D. 30 DAYS

A. 60 days. To be eligible for a tax-free rollover, the distribution must be reinvested in an IRA within 60 days following the distribution and the plan participant must not take actual physical receipt of the distribution. unless the entire amount is rolled over, the part retained will be taxed as ordinary income.

Sammie is an agent with an insurer who markets numerous annuity products. Sammie is hoping to sell a certain product because the commissions are very lucrative. the client called sammie and all the sammie knows is the client has " a lot of money to invest". which of the following BEST describes what Sammie should consider in the is situation prior to taking any application from the client? A. is this investment suitable for the client based on her situation? B. Will the client refuse to provide the correct and needed suitability information? C. the client's knowledge of how annuity commissions are paid D. is this product going to guarantee the client the result she needs?

A. is this investment suitable for the client based on her situation? while it is important for a client to provide the truthfully provide the needed information to an agent, an agent is responsible for making a determination of suitability based on the information provided by the client.

a life insurance agent visits his service member friend on a military base. the friend introduces the agent to his next door neighbor, another service member, and the agent immediately begins a sales presentation. the presentation is A. permitted with the service member's introduction. B. allowed if no sale is made. C. a prohibited practice. D. An unethical practice.

C. a prohibited practice. regardless of location, it is considered a misleading and deceptive practice to solicit life insurance door-to-door to military service members. all sales presentations must be made after a prearranged appointment.

which dividend option will increase the death benefit? A. extended term B. reduced paid up C. paid-up additions D. accumulation

C. paid-up additions paid-up additions option uses the dividend to purchase small amounts of the same type of insurance as the original policy. the additional insurance is paid up by the dividend.

an insurance company has 30 agents that represent the company n its Northwest region. The agents each have their won satellite office in which they perform the agent duties. Numerous offices have developed marketing campaigns to increase sales. what is the company's duty regarding marketing communications in this example? A. ask the Commission for a temporary approval for the use of any disapproved ads. B. make a file copy of any marketing materials used with the public . C. maintain a client file for each of its insured parties. D. have the agent terminate all marketing campaigns immediately.

B. make a file copy of any marketing materials used with the public . An insurer must maintain a file of any marketing communications that are used with the public and make it available to regulators for inspection at their request.

if a policyholder takes a policy loan after the 4th year of the policy and dies before the loan is repaid, what portion of the death benefit will be paid? A. If a policy loan is outstanding at the time of death, no death benefit will be paid until the loan is repaid from the estate of the insured. B. any outstanding policy loan balance plus interest will be deducted from the policy death benefit. C. the full death benefit will be paid. D. any outstanding policy loan balance plus interest, plus 7.5% of the total loan , will be deducted from the policy death benefit.

B. any outstanding policy loan balance plus interest will be deducted from the policy death benefit. any outstanding policy loan balance plus interest will be deducted from the policy death benefit in the case of the death of the insured.

an agent delivers a policy to an applicant, who pays the initial premium but refuses to submit a statement of Good Health. which of the following terms best describes what the applicant has violated? A. adhesion B. contractual agreement C. consideration D. representation

. continue to increase. The binding force in any contract is consideration. consideration on the part of the insured is the payment of premiums and the health representations made in the application. consideration on the part of the insurer is the promise to pay in the event of loss.

an insured takes a policy loan from a whole life policy. during repayment, the interest rate changes significantly. which scenario is most accurate? A. an insurer cannot terminate coverage under an existing policy during a policy year in which the interest rate increased and subsequently caused the policy to lapse. B. an insured can change his variable interest rate to a fixed interest rate matching the rate quoted when he first took the policy loan, with a 2% penalty assessed at repayment. C. the insurer any file a hardship and terminate coverage without repaying the loan. D. an insurer can terminate coverage under an existing policy during a policy year in which the interest rate increased and subsequently caused the policy to lapse.

A. an insurer cannot terminate coverage under an existing policy during a policy year in which the interest rate increased and subsequently caused the policy to lapse. The insurer will notify the policy holder of the initial interest rate at the time of the first policy loan and of any change in interest rate at least annually. an insurer cannot terminate coverage under an existing policy during a policy year in which the interest rate increased and subsequently caused the policy to lapse.

what is the difference between a straight life policy and a 20-pay whole life policy? A. premium payment period B. the benefit settlement option C. the face amount and cash value D. policy maturity date

A. premium payment period A Limited-pay whole life policy, just like straight life, endows for the face amount if the insured lives to age 100. the premium is however, completely paid off in 20 years.

simply stated, the purpose of regulating life insurance and annuity contract replacement is A. to ensure that minimum standards of marketing conduct are being met by the insurers and their agents. B. to establish and provide minimum standards of sales production quota for major insurers. C. enable agents to maintain a continual marketing process with existing clients. D. to allow insurers an opportunity to market products with enhanced benefits to a larger market.

A. to ensure that minimum standards of marketing conduct are being met by the insurers and their agents. the goal of replacement regulation is to ensure that the public's financial interests are being protected in the replacement process and that any replacement has a valid purpose.

if a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement? A. "the author is the employee of the insurer" B. " paid endorsement" C. "commissioned advertisement" D. "insurer is not responsible for the contents of the testimonial"

B. "paid endorsement" The ad must disclose whether the person making the testimonial has a financial interest in the insurer. if the person is compensated, the testimonial must include "paid endorsement" or similar language

at what time may the insurance commissioner inspect records pertaining to insurance transactions? A. at least 5 years after the transaction B. at any business time in the 3 years immediately following the relevant transaction C. at least 3 years after the transaction D. at any business time in the 5 years immediately following the relevant transaction.

B. at any business time in the 3 years immediately following the relevant transaction. records must be kept available and open to inspection by the Commission, at any business time during the years immediately following the completed transaction.

all of the following are true of annually renewable term insurance except A. the death benefit remains level. B. the policy must be renewed no matter what happens to one's health. C. proof of insurability must be provided at each renewal. D. the premium increases each year.

C. proof of insurability must be provided at each renewal. ART is a form of level term insurance, in which the death benefit remains level and the policy may be guaranteed to be renewable each year without proof of insurability, but the premium increases annually according to the insured;s attained age.

an individual purchases a life insurance policy and lists his parents as the beneficiaries. he is able to change beneficiaries at any time. what type of beneficiary designation does the policy have? A. irrevocable B. contingent C. primary D. revocable

D. revocable A revocable beneficiary can be changed by the policy owner at any time.

what is the difference between a straight life policy and a 20-pay whole life policy? a. premium payment period. b. the benefit settlement option c. the face amount and cash value. d. policy maturity date.

a. premium payment period. a limited-pay whole life policy, just like straight life, endows for the face amount if the insured lives to age 100, the premium is, however, completely paid off in 20 years