(Missed) Life Insurance #2
A producer was found guilty of a 3rd violation of the Insurance Code. What would be the monetary penalty he will have to pay?
$10,000
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?
$200,000
The maximum the Insurance Guaranty Association will pay to an individual for life insurance death benefits is
$500,000.
The company owes premium money to the insured. The insurer gave the funds to the producer to return to the insured. Within how many days must the producer pay the insured?
5
Your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy would you recommend?
An endowment policy
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?
Any form of life insurance
An insurance company and insured are settling a lawsuit involving a life insurance policy. The insurer believes that the application would help to establish material facts in the case. Which of the following is true?
Applications can only be used in court cases if they are attached to or endorsed upon the issued policy.
What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?
Common Disaster Clause
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?
Cost of Living Rider
A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called
Cost of living rider.
Which of the following types of insurance would be written by a limited lines agent?
Credit insurance
Which of the following is NOT typically excluded from life policies?
Death due to plane crash for a fare-paying passenger
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing term
All of the following statements concerning dividends are true EXCEPT
Dividend amounts are guaranteed in the policy.
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
Equity Indexed Annuity.
Applicants for surplus lines authority must fulfill all of the following requirements EXCEPT
Hold a bond as a condition for licensure.
What type of insurance would be used for a Return of Premium rider?
Increasing Term
Which of the following policy components contains the company's promise to pay?
Insuring clause
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report.
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will
Pay the policy proceeds only if it would have issued the policy.
Which of the following riders would NOT cause the Death Benefit to increase?
Payor Benefit Rider
Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must
Respond to the consumer's complaint.
Which of the following best details the underwriting process for life insurance?
Selection, classification, and rating of risks
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
Size of each installment
Proceeds from life insurance policies are protected from the beneficiary's debts under all of the following circumstances EXCEPT
Some of the premiums were paid in an attempt to defraud creditors.
All of the following would be different between qualified and nonqualified retirement plans EXCEPT
Taxation on accumulation
An insurer goes bankrupt and is unable to pay on any of its insureds' claims. Which of the following will happen?
The claims will be paid by the state Life and Health Guaranty Association.
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 providing evidence of insurability.
If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?
The death benefit will be smaller.
Which of the following is INCORRECT concerning a noncontributory group plan?
The employees receive individual policies.
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
The insured may renew the policy for another 10 years, but at a higher premium rate.
The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT
The insured's age at death.
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary.
A small employer owns a group health insurance policy. The employer neglects to pay the premium by the payment due date. The employer fails to pay the premium yet again by the end of the grace period. Which of the following will happen?
The policy will terminate.
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
With the policy.
