Missed questions on Life Practice Test

In the event of an admitted life insurer's insolvency, the maximum obligation of the Oklahoma Life and Health Insurance Guaranty Association for all cash surrender values under life insurance policies covering any one life is

$100,000

Each insurer must maintain at its principal office a complete file containing every printed, published or prepared advertisement of its policies for a period of at least

4 years

describes the process of policy delivery?

After the insurer receives the application, it is forwarded to the underwriting department. After the application is approved and the policy is issued, the policy is delivered either in person or by mail.

Under what circumstances may a licensed agent hold a consultant's license

Agents may not hold a consultant's license and producers license at the same time

Whole life insurance policies mature when the insured reaches the age of 100. If the owner of a whole life policy (the insured) dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

Beneficiary will receive a full death benefit.

Alexander has a policy with his ex-wife as its beneficiary. What provision allows him to change the beneficiary to his new wife?

Change of beneficiary provision

An agent selling variable annuities must be registered with

FINRA; variable annuities are considered to be securities, a person must be registered with the FINRA

What does "level" refer to in level term insurance?

Face amount

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?

Fraud

In comparison with the other primary types of term insurance sold, what kind of premium does level term have?

Highest

Norma Jean is joining a group insurance plan. In order to avoid proving insurability, what must Norma Jean do?

Join during the enrollment period

If the policyowner defaults on any premium payment for a life insurance policy, the insurer must notify the policyholder in writing as to the policyholders options. This notification form must be provided to the policyholder within

Notification must be provided to the policyholder within 3 months

the major difference between a Stock Company and a Mutual Company?

Ownership

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

Paid-up option

decreasing term policy

Premiums remain level and Only the face amount decreases

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up,provides protection until the insured reaches 100

Upon policy delivery, the agent may be required to obtain

Signed waiver of premium.

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

One-Year Term Dividend Option

The dividend is used to purchase an additional policy in the amount of the cash value.

Who bears all of the investment risk in a fixed annuity?

The insurance company

The insurance company underwriter could find information concerning the personal activities and character of an applicant from which of the following reports?

agent's report

Universal Life characteristics

insurance company reserves the right to adjust the mortality charges and/or interest rate The cash account accumulates on a tax-deferred basis is a combination of term insurance and a separate savings account joined in a single contract.

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

receive either the amount paid into the plan or the cash value of the plan, whichever is greater

While the annuity is still in the accumulation stage, the annuity owner is killed in a car accident. The beneficiary will

receive either the money paid into the annuity or the cash value, whichever is greater