NY life insurance examFX practice
Which of the following life insurance policies would be considered interest sensitive
Universal Life
Which type of life insurance policy allows the policy owner to pay more or less than the planned premium
Universal Life
The needs approach to calculating the amount of life insurance needed is based on
Predicted needs of a family after the premature death of the insured
A married couple wants to include the entire family in their whole life policy under one rider, which of the following writers will help them achieve that goal A other insurance term B inclusive term C children's term D family term
Family term
An illustration used in the sale of a life insurance policy must include a label stating
"Life insurance illustration"
Robert wants to ensure his four year old son Tyson. Robert currently has a policy and it's only for $400,000. He's getting ready to lower that amount to 100,000 next year what is the maximum amount that he can purchase and Tyson
$100,000
Before it adjuster license may be issued an applicant must file a surety bond with the superintendent in the amount of
$1000
If an individual willfully, violating provisions of the fair credit reporting act, what is the maximum civil penalty
$2500
What is the maximum fine for violating a cease and desist order
$5,000
The validity of coverage under a life insurance policy may not be contested except for nonpayment of premium after the policy has been in force for at least how many years
2 years
If a consumer request additional information concerning investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
According to the life insurance replacement regulations, which of the following would be an example of a policy replacement A elapsed policy is reinstated with specific time frame B a policy is re-issued with a reduction in cash value C a term policy expires and the insured buys another term life policy D Turman Sherance is exchanged to a whole life policy
A policy is re-issued with a reduction in cash value
When an annuity is written, whose life expectancy is taken into account?
Annuitant
Which of the following is not fundable by annuities
Death benefits
Which of the following types of insurance policies is most commonly used in credit life insurance
Decreasing term
Which of the following is not a standard exclusion in life insurance policies A hazardous occupation B war in military service C aviation D disability
Disability
Variable life insurance is regulated by all of the following entities, except A financial industry regulatory authority finra B do US Department of treasury C the securities and exchange commission D the department of insurance or financial services
Do US Department of treasury
When life insurance proceeds are used to pay inheritance taxes in federal estate taxes it is known as
Estate conservation
The face amount of an indexed whole life policy does what A is half the cash value B remains the same as long as the policy is in force C is double to cash value D increases annually to keep pace with inflation
Increases annually to keep pace with inflation
What type of insurance would be used for a Return of Premium rider?
Increasing Term
What does the guaranty association guard against?
Insurer insolvency
As an insurers field underwriter, a producer has all of the following responsibilities, except A soliciting insurance contract, B, collecting premiums C issuing policies on behalf of the insurer D completing applications
Issuing policies on behalf of the insurer
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
A rider attached to a life insurance policy that provides coverage on the insurance family members is called the
Other-insured rider
Which dividend option will increase the death benefit
Paid-up additions
What is the difference between a straight life policy and a 20 pay whole life policy?
Premium payment period
Which services are associated with standard & poor's and am best
Rating the financial strength of insurance companies
Which nonforfeiture option provides coverage for the longest period of time?
Reduced Paid-Up
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability. which policy provision allow this?
Reinstatement provision
What method do insurers use to protect themselves against catastrophic losses?
Reinsurance
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
What is not different between qualified and non qualified retirement plans
Taxation on accumulation
Which type of insurance policy provides pure life insurance protection without a savings element
Term
Upon the surrender of a life insurance policy any cash value accumulated in excess of the premium payment is
Text as ordinary income
Which of the following is true regarding variable annuities
The annuitant assumes the risks on investment
All of the following are true about group, life insurance, except A the employee is the insured B the employer is the beneficiary C it is usually written as an annual renewable term insurance D evidence of insurability is usually not required
The employer is the beneficiary
What happens to the face amount of a whole life policy if the insured reaches the age of 100
The face amount is paid to the insured
When an insured terminates membership in the insured group, the insured can convert two
Whole life, without proof of insurability
Who does the spendthrift clause in a life insurance policy protect
beneficiary
What type of an interest rate is guaranteed in universal life policies
contract interest rate
The automatic premium loan provision is activated at the end of the
grace period
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?
implied
To purchase insurance the policy owner must face the possibility of losing money or something of value in the event of loss. What is this concept called?
insurable interest
Who bears all of the investment risk in a fixed annuity?
insurance company
Which of the following insurance options would be considered a risk sharing arrangement
reciprocal
AnIRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed
10%
In order for a business partner to be eligible for a keogh plan, he or she must work full-time and on, at least how much of the business
10%
How long must insurers keep records of claims
6 years
Which of the following named beneficiaries would not be able to receive the death benefit directly from the insurer in the event of the insurer's death
A minor son of the insured
Which of the following is a feature of a variable annuity
Benefit payment amounts are not guaranteed
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
All of the following apply to defined benefit plans except
Contributions are tied to the company profits.
The term fixed in an annuity refers to all of the following except A. equal annuity payments B. amount in length of payments C.death benefit D. guaranteed rate of interest
Death benefit
Which of the following would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount
Buy sell agreement
All of the following are true of key person insurance except
The plan is funded by permanent insurance only.
Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life which settlement option. Should this policy owner select
Joint and survivor
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited-pay life
What does an annuity protect the annuitant against?
Living longer than expected
All of the following statements are true regarding installments for a fixed amount except
The payments will stop when the annuitant dies.
Which of the following is a key distinction between variable whole life and variable universal life products
Variable whole life has a guaranteed death benefit
If a hearing is scheduled for a producer who has violated regulations regarding unfair trade practices, the superintendent must send a prior notice within how many days of the hearing
10 days
Which of the following would be required to become licensed as an insurance producer? A a person who's activities are limited to insurance advertising B an officer of an insurer, who does not receive commissions C a customer service representative solicits no more than one policy a year D agency supervisor whose actions to not include selling insurance
A customer service representative, who solicit no more than one policy a year
In order to get a nonresident license in the state, an agent must
Apply and pay a fee to a nonresident state that reciprocates
All of the following statements are true, regarding an ordinary, straight life policy, except A it is funded by a level premium B build cash value C if the insured lives to 100 the policy butchers in the face amount is paid to insert D it does not have a guaranteed death benefit
It does not have a guaranteed death benefit
In variable life and variable universal life insurance policies, who decides where premiums will be invested
The policy owner
Which of the following is a short-term annuity that limited the amounts paid to a specific fixed period or until a specific fixed amount is liquidated
Annuity certain
Which of the following is not true of section 1035 policy exchanges
Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30 days.
Which of the following methods of calculating the amount of life insurance need it takes into account, the insured salary and years until retirement A The needs analysis approach B an estate planning approach C a traditional planning approach D the human life value approach
The human life value approach
An agent except the premium payment 35 days after it's due telling the ensure that the policy will continue to remain in force. This is an example of what agent authority.
Apparent
Which of the following is incorrect regarding a $100,000 20 year level term policy
At the end of 20 years, the policy's cash value will equal $100,000.
Which of the following is true of a qualified plan
It has a tax benefit for both employer and employee.
Which of the following best describes annually renewable term insurance
It is level term insurance
Which of the following is not one of the independent reading services that publishes guides to insurance companies financial integrity? A NAIC B Fitch C AM Best D Moody's
NAIC
In which of the following circumstances would a contract between an insurer and prospective insured be legal A the applicant is a 13 year old middle school student B the applicant is heavily medicated in this having trouble focusing C the applicant has a prior felony conviction D the applicant is intoxicated at the time of the application
The applicant has a prior felony conviction
Which of the following would not be eligible for coverage under keep person? A the manager of a small store B the owner of the shop C the executive officer of a company D the pharmacist in a drugstore
The owner of a shop
Which of the following is true of level term insurance A the policy endow's at age 100 B the policy offers nonforfeiture values C it is temporary protection D the premium will increase or decrease based on current interest rates
It is temporary protection
All of the following statements are true, regarding installments for a fixed amount, except A value of the account in future earnings will determine the time period for the benefits B. This option pays a specific amount until the funds are exhausted C. The annuitant may select how big the payments will be D. The payments will stop on the annuitant dies.
The payments will stop when the annuitant dies
Which dividend option will increase the death benefit A reduced paid up B paid up additions C accumulation D extended term
B. Paid-up additions
Which of the following types of insurance is investment based has a level fixed premium and a non-guaranteed cash value A universal life B credit life C variable whole life D interest based life
Variable whole life
Which statement below is incorrect regarding the type of term insurance that fits best with the applicants needs What is a applicants wishing to pay off the mortgage? A Applicants wishing to pay off a mortgage Should they suffer a premature death might buy a decreasing term plan. B employers looking to provide cost-effective group life insurance, for their employees may choose annual renewable term C applicants who may require a larger death benefit in the future should buy convertible term insurance D applicants concerned with the increase in cost of living should purchase increasing term
Applicants who may require a larger death benefit in the future should buy a convertible term insurance
Life settlement contracts must be approved by
The superintendent of insurance
Which of the following is not an IRS requirement for a qualified retirement plan A the plan must satisfy vesting requirements B the plan must favor, shareholders C the plan must for be formally communicated to the employees D the plan must be permanent and approved by the IRS
The plan must favor shareholders
Which of the following statements is true regarding advertising it that the insurance guaranty association, would ensure payment of benefits, in the event of insure insolvency A it is an unfair trade practice to mention the association in advertisements B ensures may choose whether to mention the association in advertisement, but if they choose to do so, they must first pay a fee to the association C if insurance join the association, they will be protected financially, if their insurance become insolvent D all advertisements of an insurer must mention coverage by the association
It is an unfair trade practice to mention the association in advertisements
Which of the following is required to provide a notice of information practices to all applicants in policyholders A NAIC B THE UNDERWRITER C THE PRODUCER D THE DEPARTMENT OF INSURANCE
The producer
Which of the following terms refers to the non-taxable portion of each annuity benefit payment A interest B principal C cost base D tax base
Cost base
All of the following statements about indexed whole life insurance are correct, except A there is a guaranteed minimum interest rate B the cash value depends on the performance of the equity index C the policy face amount remains level throughout the life of the policy D the premium is fixed
The policy face amount remains level throughout the life of the policy
What characteristic makes whole life permanent protection
Coverage until death or age 100
Which of the following statements is correct regarding a whole life policy? A cash values are not guaranteed. B the policy Premium is based on the attained age. C the death benefit may increase or decrease during the policy. D the policy owner is entitled to policy loans.
The policy owner is entitled to policy loans
What method is used to determine the taxable portion of each annuity payment
Exclusion ratio
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
Whenever the superintendent has a reason to believe that a person has violated, or is about to violate any unfair method of competition or an unfair claim or practice here she may serve a statement of the charges, and a notice of hearing what is the timeframe
10 days
Which nonforfeiture option has the highest amount of insurance protection?
Extended term
What does "level" refer to in level term insurance?
Face amount
And 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 forget to pay the premium 10 days later his policy is still in effect and has not left which policy provision allowed for this
Grace. Period.
Which of the following when attached to a permanent life insurance policy allows the policy owner to customize the policy to provide an additional amount of temporary insurance on the insured or allows amounts of temporary insurance to cover other family members
Term rider
In life insurance policies cash value increases
Grow tax deferred.
If a loan request is for payment of duke premiums on the policy, how soon must the insurer issue a loan?
Immediately
S set up an individual retirement account that her employer is now contributing to her employer contributions are not included in her gross income. What kind of retirement plan does us have?
SEP
When applicants submit, prepaid applications, they will receive a A statement of good faith B conditional receipt C binding agreement D entire contract
Conditional receipt
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
And insured covered by a life insurance policy with an accidental death. Rider was injured injured in an accident and died 120 days later the policy had $50,000 coverage with triple indemnity what was the beneficiary receive A the amount equal to the cash value B the face amount C $150,000 D $100,000
The face amount
If the owner of a whole life policy who is also 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?
The full death benefit
All of the following statements about indexed whole life insurance are correct, except A the cash value depends on the performance of the equity index B the policy face amount remains level through the life of the policy C the premium is fixed D there is a guaranteed minimum interest rate
The policy face amount remains level throughout the life of the policy
