Pass Now Test

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

Under which of the following circumstances would an insurer pay accelerated benefits?

An insured is diagnosed with cancer and needs help paying for her medical treatment.

What type of life insurance is most commonly used for group plans?

Annually renewable term

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?

Automatic premium loan

Graded-Premium Whole Life policy premiums are typically lower initially, but gradually increase for a period of 5 to 10 years. After the period of increase the premiums will

Be level there after

Which of the following is a feature of a variable annuity?

Benefit payment amounts are not guaranteed.

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

All of the following are duties and responsibilities of producers at the time of application EXCEPT

Change any incorrect statement on the application by personally initialing next to the corrected statement.

Which of the following is NOT typically excluded from life policies?

Death due to plane crash for a fare-paying passenger

Renewal fees for all licenses are the same as the initial license. However, late application for renewal of a license requires a fee of

Double the original license fee.

In group life policies, a certificate of insurance is given to

Each insured person

The Commissioner is placed in office by

Election.

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

Equal to the original policy for as long a period of time that the cash values will purchase.

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.

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

Erase the incorrect answer and record the correct answer

All of the following are dividend options EXCEPT

Fixed-period installments.

When would a misrepresentation on the insurance application be considered fraud?

If it is intentional and material

Which of the following statements regarding HIV testing for insurance purposes is NOT true?

Insurers are barred from requesting HIV testing.

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

Interest only option

Underwriters review applications for insurance and the information contained therein so as to NOT

Issue a policy that would insure a pending loss.

Which of the following is TRUE regarding the accumulation period of an annuity?

It is a period during which the payments into the annuity grow tax deferred.

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date earlier than the date of the issuance of the policy.

Which of the following is TRUE regarding the annuity period?

It may last for the lifetime of the annuitant.

What type of whole life insurance policy has premiums that are adjusted so that during the first years of the policy, the premiums are lower than those of a straight whole life policy, and in subsequent years the premiums are higher than those of a straight whole life policy?

Modified life

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

Notice Regarding Replacement

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid-up additions

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

The agent is known as the "Field Underwriter" because of the information he/she gathers for the insurer. This helps the insurer

Pre-select applicants that would present the lowest risk of loss for the insurer.

In term policies, what happens to the premium throughout the term of the policy?

Premium always remains level.

Which of the following will be included in a policy summary?

Premium amounts and surrender values

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount.

Agent Jones offers his client free tickets to the Super Bowl game in exchange for the purchase of an insurance policy. Agent Jones is guilty of

Rebating

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

Respond to the consumer's complaint.

Which of the following policies would be classified as a traditional level premium contract?

Straight Life

Which of the following is called a "second-to-die" policy?

Survivorship life

Which of the following may NOT be included in an insurance company's advertisement?

That its policies are covered by a state Guaranty Association

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

If a policyowner wants to take out a loan from a life insurance policy, how much can he borrow?

The amount equal the cash value

Which of the following is TRUE regarding variable annuities?

The annuitant assumes the risks on investment.

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

The balance of the loan will be taken out of the death benefit.

If a life insurance policy has an irrevocable beneficiary designation,

The beneficiary can only be changed with written permission of the beneficiary.

An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,

The beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for.

What does credit life and health insurance cover?

The life and disability of a debtor during the time a loan is outstanding

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract.

All of the following are true about variable products EXCEPT

The premiums are invested in the insurer's general account.

Which of the following statements is TRUE concerning irrevocable beneficiaries?

They can be changed only with the written consent of that beneficiary.

Which employees of an insurance company are responsible for the final risk selection?

Underwriters

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

Universal life

If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?

0%

When a producer ceases to maintain residency in this state, within how many days must the producer return the license to the Commissioner?

10 days

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

A SEC registration

Which of the following persons is required to hold an insurance producer license?

A person who negotiates insurance contracts

The term "illustration" in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy.

If a producer allows his or her license to lapse, what is the maximum time period during which the producer can reinstate the license without having to retake the examination?

12 months

In Oklahoma, how old must an individual be in order to purchase life insurance on his or her own life?

15

When an individual life insurance policy is being replaced by an insurer using an agent, the policyowner must be given an unconditional right to a full refund of premiums if the policy is returned within

20 days

The duty (or duties) of an agent where replacement is involved include

All of the above

Representations are written or oral statements made by the applicant that are

Considered true to the best of the applicant's knowledge

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated.

Which of the following is true regarding the insurance amount in a credit life policy?

Creditor can only insure the debtor for the amount owed.

J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent was vacationing at the time the policy was issued, so J did not receive the policy until February 18. J decides that he does not want the policy. When would J need to return the policy to the insurer in order to receive a full refund of premium paid?

February 28th, or 10 days after the time the policy is delivered.

Your client's employer does not offer a company-wide annuity contract. What type of annuity contract could your client obtain?

Individual

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?

Inspection Report

An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)

Inspection report

When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will

Issue the policy anyway and pay the face value to the beneficiary.

An insured purchases a policy in 2008 and died in 2013. The insurance company discovers at that time that the insured concealed information during the application process. What can they do?

Pay the death benefit

What describes the specific information about a policy?

Policy summary

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called

Single premium whole life

An insurer is on the verge of bankruptcy and can no longer pay the claims to its insureds. Which of the following entities will make sure that the insureds receive their money?

The Oklahoma Life and Health Insurance Guaranty Association

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

The amount of premium payment

What is the purpose of establishing the target premium for a universal life policy?

To keep the policy in force

What is the purpose of a fixed-period settlement option?

To provide a guaranteed income for a certain amount of time

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

What is the name of the insured who enters into a viatical settlement?

Viator

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Without receiving written consent from an insurance regulatory authority.

According to Oklahoma law, the term "insurance agent" is synonymous with which of the following terms?

"Insurance producer"

An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

$100,000

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and survivor

What was created to keep telemarketers from calling consumers who do not wish contacted?

National do not call registry

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

An insured owns a term policy with a guaranteed renewable option. When the end of the policy draws near, the insured answers medical questions in order to prove insurability and qualifies for a discounted premium rate. Which option best describes this scenario?

Re-entry

An insured committed suicide one year after his life insurance policy was issued. The insurer will

Refund the premium paid

All of the following are criteria for payment of an accelerated benefit EXCEPT

Restrictions are permitted on the use of the proceeds of an accelerated benefit.

If an agent fails to obtain an applicant's signature on the application, the agent must

Return the application to the applicant for a signature.

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

Which of the following would provide an underwriter with information concerning an applicant's health history?

The Medical Information Bureau

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

The interest is not taxable since it remains inside the insurance policy.

All of the following statements concerning dividends are true EXCEPT

Dividend amounts are guaranteed in the policy.

Which of the following information about the applicant is NOT included on Part 1 of the application for insurance?

Medical background

The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom?

The producer

Which of the following would NOT be a violation of state insurance regulations?

Agent C uses her license to write only business other than controlled.

Which of the following is/are required for a person to serve as the Commissioner of Insurance in Oklahoma?

All of the above

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

Deferred

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?

Depreciation period

Which of the following best describes an insurance company that has been formed under the laws of this state?

Domestic

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Fixed period

The Ownership provision entitles the policyowner to do all of the following EXCEPT

Set premium rates

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract.