pre-exam

All of the following are true regarding the guaranteed insurability rider EXCEPT

Additional Premium

Which of the following would NOT be a violation or state insurance regulation

Agent C uses his licensed to write only business other that controlled

Items stipulated in the contract that the insurer will not provide coverage for are found in the

Exclusion clause

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

A life insurance policy has a legal purpose if both of which of the following elements exists

Insurable interests and consent

All of the following are nonforfeiture options EXCEPT

Intrest ONLY

As a field underwriter, a producer is responsible for all of the following tasks EXCEPT

Issue the policy that is requested

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

Paid up addition

Under spouses and dependent coverage registration in Hawaii, all of the following statements are true except

Premuims must be paid in full by the covered employees

Which of the following is INCORRECT concerning a noncontributory group plan

The employees receive individual policies

Which of the following is NOT true regarding equity indexed annuities

They earn lower interests rates then fixed annuities

Which of the following is TRUE regarding the annuity period

It may last for the lifetime of the annuitant

A life insurance producer may share commission with

A licensed life insurance producer for the safe of a life insurance policy

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer the insureds dividends

A minor son of the insurance

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 statements are correct regarding credit life insurance EXCEPT

Benefits are paid to the borrowers beneficiary

Which of the following would be unique features of the policy that offers participation in surplus

Dividends

All of the following could be grounds of license suspension of revocation EXCEPT

Having a record of a misdemeanor to insurance

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

Illegal

Which of the following settlement options in the life insurance is known as straight life

Life income

What is the definition of an unilateral contract

One sided only one party an endorsable promise

In a life settlement contract, whom does the life settlement broker represents

The owner

Which of the following describes what the annuity period is

The personal of the time during which accumulated money is converted into income payments

The paid up addition option uses the dividends

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

What kind of policy allows withdrawals or partial surrenders

Universal Life

What are the two components of a universal policy

insurance and cash account

What is the surplus lines insurance

Insurance placed with an unauthorized insurer

Which of the following would a legal document which would dictate who can buy a deceased partners share of a business and for what amount

Bull sell agreement

Combining collected premium and producers own funds in one account is called

Commingling

The life insurance policy clause that prevent an insurance company from denying payment of a death claim after a specified period of time is known as the

Incontestability Clause

Your client wants both protection and savings from the insurance and is waiting to pay premium until retirement at age 65. What would the right policy for the client

Limited pay whole life

Paul is producer in California and wants to become producer in Hawaii. The Commissioner will waive certain examination requirements, provided that california will waive these same requirements if a Nebraska a producer sought license in Hawaii. What term is used to describe this phenomenon

Reprocity

For how long are licenses required to keep record to continuing education completion

4 years

An insurance producer just sold insurance policy to his sister. What kind of business is this

Controlled

A 60 year old participant in a 401 (k) plan takes a distribution and rolls it an IRA within 60 days. Which of the following is true

The amount of the distributions is reduced by the amount of 20% withholding tax

Which of the following is TRUE for both equity indexed annuities and fixed annuities

They have a guaranteed minimum interest rate

If an insureds work has earned 40 quarters of coverage, the workers statues under social security disability is

Fully insured

A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 month. 2 months after that. What type of annuity is it?

Immediate

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy

It is only taxable if the cash value exceeds the amount paid for premiums

Nonforfeiture value guarantee which of the following for the policy owner

That the cash value will not be lost

The primary beneficiary of her husband's life insurance policy found that no settlement option was stated on the date of her husbands death. Who will select the settlement option in the case

The benificiary

In a case where the primary beneficiary predeceases the insured, in the event of the insureds death, the death benefit proceeds will be paid to

The contingent beneficiary

Which of the following types of policies allows for a flexible premium and a variable investment component

Variable universal life insurance

In life insurance policy replacement, who is responsible for not notifying the existing insurer about the replacement

Replacing insurer

Which of the following is nOT true regarding the annuitant

The annuitant cannot be the same person as the annuity owner

All of the following settlement are true regarding tax-qualified annuities EXCEPT

Employees contributions are not tax deductible

When a reduced paid up nonforfeiture option chosen, what happens to the face amount of the policy

It is deducted to the amount of what the cash value would buy as a single premium

All of the following statements concerning dividends are true EXCEPT

Dividends amount are guaranteed in the policy

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from mutual bonds

What is the minimum of insureds required for group life coverage to be issued to a trade associaten

25

All of the following is a generic cosumer publication that explains life insurer in the general terms in order to assists the applicant in the decision making process

Buyers Guide

Which of the following information about the application is NOT include in the general information section of the application for insurance

Medical Background

Which of the following would help prevent universal life policy from lapsing

Target premium

How must a replacing producer respond to an applicant wishing to replace existing life insurance

The producer must provide the application with a notice regarding replacement