Prepare to pass questions Life

A insurer that terminates a producer's appointment must inform the Commissioner within how many days?

30 days

Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to file for Social Security benefits?

5 months

An insurer may normally delay the payment of a cash value loan or surrender value for up to?

6 months

What is not true about noncontributory employee group life insurance?

A minimum number of employees is required to participate.

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n)

Accidental Death and Dismemberment rider (AD&D)

How long does the coverage normally remain on a limited-pay life policy?

Age 100

Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?

Aleatory

What action is taken when a policyowner uses a life insurance policy as collateral for a bank loan?

Collateral assignment

Insurance Policies are offered on a "take it or leave it" basis, which make them

Contacts of Adhesion

What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

Decreasing Term life policy

The payments on Q's annuity are no less than $250 quarterly. What type of annuity does Q own?

Flexible installment Deferred

What Nonforfeiture option continues a build-up of cash value?

Reduced Paid-up

At what point does a whole life policy endow?

When the cash value equals the death benefit

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. What statement would be correct?

20-Pay Life accumulates cash value faster than Straight life.

How does the commissioner attain their position?

Appointed by the Governor

D owns a Whole Life Policy that was purchased 10 years ago. If the premium payments suddenly stop and D takes no action, which Nonforfeiture Option will the insurer likely proceed with?

Extend Term-allows the policy owner to use cash value to purchase term insurance policy with a death benefit equal to that of the original whole life policy

Which settlement option does not involve the systematic liquidation of the death proceeds in the event of the insured's death.

Interest Only option does not involve the systematic liquidation of the death proceeds

K owns a Whole life policy. If K wants an increasing death benefit to protect against inflation, which dividend option would she chose?

Paid-Up Additional Insurance

K purchased a life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that policy will soon terminate unless a much-higher premium is paid because of the falling interest rates. This type of policy is known an a _____ policy.

Universal

Interest on life insurance proceeds is

required if the claim was not paid within 30 days of the date insurer received the claim