Primerica 5
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
In a life settlement contract, whom does the life settlement broker represent?
The owner
What is the purpose of establishing the target premium for a universal life policy?
To keep the policy in force
If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?
Unilateral
Which two terms are associated directly with the way an annuity is funded?
single payment or periodic payments
To which of the following policies would the state regulation on illustrations NOT apply?
An individual variable life policy
Under what conditions must an insured sign a Notice Regarding Replacement of Life Insurance or Annuity Form?
When replacing a policy with a different insurer that is under different ownership than the current company.
Within how many days may a person who is being examined by the Director for nonfinancial business practices request a hearing after receiving the examination report?
10 days
At what annual rate does interest of life insurance proceeds accrue from the date of death of the insured?
10%
How long must an insurer keep books and records of insurance transactions in the Premium Fund Trust Account?
7 years
A person in the process of becoming permanently licensed as a producer. A temporary producers license may be issued for a maximum period of
90 days
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 in premiums
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
unfair trade practice
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
THe Illinois Life and Health Insurance Guaranty Association is obligated to pay covered claims only if under the amount of
$300,000
Producers who broker insurance must file a bond along with the application for license. The bond must be issued in favor of the people of Illinois, and must be on a continuous form and for an amount equal to 5% of the premium brokered the previous year, NOT to exceed
$50,000
All of the following are dividends options EXCEPT
Fixed- period installments
All of the following statements about equity index annuities are correct EXCEPT
The annuitant receives a fixed amount of return
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
cash option
a business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decides to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?
collateral assignment
What is the timeframe for filing relevant Suspicious Activity Reports?
within 30 days of initial recovery
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Pay a reduced death benefit
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The customer's associates, friends, and neighbors provide the reports data
The Replacement Regulation does NOT apply to situations in which the total existing coverage to be replaced represents less than how much of the face amount?
$5,000
A producer receives notice that his license has been terminated. If the producer wants to have the changes reviewed in court, within what time period must the request be made?
30 days
In the event of a terminal illness or injury, accelerated benefits pay earlier than scheduled a portion of the policy's
Face Amount
What does "level" refer to in level term insurance?
Face Amount
What type of insurance would be used for a return of premium rider?
Increasing Term
Why is an equity indexed annuity considered to be a fixed annuity?
It has guaranteed minimum interest rate
Which of the following information about the applicant is NOT included in the General information section of the application for insurance
Medical Background
Which nonforfeiture option provides coverage for the longest period of time?
Reduced- paid up
Which of the following statements would be best described the difference between viatical settlements and accelerated death benefits?
Viaticals are funded by a third party, and Accelerated Death benefits are provided by the insurer that issued the original policy
If a licensed producer dies, the Director may issue a temporary license to that producer's representative for an initial period of
180 days
How many accounts must the Illinois Life and Health Insurance Guaranty Association maintain?
2 accounts: Life Insurance and Health Insurance
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
If an insured requires forms that are necessary to present a claim, within how many working days must the insurer provide the form?
15
Which policy component decreases in decreasing term insurance?
Face Amount
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
Which of the following is NOT a type of whole life insurance?
Level Term
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability.
A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband names as the
Revocable beneficiary
An agent uses an insurer's illustration. He obtains proper approval and does not change the illustration in any way. The illustration involves projected amounts, and the agent stipulates that the amount would not be guaranteed. Which of the following is true?
The agent must stipulate that the illustration is not part of the contract