primerica review
increasing
A return of Premium term life policy is written as what type of term coverage?
Benefits are paid to the borrower's beneficiary.
All of the following statements are correct regarding Credit Life Insurance EXCEPT
expire in 90 days
Temporary licenses issued in Texas..
dividends from a mutual insurer
What could NOT be considered rebates if offered to an insured in the sale of insurance?
the policy is owned by the company True: the policy is owned by the EMPLOYEE
What is FALSE concerning the use of life insurance as an Executive Bonus
single payment or periodic payments
Which two terms are associated directly with the way an annuity is funded?
the employer is the owner and the beneficiary
Who is the owner and who is the beneficiary on a key person life insurance policy?
reduction of premium
according to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT?
common disaster
an insured and his wife are both involved in a head on collision. the husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?
cash option
an insured receives an annual life insurance dividend check. what best describes this arrangement?
the balance of the loan will be taken out of the death benefit
if a policy has an automatic premium loan provision what happens if the insured dies before the loan is paid back?
with the policy
if a policy includes a free look period of at least 10 days the buyers guide may be delivered to the applicant no later than...
the owner
in a life settlement contract, whom does the life settlement broker represent?
5
in order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
It is never legal to limit coverage based on marital status
in what situation is it legal to limit coverage based on martial status?
unemployment income
social security was NOT created to provide benefits for...
reduction of premium
the policyowner pays for her life insurance annually. until now she has collected nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. what option would allow her to do this?
speculative risks
the possibility of loss and gain
renewable term
the regulations regarding replacement apply to..
pure risk
there is only the possibility of loss
certificate of authority
to legally transact insurance in this state, an insurer must obtain a..
HR-10(keogh plan)
two attorneys operate their practice as a partnership. they want to start a program through their practice that will provide retirement benefits for themselves and three employees. they would likely choose....
cash surrender
under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policy owner?
the employees receive individual policies
what is FALSE concerning a noncontributory group plan ?
The business must be able to pay up tp $50,000 in the event that is proven to be negligent.
what is NOT a licensing requirement for a corporation in the state of Texas?
an insured borrows money from the bank and makes a collateral assignment of a part of death benefit to secure the loan.
what is NOT an example of third party ownership of a life insurance policy?
It is issued to group insurance participants.
what is NOT true regarding a Certificate of Authority?
Mentioning the Guaranty Association in advertisements is considered to be unfair trade practice
what is TRUE about an insurance advertises a health policy that is covered by the life and health insurance guaranty association. the advertisement includes a short list of benefits and approximate rates. the end of the advertisement includes statement that protection is provided by the guaranty association.
current assumption life
what is another name for interest sensitive whole life insurance?
to provide a guaranteed income for a certain amount of time
what is the purpose of a fixed settlement option?
6 months
what is the waiting period on a waiver of premium rider in life insurance policies?
it commences when the policy is delivered
what is true about the mandatory free look in a life insurance policy?
universal life option A
what policy would have an IRS required corridor or gap between the cash value and the death benefit?
grace period
what provision in an insurance policy extends coverage beyond the premium due date?
increasing term
what type of insurance would be used for a return of premium rider?
it is reduced to the amount of what the cash value would buy as a single premium
when a reduced paid up nonforfeiture option is chosen, what happens to the face of the policy?
conditional
when both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is..
Creditor requiring that a debtor buys insurance from a certain insurer
which of the following is NOT allowed in credit life insurance?
paid up option
which option is being utilized when the insurer accumulates dividends at interest, plus interest, and the policy cash value to pay the policy up early?
term rider
which rider, when attached to a permanent life insurance policy, allows the policyowner 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?
