Pt2

S buys a $50,000 whole life policy with a $50,000 accidental death and dismemberment rider. S died 1 year later of natural causes. How much will the insurer pay the beneficiary?

$50,000

After passing the state exam, an applicant is required to obtain the appropriate licenses within calendar days?

183

If an insurance agency has moved its office to a new location, the Bureau of insurance MUST be notified within____ calendar days of the move.

30

Which of these is an element of a variable life policy?

A fixed, level premium

When a policyowner cash surrenders a universal Life insurance policy in its early years, this may be considered a red flag for a(n)

Anti-Money Laundering violation

The Automatic Premium Loan provision is designed to

Avoid a policy lapse

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

Contributory

Additional coverage can be added to a whole life policy by adding a(n)

Decreasing Term rider

P, age 50, purchased an annuity that p will fund with $500/ mth for years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase

Deferred

What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of the 30 years?

Family Maintenance policy

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?

Family maintenance policy

If an administration fee is charged by an agent, the customer's written signature is REQUIRED

In every occurence

A 55 year old recently received a $. 30,000 distribution from a previous employer 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?

Income taxes plus a 10% penalty tax on $30,000

Which of these is not considered to be a right given to a policyowner?

Modify a provision in the insurance contract.

During a sales transaction, which of the following forms must be completed by an agent if the customer has existing insurance coverage?

Notice Regarding Replacement of life insurance or annuity

Which of the following does the commissioner of insurance NOT have the authority to examine its business records?

Policyholders

An agent offers an applicant something of value not mentioned in the contract as an inducement to purchase an insurance policy. This illegal act is called

Rebating

Under Virginia Law, all of these are required to be kept by licensed agents EXCEPT

Records of the premium quotations that were rejected by the insured

Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?

Taxed as ordinary income

D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $ 100,000 whole life policy contains a war exclusion clause. How much will D'S beneficiary receive?

The full face amount.

Why is an applicant's signature required on a life insurance application?

To attest that the statements on the application are accurate to the best of the applicant's knowledge.

Which situation does NOT require an agent to provide a suitability statement to the annuity company

When an agent discusses annuities in general with a client, but no specific recommendation is made

Variable whole life insurance can be described as?

both an insurance and securities product

M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect, EXCEPT?

free-look period has expired.

In life insurance, the needs approach is used mostly to establish?

how much life insurance a client should apply for

The type of annuity that can be purchased with one monetary deposit is called a(n)

immediate annuity

A contract owner terminates an annuity before the income payment period begins. The owner will then receive?

the current contract surrender value.

The amount of coverage on a group credit life policy is limited to?

the insured's total loan value

A level premium indicates?

the premium is fixed for the entire duration of the contract.