Questions missed
If a license intentionally violates the insurance code what is maximum monetary penalty that he or she would be required to pay?
$100,000
What is the maximum penalty for habitual willful noncompliance with the fair credit reporting act?
$2,500
How long must a life insurance policy be in force before the owner can enter into a viatical settlement contract?
2 years
If an insurer accepts applications from a nonappointed producer, the insurer must either reject the applications or appoint the producer within how many days?
30
For an individual long term care policy there is an annual dollar limit for tax deductions that is based on what?
Age
Under the cost of living rider what will happen to the face amount in the policy?
An increase with the inflation rate
What type of life insurance is most commonly used for group plans?
Annually renewable term
Who is not required to be appointed by an insurer?
Broker
An insured and the beneficiary are both killed in a fatal accident. What provisison pressumes the insurer survived the beneficiary?
Common disaster clause
Which nonforfeiture option has the highest amount of insurance protection?
Extended term
What does "level" refer to in level term insurance?
Face amount
How might someone cover the extra expenses of child care and home related costs?
Family term insurance
An insurer invests the cash value of a fixed annuity which account is the money put?
General
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?
Insured original age is used
Current assumptions whole life policies are sensitive to what?
Interest rates
Why is relying solely on employer group life insurance generally considered inadequate for most individuals needs?
It is financially insufficient to cover end of life expenses
An employee wants to join a group insurance plan. In order to avoid providing insurability, what must the applicant do?
Join during the enrollment period
A beneficiary decides to take a settlement option that will pay the largest amount per payment insuring that after the beneficiary's death no monies will be paid out to any decandants. The settlement option is
Life income (straight life)
What is the default settlement option for life insurance policy proceeds
Lump sum
Agents may he found guilty of defamation if they make false statements that are intended to ________
Maliciously critique another insurance company
Who would be eligible to obtain SGLI?
Military personnel
Willful violations of insurance laws of this state are considered
Misdemeanors
What type of whole life insurance policy has premiums that are adjusted so that during the first years of the policy, the premiums are lower than those of a straight whole life policy, and in subsequent years the premiums are higher than those of a straight whole life policy?
Modified life
What best describes gross annual premium?
Net premium plus expenses
Can a whole life insurance policy be exchanged for a term insurance policy? 1035 exchange
No
What is the usual federal income tax treatment of individual life insurance?
Nondeductible premiums, nontaxable death benefits
Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive
Nothing the payments will cease
An individual owns a participating whole life policy and uses her policy dividend to buy more or the same type of coverage for herself. What dividen payment option did she use?
Paid up additions option
A person is required to be licensed to do which of the following?
Receive commissions
When an applicant makes a material statement on the insurance application, the statement is considered to be a ______
Representation
An insurer is issued a cease and desist order for misrepresentation. What is the insurer required to do to comply with the order?
Stop the action in violation
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor protection
Group AD&D policies may be deducted by whom and under which deduction category?
The employer under business expenses
When a life insurance policy continues because of a payor benefit clause it means
The owner of the policy is disabled or died
What happens if a deferred annuity is surrendered before the annuitization period?
The owner will receive the surrender value of the annuity
How does the per capita rule apply to proceeds from the life insurance policy?
The proceeds are divided equally among living primary beneficiaries
What occurs immediately after the application is submitted and the intial premium is paid?
The underwriting process begins
Annuity contracts grow tax deferred. That means that
There is no current income taxation upon the growth in the annuity
An insureds flexible premium is invested into a separate account. What type of insurance product does the insured have?
Variable Universal Life
