Random Questions
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained ?
3 Days
The equity in an equity index annuity is linked to
An index like Standard & Poor's 500
A life insurance policy has a legal purpose if both of which of the following elements exits?
Insurance interest and consent
Who makes up the Medical Information Bureau ?
Insurers
Variable Life Insurance is based on what kind of premium ?
Level Fixed
Another name for a substandard risk classifications
Rated
Which of the following best details the underwriting process for life insurance?
Selection, classification, and rating of risk
Which of the following is called a "secnd0-to-die policy?
Survivorship life
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?
The policy will interpreted as if the insurer waived its right to have an answer on the application
Which of the following types of polices allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover premium amount?
Universal Life
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
To sell variable life insurance polices, and agent must receive all of the following EXCEPT
A SEC registration
The term "fixed" in a fixed annuity refers to all of the following EXCEPT
Death benefit
The responsibility of making certain that an application for insurance is filled out, correctly and the best of is or her knowledge is the responsibility of whom?
The Producer
Which of the following is TRUE regarding variable annuities?
The annuitant assumes the risks on investment
The policyowner of an adjustable life 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
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.
Which of the following is NOT true regarding a Variable Universal Life policy?
The death benefit is fixed
All of the following are true regarding a decreasing term policy EXCEPT
The face amount steadily declines throughout the duration of the contract
All of the following are tue about variable products EXCEPT
The premiums are invested in the insurer's general account
Which of the following is a feature of carriable annuity?
Benefit payment amounts are not guaranteed
What is the purpose of the buyer's guide?
To follow the consumers to compare the cost of different policies.
All of the following are duties and responsibilities of producers at the time of application EXCEPT
Change any incorrect statement on the application by personally initialing next to the corrected statement.
Which type of life insurance policy allows the policy owner to pay more or less that the planned premium?
Decreasing Term
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
Either the amount paid into the plan or the cash value of the plan, whichever is the lesser amount
Which policy component decreases in decreasing term insurance?
Face Amount
When would a 20-pay whole life policy endow?
When the insured reaches age 100
An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a coverage loss. What characteristic of an insurance contract does this describe?
Aleatory
All other factors being equal, the least expensive first-year premium payment is found
Annually Renewable Term
All other factors being equal, the least expensive first-year premium payment is found in
Annually Renewable Term
The full premium was submitted with the application for life insurance , and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process?
Buyer's Guide
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?
Conditional
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
Annually renewable term policies provide a level death benefit for a premium that
Increases annually
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies ad habits. What type of report is that?
Inspection Report
Which of the following best describes the MIB?
It is a non-profit organization that maintains underwriting information on applicants for life and health insurance .
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date earlier than the date of the insurance of the policy.
Which of the following best describes annually renewable term insurance ?
It is level term insurance
An insured had a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited-Pay Life
An inured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited-pay Life
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
Lower
Which of the following is another term for the accumulation period of an annuity?
Pay-in period
Which of the following is NOT a term for the period of time during which the annuitant or beneficiary receives income?
Pay-out period
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract
Which of the following best describes what the annuity period is ?
The period of time during which accumulated money is converted into income payments
All of the following are true about variable products EXCEPT
The premiums are invested in the insurer's general account
The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?
Conditional
When an inured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of report
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will
Pay the policy proceeds only if it would have issued the policy
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100
Single premium whole life
Which of the following is NOT true regarding the annuitant?
The annuitant cannot be same person as the annuity owner.
The president of a company is starting annuity and decides that his corporation will be the annuitant. Which of he following statements is true?
The annuitant must be a natural person
Which of the following is NOT true regarding Equity Indexed Annuities ?
They earn lower interest rates than fixed annuities
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
If a policy includes a free-look period of a t least 10 days, the Buyer's Guide may be delivered to the applicant
With the policy
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium
Which of the following is TRUE regarding the accumulation period of an annuity?
It is period during which the payments into the annuity grow tax deferred
