Simulate your Exam
Which nonforfeiture option has the highest amount of insurance protection
Extended Term
If an insurer believes that it has received a fraudulent claim, it must notify the bureau and request an investigation within
60days
which of the following individuals engaged in the business of insurance would NOT be required to be licensed
A person who secures information for enrolling individual into a group insurance
An individual has just borrow $10,000 from his bank on a 5 year installment loan requiring monthly payment. What type of life insurance policy would be best suited to this situation
Decreasing term
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
It is suspected that a producer is consistently violating insurance laws. Which of the following entities is responsible for making sure that the producer stops committing these violations?
commisioner
An individual has been making periodic premium payments on an annuity. The annuity income payment are scheduled to begin 2 years after the annuity was purchased. What type of annuity is it?
deferred
Which of the following statement is TRUE concerning the Accidental Death Rider?
it will pay double or triple the face amout
The type of settlement option which pays throughthout the lifetime of two or more beneficiaries is called
joint and survivor
Variable life insurance is based on what kind of premium
level fixed
Which of the following is an example of a limited pay life policy
life paid up at age 65
Equity indexed annuities
seek higher returns
Who may contribute to an HR 10 plan
self employed plumber
Suitability is based on all of the following EXCEPT
the client's initial premium
What is the purpose of establishing the target premium for a universal life policy?
to keep the policy in force
What is the name of the insured who enters into a viatical settlement
viator
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
What provision in an insurance policy extends coverage beyond the premium due date?
Grace period
Which of the following is TRUE regarding the accumulation period of an annuity
It is a period during which the payments into the annuity grow tax deferred
Insurance is the transfer of
Risk
Which of the following statement about a suicide clause in a life insurance policy is TRUE?
Suicide is excluded for a specific period of years and covered thereafter
The Commissioner has scheduled a hearing for a produced who is implicated in engaging in an unfair method of competition. THe notice of hearing must be delivered to the produWcer no later than how many days prior to the hearing
Ten
Which of the following protect consumer against the circulation of inaccurate or obsolete personal or financial information
The fair credit reporting act
Which of the following determine the cash value of a variable life policy
The performance of the policy portifolio
What is the purpose of the buyer's guide?
To allow the consumer to compare the costs to compare the costs of different policies
If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all the following information EXCEPT the applicant's
ancesty
What is the name for the owner of a life insurance policy who enters into a viatical settlement contract
viator
Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT
An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. THis is an example of
Coercion
Which of the following is NOT consideration on the part of an insured?
Promise to submit timely claims
Which of the following is a permissible adjustable policy loan interest rate taken out in connection with a life insurance policy
The interest rate is no greater than the rate used to compute the cash surrender value of the policy, plus 1% per year
Who has the right to assign the benefits and or all other incidents of ownership under a group life insurance policy?
The person insured
All of the following information about the applicant is identified in the Gerneral information section of a life insurance application EXCEPT
education
All of the following are true regarding insurance policy loans except
policy loan can be made on policies that do not accumulate cash value
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then
the benefit is received tax free
Which of the following best describe what the annuity period is?
the period of time during which accumulated money is converted into income payments
what is the name of the insured who enters into a viatical settlement
viator
Which of the following is not a term for the period of time during which the annuitant or the beneficiary receive income?
Depreciation period
When a reduced paid up noforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium
What is the other term for the cash payment settlement option
Lump Sum
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?
The policy will be interpreted as if the insurer waived its right to have an answer on the application
An insured will be allowed to reactivate her lapsed life insurance policy if action is take within a certain period of time, and proof of insurability is provided
Reinstatement provision
All of the following entities regulate variable life policies except
The Guarantly Association
When a life insurance policy was issued, the policy owner designated a primary and contigent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit.
The insured's contingent beneficiary
What required provision protects against unintentional lapse of the policy?
Grace period
The death benefit under the Universal life Option B
Gradually increases each year by the amount that the cash value increases
Which of the following documents must be provided to the policyowner or applicant during policy replacement?
Notice Regarding Replacement
An insured purchases a policy in 2008 and died in 2013. The insurance company discovers at the time that the insured concealed information during the application process. What can they do?
Pay the death benefit
Which of the following is correct concerning the taxation of premiums in a key person life insurance policy?
Premiums are not tax deductible as a business expense
Which of the following factors determine the amount of each installment paid in life income option arrangement?
Recipeint's life expectancy and amout of principal
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Telling a client that his first premium will be waived if he purchased the insurance policy today
In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to the
The contingent beneficiary
Which of the following is TRUE regarding the premium in term policies
The premium in any type of term policy is level
Which of the following is TRUE for both equity indexed annuities and fixed annuities?
They have a guaranteed minimum interest rate
what is the purpose of disclosure statement in life insurance policies?
To explain features and benefits of a proposed policy to the consumer
Which of the following term will be permissible in describing a life insurance policy in company advertisements?
Variable plan
Whgich of the following when attaced to a permanent life insurance policy allow the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allow amounts of temporary insurance to cover other family members
Term rider
An investor buys a life policy on an elderly person in order to tell sell it for a life settlement. This is an example of
A STOLI policy
Which of the following would be deducted form the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?
Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit
which of the following would be considered a nonmedicail insurance application?
An application on which the medical information is completed by the applicant and the agent only
In the executive bonus plan, who is the owner of the policy, and who pays the premium?
executive is the owner, and the executive pays the premium
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability the policy includes a
guaranteed insurability rider
Which of the following was desighned to investigate and collect evidence relating to insurance fraud
insurance fraud bureau
