Simulated Exam 2
A licensed agent must complete how many hours of continuing education in the agent's line of authority every licensing period
5
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default
60
Which of the following insurance products will be subject to the regulation on life insurance solicitation
A term life policy
How often must domestic Insurance companies be examined by the Chief Financial Officer in Florida
At least every 5 years
If an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of
Churning
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
Common Disaster
Which of the following terms describes making false statements about the condition of any insurer that are intended to injure any person engaged in the business of insurance
Defamation
Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called
Discrimination
Which of the following is true regarding taxation of dividends in participation policies
Dividends are not taxable
When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount
Equal to the original policy for as long a period of time that the cash value will purchase
A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it
Immediate
Life income joint and survivor settlement option guarantees
Income for 2 or more recipients until they die
An underwriter may obtain information on an applicant's hobbies. financial status, an
Inspection report
Which of the following components contains the company's promise to pay
Insuring clause
All of the following are nonforfeiture options EXCEPT
Interest only
The office of insurance regulation is responsible for all of the following insurer activities EXCEPT
Issue of securities
A policy will pay death benefit if the insured dies during the 20-year premium-paying period. and nothing if death occurs after the 20-year period. What type of policy is this
Level term
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation
During replacement of life insurance, a replacing insurer must do which of the following
Obtain a list of all life insurance policies that will be replaced
An insured has a continuous premium whole life policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use
Paid-up option
An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured has had concealed information during the application process. What can they do
Pay the death benefit
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
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option
Size of each installment
Which of the following statements about a suicide clause in a life insurance policy is true
Suicide is excluded for a specific period of years and covered thereafter
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information
The Fair Credit Reporting Act
Which of the following information will be stated in the consideration clause of a life insurance policy
The amount of premium payment
In which of the following examples would a contract between an insurer and a prospective insured be legal
The applicant has a prior felony conviction
All of the following statements concerning an employer sponsored nonqualified retirement plan are true except
The employer can receive a current tax deduction for any contribution made to the plan
In terms of parties to a contract, which of the following does NOT describing a competent party
The person must have at least completed secondary education
An agent tries to sell insurance over the phone to an applicant who appears to be confused, but is eventually able to give enough information for the application to be completed. After the policy was issued, the agent talked to the insured's family, and they explained that the insured was recovering from a surgery and might have been under the influence of medication at the time of the application. Which of the following is true
The policy may be voided if it can be proven that the applicant was not capable of making a buying decision at the time of application
Which of the following statements is correct regarding a whole life policy
The policyowner is entitled to policy loans
If a life insurer holds the proceeds of any policy it issues, which of the following is true
The proceeds may be exempt from any creditor's claims against a beneficiary other than the policy owner
Which of the following is the best reason to purchase life insurance rather than annuities
To create an estate
Under what circumstances can an agent's appointment be transferred to another person
Under no circumstances
When does a free-look period begin on a life insurance policy
When the policy is delivered to the insured
Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT
An agent misrepresents policy benefits to convince a policyowner to replace policies
Stranger-originated life insurance policies are in direct opposition to the principle of
Insurable interest
A life insurance policy has a legal purpose if both of which of the following elements exist
Insurable interest and consent
How long must insurers maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions
For 5 years after the insurance transaction is completed by the insurer
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act
$2,500
which of the following is TRUE about nonforfeiture values
They are required by state law to be included in the policy
Which of the following would be considered false advertising
implying that the agent is the insurer
The equity in an equity index annuity is linked to
An index like Standard and Poor's 500
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
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by the age, sex and occupation of each individual certificate holder
When an insurer terminates an agent's appointment, the insurer must do all the following EXCEPT
Provide a 30-day advanced notice to the commissioner
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this
Reinstatement provision
Which of the following is an example of a producer's fiduciary duty
The trust that a client places in the producer in regard to handling premiums
