State board test part 4

Ace your homework & exams now with Quizwiz!

Who is the annuity owner

The person who purchases the annuity

Under what circumstances will the contingent beneficiary receive the death benefit

If the primary beneficiary dies before the insured

Restoring an insured financially after a claim is know as

Indemnity

A graded premium policy is a moderated form of

Whole life

All of the following are true of a nonqualified deferred compensation plan except

Contributions are tax deductible

What does the guaranty association guard against

Insurer insolvency

Which of the following is not one of the requirements for obtaining a nonresident license in Michigan

The applicant must complete prelicenseing education and examination in the nonresident state

How soon must an insurer send a notice of cancellation to an insured prior to terminating a universal life policy

30 days

There is an 10% penalty of the taxable portion prior to what age

59 1/2

Which of the following terms is used to define the period of time during which an annuitant makes payments into an annuity

Accumulation period

During the accumulation phase of a fixed annuity, the annuitant's interest rate is based on a minimum rate as specified in the contract or the current interest rate whichever is

Higher

What guarentees that the information explained in the insurance contract is true

A warrenty

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

A married couple wants to include their entire family in their whole life policy under one rider. Which of the following riders would help them achieve that

Family term

All of the following information needs to be included on a an application for life insurance except

Health insurance policies in force

Under which of the following conditions would life insurance proceeds be taxable by the federal government

If there is a transfer of value

If a loan request is for payment of due premiums on the policy how soon must the insurer issue a loan

Immediately

The reduction of premium option uses the dividend to reduce

Next year's premium

Which statement best describes agreement as it relates to insurance contracts

One party accepts the exact terms of the other party's offer

When an agent delivered an insurance policy to the insured, he collected the initial premium as well as a document verifying that the insured had not had any injuries or illness since the application date. What is this document called

Statement of good health

What is the exclusion ratio used to determine

The annuity benefit to be excluded from taxes

All of the following are true regarding the waiver of insurance rider except

The rider expires when the insured reaches age 60

When an insured terminates membership in the insurance group the insured can convert to

Whole life without proof of insurability

A licensee fails to earn the required CE credits by the expiration of the 90 day grace period and the licensee has been terminated for education. How much time does the licensee have to meet the CE requirements to be considered for license reinstatement

1 year

Which of the following is true of level term insurance

It is temporary protection

Guaranteeing future dividends is considered to be considered as unfair or deception know as

Misrepresentation

Variable life insurance is regulated by allow the following entities except

The us department of treasury

Which of the following would not trigger the payment of accelerated death benefits

Being permanently disabled

The frequency and the amount of premium payment are known as

Premium mode

If an insured purchases an insurance policy with a large deductible what risk management technique is the insured using

Retention

A life insurance policy can be back dated to affect a lower premium for a maximum of how many months

6

To purchase insurance the policyowner must face the possibility of losing money or something of value in the event of loss. What is this concept called

Insurable interest

An agent knowingly misrepresents material information for the purpose of including an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice know as

Twisting

An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividend will be higher and his premiums will be slightly lower. The policy however will not offer either one of these things. What type of misrepresentation is being commited

Twisting

In order to reinstate a life insurance policy's he insured must do all of the following except

Pay next years premium in advance

A married couple purchases a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability

Payor benefit

An adjustable life policy can assume the form of

Either term insurance or permanent insurance

How many hours of continuing education are required to maintain a counselor's license

None

Which term describes an individual who is domiciled and licensed as a resident producer in a state other than Michigan

Nonresident producer

All of the following are true of annually renewable term insurance except

Proof of insurability must be provided at each renewal

Which of the following is not true regarding the agents implied authority

It is specifically stated in the contract

During policy solicitation an insurer exaggerates the financial condition and makes it sound worst that it is. This is an example of a unfair trade practice of

Defamation

Cash value gaurentees in a whole life policy are called

Nonforfeiture values

Insurance contracts are unilateral in nature. What does that mean?

only one party makes a promise

Which of the following statements concerning the medical information Bureau is correct

The medical information bureau assist underwriters in evaluating and classifying risks

A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will

Continue to increase

Which of the following would not be eligible for coverage under a key person

The owner of the shop

The human life value approach to determining insurance needs is based upon which of the following ideas

Loss of bread winner income

If the insured does not receive the statement of policy information atleast 5 days prior to the policy delivery. The free look period is extended to

15 days

Which of the following statements describes one of the reasons individuals purchase life insurance

It creates an immediate eatate

In insured recently had a new home built and insisted on having smoke detectors installed in multiple places in the house. What method of handling risk is the insured using

Reduction


Related study sets

AJ1 Alkotmány, Alkotmánytörténet

View Set

Family Dynamics Mastery Assessment

View Set

How did The Versailles Treaty help cause WW11

View Set

Chapter 3: Prejudice and Discrimination

View Set

Saunders: Endocrine | Unit X (Chapter 54 & 55)

View Set