Flashcard Lab
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to:
Purchase a single premium policy for a reduced face amount
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by age, sex, and occupation of each individual holder.
Traditional IRA contributions are tax deductible based on which of the following?
Owners Income
The policy owner wants to make sure that upon death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
Joint and Survivor
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 the report.
Which of the following types of insurers is owned by stockholders?
Stock
An applicant for insurance has been asked to submit to an HIV test. This is legal if:
The test is only in conjunction with thests for other conditions
Which of the following is NOT one of the uses of annuities?
Estate Creation
Which of the following would be considered an illegal inducement to purchase insurance?
Confirming futire dividends in a life insurance proposal.
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
The amount of the distribution is reduced by the amount of a 20% withholding tax
Which of the following best describes a bail out provision?
It allows the owner to surrender the annuity without a charge
If an insurance company makes a statement that its policies are guaranteed by the existence of the insurance guarantee association that would be considered:
An unfair trade practice.
When a life insurance policy stipulate that the beneficiary will receive payments in specified installments, or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the plan installments?
Spendthrift provision
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.
What type of insurance would be used for a return of premium rider?
Increasing term
If an agent has an administrative action taken against Hammer, her in another jurisdiction, how many days does the agent hamster report this to the director after the final disposition?
30 days
An individual insurance agent may operate as a viatical settlement broker without obtaining a separate license if the vehicle settlement broker activities are incidental to the agents business transactions, and if the agent has been licensed for life insurance for at least what time period?
5 Years
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
And 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.
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional payor benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
The insurance premiums will be waived until she is 21.
All of the following statements are true regarding installments for a fixed amount except
The payments will stop on the annuitant dies.
If an agent neglect to provide a customer with a policy summary, the agent:
Will be found guilty of committing a deceptive business practice.
Under an extended term, non-for future option, the policy cash value is converted to:
The same face amount as in the whole life policy.
Which of the following riders would not cause the death benefit to increase?
Payor benefit rider
Which of the following insurance options would be considered a risk sharing arrangement?
Reciprocal
An employee quits his job on May 15 and doesn't convert his group life policy to an individual policy for 2 weeks. He dies in an accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary.
Which of the following is true regarding the spendthrift clause in life insurance policies?
It can protect the policy proceeds from creditors of the beneficiary.
Which of the following describes the taxation of an annuity when money is withdrawn during the accumulation phase?
Withdrawn amounts are taxed on a last in, first out basis.
Which of the following statements concerning buy-sell agreements is true?
Buy-sell agreements are normally funded with a life insurance policy
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option
What part of the Internal Revenue Code allows an owner of a life insurance policy or annuity to exchange or replace their current contract with another contract without creating adverse tax consequences?
Section 1035 Policy Exchange
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of:
Twisting
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants
In life insurance policies, cash value increases
Grow tax deferred
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
Settlement option.
Which of the following best details the underwriting process for life insurance?
Selection, classification, and rating of risks
Which of the following statements is TRUE concerning whole life insurance?
Lump-sum death benefits are not taxable
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income with period certain
An individual's tendency to be dishonest would be indicative of a
Moral Hazard
The term “illustration” in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy
A tornado that destroys property would be an example of which of the following?
A Peril
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
Size of each option
In a direct transfer, how is money transferred from one retirement plan to a traditional IRA?
From trustee to trustee
Which of the following will NOT be an appropriate use of a deferred annuity?
Creating an estate
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
If the father is disabled for more than 6 months
Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level?
Bail-out
The hearing for a cease and desist order must occur within how many days of the order date?
An annuity owner is planning to retire. She has accumulated $100,000 in a retirement annuity and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives. Which of the following options is best suitable for this annuity owner?
Straight Life
The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the
Spendthrift clause.
Which of the following describes attachments made to policies that either add or modify coverage?
Riders
The automatic premium loan provision is activated at the end of the
Grace Period
Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical settlement contract?
Viatical settlement provider
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?
Implied
Which of the following is NOT a characteristic of an insurable risk?
The loss must be catastrophic.
When a beneficiary receives payments consisting of both principal and interest, which would be taxable as income?
Interest only
All of the following are true of key person insurance EXCEPT
The plan is funded by permanent insurance only.
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured’s habits and lifestyle
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
An insurer suspects an agent of fraud and cancels his appointment. Which authority, if any, should be notified?
The Director
Are insurance company underwriters allowed to discriminate?
Yes, but not unfairly
Regarding annuity benefit payments, the interest earned on the principal is known as the
Tax base.
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
All of the following statements about equity index annuities are correct EXCEPT
The annuitant receives a fixed amount of return
Which of the following Life Insurance policies would be considered interest sensitive?
Universal life
When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will
Issue the policy anyway and pay the face value to the beneficiary
An insured owns a term policy with a guaranteed renewable option. At the end of the policy term, the insured needs to prove insurability to qualify for a lower premium rate. Which of the following best describes this scenario?
Re-entry option
Which of the following would be the beneficiary in credit life insurance?
Creditor
Which of the following is true about warranties?
They are guaranteed to be true
All of the following are true regarding insurance policy loans EXCEPT
Policy loans can be made on policies that do not accumulate cash value.
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection.
A nonadmitted insurer who provides unique insurance coverage that is not available from an admitted insurer is called a/an
Surplus lines insurer
The premium of a survivorship life policy compared with that of a joint life policy would be
Lower
A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?
The purpose of the group was to purchase life insurance
An insured bought a policy 20 years ago. The policy stated that 20 years later the cash value would be $480 per $1,000 of coverage. What type of policy does the insured have?
Whole Life
Representations are written or oral statements made by the applicant that are
Considered true to the best of the applicant's knowledge
What determines the penalty for surrendering a market value adjusted annuity prematurely?
The current interest rate at the time of surrender
An underwriter may obtain information on an applicant's character, financial status, and habits from a(n)
Investigative consumer report
When may an insurance company use suicide as a defense against paying a death claim?
When death occurs within a specified period of time after the policy was issued
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
Convertible Term Policy.
An agent changes his residential address. Within how many days must the Director be notified?
How many days does the viator have to rescind a contract after receiving the viatical settlement proceeds?
15 calendar days
Who is entitled to the cash values in a life insurance policy?
Policyowner
Which of the following would NOT be considered an exception to the National Do Not Call List?
Calls from outside of the United States
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual’s life value?
Predicted needs of the family after the insured's death
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
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
Which of the following is the basis for a claim against an insurance policy?
Loss
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by an employer-sponsored plan who has earned income
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?
Foreign
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio of men and women in the group
The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?
The annuitant must be a natural person
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
Paid-up option
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
Which of the following terms is used to name the nontaxed return of unused premiums?
Dividend
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
Equity Indexed Annuity.
A couple owns a life insurance policy with a Children’s Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Proof of insurability is not required.
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract.
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to:
Purchase a single premium policy for a reduced face amount
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by age, sex, and occupation of each individual holder.
Traditional IRA contributions are tax deductible based on which of the following?
Owners Income
The policy owner wants to make sure that upon death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
Joint and Survivor
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 the report.
Which of the following types of insurers is owned by stockholders?
Stock
An applicant for insurance has been asked to submit to an HIV test. This is legal if:
The test is only in conjunction with thests for other conditions
Which of the following is NOT one of the uses of annuities?
Estate Creation
Which of the following would be considered an illegal inducement to purchase insurance?
Confirming futire dividends in a life insurance proposal.
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
The amount of the distribution is reduced by the amount of a 20% withholding tax
Which of the following best describes a bail out provision?
It allows the owner to surrender the annuity without a charge
If an insurance company makes a statement that its policies are guaranteed by the existence of the insurance guarantee association that would be considered:
An unfair trade practice.
When a life insurance policy stipulate that the beneficiary will receive payments in specified installments, or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the plan installments?
Spendthrift provision
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.
What type of insurance would be used for a return of premium rider?
Increasing term
If an agent has an administrative action taken against Hammer, her in another jurisdiction, how many days does the agent hamster report this to the director after the final disposition?
30 days
An individual insurance agent may operate as a viatical settlement broker without obtaining a separate license if the vehicle settlement broker activities are incidental to the agents business transactions, and if the agent has been licensed for life insurance for at least what time period?
5 Years
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
And 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.
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional payor benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
The insurance premiums will be waived until she is 21.
All of the following statements are true regarding installments for a fixed amount except
The payments will stop on the annuitant dies.
If an agent neglect to provide a customer with a policy summary, the agent:
Will be found guilty of committing a deceptive business practice.
Under an extended term, non-for future option, the policy cash value is converted to:
The same face amount as in the whole life policy.
Which of the following riders would not cause the death benefit to increase?
Payor benefit rider
Which of the following insurance options would be considered a risk sharing arrangement?
Reciprocal
An employee quits his job on May 15 and doesn't convert his group life policy to an individual policy for 2 weeks. He dies in an accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary.
Which of the following is true regarding the spendthrift clause in life insurance policies?
It can protect the policy proceeds from creditors of the beneficiary.
Which of the following describes the taxation of an annuity when money is withdrawn during the accumulation phase?
Withdrawn amounts are taxed on a last in, first out basis.
Which of the following statements concerning buy-sell agreements is true?
Buy-sell agreements are normally funded with a life insurance policy
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option
What part of the Internal Revenue Code allows an owner of a life insurance policy or annuity to exchange or replace their current contract with another contract without creating adverse tax consequences?
Section 1035 Policy Exchange
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of:
Twisting
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants
In life insurance policies, cash value increases
Grow tax deferred
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
Settlement option.
Which of the following best details the underwriting process for life insurance?
Selection, classification, and rating of risks
Which of the following statements is TRUE concerning whole life insurance?
Lump-sum death benefits are not taxable
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income with period certain
An individual's tendency to be dishonest would be indicative of a
Moral Hazard
The term “illustration” in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy
A tornado that destroys property would be an example of which of the following?
A Peril
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
Size of each option
In a direct transfer, how is money transferred from one retirement plan to a traditional IRA?
From trustee to trustee
Which of the following will NOT be an appropriate use of a deferred annuity?
Creating an estate
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
If the father is disabled for more than 6 months
Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level?
Bail-out
The hearing for a cease and desist order must occur within how many days of the order date?
An annuity owner is planning to retire. She has accumulated $100,000 in a retirement annuity and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives. Which of the following options is best suitable for this annuity owner?
Straight Life
The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the
Spendthrift clause.
Which of the following describes attachments made to policies that either add or modify coverage?
Riders
The automatic premium loan provision is activated at the end of the
Grace Period
Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical settlement contract?
Viatical settlement provider
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?
Implied
Which of the following is NOT a characteristic of an insurable risk?
The loss must be catastrophic.
When a beneficiary receives payments consisting of both principal and interest, which would be taxable as income?
Interest only
All of the following are true of key person insurance EXCEPT
The plan is funded by permanent insurance only.
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured’s habits and lifestyle
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
An insurer suspects an agent of fraud and cancels his appointment. Which authority, if any, should be notified?
The Director
Are insurance company underwriters allowed to discriminate?
Yes, but not unfairly
Regarding annuity benefit payments, the interest earned on the principal is known as the
Tax base.
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
All of the following statements about equity index annuities are correct EXCEPT
The annuitant receives a fixed amount of return
Which of the following Life Insurance policies would be considered interest sensitive?
Universal life
When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will
Issue the policy anyway and pay the face value to the beneficiary
An insured owns a term policy with a guaranteed renewable option. At the end of the policy term, the insured needs to prove insurability to qualify for a lower premium rate. Which of the following best describes this scenario?
Re-entry option
Which of the following would be the beneficiary in credit life insurance?
Creditor
Which of the following is true about warranties?
They are guaranteed to be true
All of the following are true regarding insurance policy loans EXCEPT
Policy loans can be made on policies that do not accumulate cash value.
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection.
A nonadmitted insurer who provides unique insurance coverage that is not available from an admitted insurer is called a/an
Surplus lines insurer
The premium of a survivorship life policy compared with that of a joint life policy would be
Lower
A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?
The purpose of the group was to purchase life insurance
An insured bought a policy 20 years ago. The policy stated that 20 years later the cash value would be $480 per $1,000 of coverage. What type of policy does the insured have?
Whole Life
Representations are written or oral statements made by the applicant that are
Considered true to the best of the applicant's knowledge
What determines the penalty for surrendering a market value adjusted annuity prematurely?
The current interest rate at the time of surrender
An underwriter may obtain information on an applicant's character, financial status, and habits from a(n)
Investigative consumer report
When may an insurance company use suicide as a defense against paying a death claim?
When death occurs within a specified period of time after the policy was issued
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
Convertible Term Policy.
An agent changes his residential address. Within how many days must the Director be notified?
How many days does the viator have to rescind a contract after receiving the viatical settlement proceeds?
15 calendar days
Who is entitled to the cash values in a life insurance policy?
Policyowner
Which of the following would NOT be considered an exception to the National Do Not Call List?
Calls from outside of the United States
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual’s life value?
Predicted needs of the family after the insured's death
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
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
Which of the following is the basis for a claim against an insurance policy?
Loss
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by an employer-sponsored plan who has earned income
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?
Foreign
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio of men and women in the group
The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?
The annuitant must be a natural person
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
Paid-up option
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
Which of the following terms is used to name the nontaxed return of unused premiums?
Dividend
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
Equity Indexed Annuity.
A couple owns a life insurance policy with a Children’s Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Proof of insurability is not required.
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 would be sufficient violation to warrant rejection, revocation, or suspension of an insurance agent's license?
A denied license in another state
The accelerated benefits provision will provide for an early payment of the death benefit when the insured
Becomes terminally ill.
Which of the following components must a life insurance policy have to allow policy loans?
Cash value
Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must
Respond to the consumer's complaint.
Representations are written or oral statements made by the applicant which
Are considered true to the best of the applicant's knowledge.
When the owner of a $250,000 life insurance policy died, the beneficiary decided to leave the proceeds of the policy with the insurance company and selected the Interest Settlement Option. If at the time of withdrawal the interest paid was $11,000, the beneficiary would be required to pay income tax on
Which of the following is another term for an authorized insurer?
Admitted
Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?
Which of the following would be considered an illegal inducement to purchase insurance?
Which of the following is TRUE regarding the premium in term policies?
The premium is level for the term of the policy.
A key person insurance policy can pay for which of the following?
Costs of training a replacement
Under which of the following circumstances would an insurer pay accelerated benefits?
An insured is diagnosed with cancer and needs help paying for her medical treatment.
If an agent has an administrative action taken against him or her in another jurisdiction, how many days does the agent have to report this to the Director after the final disposition?
30 days
If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?
Unilateral
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time.
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?
It is only taxable if the cash value exceeds the amount paid for premiums.
What method do insurers use to protect themselves against catastrophic losses?
Reinsurance
The annuitant dies while the annuity is still in the accumulation stage. Which of the following is TRUE?
The beneficiary will receive the greater of the money paid into the annuity or the cash value.
How many days after being licensed to place business transactions in Ohio must an insurer have an antifraud program in place?
90 days
Which is the primary source of information used for insurance underwriting?
Application
Who bears all of the investment risk in a fixed annuity?
The insurance company
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
Under what circumstances may a life insurance agent deliver a policy that is dated up to 6 months before the application was taken?
To avoid an increase in premium rate for the insured
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract.
The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?
An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?
He will have to pay a penalty if he is younger than 59½.
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 greater amount
Which of the following is NOT typically excluded from life policies?
Death due to plane crash for a fare-paying passenger
What type of tax is associated with death proceeds from a life insurance policy?
Federal estate tax
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
All of the following are characteristics of a group life insurance plan EXCEPT
There is a requirement to prove insurability on the part of the participants.
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
One-year term option.
What are the “living benefits” of whole life insurance?
Loan values and retirement income
Regarding annuity benefit payments, the interest earned on the principal is known as the
Tax Base
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating.
All of the following are true of an annuity owner EXCEPT
The owner must be the party to receive benefits.
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?
Fixed amount
If an insured changes the premium payment mode from monthly to annually, what happens to the total premium?
Decreases
Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly?
The producer
If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about
Whether an insurable interest exists between the individuals.
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase.
An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?
What does “liquidity” refer to in a life insurance policy?
Cash values can be borrowed at any time.
For the purpose of insurance, risk is defined as
The uncertainty or chance of loss.
Death benefits payable to a beneficiary under a life insurance policy are generally
Not subject to income taxation by the Federal Government.
What is the main purpose of the Seven-pay Test?
It determines if the insurance policy is a MEC.
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor Benefit
On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
Not taxable since the IRS treats them as a return of a portion of the premium paid.
An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
If the primary beneficiary predeceased the insured
Events in which a person has both the chance of winning or losing are classified as
Speculative risk.
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 of the following information EXCEPT the applicant's
Ancestry.
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer.
Who is a person, other than a viator, that enters into a viatical settlement contract?
Provider
An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. What kind of penalty would the IRA owner pay?
25% tax on the amount not distributed at the required minimum age
What is the purpose of settlement options?
They determine how death proceeds will be paid.
In a viatical settlement, who is considered the viator?
The policyowner
Annuities can be used to fund which of the following?
Retirement plans
Which of the following is an example of an unfair claims settlement practice?
Failure to promptly settle a claim when liability has been clearly established
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 best describes annually renewable term insurance?
It is level term insurance.
An Adjustable Life policyowner can change which of the following policy features?
The coverage period
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio of men and women in the group.
Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a
Premium receipt.
What describes the specific information about a policy?
Policy summary
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
Erase the incorrect answer and record the correct answer.
Concerning a Whole Life Policy, which of the following statements is correct?
Cash value is guaranteed.
Which of the following individuals must have insurable interest in the insured?
Policyowner
What limits the amount that a policyowner may borrow from a whole life insurance policy?
Cash value
A Universal Life Insurance policy is best described as a/an
Annually Renewable Term policy with a cash value account.
Items stipulated in the contract that the insurer will not provide coverage for are found in the
Exclusions clause.
How long are agents required to keep consumer records used in making recommendations for an annuity replacement?
8 years
Twins brother and sister each purchased a retirement annuity. When they retired at the same time, each selected the life income option. Both have similar life styles and are in good health. Which of the following is true with respect to their monthly annuity payments?
The man’s payments will be larger.
What process do insurance companies use to determine whether or not a particular applicant is insurable?
Underwriting
To avoid violating the state Insurance Code regarding unfair claims settlement practices, insurers must pay a claim within how many days of the final agreement to the settlement?
5 days
Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?
Promptly forwarding premiums to the insurance company
An applicant buys a nonqualified annuity, but dies before the starting date. For which of the following beneficiaries would the interest accumulated in the annuity NOT be taxable?
Spouse
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy’s cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
Universal life
What happens if a deferred annuity is surrendered before the annuitization period?
The owner will receive the surrender value of the annuity.
If a life insurance policy has an irrevocable beneficiary designation,
The beneficiary can only be changed with written permission of the beneficiary.
How many days does the viator have to rescind a contract after receiving the viatical settlement proceeds?
15 calendar days
An employee is joining a group insurance plan. In order to avoid having to prove insurability, what must the employee do?
Join during the open enrollment period
An insurance agent licensed in another state may apply for a prelicensing education exemption within how many days of establishing a principle place of business in Ohio?
90 days
What is a foreign insurer?
An insurer with a home office in another state
Which of the following is true regarding taxation of dividends in participating policies?
Dividends are not taxable.
What must happen when an individual policy or annuity has been personally delivered to the policyowner?
The policyowner must sign a delivery receipt.
An insured purchased an insurance policy 5 years ago. Last year, the insured received a dividend check from the insurance company that was not taxable. This year, the insurer did not send a check. From what type of insurer did the insured purchase the policy?
Mutual
During partial withdrawal from a universal life policy, which portion will be taxed?
Interest
Which of the following authorities is responsible for assessing the financial ability of insurers?
Director
Stranger-originated life insurance policies are in direct opposition to the principle of
Insurable interest.
In a group life insurance policy, the employer may select all of the following EXCEPT
The beneficiary.
When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?
The insurance company’s general account
When an annuity is written, whose life expectancy is taken into account?
Annuitant
If taken as a lump sum, life insurance proceeds to beneficiaries are passed
Free of federal income taxation.
When a reduced paid-up nonforfeiture 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.
Which nonforfeiture option has the highest amount of insurance protection?
Extended Term
Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?
Cash surrender
An individual purchased a life insurance policy on his life naming his wife as primary beneficiary, and their daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
If the primary beneficiary predeceases the insured
Nonforfeiture values guarantee which of the following for the policyowner?
That the cash value will not be lost
All of the following types of policies are exempt from the regulations for insurers regarding policy replacement EXCEPT
Variable life insurance.
An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?
Deferred
Which of the following is NOT an allowable 1035 exchange?
A whole life insurance policy is exchanged for a term insurance policy.
An insured has a life insurance policy with a face amount of $2,000. He pays a premium each week to the agent who sold the policy. What kind of policy does the insured have?
Industrial life
All of the following are Nonforfeiture options EXCEPT
Interest only
Which of the following is considered to be a morale hazard?
Driving recklessly
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit.
What is reinsurance?
An agreement between a ceding insurer and an assuming insurer
All advertisements are the responsibility of the
Insurer.
Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT
Other insurance coverages.
An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?
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
Under what circumstances may an agent appointed with the issuing insurance company pay a commission to another agent?
When the agent receiving the commission is licensed for that same line of business
Which of the following is NOT one of the three types of term coverage based on what happens to the face amount during the policy term?
Renewable
Which statement regarding insurable risks is NOT correct?
Insureds cannot be randomly selected.
J transferred his life insurance policy to his son two years before his death. Which of the following is true?
The entire face value of the policy will be included in J's taxable estate.
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
The interest is not taxable since it remains inside the insurance policy.
Which of the following is TRUE regarding a single life settlement option?
It provides income the beneficiary cannot outlive.
When will fraud be considered a felony?
When the amount of the claim is above $1,000
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.
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The Fair Credit Reporting Act
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans.
Which concept is associated with “exclusion ratio”?
Annuity payments
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?
Unilateral
Which of the following would NOT be included in a policy summary?
An evaluation of the applicant's medical records
What form of the annuity settlement options provides payments to an annuitant for the rest of the annuitant's life and ceases at the annuitant's death?
Pure life
As a field underwriter, a producer is responsible for all of the following tasks EXCEPT
Issue the policy that is requested.
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
Which of the following is NOT a goal of risk retention?
To minimize the insured's level of liability in the event of loss
Which of the following is true of a children's rider added to an insured's permanent life insurance policy?
It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age.
Which of the following is true regarding a market value adjusted annuity?
The owner is guaranteed a fixed interest rate for a specific period of time.
Which of the following best describes gross annual premium?
Net premium plus expenses
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
All of the following are examples of risk retention EXCEPT
Premiums.
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination.
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated?
Annuity certain
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
Which of the following is NOT true of Section 1035 of the Internal Revenue Code regarding policy exchanges?
Any exchange must be completed within 30 days.
Following a career change, an insured is no longer required to perform many physical activities, so he has implemented a program where he walks and jogs for 45 minutes each morning. The insured has also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario describe?
Reduction
What determines the penalty for surrendering a market value adjusted annuity prematurely?
The current interest rate at the time of surrender
What is the maximum civil penalty for violating the Director's cease and desist order?
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?
Adhesion
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 of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option?
It does not guarantee that the entire principal amount will be paid out.
An insured purchased an individual life insurance policy with a face amount of $15,000. The insured pays a premium each month directly to the insurance company. What type of policy is that?
Ordinary life
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.
The term “illustration” in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy.
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income with period certain
All of the following statements are true regarding installments for a fixed amount EXCEPT
The payments will stop when the annuitant dies.
If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to
Charge a higher premium.
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
Guaranteed insurability option
What happens when a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated.
Which of the following types of risk will result in the highest premium?
Substandard risk
Who might receive dividends from a mutual insurer?
Policyholders
An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?
She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan.
Which of the following will be included in a policy summary?
Premium amounts and surrender values
Who assumes control over an insurance company's funds and management if they become insolvent?
Department of Insurance
Which of the following are generally NOT considered when underwriting group insurance?
The insureds' medical history
What is the maximum amount of time that an application for life insurance may be backdated?
6 months
Which of the following regulatory authorities participated in creating the National Do Not Call Registry?
FTC
If an annuitant dies during the accumulation period, what benefit (if any) will be included in the annuitant's estate?
Accumulated cash value
The Director may examine books and records of all authorized insurers in Ohio. Who is responsible for paying for the examination?
The insurer
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 contingent beneficiary.
Annually renewable term policies provide a level death benefit for a premium that
Increases annually.
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an
Modified endowment contract.
What is the waiting period for rate filing before each rate may become effective?
30 days
An individual applies for a life policy. Two years ago he suffered a head injury, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of the insured's history one year later. What will probably happen?
The policy will not be affected.
Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?
Depreciation period
An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
Paid-up additions.
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
An individual insurance agent may operate as a viatical settlement broker without obtaining a separate license if the viatical settlement broker activities are incidental to the agent’s business transactions, and if the agent has been licensed for life insurance for at least what time period?
5 years
When calculating the amount a policyowner may borrow from a variable life policy, what must be subtracted from the policy’s cash value?
Outstanding loans and interest
At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called
Guaranteed insurability.
According to the telemarketing sales rules, what are the permissible calling hours for telemarketing calls?
8 a.m. until 9 p.m.
Insurers may only use a buyer's guide that has been approved by the NAIC no longer than what time period before use?
6 months
When J. applied for a life insurance policy, the agent informed him that a medical exam would be required. The exam may be completed by
A paramedic or examining physician at the insurer's expense.
A 40-year old man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the policy proceeds will go to
The insured's estate.
Variable Whole Life insurance is based on what type of premium?
Level fixed
All of the following are dividend options EXCEPT
Fixed-period installments.
Which of the following is NOT an essential element of an insurance contract?
Counteroffer
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrower's beneficiary.
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)
Executive bonus.
Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?
Insurer's guaranteed minimum rate of interest
Which of the following is an example of liquidity in a life insurance contract?
The cash value available to the policyowner
Under a pure life annuity, an income is payable by the company
Only for the life of the annuitant.
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. How much will the beneficiary receive from the policy?
A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the
Revocable beneficiary.
An annuitant dies before the effective date of a purchased annuity. Assuming that the annuitant's wife is the beneficiary, what will occur?
The interest will continue to accumulate tax deferred.
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Joint Life Policy
Which of the following may NOT be included in an insurance company's advertisement?
That its policies are covered by a state Guaranty Association
When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called
Class designation.
An insured states her age as 40 on the application. When the insured dies, the insurer discovers that she was actually only 37 at the time of application. What will the insurance company do?
Pay the death benefit in the amount that the premium would have purchased for the correct age
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
Which of the following is designed to collect, maintain, and transmit electronic nonpublic information?
Information system
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
During the accumulation period in a nonqualified annuity, what are the tax consequences of a withdrawal?
Taxable interest will be withdrawn first and the 10% penalty will be imposed if under age 59 ½.
If an insured under a variable life insurance policy dies, how will the insurer respond to outstanding policy loans?
The loan amounts are deducted from the death benefit.
An agent changes his residential address. Within how many days must the Director be notified?
When an employee terminates coverage under a group insurance policy, coverage continues in force
For 31 days.
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
Immediate annuity
Which of the following is NOT true regarding policy loans?
Money borrowed from the cash value is taxable.
Which is true about a spouse term rider?
The rider is usually level term insurance.
Which of the following are the authorities that an agent can hold?
Express and implied
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?
Installments for a fixed period
Which of the following is TRUE about a class designation?
Beneficiaries are not identified by name.
An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?
The policy will terminate when the loan amount with interest equals or exceeds the cash value.
What documentation grants express authority to an agent?
Agent's contract with the principal
What method is used to determine the taxable portion of each annuity payment?
The exclusion ratio
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
Without receiving written consent from an insurance regulatory authority.
Insurance is the transfer of
Risk.
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?
It is a percentage of the cash value and decreases over time.
The Gramm-Leach-Bliley Act was passed to
Protect private customer information filed with a financial institution.
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.
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 is called
Single premium whole life.
Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds?
Vacation travel expenses
If a beneficiary is NOT named for annuity benefits, to which entity will the benefit be paid?
The annuitant's estate
What is the penalty for IRA distributions that are below the required minimum for the year?
The maximum duration of a temporary license in this state is
180 days.
All of the following are marketing arrangements used by insurers EXCEPT
Reinsurance System.
How long must insurers keep a copy of a basic life policy illustration on file?
3 years after the policy terminated
What is the purpose of key person insurance?
To lessen the risk of financial loss because of the death of a key employee
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy.
A policyowner wants to exchange a life insurance policy for an annuity. This nontaxable transaction is called
1035 exchange.
All of the following are true regarding the guaranteed insurability rider EXCEPT
This rider is available to all insureds with no additional premium.
Which of the following is the most common way to transfer risk?
Purchase insurance
An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?
$10,000, no tax consequence
What would be an advantage to naming a contingent (or secondary) beneficiary in a life insurance policy?
It determines who receives policy benefits if the primary beneficiary is deceased.
Which of the following is TRUE regarding the insurance amount in a credit life policy?
The creditor can only insure the debtor for the amount owed.
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
A life insurance policy has a legal purpose if both of which of the following elements exist?
Insurable interest and consent
Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced?
Cost comparison methods
Traditional IRA contributions are tax deductible based on which of the following?
Owner’s income
If a policy includes a free-look period of at least 10 days, the Buyer’s Guide may be delivered to the applicant no later than
With the policy.
Which of the following can surrender a deferred annuity contract?
Only the annuity owner
An insolvent insurer is one who is unable to pay its obligations when they are due or has fewer assets than liabilities for a period of
3 years.
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?
Standard risk is representative of the majority of people.
Which of the following is NOT true about a joint and survivor annuity benefit option?
Payments stop after the first death among the annuitants.
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by an employer-sponsored plan who has earned income
When an agent’s appointment has been terminated, the insurer must notify the Director within how many days?
Which of the following statements about the reinstatement provision is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.
Which of the following is NOT an example of a business use of Life Insurance?
Workers Compensation
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