問題一覧
1
A whole life policy that will generate immediate cash value is a
Single premium whole life
2
If an agent follows the rules in terms of his agent contract he is exercising his
Contractual Authority
3
How is the licenses date of continuing continuing education credit review determined
By the month and year of their birth
4
Which of the following statements concerning the medical information bureau is correct
The MIB provides assistance in underwriting of life insurance
5
Individual members cover by group life insurance receive
Certificate of Insurance
6
The reduction of premium option uses the dividend to reduce
Next years premium
7
How long do temporary producers license last without requiring an examination
180 days
8
Among the applicants in the same class and life expectancy which of the following factors can be used to determine premium rates
Occuption
9
What does the application of contracting of adhesion mean
A legal agreement that is drafted to one party, but not the other
10
In the event an annuitant dies during the accumulation period and there is a beneficiary named in the annuity annuity benefits would be paid to the
The beneficiary
11
Premiums collected on behalf of the insurance company by an agent will be held in what capacity
Fiduciary Capacity
12
Who acts on behalf of the principal
The agent
13
The needs approach to calculating the amount of life insurance needed is based on
The estimate of what would be lost to the family in the event of the premature death of the insured.
14
A couple purchase a life insurance policy on their newborn baby they are concerned about what would happen if to the policy if either of them were unable to continue making the premium payments due to death of disability which policy writer should agent recommend
Payor Benefit
15
Life insurance creates an immediate estate which of the following best explains the statement
The face value of the policy is payable to the beneficiary upon the death of the insured
16
Dividends received on participating life insurance policies are
Not taxable because they are a return of unused premiums
17
Which of the following could reduce the amount of the death benefit
Failure to repay the policy loan
18
How many days notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans
30 days
19
According to agency law the producer always represents the
Insurers
20
A life insurance policy can be backdated to affect a lower premium for up to maximum by how many months
6 months
21
Which of the following is not a personal use of life insurance
An individual buys insurance to fund a buy-sell agreement
22
In terms of contract law a waiver is when someone
Gives up a known right or privilege
23
All of the following are ways to handle risk except
Avoidance
24
All the following information needs to be included on an application for life insurance except
Life insurance with other insureds
25
Insurance contracts are unilateral and nature what does that mean
Only one party makes any kind of enforcemenable promise
26
If an insured dies and it is discovered that the insured misstated their age or gender on the application the life insurance this company will
Adjust the death benefit to what the premium would have purchased at the actual age or gender
27
All the following are true of annually renewable term insurance except
Proof of insurability must be provided at each referral
28
Partners in a business want to make sure that if one of them were to pass their surviving family will receive a fair value for their portion in the business life insurance arrangement would be most suitable for transitioning the business
Buy sell Agreement
29
The family term rider incorporates
incorporates the spouse term rider along with the children's term rider in a single rider
30
The guaranteed insurability rider allows the owner to purchase additional amounts of the life insurance without proof of insurability at all of the following except
Purchase of a new home
31
Which of the following bears the investment risk in a variable life insurance policy
The policyowner
32
How many hours of continuing education are required to maintain a counselors license
24 hours
33
All of the following are general requirements of a qualified plan EXCEPT
The plan must be temporary
34
Cash value guarantees in a whole life policy are called
Nonforfeiture values
35
Which of the following characteristics of a term life insurance
Expires at the end of the policy period
36
During policy solicitation an insurer exaggerates the financial condition of one of its competitors and makes it sound worse than it is. This is an example of ?
Defamation
37
Which of the following is the primary source of information that ensure uses to evaluate an insured risk for life insurance
lnsurance Application
38
Which of the following is true regarding pure life annuity settlement option
Provides highest monthly benefit
39
Once a temporary producer's license has expired its initial period, the person granted the temporary license must
Apply for an extension of the temporary license
40
Which of the following will not be included in the buyers guide
Specific information about the policy
41
Which of the following actions does not constitute false advertising ?
State that dividends are not guaranteed
42
Which statement best describes agreement as it relates to insurance contracts
Agreement refers to the mutual understanding and acceptance of the terms and conditions between the insurer and the insured
43
An insurance agent visits potential climate explains various types of policies the customer displays a lack of interest so the agent guarantees higher dividends that he knows would be possible which term describes what the agent has done
Misrepresentation
44
Insurance agents have authorization to represent the company and may exercise this relationship through
Express authority, implied authority and apparent authority
45
The manner and/or frequency that the policyowner pays the policy premium is called
Premium Payment Method
46
A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of
Coercion
47
Which type of authority is found in the agents contract
Expressed
48
What is the purpose of key person insurance
To minimize the risk of financial loss caused by the death of a key employee
49
An insured recently had a 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
50
Which of the following indicates the person upon whose life the annuity income amount is determined
The annuitant
51
In this state what type of violation is rebating
Misdemeanor
52
The person insurance can provide protection for all the following economic losses to a business except
Pay the benefit to the estate of the insured
53
Which of the following is not true of the agents implied authority
It is given to an agent by the insurance company that is not specifically communicated
54
What does the guaranty association guard against
Insurer insolvency
55
Which of the following is consideration on the part of an insurer
Paying the claim
56
The manner and or frequency that the policy owner pays the policy premium is called
premium mode
57
Which of the following is not a standard exclusion in life insurance policies
Disability
58
Which of the following losses would likely be covered under the accidental death
Death caused by a head-on collision
59
In terms of contract law a waiver is when someone
Gives up a known right or privilege
60
Which of the following indicates the person on whose life the annuity income amount is determined
The annuitant
61
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 illnesses since the application date. What is this document called ?
Statement of Good Health
62
What is the maximum civil fine a guilty party may pay for a single violation of the Insurance Code?
$1,000
63
What is the tax penalty for withdrawing money for annuity prior to age 59 1/2
10%
64
Applicants for a resident producer license must meet the requirements except
Be at least 21 years old
65
What type of insurance policies provides pure life insurance protection without a savings element
Permanent
66
The risk selection and classification process is known as
Underwriting
67
What is the cost of coverage based on for group life insurance
Evidence of insurability is usually not required
68
If the insured does not receive the statement of policy information at least five days prior to the policy delivery the free period is extended to
Within 15 days of the application
69
Which dividend option will increase the death benefit
Paid-up Additions
70
For a contract to be enforceable by law the purpose of the contract must be
Legal and not against public policy
71
When life insurance proceeds are used to pay inheritance taxes and federal estate taxes it is known as
Estate Conservation
72
What effect will the long-term care rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured
Reduce the death benefit
73
What is the exclusion ratio used to determine
The annuity benefit to be excluded from taxes
74
In making an annuity recommendation to a consumer the producer must have reasonable grounds to believe
it is suitable
75
What happens to the face amount of a whole life policy if the insured reaches the age of 100
The face amount is paid to the insured
76
All of the following are allowed practices regarding producers commissions except
Handling premiums
77
As an insurer field underwriter a producer has all the following responsibilities
Soliciting insurance contracts
78
An agreement that is enforceable by law is known as what kind of contract
Legal
79
The policy owner has an option to pledge the life insurance policy as collateral for a bank loan this is called
A collateral assignment
80
Purchases a life insurance policy and list his parents as the beneficiaries he is able to change beneficiaries at any type what type of beneficiary designation does this policy
Revocable
81
An insured intentionally does not disclose a material fact of on an application for insurance this would be considered
Concealment
82
In insurance, the agents have authorization to represent the company and may exercise this relationship through
Express authority, implied authority and apparent authority
83
An insurance agent visits potential clients and explains various types of policies the customer displays a lack of interest so the agent guarantees higher dividends that he knows would be possible which term describes the age what the agent has done
Misrepresentation
84
Term insurance has which of the following characteristics
Expires at the end of the policy period
85
Which of the following types of authority is given to an appointed agent from a company by the agency contract
Express Authority
86
In insurance an offer is usually made when
An applicant submits an application to the insurer
87
What documentation grants express authority to an agent
Agent's contract with the principal
88
Which of the following best describes an insurance company that has been formed under the laws of this state
Domestic
89
How will life insurance proceeds that are paid as a lump sum received by the beneficiary
Free of federal income taxation
90
The owner of a whole life policy with an accidental death rider dies by suicide after having the policy for 18 months. What is the insurance company's course of action?
Deny any payment of the death benefit
91
Key person insurance can provide protection for all of the following economic losses to a business excep
Pay the benefit to the estate of the insured
92
A college student will graduate next year his studies have limited his ability to work so he has borrowed funds to pay for his education he would like to start a permanent life insurance program that would cover his debt and still be affordable during the. He is establishing his earning potential and appropriate policy would be
Modified whole life
93
How soon must an insurer send a notice of cancellation to an insured prior to terminating a universal life policy
at least 30 days
94
Which of the following documents used in the underwriting process contains specific medical details about an applicant
Attending Physician’s Statement (APS)
95
Considering the principles of liquidity how would the policy owner use today's cash values in a life insurance policy
Use it for emergency services
96
Which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application
The application contains material misstatements
97
The Director of Insurance is authorized
to enforce state laws relating to insurance
98
Which of the following elements of an insurance contract requires payment of premium
Consideration
99
What type of an interest rate is guaranteed in universal life policies
Contract interest rate