Give me a Policy Please
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called:
a) representations
b) considerations
c) warranties
d) guarantees
a) representations
An insurance company appoints a(n) to transact insurance
a) employee
b) producer
c) administrator
d) underwriter
b) producer
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n):
a) 1035 exchange
b) inter vivos gift
c) Non-forfeiture option
d) Living Benefit
d) Living Benefit
Which of the following actions must be taken by an insurance company that wishes to conduct business in Mississippi?
a) acquire a certificate of authority
b) license 20 producers
c) build a home office in this state
d) obtain $1,000,000 bond
a) acquire a certificate of authority
Which of these actions is taken when a policyowner uses a Life Insurance policy as a collateral for a bank loan?
a) Revocable assignment
b) Beneficiary change
c) Irrevocable assignment
d) Collateral assignment
d) Collateral assignment
On delivery of a policy, a signed statement of good health is typically requested if:
a) A conditional receipt was given to the applicant
b) The quarterly premium payment mode was selected
c) The policy contains a guaranteed insurability rider
d) The application was submitted without the initial premium
d) The application was submitted without the initial premium
T is a producer who forgot to renew her license. She may reapply for a license without an examination
a) within three years after no renewal
b) within one year after no renewal
c) within four years after no renewal
d) anytime
b) within one year after no renewal
*renew every two years w/ 24 CEUs
What determines the full amount of social security retirement benefits a qualified individual is entitled to receive?
a) Primary Insurance Amount (PIA)
b) Total taxes paid into FICA
c) Number of dependents
d) State of residence
a) Primary Insurance Amount (PIA)
What type of employee welfare plans are not subject to ERISA regulations?
a) Church plans
b) Major medical plans
c) Coporate
d) Qualified plans
a) Church plans
All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT:
a) bilateral
b) unilateral
c) aleatory
d) adhesion
a) bilateral
*aleatory means nothing happens until event occurs (i.e. no death benefit until you die)
*adhesion is take it or leave it
The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and
a) the initial premium
b) agreeing to a physical exam
c) delivery of policy
d) disclosure of any medical conditions
a) the initial premium
Who would be given an exemption from licensing requirements in Mississippi?
a) an employee of a licensed producer who only answers the phone and schedules appointments
b) an individual appointed by insurance company who sells insurance
c) a partnership that is compensated to negotiate an insurance contract for a third party
d) a limited representative
a) an employee of a licensed producer who only answers the phone and schedules appointments
Which of the following does Social Security NOT provide benefits for?
a) survivorship
b) dismemberment
c) disability
d) retirement
b) dismemberment
Acme Insurance Company conducts business in Mississippi and was incorporated in Mississippi. This company is considered to be a(n)
a) alien insurer
b) domestic insurer
c) foreign insurer
d) captive insurer
b) domestic insurer
*One in Mississippi, but under the laws of another state is considered to be alien
Post-tax dollar contributions are found in:
a) 401K investments
b) Traditional IRA investments
c) SIMPLE investments
d) Roth IRA investments
d) Roth IRA investments
When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?
a) void the policy if found during the contestable period
b) void the policy, no matter when it is discovered
c) void the policy at any time only if it is found to be material
d) void the policy only if it is discovered during the contestable period and proven to be material
d) void the policy only if it is discovered during the contestable period and proven to be material
B is a producer who primarily writes insured business on his family. Which of the following is B engaged in?
a) rebating
b) controlled business
c) unfair discrimination
d) sliding
b) controlled business
*usually no more than 50%, but can vary
Which statement is TRUE regarding a Variable Whole Life Policy?
a) A minimum guaranteed Death benefit is provided
b) It is a combination of an Endowment and a Increasing Term policy
c) Its premiums and benefits are variable
d) It has guaranteed dividends
a) A minimum guaranteed Death benefit is provided
Which of the following statements about noncontributory employee group life insurance is FALSE?
a) a minimum number of employees is required to participate
b) all eligible employees must be covered
c) no evidence of insurability required
d) must have conversion rights
a) a minimum number of employees is required to participate
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shorty afterwards. How much of the death benefit will the mother receive?
a) $1,000,000
b) $500,000
c) $250,000
d) $0
d) $0
M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect, EXCEPT:
a) policy is delivered
b) free look period has expired
c) insurance company issues policy
d) initial premium is collected
b) free look period has expired
*usually 10 days
Which of the following would be a valid reason for suspending or revoking an insurance producer's license?
a) the producer has been convicted of a misdemeanor in the past ten years
b) the producer unintentionally made a material misstatement on the license application
c) the producer has misappropriated money held in a fiduciary capacity
d) the producer has filed for personal bankruptcy within the last five years
c) the producer has misappropriated money held in a fiduciary capacity
A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following?
a) critical illness
b) terminal illness
c) inability of the insured to perform more than 2 activities of daily living (ADL's)
d) inability of the insured to maintain insurance premiums due to unemployment
c) inability of the insured to perform more than 2 activities of daily living (ADL's)
ABC Insurance Company is replacing an existing life policy from XYZ Insurance Compay. ABC Insurance must provide which of the following documents to XYZ insurance Company?
a) A buyer's guide
b) The sales script
c) A policy summary
d) The Notice Regarding Proposed Replacement of Life Insurance or Annuity
c) A policy summary
*producer must submit signed statement by applicant regarding the replacement
At what point does the Life and Health Insurance Guaranty Association become involved with an insurer's affairs?
a) when the insurer enters a lawsuit against a claimant
b) when the insurer withdraws as an Association member
c) when the insurer becomes insolvent
d) when the insurer denies a claim
c) when the insurer becomes insolvent