STORYTIME
An insured had a $10,000 term life policy. The annual premium of $200 was due February 1st; however, the insured failed to pay the premium. He died on February 28th. How much would the beneficiary receive from the policy?
A. $0
B. $10,000
C. $200
D. $9,800
D. $9,800
The rider in a whole life policy allows the company to forgo collecting the premium if the insured is disabled is called what?
A. Waiver of premium
B. Guaranteed insurability
C. Waiver of cost of insurance
D. Payor benefit
A. Waiver of premium
-waives premium 90–180 day waiting period before benefit begins Disability=/Monthly
Which of the following would be the beneficiary in credit life insurance?
A. The borrower
B. The insured
C. The creditor
D. The company
C. The creditor
-creditor is the policyowner and beneficiary
A. 15 days
B. 30 days
C. 10 days
D. 20 days
B. 30 days
The provision which states that both the policy and copy of application form the contract between the policyowner and the insurer is called the
A. Entire Contract
B. Total Contract
C. Complete Contract
D. Aleatory Contract
A. Entire Contract
Policy+Copy of App+Any Riders=EC
PAR=EC
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 it was his fault. In this case what will his beneficiary receive?
A. $300,000
B. $0
C. $50,000
D. $100,000
D. $100,000
if they were the reason for the accident, they just get the base of their coverage
if they weren't the reasoning for the accident than the triple indemnity would give the beneficiary $300K
Which of the following would NOT be an exception to National Do Not Call List?
A. Calls which are not commercial or do not include unsolicited advertisements
B. Calls for which the customer has given prior written permission
C. Calls by or on behalf of a tax-exempt nonprofit organization
D. Calls from outside the United States
D. Calls from outside the United States
- have you ever received a solicitation call from China or India? There for its not an exception
Who does an insurance agent represent?
A. The Department
B. Him/Herself
C. The insurer
D. The insured
C. The insurer
Agent- represents the insurance company insurer
Broker- represents the proposed insured or client
Consultant- A person for a fee/ cover offers advice
If an insured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is
A. Permanently insured
B. Fully insured
C. Correctly insured
D. Partially insured
B. Fully insured
Fullly=40
What does "level" refer to in a level term insurance?
A. Face amount
B. Interest Rate
C. Cash value
D. Premium
A. Face amount
- level=face amount
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
A. The face amount will be determined by the insurer
B. $20,000
C. $50,000
D. $25,000
C. $50,000
the face amount would remain the same as the original policy
Another name for a substandard risk classification is what?
Rated
The death protection competent of Univeral Life Insurance is always...
A. Annually Renewable Term
B. Whole Life
C. Decreasing Term
D. Adjustable Life
A. Annually Renewable Term
A producer's appointment last how long?
A. 5 years
B. Until its terminated
C. 3 years
D. 2 years
B. Until its terminated
- while the producer is licensed any agency appointment continues in effect till termination
The term "fixed" in a fixed annuity refers to all of the following EXCEPT:
A. Death Benefit
B. Amount of length of payments
C. Guaranteed rate of interest
D. Equal annuity payments
A. Death Benefit
Annuities have NO death benefit
Annuities are for RETIREMENT there's no benefit in you dying (outliving your money)
A life insurance policy has lapsed, and the policyowner would like to reinstate it. In order to initiate the reinstatement process, he must submit an application to his insurer. Which of the following is true?
A. It's the insurer's responsibility to deliver this application to the policyowner within 10 days of policy lapse
B. It's the policyowners responsibility to request the reinstatement application; the insurer must deliver it within 10 days
C. It's the policyowners responsibility to request the reinstatement application; the insurer must deliver it within 30 days
D. It's the insurer's responsibility to deliver this application to the policyowner within 30 days of policy lapse
C. It's the policyowners responsibility to request the reinstatement application; the insurer must deliver it within 30 days
- the policyowner is the one requesting therefore its their responsibility
- 30 days to reinstate and submit application
Producer's and insurer's actions related to insurance transactions from selling insurance to processing claims are referred to as
A. Producer actions
B. Agent's authority
C. Licensee's responsibilities
D. Insurance-related conduct
D. Insurance-related conduct
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
A. Decreasing Term
B. Universal Life
C. Whole Life
D. Variable Life
A. Decreasing Term
Loan=DEBT=Decreasing
Which of the following would NOT be considered rebating?
A. Giving a client a $50 pen with the insurer's logo during the application process
B. Sending a $150 gift card to the insureds employee after the insurance has been affected as a thank you
C. Collecting a lower premium than what's specified in a policy as a token of client appreciation
D. Sharing commissions with the insured
A. Giving a client a $50 pen with the insurer's logo during the application process
-rebating giving anything over $100
What is the name of the document that must be provided to the policyowner during a replacement?
The Notice Regarding Replacement Form
The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT
A. The face amount of the policy
B. The insureds age at death
C. The beneficiary's life expectancy
D. Projected interest rates
B. The insureds age at death
What significance did US vs South-Eastern Underwriters have on the insurance industry?
A. It reversed the decision of Paul vs Virginia determining that insurance is interstate commerce and should be regulated federally
B. It determined that insurance licenses should no longer be issued by states individually and instead be issued by the government
C. It determined that insurance licenses should no longer be issued by the government and should be issued by individual states
D. It reversed Paul vs Virginia determining that insurance is not interstate commerce and should not be regulated federally
A. It reversed the decision of Paul vs Virginia determining that insurance is interstate commerce and should be regulated federally
- Paul vs Virginia ✩Affirmed the authority of states to regulate insurance✩
- US vs SEUA ✩Insurance IS interstate commerce and subject to Federal antitrust laws✩
-McCarran-Ferguson Act ✩State regulation of insurance was in the public interest✩
What kind of policy allows withdrawals or partial surrenders?
A. 20-pay life
B. Variable whole life
C. Term policy
D. Universal Life
D. Universal Life
- allows withdrawals or surrenders from the cash value
Provided that it is the first offense, what is the maximum penalty for failing to respond to a subpoena?
A. $100
B. $5,000
C. $500
D. $10,000
B. $5,000
$5,000 Fine for cease and desists or subpoenas
Which of the following is NOT considered an unfair and deceptive practice?
A. Defamation
B. Misrepresentation
C. Controlled business
D. Rebating
C. Controlled business
Controlled Business- doing business with people you have a personal relationship