A.D. BANKER: Life & Health - Comprehensive Exam
Legally speaking, a producer has a __________ duty when handling life insurance premiums and applications for an insurer. - Answer- Fiduciary
It is the _________ who issues a Certificate of Authority enabling an insurer to conduct insurance business within a particular state. - Answer- State Insurance Commissioner
When an applicant for life insurance faces potential financial loss in the event of injury or sickness of an insured, it is said the applicant has: - Answer- Insurable interest
The reinsurance agreement that automatically accepts all new risks presented by the company seeking or requesting reinsurance from the reinsurer is known as a ____________ agreement. - Answer- Treaty
Insurable interest for life insurance is necessary only at the time of: - Answer- Application
With health and life insurance a/an _________ is required at the time of the application. - Answer- Insurable interest
_____________ insurance allows for insurance coverage to be obtained when not available from admitted carriers. - Answer- Surplus lines
Which of the following is NOT considered one of the essential elements of a contract? - Answer- Conditions
The insurance industry is primarily regulated at the _________ level. - Answer- State
A contract that is drafted by an insurer and receives no input or alteration from the insured, is considered a(n): - Answer- Contract of Adhesion
The reinsurance agreement that allows the reinsurer an opportunity to reject coverage for individual risks or price them higher due to their higher risk is known as a(n) ___________ agreement. - Answer- Facultative
When the owner of the policy and insurer must meet certain conditions in order for the health insurance policy to be enforceable, it is referred to as a(n): - Answer- Conditional contract
The ____________ market is a private source of coverage of last resort for individuals or businesses that have been rejected by voluntary market insurers. - Answer- Residual
To make insurance more affordable and protect the insurance company from paying out
too much in claims, insurers will: - Answer- Reinsure the risk All of the following are producer responsibilities to the applicant, except: - Answer- Offering and selling only the lowest premium policy
What should a producer do if the policy applied for is issued at a higher rate than was expected? - Answer- Personally deliver the policy, explain the rating, and reinforce the value of the policy
What is the primary reason why States have 'outlawed' Stranger Originated Life Insurance (STOLI) transactions? - Answer- At policy inception there is a lack of insurable interest
When an insurer requires that an insured be subjected to a medical examination, who pays for the medical exam? - Answer- The insurer
The name used to indicate the insured's age at time of policy renewal is the ________ age. - Answer- Attained
In order for a life insurance policy to be valid, insurable interest must exist at time of _________. - Answer- Application
In a policy summary all of the following must be shown on both a guaranteed and non-
guaranteed basis, except: - Answer- Dividends
Loading includes all of the following, except: - Answer- Mortality
A personalized computer-generated illustration detailing premiums, cash values, interest rates, and surrender values is called __________. - Answer- A policy summary
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what is the amount payable to the survivor? - Answer- $250,000
Which of the following is TRUE of a term rider when attached to a permanent life policy?
- Answer- It can provide additional temporary coverage on the insured or on other members of the family
All of the following are correct pertaining to Decreasing Term, except: - Answer- The premium declines throughout the term of the policy
When the death of an insured occurs within a specified period, causing the policy to pay
double or triple benefits, this policy must have which of the following riders? - Answer- Accidental Death Rider
Which of the following policies must be sold by prospectus? - Answer- Variable Whole Life
Legally speaking, a producer has a __________ duty when handling life insurance premiums and applications for an insurer. - Answer- Fiduciary
It is the _________ who issues a Certificate of Authority enabling an insurer to conduct insurance business within a particular state. - Answer- State Insurance Commissioner
When an applicant for life insurance faces potential financial loss in the event of injury or sickness of an insured, it is said the applicant has: - Answer- Insurable interest
The reinsurance agreement that automatically accepts all new risks presented by the company seeking or requesting reinsurance from the reinsurer is known as a ____________ agreement. - Answer- Treaty
Insurable interest for life insurance is necessary only at the time of: - Answer- Application
With health and life insurance a/an _________ is required at the time of the application. - Answer- Insurable interest
_____________ insurance allows for insurance coverage to be obtained when not available from admitted carriers. - Answer- Surplus lines
Which of the following is NOT considered one of the essential elements of a contract? - Answer- Conditions
The insurance industry is primarily regulated at the _________ level. - Answer- State
A contract that is drafted by an insurer and receives no input or alteration from the insured, is considered a(n): - Answer- Contract of Adhesion
The reinsurance agreement that allows the reinsurer an opportunity to reject coverage for individual risks or price them higher due to their higher risk is known as a(n) ___________ agreement. - Answer- Facultative
When the owner of the policy and insurer must meet certain conditions in order for the health insurance policy to be enforceable, it is referred to as a(n): - Answer- Conditional contract
The ____________ market is a private source of coverage of last resort for individuals or businesses that have been rejected by voluntary market insurers. - Answer- Residual
To make insurance more affordable and protect the insurance company from paying out
too much in claims, insurers will: - Answer- Reinsure the risk All of the following are producer responsibilities to the applicant, except: - Answer- Offering and selling only the lowest premium policy
What should a producer do if the policy applied for is issued at a higher rate than was expected? - Answer- Personally deliver the policy, explain the rating, and reinforce the value of the policy
What is the primary reason why States have 'outlawed' Stranger Originated Life Insurance (STOLI) transactions? - Answer- At policy inception there is a lack of insurable interest
When an insurer requires that an insured be subjected to a medical examination, who pays for the medical exam? - Answer- The insurer
The name used to indicate the insured's age at time of policy renewal is the ________ age. - Answer- Attained
In order for a life insurance policy to be valid, insurable interest must exist at time of _________. - Answer- Application
In a policy summary all of the following must be shown on both a guaranteed and non-
guaranteed basis, except: - Answer- Dividends
Loading includes all of the following, except: - Answer- Mortality
A personalized computer-generated illustration detailing premiums, cash values, interest rates, and surrender values is called __________. - Answer- A policy summary
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what is the amount payable to the survivor? - Answer- $250,000
Which of the following is TRUE of a term rider when attached to a permanent life policy?
- Answer- It can provide additional temporary coverage on the insured or on other members of the family
All of the following are correct pertaining to Decreasing Term, except: - Answer- The premium declines throughout the term of the policy
When the death of an insured occurs within a specified period, causing the policy to pay
double or triple benefits, this policy must have which of the following riders? - Answer- Accidental Death Rider
Which of the following policies must be sold by prospectus? - Answer- Variable Whole Life
