Life Insurance Practice Exam Questions and Answers Already Graded A

Life Insurance Practice Exam Questions and Answers Already Graded A The ownership provision entities the policy owner to do all of the following EXCEPT a) Assign the policy. b) Designate a beneficiary. c) Set premium rates. d) Receive a policy loan. c) Set premium rates. The insurer sets premium rates based upon underwriting considerations. Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? a) The Guaranty Association b) Consumer Privacy Act c) The Fair Credit Reporting Act d) Unfair Trade Practices Law c) The Fair Credit Reporting Act The purpose of the Fair Credit Reporting Act is to protect consumers against the circulation of inaccurate or obsolete information and to insure that consumer reporting agencies are fair and equitable in their treatment of consumers. Why is an equity indexed annuity considered to be fixed annuity? a) It has modest investment potential. b) It has a fixed rate of return. c) It is not tied to an index like the S&P 500. d) It has a guaranteed minimum interest rate. d) It has a guaranteed minimum interest rate. While equity indexed annuities earn higher interest rates than fixed annuities, both types of annuities guarantee a specific minimum interest rate. An agent who is a resident of another state may obtain an Oklahoma nonresident license without taking a licensing examination provided a) The agent is currently licensed in the state of domicile. b) The agent obtained that license by passing a test suitable to the Oklahoma Department. c) The state where the agent lives affords the same privilege to residents of Oklahoma. d) All of these requirements are met. d) All of these requirements are met. A nonresident can be licensed as an insurance agent in the Oklahoma licensing requirements are met, as long as the agents home state gives Oklahoma residents the same privilege (reciprocity). The applicant must hold a license in good standing in his or her resident state. Which nonforfeiture option has the highest amount of insurance protection? a) Decreasing Term b) Reduced Paid-up c) Extended Term d) Conversion c) Extended Term The Extended Term nonforfeiture option has the same face amount as the original policy, but for a shorter period of time. What is a material misrepresentation? a) Any misstatement made by an applicant for insurance