MA Producer Test Questions With Correct Answers.
What is the purpose of the Medical Information Bureau? (MIB) - accurate
answers-To help underwriters evaluate risk
When would the surrender charge on a deferred annuity contract be waived? -
accurate answers-When the annuitant dies or becomes disabled
Who regulates an insurers claim settlement practices? - accurate answers-
State insurance departments
Use of XYZ insurance company brochures, business cards, and rating guides is
an example of what? - accurate answers-Apparent Authority
An Administrator who manages premiums collected from group members of a
reciprocal insurer is called what? - accurate answers-An attorney
When would evidence of insurability be required for a person already covered
with a variable universal life policy? - accurate answers-When the death
benefit is increased
What does a 401 (K) generally provide - accurate answers-salary-deferral
option
Identifies the needs of the individual and his or her dependents is what? -
accurate answers-needs analysis
Provides an Increasing face amount over time based on specific amounts or a
percentage of the original face amount - accurate answers-Increasing term
Term life insurance that provides an annually decreasing face amount over
time. Level premiums. Usually used for mortgage protection - accurate
answers-Decreasing term
Has a level face amount and level premiums. Premiums higher but level
throughout policy. Premiums increase at each renewal. - accurate answers-
Level term
, The administrator of a reciprocal insurer who manages the premiums
collected from the groups members is called what? - accurate answers-An
attorney
What allows the superintendent to have the ability to examine the records of
authorized insurers? - accurate answers-The powers granted through the
state statutes
When is a policy owner able to take out a policy loan on a whole life policy? -
accurate answers-when the policy has a cash value
What happens to a life insurance policy when the policy loan balance exceeds
the cash value? - accurate answers-policy will no longer be in force
Peter, 50 y/o, surrenders his modified endowment contract. How is the gain
treated in terms of federal income taxes? - accurate answers-The gain is
treated as taxable incoming a penalty tax is imposed on the gain. *If MEC is
surrendered prior to age 59.5, the gain is taxable as well as a 10% penalty
A life insurance policy provision that has the potential to reduce the death
benefit is called what? - accurate answers-Accelerated living benefit
The conversion option for group term insurance may be exercised by an
employee when? - accurate answers-within 31 days of termination
When does a policy go into effect for individual life insurance? - accurate
answers-the date the agent delivers the policy, collects initial premium, and
obtains a good health statement
Which authority grants the producer the right to collect premiums when it is
not stated in the contract - accurate answers-Implied authority
Purchasing insurance is an example of risk _______? - accurate answers-
Transference
what are premiums for group credit life insurance based on? - accurate
answers-Flat rate, unrelated to the borrowers age
*premiums are based on claims experience and expense factors
What is the purpose of the Medical Information Bureau? (MIB) - accurate
answers-To help underwriters evaluate risk
When would the surrender charge on a deferred annuity contract be waived? -
accurate answers-When the annuitant dies or becomes disabled
Who regulates an insurers claim settlement practices? - accurate answers-
State insurance departments
Use of XYZ insurance company brochures, business cards, and rating guides is
an example of what? - accurate answers-Apparent Authority
An Administrator who manages premiums collected from group members of a
reciprocal insurer is called what? - accurate answers-An attorney
When would evidence of insurability be required for a person already covered
with a variable universal life policy? - accurate answers-When the death
benefit is increased
What does a 401 (K) generally provide - accurate answers-salary-deferral
option
Identifies the needs of the individual and his or her dependents is what? -
accurate answers-needs analysis
Provides an Increasing face amount over time based on specific amounts or a
percentage of the original face amount - accurate answers-Increasing term
Term life insurance that provides an annually decreasing face amount over
time. Level premiums. Usually used for mortgage protection - accurate
answers-Decreasing term
Has a level face amount and level premiums. Premiums higher but level
throughout policy. Premiums increase at each renewal. - accurate answers-
Level term
, The administrator of a reciprocal insurer who manages the premiums
collected from the groups members is called what? - accurate answers-An
attorney
What allows the superintendent to have the ability to examine the records of
authorized insurers? - accurate answers-The powers granted through the
state statutes
When is a policy owner able to take out a policy loan on a whole life policy? -
accurate answers-when the policy has a cash value
What happens to a life insurance policy when the policy loan balance exceeds
the cash value? - accurate answers-policy will no longer be in force
Peter, 50 y/o, surrenders his modified endowment contract. How is the gain
treated in terms of federal income taxes? - accurate answers-The gain is
treated as taxable incoming a penalty tax is imposed on the gain. *If MEC is
surrendered prior to age 59.5, the gain is taxable as well as a 10% penalty
A life insurance policy provision that has the potential to reduce the death
benefit is called what? - accurate answers-Accelerated living benefit
The conversion option for group term insurance may be exercised by an
employee when? - accurate answers-within 31 days of termination
When does a policy go into effect for individual life insurance? - accurate
answers-the date the agent delivers the policy, collects initial premium, and
obtains a good health statement
Which authority grants the producer the right to collect premiums when it is
not stated in the contract - accurate answers-Implied authority
Purchasing insurance is an example of risk _______? - accurate answers-
Transference
what are premiums for group credit life insurance based on? - accurate
answers-Flat rate, unrelated to the borrowers age
*premiums are based on claims experience and expense factors
