life insurance exam
T the producer is trying to dissuade a policy owner from replacing an existing insurance
policy. This action taken by T is called - ANS-conservation
any attempt by the existing insurer or its insurance producer to dissuade a policyowner
from replacing an existing insurance policy.
misrepresentation made by an insurance agent to induce a policyholder to lapse a
policy in order to switch insurance companies. - ANS-twisting
conversion period for a terminated employee to convert a group life plan to an individual
plan ... how many days? - ANS-31 days
benefits from a credit life or disability policy are paid to the - ANS-creditor
a producer must do what during a sales presentation for a participating life insurance
policy? - ANS-include a statement that dividends are not guaranteed.
replacement regulations apply on to what contracts? - ANS-ordinary life contracts
when an insurer issues a policy that refuses to cover certain risks - ANS-exclusion
A provision in a life insurance policy that pays the policyowner an amount that does not
surpass the guaranteed cash value is called the - ANS-policy loan provision
the incontestable clause allows an insurer to - ANS-contest a claim during the
contestable period
the underwriting process does not involve - ANS-policy loan
the provision that can be used to put an insurance policy back in force after it has
lapsed due to nonpayment is called - ANS-reinstatement
An employee requested that the balance of her 401(k) account be sent directly to her in
one lump sum. Upon receipt of the distribution, she immediately has the funds rolled
over into an IRA. What is the tax consequence of the distribution sent to this employee?
- ANS-distribution is subject to federal income tax withholding
, variable annuities may invest premiums in each of the following except - ANS-insurer's
corporate business account
In a Key Employee life insurance policy, the third-party owner can be all of the following
EXCEPT - ANS-insured
Which policy requires an agent to register with the National Association of Securities
Dealers (NASD) before selling? - ANS-variable life
how are surrender charges deducted in a life policy with a rear-end loaded provision? -
ANS-deducted when the policy is discontinued
which factors are taken into consideration when an insurance company determines the
premium rate for a whole life policy on an applicant? - ANS-Risk classification
How does an indexed annuity differ from a fixed annuity? - ANS-Indexed annuity
owners receive credited interest tied to the fluctuations of the linked index
a life insurance policy that provides a policyowner with cash value along with a level
face amount is called - ANS-whole life
what kind of life insurance starts out as temporary coverage but can be later modified to
permanent coverage without evidence of insurability? - ANS-convertible term
which of the following characteristics is associated with a large group disability income
policy? - ANS-no medical underwriting
short term medical policy? - ANS-interim coverage
N has a Major Medical policy that only pays a portion of N's medical expenses. N is
responsible for paying the remaining balance. This provision is known as -
ANS-coinsurance
When an insured changes to a more hazardous occupation, which disability policy
provision allows an insurer to adjust policy benefits and rates? - ANS-change of
occupation provision
which statement accurately describes the waiver of premium provision in an accident
and health policy? - ANS-premiums are waived after the insured has been totally
disabled for a specified time period
T the producer is trying to dissuade a policy owner from replacing an existing insurance
policy. This action taken by T is called - ANS-conservation
any attempt by the existing insurer or its insurance producer to dissuade a policyowner
from replacing an existing insurance policy.
misrepresentation made by an insurance agent to induce a policyholder to lapse a
policy in order to switch insurance companies. - ANS-twisting
conversion period for a terminated employee to convert a group life plan to an individual
plan ... how many days? - ANS-31 days
benefits from a credit life or disability policy are paid to the - ANS-creditor
a producer must do what during a sales presentation for a participating life insurance
policy? - ANS-include a statement that dividends are not guaranteed.
replacement regulations apply on to what contracts? - ANS-ordinary life contracts
when an insurer issues a policy that refuses to cover certain risks - ANS-exclusion
A provision in a life insurance policy that pays the policyowner an amount that does not
surpass the guaranteed cash value is called the - ANS-policy loan provision
the incontestable clause allows an insurer to - ANS-contest a claim during the
contestable period
the underwriting process does not involve - ANS-policy loan
the provision that can be used to put an insurance policy back in force after it has
lapsed due to nonpayment is called - ANS-reinstatement
An employee requested that the balance of her 401(k) account be sent directly to her in
one lump sum. Upon receipt of the distribution, she immediately has the funds rolled
over into an IRA. What is the tax consequence of the distribution sent to this employee?
- ANS-distribution is subject to federal income tax withholding
, variable annuities may invest premiums in each of the following except - ANS-insurer's
corporate business account
In a Key Employee life insurance policy, the third-party owner can be all of the following
EXCEPT - ANS-insured
Which policy requires an agent to register with the National Association of Securities
Dealers (NASD) before selling? - ANS-variable life
how are surrender charges deducted in a life policy with a rear-end loaded provision? -
ANS-deducted when the policy is discontinued
which factors are taken into consideration when an insurance company determines the
premium rate for a whole life policy on an applicant? - ANS-Risk classification
How does an indexed annuity differ from a fixed annuity? - ANS-Indexed annuity
owners receive credited interest tied to the fluctuations of the linked index
a life insurance policy that provides a policyowner with cash value along with a level
face amount is called - ANS-whole life
what kind of life insurance starts out as temporary coverage but can be later modified to
permanent coverage without evidence of insurability? - ANS-convertible term
which of the following characteristics is associated with a large group disability income
policy? - ANS-no medical underwriting
short term medical policy? - ANS-interim coverage
N has a Major Medical policy that only pays a portion of N's medical expenses. N is
responsible for paying the remaining balance. This provision is known as -
ANS-coinsurance
When an insured changes to a more hazardous occupation, which disability policy
provision allows an insurer to adjust policy benefits and rates? - ANS-change of
occupation provision
which statement accurately describes the waiver of premium provision in an accident
and health policy? - ANS-premiums are waived after the insured has been totally
disabled for a specified time period
