SC life insurance exam study set
Questions and Answers (Graded A+)
An insurer will accept a premium from the insured and continue theicoverage in full
force as though it
was NOT late during which time period?
Incontestable period
Probation period
Reinstatement period
Grace period - ANSWER_Grace period
A person who is a nonsmoker, of average weight, and in excellent health would most
likely be in which risk classification?
Standard
Substandard
Acceptable
Preferred - ANSWER_Preferred
Which of these is affected by the frequency of an insurance policy's premium
payments?
Settlement options
Cash value
Death benefit
Cost - ANSWER_Cost
A Buyer's Guide MUST
display year-by-year cash surrender values
@ have it's content approved by the Director
include the name of the Director
explain the company's specific underwriting procedures - ANSWER_Have its content
approved by the director
A life insurance claim which involves a per capita distribution of policy proceeds would
be payable to the
A. Estate of the insured only
B. Estate of the deceased beneficiaries only
C. Named contingent beneficiary only
D. Named living primary beneficiaries - ANSWER_Named primary beneficiaries
,A provision that allows a policyowner to temporarily give up ownership rights to secure a
loan is called
A. Automatic premium lion
B. Nonforfeiture option
C. Collateral assignment
D. Irrevocable assignment - ANSWER_Collateral assignment
A limited payment whole life policy provides
A. Protection for 20 years
B. Lifetime protection
C. Protection for more than one person
D. Discounted premiums - ANSWER_Lifetime protection
When does a life insurance policy typically become effective?
A. When the policy is issued
B. When initial premium is collected and policy is issued
C. When the application is completed and signed
D. When the completed application is signed and initial premium is collected -
ANSWER_When initial premium is collected and policy is issued
What makes an insurance policy a unilateral contract?
Only the insured pays the premium
Only the insured can change the provisions
Only the insurer is legally bound
Only the insured is legally bound - ANSWER_Only the insurer is legally bound
A whole life policy option where extended term insurance is selected is called a(n)
dividend option
Settlement option
Nonforfeiture option
Interest-only option - ANSWER_Nonforfeiture option
An annuity is primarily used to provide
retirement income
disability income
long-term care benefits
death benefits - ANSWER_retirement income
In what part of an insurance policy are policy benefits found?
,Declarations
Entire contract
Waivers
Conditions - ANSWER_Declarations
Which of the following is an example of the insured's consideration?
Insurer's promise to pay benefits
A paid premium
Legal purpose
Intent - ANSWER_A paid premium
Term insurance is appropriate for someone who
seeks living benefits for themselves
seeks a policy that builds cash value
seeks temporary protection and lower premiums
seeks permanent protection and higher premiums - ANSWER_seeks temporary
protection and lower premiums
Under a non-qualified annuity, interest is taxed after the
deposits have been made
death of the annuitant
distribution of payments
exclusion ratio has been calculated - ANSWER_exclusion ratio has been calculated
(The taxable and non-taxable portions of annuity payments are determined by the
exclusion ratio.)
A rollover from a Traditional IRA to another IRA MUST be done within ____ days to
avoid tax
consequences.
15
30
60
90 - ANSWER_60
In an insurance contract, the applicant's "consideration" is the
Offer and acceptance
Premium only
Statements made in the application and the premium
Statements made in the application only - ANSWER_statements made in the
application and the premium
, All producers shall maintain full and correct transaction records of the business done by
them for a period of AT LEAST
1 year
3 years
5 years
7 years - ANSWER_5 years
Which market index is normally associated with an indexed annuity's rate of return?
NAIC
SEC
S&P 500
A&P 300 - ANSWER_S&P 500
Every producer licensed in South Carolina must notify the Director within ____ days of
any change of address.
15
20
25
30 - ANSWER_30
When the Director is examining an insurer's books and records, the insurer
is NOT required to assist in the examination procedures
O can determine which records to make available
has the authority to stop the examination at any time
must NOT impede an examination - ANSWER_Must NOT impede an examination
Where would policy proceeds be paid if both the insured and primary beneficiary were
killed in the
same accident?
Primary beneficiary's estate
Contingent beneficiary
Insureds estate
Children of the insured - ANSWER_Contingent beneficiary
An endorsement found in an insurance plan which modifies the provisions of the policy
is called a(n)
Attachment
Add on
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Questions and Answers (Graded A+)
An insurer will accept a premium from the insured and continue theicoverage in full
force as though it
was NOT late during which time period?
Incontestable period
Probation period
Reinstatement period
Grace period - ANSWER_Grace period
A person who is a nonsmoker, of average weight, and in excellent health would most
likely be in which risk classification?
Standard
Substandard
Acceptable
Preferred - ANSWER_Preferred
Which of these is affected by the frequency of an insurance policy's premium
payments?
Settlement options
Cash value
Death benefit
Cost - ANSWER_Cost
A Buyer's Guide MUST
display year-by-year cash surrender values
@ have it's content approved by the Director
include the name of the Director
explain the company's specific underwriting procedures - ANSWER_Have its content
approved by the director
A life insurance claim which involves a per capita distribution of policy proceeds would
be payable to the
A. Estate of the insured only
B. Estate of the deceased beneficiaries only
C. Named contingent beneficiary only
D. Named living primary beneficiaries - ANSWER_Named primary beneficiaries
,A provision that allows a policyowner to temporarily give up ownership rights to secure a
loan is called
A. Automatic premium lion
B. Nonforfeiture option
C. Collateral assignment
D. Irrevocable assignment - ANSWER_Collateral assignment
A limited payment whole life policy provides
A. Protection for 20 years
B. Lifetime protection
C. Protection for more than one person
D. Discounted premiums - ANSWER_Lifetime protection
When does a life insurance policy typically become effective?
A. When the policy is issued
B. When initial premium is collected and policy is issued
C. When the application is completed and signed
D. When the completed application is signed and initial premium is collected -
ANSWER_When initial premium is collected and policy is issued
What makes an insurance policy a unilateral contract?
Only the insured pays the premium
Only the insured can change the provisions
Only the insurer is legally bound
Only the insured is legally bound - ANSWER_Only the insurer is legally bound
A whole life policy option where extended term insurance is selected is called a(n)
dividend option
Settlement option
Nonforfeiture option
Interest-only option - ANSWER_Nonforfeiture option
An annuity is primarily used to provide
retirement income
disability income
long-term care benefits
death benefits - ANSWER_retirement income
In what part of an insurance policy are policy benefits found?
,Declarations
Entire contract
Waivers
Conditions - ANSWER_Declarations
Which of the following is an example of the insured's consideration?
Insurer's promise to pay benefits
A paid premium
Legal purpose
Intent - ANSWER_A paid premium
Term insurance is appropriate for someone who
seeks living benefits for themselves
seeks a policy that builds cash value
seeks temporary protection and lower premiums
seeks permanent protection and higher premiums - ANSWER_seeks temporary
protection and lower premiums
Under a non-qualified annuity, interest is taxed after the
deposits have been made
death of the annuitant
distribution of payments
exclusion ratio has been calculated - ANSWER_exclusion ratio has been calculated
(The taxable and non-taxable portions of annuity payments are determined by the
exclusion ratio.)
A rollover from a Traditional IRA to another IRA MUST be done within ____ days to
avoid tax
consequences.
15
30
60
90 - ANSWER_60
In an insurance contract, the applicant's "consideration" is the
Offer and acceptance
Premium only
Statements made in the application and the premium
Statements made in the application only - ANSWER_statements made in the
application and the premium
, All producers shall maintain full and correct transaction records of the business done by
them for a period of AT LEAST
1 year
3 years
5 years
7 years - ANSWER_5 years
Which market index is normally associated with an indexed annuity's rate of return?
NAIC
SEC
S&P 500
A&P 300 - ANSWER_S&P 500
Every producer licensed in South Carolina must notify the Director within ____ days of
any change of address.
15
20
25
30 - ANSWER_30
When the Director is examining an insurer's books and records, the insurer
is NOT required to assist in the examination procedures
O can determine which records to make available
has the authority to stop the examination at any time
must NOT impede an examination - ANSWER_Must NOT impede an examination
Where would policy proceeds be paid if both the insured and primary beneficiary were
killed in the
same accident?
Primary beneficiary's estate
Contingent beneficiary
Insureds estate
Children of the insured - ANSWER_Contingent beneficiary
An endorsement found in an insurance plan which modifies the provisions of the policy
is called a(n)
Attachment
Add on
Rider
