Tennessee Life Insurance Exam

ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has - Answer-waived one of its legal rights The USA Patriot Act was enacted in: - Answer-2001 The amount of coverage on a group credit life policy is limited to: - Answer-the insured's total loan value An architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase on its project manager? - Answer-key person life policy Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? - Answer-Variable Life A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies? - Answer-Proceeds will go to the contingent beneficiary A business entity can be defined as an: - Answer-association or a limited liability company K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and starts receiving payments August 1. These payments will continue for as long as she and her spouse lives. Which type of annuity did K purchase? - Answer-Single Premium Immediate Joint with survivor Annuity What action should a producer take if the initial premium is NOT submitted with the application? - Answer-Forward the application to the insurer without the initial premium K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? - Answer-Proceeds will be payable to K's estate if P dies within a specific time The combination of Whole Life and____________ Term insurance is referred to as a Family Income Policy - Answer-Decreasing How Long does an individual have to "rollover" funds from an IRA or qualified plan? - Answer-60 Days A producer MUST leave a buyer's guide with an applicant for which type of policy? - Answer-Un