SC Life Insurance Exam |262
Questions with verified Answers
The balance of the loan will be taken out of the death benefit - -If a policy
has a automatic loan provision, what happens if the insured dies before the
loan is paid back?
- Inspection Report - -An insurer receives a report regarding potential
insured that includes financial status, hobbies, and habits. What type of
report is that?
- Spendthrift Clause - -The clause that protects the proceeds of a life
insurance policy from creditors after the death of the insured is known as
- Term - -Children's riders attached to whole life policies are usually issued
as what type of insurance?
- Decreasing Term - -An individual has just borrowed $10,000 from his bank
on a 5-year installment loan requiring monthly payments. What type of life
insurance policy would be best suited to this situation
- 24 total hours, including 8 hours approved for the line of licensing that the
producer holds - -How many hours of CE must be completed every 2 years?
- The creditors have rights to the proceeds if they can show evidence of
valid assignment - -Which of the following statements is true concerning the
creditors of the deceased insured?
- Insurable interest and consent - -A life insurance policy has a legal
purpose if both of which of the following elements exist?
- Cost of Living Rider - -A long stretch of national economic hardship causes
a 7% rate of inflation. A policy owner notices that the face value of her life
insurance policy has been raised 7% as a result. Which policy rider caused
this change?
- Universal Life - -Which of the following Life Insurance policies would be
considered interest-sensitive?
- Express Authority - -The authority granted to an agent through the agent's
contract is referred to as
, - The policyowner must sign a delivery receipt - -What must happen when
an individual policy or annuity has been personally delivered to the
policyowner?
- Reinsure policies of the insolvent insurer through other companies - -In the
event of an insurer's insolvency, the South Carolina Life and Health Guaranty
Association will
- within 30 days - -Once the Director issues a cease and desist order, how
soon must an insurer comply with the order?
- It is reduced to the amount of what the cash value would buy as a single
premium - -When a reduced-paid up nonforfeiture option is chosen, what
happens to the face amount of the policy?
- Suggesting negotiations in settling the claim - -All of the following are
unfair claims settlement practices EXCEPT
- 3 - -How many hours of continuing education in Ethics are required each
compliance period
- The Broker - -In the transaction of insurance, which of the following is
considered to be representing the client?
- The beneficiary - -In a group life insurance policy, the employer may select
all of the following EXCEPT
- Lower - -The premium of a survivorship life policy compared with that of a
joint life policy would be
- It begins when the policy is delivered. - -Which of the following is TRUE
about the 10- day-free=look period in a Life Insurance policy?
- It is a life contingency option - -All of the following statements are true
regarding installments for a fixed period annuity settlement option EXCEPT
- The Client - -An insurance producer has not been appointed to an
insurance company. Who is the producer considered to represent?
- Any form of life insurance - -Partners in a business enter into a buy-sell
agreement to purchase life insurance, which states that should one of them
die prematurely, the other would be financially able to buy the interest of the
deceased partner. What type of insurance policy may be used to fund this
agreement
, - Any person licensed to sell, solicit or negotiate insurance - -Who is an
insurance producer
- The owner - -In life settlement contract, who does the life settlement
broker represent?
- The payable premium amount steadily declines throughout the duration of
the contract. - -All of the following are true regarding a decreasing term
policy EXCEPT
- Yes, it is possible as long as both are licensed for that line of business - -Is
it ever possible for more than one producer to split the commissions on an
insurance transaction in this state?
- tax deductible - -Traditional IRA contributions are
- Its premium steadily decreases over time, in response to its growing cash
value. - -Which statement is not true regarding a Straight Life policy
- 6 months - -A producer failed to complete the required continuing
education credit hours for this compliance period. Within what time period
after the deadline may the license be reinstated
- Single Premium - -Which type of life insurance policy generates immediate
cash value
- An agreement between a ceding insurer an assuming insurer - -What is
reinsurance
- Size of each installment - -Which of the following determines the length of
time that benefits will be received under the Fixed-Amount settlement
option?
- Policy Summary - -What describes the specific information about a policy
- Creditor requiring that a debtor buys insurance from a certain insurer - -
Which of the following is NOT allowed in credit life insurance
- Variable Annuity - -Which of the following products requires a securities
license
- reciprocal - -Which of the following insurance options would be considered
a risk-sharing arrangement
- Rebates are allowed if it's in the best interest of the client - -All of the
following are true regarding rebates Except
Questions with verified Answers
The balance of the loan will be taken out of the death benefit - -If a policy
has a automatic loan provision, what happens if the insured dies before the
loan is paid back?
- Inspection Report - -An insurer receives a report regarding potential
insured that includes financial status, hobbies, and habits. What type of
report is that?
- Spendthrift Clause - -The clause that protects the proceeds of a life
insurance policy from creditors after the death of the insured is known as
- Term - -Children's riders attached to whole life policies are usually issued
as what type of insurance?
- Decreasing Term - -An individual has just borrowed $10,000 from his bank
on a 5-year installment loan requiring monthly payments. What type of life
insurance policy would be best suited to this situation
- 24 total hours, including 8 hours approved for the line of licensing that the
producer holds - -How many hours of CE must be completed every 2 years?
- The creditors have rights to the proceeds if they can show evidence of
valid assignment - -Which of the following statements is true concerning the
creditors of the deceased insured?
- Insurable interest and consent - -A life insurance policy has a legal
purpose if both of which of the following elements exist?
- Cost of Living Rider - -A long stretch of national economic hardship causes
a 7% rate of inflation. A policy owner notices that the face value of her life
insurance policy has been raised 7% as a result. Which policy rider caused
this change?
- Universal Life - -Which of the following Life Insurance policies would be
considered interest-sensitive?
- Express Authority - -The authority granted to an agent through the agent's
contract is referred to as
, - The policyowner must sign a delivery receipt - -What must happen when
an individual policy or annuity has been personally delivered to the
policyowner?
- Reinsure policies of the insolvent insurer through other companies - -In the
event of an insurer's insolvency, the South Carolina Life and Health Guaranty
Association will
- within 30 days - -Once the Director issues a cease and desist order, how
soon must an insurer comply with the order?
- It is reduced to the amount of what the cash value would buy as a single
premium - -When a reduced-paid up nonforfeiture option is chosen, what
happens to the face amount of the policy?
- Suggesting negotiations in settling the claim - -All of the following are
unfair claims settlement practices EXCEPT
- 3 - -How many hours of continuing education in Ethics are required each
compliance period
- The Broker - -In the transaction of insurance, which of the following is
considered to be representing the client?
- The beneficiary - -In a group life insurance policy, the employer may select
all of the following EXCEPT
- Lower - -The premium of a survivorship life policy compared with that of a
joint life policy would be
- It begins when the policy is delivered. - -Which of the following is TRUE
about the 10- day-free=look period in a Life Insurance policy?
- It is a life contingency option - -All of the following statements are true
regarding installments for a fixed period annuity settlement option EXCEPT
- The Client - -An insurance producer has not been appointed to an
insurance company. Who is the producer considered to represent?
- Any form of life insurance - -Partners in a business enter into a buy-sell
agreement to purchase life insurance, which states that should one of them
die prematurely, the other would be financially able to buy the interest of the
deceased partner. What type of insurance policy may be used to fund this
agreement
, - Any person licensed to sell, solicit or negotiate insurance - -Who is an
insurance producer
- The owner - -In life settlement contract, who does the life settlement
broker represent?
- The payable premium amount steadily declines throughout the duration of
the contract. - -All of the following are true regarding a decreasing term
policy EXCEPT
- Yes, it is possible as long as both are licensed for that line of business - -Is
it ever possible for more than one producer to split the commissions on an
insurance transaction in this state?
- tax deductible - -Traditional IRA contributions are
- Its premium steadily decreases over time, in response to its growing cash
value. - -Which statement is not true regarding a Straight Life policy
- 6 months - -A producer failed to complete the required continuing
education credit hours for this compliance period. Within what time period
after the deadline may the license be reinstated
- Single Premium - -Which type of life insurance policy generates immediate
cash value
- An agreement between a ceding insurer an assuming insurer - -What is
reinsurance
- Size of each installment - -Which of the following determines the length of
time that benefits will be received under the Fixed-Amount settlement
option?
- Policy Summary - -What describes the specific information about a policy
- Creditor requiring that a debtor buys insurance from a certain insurer - -
Which of the following is NOT allowed in credit life insurance
- Variable Annuity - -Which of the following products requires a securities
license
- reciprocal - -Which of the following insurance options would be considered
a risk-sharing arrangement
- Rebates are allowed if it's in the best interest of the client - -All of the
following are true regarding rebates Except
