MD LIFE FINAL EXAM / QUESTIONS & CORRECT
ANSWERS.
Terms in this set (100)
All of the following 1. sharing commissions with other licensed and appointed
actions are considered agents
rebating EXCEPT
1. sharing commissions
with other licensed and
appointed agents
2.refunding part of the
premium as an inducement
for purchase
3.offering special dividends
4. offering anything of value
not specified in the policy
,Peter has a policy where 80% 4."Equity index whole life". The type of policy where 80% to
to 90% of the premium is 90% of the premium is invested in traditional fixed income
securities and the remainder of the premium is invested in
invested in traditional fixed
contracts tied to a stipulated stock index is equity index whole
income securities and the life.
remainder of the premium is
invested in contracts tied to a
stipulated stock index. What
kind of policy is this?
1. Modified Endowment
Contract
2. Current
assumptivewhole life
3.Credit life insurance
4. Equity index whole life
3. from insurer to insurer and no cash is received by the
A tax-free Section 1035 policyowner
Exchange of a life insurance
policy to a different policy is *The Internal Revenue Code (IRC) enables a tax-free Section
permitted if it occurs 1035 Exchange of a life insurance policy to a different policy if
it occurs from insurer to insurer and the policyowner does not
receive any cash.
1. in the same state as
theoriginal transaction
2. within a 12 month
period3. from insurer to
insurer and no cash is
received by the policyowner
4. from agent to agent as
long as the agents are
licensed in the same line
,According to life insurance 2.at the time of application
contract law, insurable
interest exists
*According to life insurance in contract law, a person most likely
1.when any business will have an insurable interest in insuring a person's life if at the
time of application
relationship exists 2.
at the time of
application
3. at the time of death 4.
only when determined by a
judge
2.canceling a term life policy to buy a whole life policy
An example of replacement is
1.canceling disability
policy to buy a term life
policy
2. canceling a term
lifepolicy to buy a whole life
policy
3. canceling a long-
termcare policy to buy a
whole life policy
4. canceling a whole
lifepolicy to buy a major
medical policy
, When must a claim on a life 1. Promptly
insurance policy be paid
after proof of loss has been
received by the insurer?
1. Promptly
2.Within 10 days
3. Within 20 days
4. Within 30 days
4.Policyowner has the right to select the investment which will
Variable life insurance and provide the greatest return
Universal life insurance are
very similar. Which of these
features are held exclusively
by variable universal life
insurance?
1. Policyowner may
increase or decrease the
premium payments
2.Policyowner may
increase or decrease the
face amount
3.Policyowner can
contribute large sums of
money
4.Policyowner has the
right to select the
investment which will
provide the greatest
return
ANSWERS.
Terms in this set (100)
All of the following 1. sharing commissions with other licensed and appointed
actions are considered agents
rebating EXCEPT
1. sharing commissions
with other licensed and
appointed agents
2.refunding part of the
premium as an inducement
for purchase
3.offering special dividends
4. offering anything of value
not specified in the policy
,Peter has a policy where 80% 4."Equity index whole life". The type of policy where 80% to
to 90% of the premium is 90% of the premium is invested in traditional fixed income
securities and the remainder of the premium is invested in
invested in traditional fixed
contracts tied to a stipulated stock index is equity index whole
income securities and the life.
remainder of the premium is
invested in contracts tied to a
stipulated stock index. What
kind of policy is this?
1. Modified Endowment
Contract
2. Current
assumptivewhole life
3.Credit life insurance
4. Equity index whole life
3. from insurer to insurer and no cash is received by the
A tax-free Section 1035 policyowner
Exchange of a life insurance
policy to a different policy is *The Internal Revenue Code (IRC) enables a tax-free Section
permitted if it occurs 1035 Exchange of a life insurance policy to a different policy if
it occurs from insurer to insurer and the policyowner does not
receive any cash.
1. in the same state as
theoriginal transaction
2. within a 12 month
period3. from insurer to
insurer and no cash is
received by the policyowner
4. from agent to agent as
long as the agents are
licensed in the same line
,According to life insurance 2.at the time of application
contract law, insurable
interest exists
*According to life insurance in contract law, a person most likely
1.when any business will have an insurable interest in insuring a person's life if at the
time of application
relationship exists 2.
at the time of
application
3. at the time of death 4.
only when determined by a
judge
2.canceling a term life policy to buy a whole life policy
An example of replacement is
1.canceling disability
policy to buy a term life
policy
2. canceling a term
lifepolicy to buy a whole life
policy
3. canceling a long-
termcare policy to buy a
whole life policy
4. canceling a whole
lifepolicy to buy a major
medical policy
, When must a claim on a life 1. Promptly
insurance policy be paid
after proof of loss has been
received by the insurer?
1. Promptly
2.Within 10 days
3. Within 20 days
4. Within 30 days
4.Policyowner has the right to select the investment which will
Variable life insurance and provide the greatest return
Universal life insurance are
very similar. Which of these
features are held exclusively
by variable universal life
insurance?
1. Policyowner may
increase or decrease the
premium payments
2.Policyowner may
increase or decrease the
face amount
3.Policyowner can
contribute large sums of
money
4.Policyowner has the
right to select the
investment which will
provide the greatest
return
