LIFE ONLY AGENT UPDATED EXAMS SCRIPTED QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔Any attempt by an insurer or its agent to discourage a client from accepting another
insurer's replacement policy is called
A)
twisting
B)
unfair competition
C)
misrepresentation
D)
conservation - ✔✔D
✔✔At all times, agents must uphold their fiduciary duty. The best example of this is
A)
annually reviewing the insurance needs and coverage for a client
B)
assisting clients to choose the best coverage for their situation
C)
assuring claim forms are presented to the insurer within 3 business days
D)
promptly submitting an insured's premium to the home office - ✔✔D
✔✔Which statement is an accurate description of life insurance policy dividends?
A)
They are likely to be larger in nonparticipating policies.
B)
Stock insurers pay dividends to policyowners; mutual insurers pay dividends to
shareholders.
C)
They are not taxable and are not guaranteed.
D)
They are guaranteed to be paid, and they are taxable as income. - ✔✔C Not taxable
because they are considered a return of premium.
✔✔Life insurance replacement regulations apply to which of the following kinds of
insurance?
A)
Group life insurance
B)
Credit life insurance
C)
Most individual life insurance policies and annuities
D)
, Industrial life insurance - ✔✔C
✔✔Renewable term life insurance may be described as
A)
increasing death benefit, level premium
B)
reducing death benefit, level premium
C)
level death benefit, increasing premium
D)
level death benefit, decreasing premium - ✔✔C
✔✔Define twisting.
A)
Twisting is when the producer commingles funds from his personal account with the
premium trust account.
B)
Twisting is when the producer makes an unfair policy comparison in order to get the
insured to lapse 1 policy and purchase a different policy with the same insurer.
C)
Twisting is the use of force or threat to conclude an insurance transaction.
D)
Twisting is when the producer makes an unfair policy comparison in order to get the
insured to lapse 1 policy and purchase a new policy with another insurer. - ✔✔`D
✔✔Annuity payments are taxable to the extent that they represent interest earned
rather than capital returned. Which of the following methods is used to determine the
tax-free portion of each annuity payment?
A)
Surtax ratio
B)
Annuitization formula
C)
Marginal tax formula
D)
Exclusion ratio - ✔✔D
✔✔Which of the following must a producer present to an applicant at the time of
application when a life insurance policy is to be replaced?
A)
Important Notice Regarding Replacement of Life Insurance
B)
Insurer's Statement of Warranty
C)
Report of the Department of Insurance
AND SOLUTIONS GUARANTEE A+
✔✔Any attempt by an insurer or its agent to discourage a client from accepting another
insurer's replacement policy is called
A)
twisting
B)
unfair competition
C)
misrepresentation
D)
conservation - ✔✔D
✔✔At all times, agents must uphold their fiduciary duty. The best example of this is
A)
annually reviewing the insurance needs and coverage for a client
B)
assisting clients to choose the best coverage for their situation
C)
assuring claim forms are presented to the insurer within 3 business days
D)
promptly submitting an insured's premium to the home office - ✔✔D
✔✔Which statement is an accurate description of life insurance policy dividends?
A)
They are likely to be larger in nonparticipating policies.
B)
Stock insurers pay dividends to policyowners; mutual insurers pay dividends to
shareholders.
C)
They are not taxable and are not guaranteed.
D)
They are guaranteed to be paid, and they are taxable as income. - ✔✔C Not taxable
because they are considered a return of premium.
✔✔Life insurance replacement regulations apply to which of the following kinds of
insurance?
A)
Group life insurance
B)
Credit life insurance
C)
Most individual life insurance policies and annuities
D)
, Industrial life insurance - ✔✔C
✔✔Renewable term life insurance may be described as
A)
increasing death benefit, level premium
B)
reducing death benefit, level premium
C)
level death benefit, increasing premium
D)
level death benefit, decreasing premium - ✔✔C
✔✔Define twisting.
A)
Twisting is when the producer commingles funds from his personal account with the
premium trust account.
B)
Twisting is when the producer makes an unfair policy comparison in order to get the
insured to lapse 1 policy and purchase a different policy with the same insurer.
C)
Twisting is the use of force or threat to conclude an insurance transaction.
D)
Twisting is when the producer makes an unfair policy comparison in order to get the
insured to lapse 1 policy and purchase a new policy with another insurer. - ✔✔`D
✔✔Annuity payments are taxable to the extent that they represent interest earned
rather than capital returned. Which of the following methods is used to determine the
tax-free portion of each annuity payment?
A)
Surtax ratio
B)
Annuitization formula
C)
Marginal tax formula
D)
Exclusion ratio - ✔✔D
✔✔Which of the following must a producer present to an applicant at the time of
application when a life insurance policy is to be replaced?
A)
Important Notice Regarding Replacement of Life Insurance
B)
Insurer's Statement of Warranty
C)
Report of the Department of Insurance
