Which of the following best describes annually renewable term insurance? - It is level term insurance
A rider attached to a life insurance policy that
... [Show More] provides coverage on the insured's family memebers is called the - Other-insured rider
Which option for Universal life allows the beneficiary to collect both death benefit and cash value when he dies - Option B
Example of apparent authority - Accepting late premiums after grace period
The President of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true? - Corporations are never legal annuitants
How many days does a licensee have to inform commissioner of change of address - 30 days
a man decides to purchase a $100,000 annually renewable term insurance life policy to provide additional protection until his children finished college, he discovered that this policy - required a premium increase at each renewal
Which is true about the cash surrender nonforfeiture option? - Funds exceeding the premium paid are taxable as ordinary income.
A projection of insurance needs that is based upon the capitalization of a applicant's future earnings is: - Human life value approach- is determined by the loss of income that would result with the death of the insured, after making adjustments for expenses, inflation, etc.
State law specifically prohibits using illegal inducements in the marketing of
insurance. All of the following would be considered illegal inducements
EXCEPT - Inviting prospective clients to the grand opening of the company's new office.
Cameron is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he feels he can afford at this time, he wants to be sure that additional coverage will be available in the future. He should include in this policy a - Guaranteed insurability option
A prospective deferred annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. The agent most likely explained which of the following? - b) Nonforfeiture option guarantees that the owner will receive a surrender value of the contract.
An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use? - Paid up option
All of the following statements about Credit Life insurance are true EXCEPT: - Benefits are paid to the borrowers beneficiary (The creditor IS the beneficiary)
Randy transfers his life insurance policy to his son Andy two years before Randy's death. Which of the following is true? - The entire face value of the policy will be included in Randy's taxable estate.
What life insurance policy provision states that both the policy and a copy of the application form the contract between the policyowner and the insurer? - Entire contract
Which of the following is the best reason to purchase life insurance rather than annuities? - To create and estate
The death benefit under the Universal Life Option B - Gradually increases each year by the amount that the cash value increases
the commissioner may waive pre licensing requirements for examinations for someone who has been licensed insurance producer - In preceding 12 months
Abigail's father dies leaving her the designated beneficiary on his life insurance policy. She is surprised to see that in addition to the face amount of the policy, she will also receive a refund of all the of the premiums he had paid. Which rider is attached to the policy? - Return of premium
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? - The insurer will pay the full Death Benefit to the beneficiary.
An insured pays a small $100 premium every month, yet the insurer promises to pay a high percentage of all medical costs. What element of an [Show Less]