Which of the following statements regarding HIV testing for insurance purposes is NOT true?
a) HIV testing is regulated at the state level.
b) Insurers
... [Show More] are barred from requesting HIV testing.
c) Positive test results will be forwarded to the state's Department of Health if a physician is not selected by the applicant.
d) The testing practices must meet the criteria of the U.S. Department of Health and Human Services.
b
Which policy component decreases in decreasing term insurance?
a) Face amount
b) Cash value
c) Dividend
d) Premium
a
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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?
a) The insurer will pay a reduced death benefit to the beneficiary.
b) The insurer will pay the death benefit minus one month's premium.
c) The insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one.
d) The insurer will pay the full death benefit from the group policy to the beneficiary.
d
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called
a) Modified Endowment Contract (MEC).
b) Level term life.
c) Graded premium whole life.
d) Single premium whole life.
d
The Ownership provision entitles the policyowner to do all of the following EXCEPTa) Assign the policy.
b) Designate a beneficiary.
c) Set premium rates.
d) Receive a policy loan.
c
If an agent fails to obtain an applicant's signature on the application, the agent must
a) Sign the application, stating it was by the agent.
b) Send the application to the insurer with a note explaining the absence of signature.
c) Return the application to the applicant for a signature.
d) Sign the application for the applicant.
c
Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?
a) The beneficiary must pay interest to the insurer.
b) The beneficiary will receive the lump sum, plus interest.
c) The primary beneficiary will receive the death benefit and the secondary beneficiaries will share the interest payments.
d) The beneficiary will only receive payments of the interest earned on the death benefit.
d
What is the waiting period on a Waiver of Premium rider in life insurance policies?
a) 30 days
b) 3 months
c) 5 months
d) 6 months
d
What is the benefit of choosing extended term as a nonforfeiture option?
a) It matures at age 100.
b) It allows for coverage to continue beyond maturity date.
c) It can be converted to a fixed annuity.
d) It has the highest amount of insurance protection.
d
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
a) Medical exam and parents' medical history
b) Proof of insurability is not required.
c) Medical exam
d) Her parents' federal income tax receipts
b
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
a) Cash value of the plan
b) Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount
c) Either the amount paid into the plan or the cash value of the plan, whichever is the lesser amount
d) Amount paid into the plan
b
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
a) Paid-up additions
b) Dividend Accumulation option
c) Paid-up option
d) Accumulation at Interest
c
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A producer agent must do all of the following when delivering a new policy to the insured EXCEPT
a) Explain the policy provisions, riders, and exclusions.
b) Collect any premium due.
c) Explain the rating procedures if the policy is rated differently than applied for.
d) Disclose commissions earned from the sale of the policy.
d [Show Less]