1 - ANSWER-For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the
following?
1.
... [Show More] age
2. cost of care
3. policy value
4. premium cost
4 - ANSWER-The group conversion option is allowed for all of the following EXCEPT
1. termination of the master policy .
2. loss of group coverage due to termination of employment.
3. upon the loss of eligibility on the part of a class of insureds.
4. during the annual benefits enrollment period.
2 - ANSWER-What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?
1. No proof of insurability is required
2. insured original issue age is used
3. No application is required
4. outstanding loans are cancelled
4 - ANSWER-All of the following are features of the spendthrift clause EXCEPT
1. proceeds are paid in some other way than a single lump sum.
2. proceeds are protected by the insurer from the beneficiary's creditors.
3. transfer of proceeds to creditors is prohibited.
4. the beneficiary may encumber the proceeds.
1 - ANSWER-Which of the following lists the three common types of permanent individual life insurance?
1. Variable Life, Whole Life, Universal Life
2. Whole Life, Incidental Life, Term Life
3. Universal Life, AD&D,Term Life
4. Group Life, Whole Life, Variable Life
3 - ANSWER-Which part of an insurance contract contains the promise to pay losses covered by the policy in exchange for the
insured's premium and compliance with policy terms?
1. conditions
2. policy title page
3. insuring clause
4. definitions
1 - ANSWER-When the courts look at a contract to determine the intent of the parties which of the following is considered?
1. the entire contract
2. the relevant portions of the contract
3. any material added to the basic contract
4. any words that have ambiguous definitions
3 - ANSWER-All of the following are tax qualified retirement plans EXCEPT
1. Keogh.
2. 401(k).
3. Section 529 plan.
4. SEP.
4 - ANSWER-All life insurance and health insurance contracts contain all of the following EXCEPT
1. Policy face
2. Insuring clause
3. Conditions
4. Representations
4 - ANSWER-Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account?
1. deferred
2. fixed
3. immediate
4. variable
3 - ANSWER-All of the following are ownership rights EXCEPT
1. changing the beneficiary of the policy
2. borrowing funds against cash value
3. switching the policy from one insured to another
4. assigning all of the rights of the policy to another person
1 - ANSWER-An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the
beneficiary?
1. common disaster clause
2. irrevocable beneficiary
3. contingent beneficiary
4. endorsement method
1 - ANSWER-The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to
the policyowner UNLESS which of the following is true?
1. The policyowner has named an irrevocable beneficiary.
2. The policyowner has named a revocable beneficiary.
3. The policyowner deems the beneficiary unfit.
4. The insurer prohibits changes to beneficiaries.
2 - ANSWER-In order to AVOID being classified as an MEC, a policy must pass which of the following?
1. five-pay test
2. seven-pay test
3. policy loan test
4. accelerated benefits test
3 - ANSWER-Group AD&D policies may be deducted by whom and under which deduction category?
1. the employee under business expenses
2. the employee under medical expenses
3. the employer under business expenses
4. the employer under workers' compensation deduction
2 - ANSWER-Which of the following is TRUE of the limited pay whole life policy?
1. Coverage ends when the policy is paid-up.
2. Coverage continues after the policy is paid-up.
3. Premium payments increase as the insured ages.
4. Premium payments are lower than continuous premium whole life.
3 - ANSWER-Which of the following is common in an increasing term life policy?
1. Insurance protection decreases over time.
2. The premium increases over time.
3. It begins with little or no insurance protection.
4. It is used as mortgage credit insurance.
4 - ANSWER-All of the following are TRUE regarding incomplete applications EXCEPT
1. the underwriting department will return the application to the agent.
2. the applicant will have to wait additional time before coverage begins.
3. there will be a delay in the underwriting process.
4. the incomplete application can be accepted with the missing information added later.
2 - ANSWER-Which of the following refers to how often a premium is paid?
1. level
2. mode
3. net
4. ratio
1 - ANSWER-What is the purpose of Stranger-originated life insurance (STOLi)?
1. the policy is originated primarily or solely for the purpose of resale
2. the policy is written so as to avoid proof of insurable interest
3. it is a method of insuring a person who has been previously declined.
4. it is a fraudulent policy meant for financial gain of someone unknown to the insured.
3 - ANSWER-All of the following are required signatures on a life insurance application EXCEPT
1. the agent.
2. the applicant.
3. the minor in a juvenile policy.
4. the proposed insured.
2 - ANSWER-Which policy provision permits the policyowner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policyowner rejects the terms or costs?
1. Exclusions
2. Free look
3. Grace period
4. Insuring Clause
4 - ANSWER-All of the following are classifications of risk EXCEPT
1. substandard .
2. preferred.
3. declined.
4. non-nicotine.
2 - ANSWER-Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a
life insurance policy?
1. the effective date
2. any exclusions
3. premium due dates
4. loan interest rates
1 - ANSWER-Which whole life policy premium type is the most common?
1. continuous premium
2. non-participating
3. limited payment
4. single premium
4 - ANSWER-If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following
EXCEPT
1. insurer's practices with respect to the treatment of this information.
2. the applicant's rights to maintain privacy.
3. an opportunity to refuse the dissemination of the information.
4. the treatment procedures that are covered by the policy. [Show Less]