An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer
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Consideration
Which of the following statements regarding HIV testing for insurance purposes is NOT true?
Insurers are barred from requesting HIV testing.
All of the following are dividend options EXCEPT
Fixed period installments
Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?
A Policy Summary
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
The amount of the distribution is reduced by the amount of a 20% withholding tax.
Which of the following best describes annually renewable term insurance?
It's Level Term Insurance
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
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?
Paid Up Option
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?
Proof Of Insurability is not required
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount.
All of the following are examples of third-party ownership of a life insurance policy EXCEPT
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.
Which two terms are associated directly with the way an annuity is funded?
Single Payment or Periodic Payments
A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?
Collateral Assignment
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?
Third Party Ownership
What is the other term for the cash payment settlement option?
Lump Sum
All of the following are Nonforfeiture options EXCEPT
Intrest only
Traditional IRA contributions are
Tax deductible
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?
Life expectancy
The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the
Entire Contract [Show Less]