Life – Flashcards

What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made?

K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?

Which statement is true regarding a minor beneficiary?

What is the underlying concept regarding level premiums?

C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?

A level premium indicates

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

A policyowner is able to choose the frequency of premium payments through what policy feature?

On a life insurance policy, who is qualified to change the beneficiary designation?

A policyowner is allowed to pay premiums more than once a year under which provision? Insuring

J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct?

A life insurance application must be signed by all of these EXCEPT

An incomplete life insurance application submitted to an insurer will result in which of these actions?

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?

Any changes made on an insurance application requires the initials of whom?

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

All of these are considered sources of underwriting information about an applicant EXCEPT

P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

When does a life insurance contract become effective if the initial premium is not collected during the application process?

Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?

Why is an applicant's signature required on a life insurance application?

When an insurance application is taken by a producer, which of these statements is true?

M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT

Which of these factors do NOT play a role in the underwriting of a life insurance policy?

Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?

Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan?

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?

What does the insuring agreement in a Life insurance contract establish?

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n)

Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage on himself under the same policy. What kind of policy should Q purchase?

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the

On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take?

What is being delivered during a policy delivery?

What is the purpose of the U.S.A. Patriot Act?

Which of these actions should a producer take when submitting an insurance application to an insurer?

Before a life insurance policy is issued, which of these components of the contract is required?

From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant?

What type of group plan involves employees sharing the cost?

Which of the following is an important underwriting principle of group life insurance?

When an employee is terminated, which statement about a group term life conversion is true?

A noncontributory group term life plan is characterized by

Under a trustee group life policy, who would be eligible for a certificate of coverage?

A person who is insured within a group contract will be given a

Group life insurance policies are generally written as

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a

P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?

Which provision is NOT a requirement in a group life policy?

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?

W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n)

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?

T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?

Which of these is an element of a Single Premium annuity?

Which of these statements concerning an Individual Straight Life annuity is accurate?

One becomes eligible for Social Security disability benefits after having been disabled for

What is Old Age and Survivors Health Insurance (OASDHI) also known as?

All of these are considered to be a benefit under Social Security EXCEPT for

To be eligible for Social Security disability benefits, an employee must be unable to perform

What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive?

Which of these retirement plans can be started by an employee, even if another plan is in existence?

Which of these is NOT a type of agent authority?

The Consideration clause of an insurance contract includes

E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to?

Which type of contract liquidates an estate through recurrent payments?

An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be

The underwriting process involves all of these EXCEPT for

Which of these do NOT constitute policy delivery?

Which parts of a life insurance policy are guaranteed to be true?

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company?

An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age?

A Key Employee policy is taken out by Company X on its vice president. Ten years later, this employee leaves Company X and begins working for Company Y. If this individual were to die and the policy is still in force and unchanged, where would the death proceeds be directed?

Which statement regarding third-party ownership of a life insurance policy is true?

Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require?

Which statement regarding a Key Employee Life policy is NOT true?

Who elects the governing body of a mutual insurance company?

S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT

Which of these provisions require proof of insurability after a policy has lapsed?

M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the

The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and

What is the Suicide provision designed to do?

The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)

What provision in a life insurance policy states that the application is considered part of the contract?

The incontestable clause allows an insurer to

Which of the following statements is CORRECT about accelerated death benefits?

Which statement regarding the Misstatement of Age provision is considered to be true?

Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled?

Which of these is NOT considered to be a right given to a policyowner?

J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions?

T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay?

What action can a policyowner take if an application for a bank loan requires collateral?

What action can a policyowner take if an application for a bank loan requires collateral?

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?

What benefit does the Payor clause on a Juvenile Life policy provide?

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?

P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?

S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made?

How are policyowner dividends treated in regards to income tax?

Which of these life insurance riders allows the applicant to have excess coverage?

Whose life is covered on a life insurance policy that contains a payor benefit clause?

P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary?

S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy?

D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive?

In a Life insurance contract, an insurance company's promise to pay stated benefits is called the

What does the ownership clause in a life insurance policy state?

The automatic premium loan provision is designed to

A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached?

Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?

S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?

D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?

Which of these are NOT an example of a Nonforfeiture option?

In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?

A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?

The Consideration clause in a life insurance contract contains what pertinent information?

Which type of policy is considered to be overfunded, as stated by IRS guidelines?

If a contract of adhesion contains questionable language, to whom would the interpretation be in favor of?

When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have

Which of these is NOT considered to be an element of an insurance contract?

Who makes the legally enforceable promises in a unilateral contract?

Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called

Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy?

When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?

What type of life insurance are credit policies issued as?

How long does the coverage normally remain on a limited-pay life policy?

What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?

Which of these statements describe a Modified Endowment Contract (MEC)?

Credit Life insurance is

Which of these is an element of a Variable Life policy?

Which of these would be considered a Limited-Pay Life policy?

The amount of coverage on a group credit life policy is limited to

Term insurance has which of the following characteristics?

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

What type of life insurance incorporates flexible premiums and an adjustable death benefit?

All of these are characteristics of an Adjustable Life policy EXCEPT

Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?

D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?

When is the face amount paid under a Joint Life and Survivor policy?

What kind of life insurance product covers children under their parent's policy?

What type of policy would offer a 40-year old the quickest accumulation of cash value?

A life insurance policy that provides a policyowner with cash value along with a level face amount is called

Which statement is true concerning a Variable Universal Life policy?

T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?

A policy of adhesion can only be modified by whom?

Which of these require an offer, acceptance, and consideration?

Which of these arrangements allows one to bypass insurable interest laws?

What is the consideration given by an insurer in the Consideration clause of a life policy?

When must insurable interest be present in order for a life insurance policy to be valid?

Which of these is considered a statement that is assured to be true in every respect?

A Limited-Pay Life policy has

Which statement about a whole life policy is correct?

Which statement is correct regarding the premium payment schedule for whole life policies?

What type of life insurance gives the greatest amount of coverage for a limited period of time?

T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

What type of insurance offers permanent life coverage with premiums that are payable for life?

What type of life policy covers 2 lives and pays the face amount after the first one dies?

A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as

What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?

How does a typical Variable Life Policy investment account grow?

The investment gains from a Universal Life Policy usually go toward

K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?

What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?

A 15-year mortgage is best protected by what kind of life policy?

Life insurance that covers an insured's whole life with level premiums paid over a limited time is called

S is covered by a whole life policy. Which insurance product can cover his children?

What kind of premium does a Whole Life policy have?

An insurance agent who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of

Under the Unfair Trade Practice law, agents may be found guilty of defamation if they make a false statement that is intended to

Which of the following violations is considered an unfair trade practice?

An insurance company that publishes misleading information about insurance coverage may be found guilty of

Anyone who makes a fraudulent statement on an insurance application in order to obtain money benefits from an insurance company has committed an act of

Which of the following actions by an insurance company or an agent is considered rebating?

Which of the following is an unfair claims practice?

Policyholders elect the governing bodies of which of the following types of insurance companies?

Which of the following would be considered misrepresentation by an insurance agent?

Which of the following is an example of defamation?

An insurance company licensed in Georgia and domiciled in Pennsylvania is known as

All of the following actions are considered rebating EXCEPT

An insurance company may be judged guilty of false advertising if it

An agent who tells a client that dividends are guaranteed may be guilty of

A stock insurance company is owned by it's

Which of the following is an example of rebating?

A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of

An agent who intentionally makes an untrue or incomplete statement in the course of an insurance transaction may be guilty of

An insurance company that is organized or chartered in a country other than the United States is defined as

Which of the following would be considered an unfair claim practice?

ABC Life Insurance company's home office is located in Massachusetts and is incorporated in Massachusetts. In Georgia they are considered to be

Before a licensed agent is eligible to transact insurance sales, they must be

An applicant for an insurance producer's license in Georgia MUST meet which of the following requirements?

"Controlled business" is MOST ACCURATELY described as