question

It will increase because the insured will be five years older when the policy was originally purchased.

answer

And insured buy's a five-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renew the policy in five years what will happen to the premium?

question

At the end of 20 years, the policy's cash value will equal $100,000.

answer

Which of the following is incorrect regarding a $100,000.20 year level term policy?

question

When the insured reaches age 100.

answer

When would a 20-pay whole life policy endow?

question

Increasing term

answer

Which of the following is not a type of whole life insurance?

question

Immediate annuity

answer

K purchased a $90,000 annuity with a single premium and began receiving payments two months after that. What type of annuity is it?

question

Universal Life - Option A

answer

Which of the following policies would have an IRS required Corridor or gap between the cash value and the death benefit?

question

Insurance and cash account

answer

What are the two components of a universal policy?

question

The premium in any type of term policy is level.

answer

Which of the following is true regarding the premium in term policies?

question

The payable premium amount steadily declined throughout the duration of the contract

answer

All of the following are true regarding a decreasing term policy except

question

It may last for the lifetime of the annuitant.

answer

What is true regarding the annuity period?

question

An annuity

answer

What product will protect an individual from outliving his or her money?

question

At the end of 20 years the policy's cash value will equal $100,000

answer

What is not true regarding a $100,000 20-year level term policy?

question

The beneficiary will receive the greater of the money paid into the annuity or the cash value.

answer

The annuity owner dies while they annuity is still in the accumulation stage which of the following is true?

question

A flexible premium

answer

Both universal life and variable universal life have a what kind of premium?

question

The payable premium amount steadily declined throughout the duration of the contract.

answer

What is NOT TRUE regarding a decreasing term policy?

question

Increasing term

answer

Which of the following is not a type of whole life insurance?

question

The guaranty association

answer

All of the following in today's regulate variable life policies except?

question

It would not occur in a deferred annuity

answer

Which of the following is not true regarding the accumulation period Of an annuity?

question

Limited pay Whole Life

answer

Your client wants both protection and savings from the insurance and is willing to pay premiums until retirement at age 65. What would be the best policy for this client?

question

Insurance and cash account

answer

What are the two components of a universal policy?

question

FINRA registration

answer

What Must an agent receive in order to sell variable life insurance policies?

question

Consideration

answer

And insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called what?

question

Dividend amounts are guaranteed in the policy

answer

All of the following statements concerning dividends are true except

question

The interest credited under this option is not taxable since it remains inside the insurance policy

answer

All of the following are true statements regarding the accumulation at interest option except

question

It transfers rights of ownership from the owner to another person

answer

What is true about a policy assignment?

question

The beneficiary must have a insurable interest in the insured.

answer

What is not true about beneficiary designations?

question

Incontestability clause

answer

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

question

Payor benefit

answer

Which of the following allows the insure to relieve a minor insured from premium payments if the minors parents have died or become disabled?

question

Both the principal and interest will be liquidated over a selected period Of time

answer

Which of the following best describes a fixed -period Settlement option?

question

Grace period

answer

The automatic premium loan provision is activated at the end of the

question

Payor benefit rider

answer

What rider would not cause the death benefit to increase?

question

Reduction of premium

answer

And insured pays $1,200 annually for her life insurance premium. The insured applies this years $300 worth of accumulated dividends to the next years premium thus reducing it to $900. What option does this describe?

question

Common disaster

answer

And insured and his wife are both involved in a head on collision. The husband dies instantly, and the wife does 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

question

Reduced paid up

answer

Which nonforfeiture option provides coverage for the longest period of time?

question

Taxable

answer

The interest earned on policy dividends is

question

Insuring clause

answer

Which of the following policy components contains the companies promised to pay?

question

And annually renewable term policy with a cash value account

answer

A universal life insurance policy is best described as

question

For 20 years or until death, whichever occurs first. I

answer

Under a 20 pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid for how long

question

The annuitant receives a fixed amount of return

answer

All of the following statements about equity index annuities are correct except

question

The plan premium pays for mortality charges and expenses and any excess is returned to the policy owner

answer

All of the following are characteristics of a universal life policy except

question

It will increase because the insured will be five years older than when the policy was originally purchased

answer

And insured buys a five-year level premium term policy with the face amount of $10,000. The policy also contains renewability and convertibility options. When the insurer renew the policy in five years what will happen to the premium?

question

cash value growth

answer

What feature of the indexed whole life policy is not fixed

question

Target premium

answer

What would help prevent a universal life policy from lapsing?

question

Pay-in period

answer

What is another term for the accumulation period Of an annuity?

question

The premium in any type of term policy is level

answer

What is true regarding the premium in term policies?

question

Increasing, decreasing and level

answer

What are the three basic types of coverage that are available based on how the face amount changes during the policy term?

question

Lump sum

answer

If a settlement option is not chosen by the beneficiary or policy owner which option will be used?

question

Life income with period Certain

answer

What life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, The payments will continue to a designated beneficiary?

question

The owners rights

answer

Which of the following explains the policy owners right to change beneficiaries, choose options, and receive proceeds of a policy? It's

question

Collateral assignment

answer

An individual borrowed money at the bank to send his daughter to college. Instead of purchasing credit walked in Sherance, he used an existing life insurance policy to secure the debt this would be called what?

question

The insured's age at Death

answer

The insured had his wife named as the beneficiary of his life insurance policy to ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following except

question

Set premium rates

answer

The ownership provision and toddles the policy owner to do all of the following except

question

The policy will terminate when the cash value is reduced to nothing.

answer

If an insured continually uses the automatic premium loan option to pay the policy premium what will happen

question

The interest credited under this option is not taxable since it remains inside the insurance policy

answer

What is not true regarding the accumulation at interest option

question

A minor

answer

What beneficiary would not be able to receive the death benefit directly from the insurer in the event of the insured's death?

question

It has the highest amount of insurance protection

answer

What is the benefit of choosing extended term as a nonforfeiture option?

question

Lump sum

answer

What is the other term for the cash payment settlement option?

question

The insuring clause

answer

What is the policy component that contains the companies promise to pay?

question

Guaranteed insurability option. This will allow the insured to purchase specific amounts of additional insurance at specific times without proving insurability

answer

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that the additional coverage will be available in the future. What options should be included in the policy?

question

To provide a guaranteed income for certain amount of time

answer

What is the purpose of a fixed period Settlement option?

question

Both the principal and interest will be liquidated over select period of time

answer

What best describes fixed period settlement option?

question

A copy of the original application

answer

According to the entire contract provision, what document must be made part of the insurance policy?

question

Hey a reduced death benefit

answer

And insured has had a life insurance policy that he purchased three years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old and not 43 as stated on the application. What will the company do?

question

The insured's estate

answer

The sole beneficiary airy of a life insurance policy dies before the insured if the policy owner fails to change the beneficiary airy before the insured's death the proceeds of the policy will go to

question

Funds exceeding the premium paid or taxable as ordinary income

answer

What is true about the cash surrender nonforfeiture option?

question

It is reduced to the amount of what the cash value would buy as a single premium

answer

When a reduced paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

question

Coverage ends and the policy cannot be reinstated

answer

When I policy is surrendered for its cash value,

question

They are required by state law to be included in the policy

answer

What is true about nonforfeiture values?

question

The balance of the loan will be taken out of the death benefit

answer

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

question

Military service or war

answer

What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military?

question

The full death benefit

answer

A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy?

question

Premiums always stay the same

answer

Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons except

question

The insurer

answer

What entity can legally bind coverage?

question

An attending physicians statement

answer

An underwriter must review an applicant with an extensive medical history. Which document would get the underwriter a better understanding of how the insured was treated for various illnesses?

question

Attending physician statement

answer

What document describes an insured's medical history, including diagnosis and treatment?

question

Free look period

answer

What phase begins after a new policy is delivered?

question

Assets

answer

In a replacement situation, all of the following must be considered except

question

Entire contract

answer

The policy, in combination with the application, is doing together into one entity called the what

question

The insured

answer

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to who

question

Stop loss limit

answer

An insured has endured multiple surgeries and hospitalizations for an illness during the summer months. Her insurer no longer bills her for medical expenses. What term best describes the condition she has met?

question

A right to return the policy for a full premium refund

answer

The free look provision allows what?

question

90 days of a loss

answer

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within how many days of a loss?

question

Renewal provision

answer

Which health insurance provision describes the insureds right to cancel coverage?

question

Claim is denied if his policy contains the illegal occupation provision

answer

A man is injured while robbing a convenience store. How does his major medical policy handle the payment of his claim?

question

The mode of premium payment

answer

Which of the following will bury the length of the grace period in health insurance policies?

question

An independent examination as often as reasonably required

answer

Wow a claim is painting, and insurance company may require

question

The insurer can increase the policy premium on individual basis

answer

What is not a feature of guaranteed renewable provision

question

7 months

answer

How long does the initial enrollment period for Medicare part B last?

question

The terminally ill

answer

Hospice care is intended for what

question

Sarah must have accumulated 6 work credits in the past three years

answer

Sarah becomes disabled at age 22 and can no longer work. She meets the definition of total disability under social security. What other requirement must Sarah have met to receive Social Security disability benefits?

question

Prescription drug benefit

answer

Medicare part D provides what?

question

The insurer can deny coverage

answer

Hey man is in Road in part a Medicare and not part B. Three months into coverage, he applies for a Medicare supplement policy. Which of the following is true?

question

12 credits because she is older than 24 and younger than 31

answer

If a person is disabled at age 27 and meet Social Security's definition of total disability, how many work credits must he/ she have earned to receive benefits?

question

First 3 pints

answer

How many pints of blood will be paid for by Medicare supplement Core benefits?

question

Need

answer

The primary requirement in order to receive Medicaid benefits is based upon

question

Donut hole

answer

And insured has Medicare part D coverage. He has reached his initial benefit limit I must now pay 50% of his prescription drug cost. What is the term for this gap in coverage?

question

The individual must be at least 65 years old

answer

What statement is not true regarding qualifications for Social Security disability benefits?

question

To be eligible, one must meet certain requirements

answer

What is a true statement about Social Security?

question

5 months

answer

Once the person meets the stringent requirements for disability benefits under Social Security, how long is the waiting period before any benefits will be paid?

question

That it is so federally administered program

answer

What is untrue concerning Medicaid?

question

Workers occupation

answer

What is not a factor in determining qualifications for Social Security disability benefits?

question

Offer the supplement policy on a guaranteed issue basis

answer

An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare part a and part B. What is the insurance company obligated to do?

question

Old-age, survivors, and disability insurance

answer

What is another name for Social Security benefits?

question

All plans

answer

In which Medicare supplemental policies are the core benefits found?

question

General enrollment period

answer

You did not enroll in Medicare part B when you first became eligible. Which of the following would allow you another opportunity to enroll?

question

Guaranteed renewable

answer

A Medicare supplement plan must have at least which of the following renewal provisions?

question

It is a compulsory program

answer

What is not a true statement about Medicare part B

question

Medicare part

answer

To sign up for Medicare prescription drug plan, individuals must first be enrolled in

question

Annual enrollment period

answer

What is another term for the general enrollment period for Medicare part B?

question

Long term care

answer

What type of care is not covered by Medicare?

question

75%

answer

What is the required number of participants in a contributory group plan?

question

And insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan

answer

What is not an example of third-party ownership of a life insurance policy?

question

The amount of premium payment

answer

Which of the following information will be stated in the consideration clause of a life insurance policy?

question

$10,000, no tax consequence

answer

An employee quits her job or she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a traditional IRA how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

question

Option A

answer

What universal life option has a gradually increasing cash value and a level death benefit?

question

It needs IRS approval

answer

What is not true regarding a non-qualified retirement plan?

question

Lower

answer

All other factors being equal what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

question

Insurers are barred from requesting a job the testing

answer

What statement regarding HIV testing for insurance purposes is not true?

question

20 employees

answer

Cobra applies to employers with at least how many employees?

question

Unearned premium's are retained by the insurance company

answer

According to the rights of renewability rider for cancelable policies all of the following are correct about the cancellation of an individual insurance policy except

question

Cash values can be bought at any time

answer

What does liquidity referred to in a life insurance policy?

question

A policy summary

answer

Which of the following documents delivered to the policy owner include information about premium amounts, cash values, surrender values and death benefits for specific policy years?

question

Reduced paid up

answer

Which nonforfeiture option provides coverage for the longest period of time?

question

Broader in general

answer

In comparison to a policy that uses the accidental means definition a policy that uses the accidental bodily injury definition would provide a coverage that is

question

Size of each installment

answer

What determines the length of time that benefits will be received under the fixed amount settlement option?

question

90 days

answer

Most policies will pay the accident death benefits as long as the debt is caused by the accident and occurs within how many days?

question

Cash option

answer

And insured receives an annual life insurance dividend check. What term best describes this arrangement?

question

They are available for an additional premium

answer

Which of the following is true regarding optional benefits with long-term care policies?

question

Interest only

answer

All of the following are nonforfeiture options except

question

A reinstated policy provides immediate coverage for an illness

answer

What is not true about the required provisions of a health insurance policy

question

Joint life

answer

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred and starting the business. What top of Ensurance would be the most affordable and still provide a death benefit should one of them die?

question

Exclusions clause

answer

Adam stipulated in the contract that the insurer will not provide coverage for our found in the

question

They are tax-free to terminally ill insured

answer

What is true regarding taxation of accelerated benefits under a life insurance policy?

question

Income assistance or work related injury

answer

Medicaid does not provide what benefit

question

Is renewable at the insureds option to a specified age

answer

A guaranteed renewable disability insurance policy

question

65 years old

answer

Regulations for annuity recommendations would apply when a consumer is at least what age?

question

Foreign

answer

And insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurers classification in Wyoming?

question

At the time of application or upon delivery of the policy

answer

At what point must an outline of coverage be delivered?

question

A person may hold several appointments at one time

answer

What is true regarding the agents appointments?

question

The office of insurance regulation

answer

Which of the following entities is responsible for agent licensing and administrative supervision?

question

Twisting

answer

When an HMO knowingly makes a miss leading representation, incomplete or fraudulent comparisons for the purpose of Indu seen any person to lapse, forfeit, terminate, surrender or convert any insurance policy or contract with another insurance company or HMO, they are in violation of the unfair trade practices of

question

Medicare will cover nursing home care if it is part of the treatment for a covert illness

answer

Which of the following statements is correct about Medicare?

question

Outline of coverage

answer

Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?

question

An unfair trade practices

answer

If an insurance company makes a statement that it's policies are guaranteed by the existence of the insurance guaranty Association that would be considered

question

Notice regarding replacement

answer

Shortly after replacement transaction on a Medicare supplement policy the insured decided to cancel the policy, but is unsure whether or not the free look provision applies. The insured could find the information and the

question

Beneficiaries age

answer

All of the following information about a customer must be used in determining annuity suitability except

question

3 years

answer

How long must an insurer retain an advertisement for its long-term care policies?

question

Twisting

answer

Agents who persuaded insureds to cancel policy in favor of another one when it might not be to the insured's best interest or guilty of what

question

LTC policies are marketed effectively to perspective insureds

answer

Every insurer marketing long-term care insurance must establish marketing procedures to ensure all of the following except

question

115% of the regular group rate

answer

The Florida health insurance coverage continuation act requires insurers that sell health plans to small employers to offer in those plan a right to elect to continue coverage, without providing evidence of a insurability, to employees who lose their coverage and are unable to replace it. The premium rate for this coverage may not exceed what percentage

question

The date the summary was prepared

answer

What date must be contained in a policy summary?

question

A person who negotiates entrance contracts

answer

What persons is required to hold a producer license?

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