Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ExamFX > Missed questions > Flashcards

Missed questions Flashcards

1
Q

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

A

As of the APPLICATION DATE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

An insurance company and insured are settling a lawsuit involving a life insurance policy. The insurer believes that the application would help to establish material facts in the case. The following is true

A

Applications can only be used in court cases if they are attached to or endorsed upon the issued policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the purpose of a disclosure statement in life insurance policies

A

To explain features and benefits of a proposed policy to the consumer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Paul vs Virginia

A

decided that INSURANCE IS NOT INTERSTATE COMMERCE AND COULD NOT BE REGULATED BY FEDERAL GOVERNEMNT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What type of insurance would be used for a Return of Premium rider

A

Increasing term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Fixed Annuities provide all the following expect

A

hedge against infltion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

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

A

The amount of premium payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Following is included in the term “insurance related conduct’

A

Transmitting funds between producers and the insurance company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

On its advertisement, a company claims that it has funds in its possession that in fact not available for the payment of losses or claims. Company is guilty of

A

Misrepresenation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The buyers guide and policy summary can be delivered with the policy or earlier if the policy contains an unconditional refund provison of at least

A

10 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Equity indexed annuities

A

Seek higher returns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The term fixed in fixed annuities refers to all of the following except

A

death benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

A

Pay the policy proceeds only if it would have issued the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

WHich statement is true concerning buy-sell agreements

A

Buy-sell agreements are normally funded with a life insurance policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Customer does not mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of cash value? What would you recommend

A

An endowment policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

An insured commited suicide 6 months after his life insurance policy was issued. the insurer will

A

refund the premiums paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

which nonforfeiture option has the highest amount of insurance protection

A

Extended term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Which protects the isnured from an unintentional policy lapse due to nonpayment of premium

A

Automatic premium loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

If a policy includes a free-look period of at least 10 days, the Buyer’s Guide may be delivered to the applicant no later than

A

With the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Which of the following is the basic source of information used by the company in the risk selection process

A

Application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Premium amount and surrender values would be included in

A

policy summary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which two terms are associated directly with the way an annuity is funded

A

Single Payment and Periodic Payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Variable Whole Life insurance is based on what type of premium

A

Level fixed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

A policy will pay the death benefit if the insured dies during the 20- year premium-paying period, and nothing if death occurs after the 20-year period. What type pf policy is this?

A

Level term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

An individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to provide these benefits

A

Immediate annuity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What does ‘level’ refer to an level term insurance?

A

FACE AMOUNT

27
Q

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured

A

Option B

28
Q

Who bears all of the investments risk in a fixed annuity

A

The insurance company

29
Q

Which of the following is a feature of variable annuity?

1) Interest rate is guaranteed
2) Securities license is not required
3) Benefit payment amounts are not guaranteed
4) Payments into the annuity are kept in the comany’s general account

A

Benefit payment amounts are not guaranteed

30
Q

A Straight Life policy has what type of premium?

A

A level annual premium for the life of the insured

31
Q

A man decided to purchase a $100k Annually Renewable Term policy to provide additional protection until his children finished college. He discovered that his policy

A

Required a premium increase each renewal

32
Q

Under the Fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report

A

Must be informed of the source of the report

33
Q

A producer received a group master policy and certificates for delivery to the insured. Within how many days must the policy and certificate be delivered?

A

10 Calendar days

34
Q

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

A

Adjusted to the insureds age at the time of renewal

35
Q

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

A

An unfair trade practice

36
Q

When is the earliest a policy may go into effect

A

When the application is signed and a check is given to the agent

37
Q

What is the purpose of a conditional receipt

A

It is intended to provide coverage on a date prior to the policy issue

38
Q

Which of the following is a key distinction between variable whole life and variable universal life products?

A

Variable whole life has a guaranteed death benefit

39
Q

An insured purchased a Life Insurance policy. The agent told him that depending upon the company’s investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an

A

Interest-sensitive Whole Life

40
Q

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

A

The insured may renew the policy for another 10 years, but at a higher premium rate

41
Q

Which Universal life option has a gradually increasing cash value and a level death benefit

A

Option A

42
Q

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

A

Level term

43
Q

Which of the following best defines target premium a universal life policy

A

The recommended amount to keep the policy in force throughout its lifetime

44
Q

Which of the following Life Insurance policies would be considered interest sensitive

A

Universal Life

45
Q

Which of the following is true regarding variable annuities

A

The annuitant assumes the risks on investments

46
Q

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose

A

Interest only option

47
Q

Which nonforfeiture option provides coverage for the longest period of time

A

Reduced paid-up

48
Q

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen

A

Paid-up addition

49
Q

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

50
Q

Items stipulated in the contract that the insurer will not provide coverage for are found in the

A

Exclusion Clause

51
Q

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

A

Copy of the original application

52
Q

A life insurance policy has lapsed, and the policyowner would like to reinstate it. In order to initiate the reinstatement process, he must submit an application to his insurer. Which of the following is true.

A

It is the policyowner’s responsibility to request the reinstatement application; the insurer must then deliver it within 30 days

53
Q

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

A

Revocable beneficiary

54
Q

Equity index annuities

A

Have guaranteed interest rate

55
Q

Insured purchased insurance policy 5 years ago. Last year received a dividend check from insurance company that was not taxable. This year she did not receive a check. What type of insurer did the insured purchase the policy?

A

Mutual

56
Q

Policy component the company’s promise to pay

A

Insuring clause

57
Q

Suicide clause

A

Suicide is excluded for a specific period of years and covered thereafter

58
Q

Insurable interest exist

A

At the time of application

59
Q

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

A

Purchase a single premium policy for a reduced face amount

60
Q

Credit life insurance

A

Insures the life of a debtor

61
Q

Conditional receipt

A

Intended to provide coverage on a date prior to the policy issue

62
Q

Branch office is

A

an office in this state where the licensee conducts insurance business, other than a principal office

63
Q

Insurer requires an application in order to renew a life insurance policy, it is the insurer’s responsibility to send one to the insured

A

Within 30 days of the insured’s request

ExamFX (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions