Missed Test Questions Flashcards
(55 cards)
The reinsurance agreement that automatically accepts all new risks presented by the company seeking or requesting reinsurance from the reinsurer is know as a _______ agreement.
Treaty
The relationship of a person who acts on behalf of a company whereby the person’s actions can bind the company is known as _______
The Law of Agency
A contract that is drafted by an insurer and receives no input or alteration from the insured, is considered a _______
Contract of adhesion
If an applicant or insured discovers errors in their Credit Report, the Fair Credit Reporting Act requires the reporting agency to ______
Provide inaccurate information given out within the previous 2 years
What are Fiduciary Responsibilities?
Anyone acting as an insurance producer or agent for agent for an insurer shall be held responsible in a trust or fiduciary capacity for any money collected or received for the insurer
When the insured is not contractually obligated to do anything other than keep the policy in force
Unilateral Contract
Each of the following choices are true of whole life, except:
A. The policy can be converted into a term life insurance plan at anytime
B. The death benefit and cash values are guaranteed
C. As an insured ages, the premiums remain the same
D. They have nonforfeiture values and options are offered
A. The policy can be converted into a term life insurance plan at anytime
Which of the following policies must be sold by prospectus? Universal Life Variable Whole Life Ordinary Whole Life Equity Indexed Whole Life
Variable Whole Life
A universal life policy has a death benefit of $125,000 and a cash accumulation value of $15,000. Generally, what will happen to the policy if there is a $5,000 partial withdrawal?
The death benefit and cash accumulation will be reduced by the partial withdrawal
The surrender charge schedule for a variable universal life policy generally _____ over time
Decreases
Which Nonforfeiture Option allows the owner to forego the premiums and retain the same face amount until the cash surrender value is exhausted?
Extended Term
The period of time over which distributions of the accumulated balance is made to the annuitant is referred to as the ____ Period
Annuitization Period
Surrender charges typically ______ over time.
Decrease
Which of the following Annuities is generally not backed by the insurer's general account assets? Fixed Market Value Adjustment Indexed Variable
Variable
Buy-Sell agreements are used for all of he following entities, except: Partnership Sole Proprietorship Large Public Corporations Closely held Businesses
Large Public Corporations
How many times can you move funds in an IRA directly from one financial institution to another while still maintaining the assets within an IRA account
As often as you want
The basis of a life insurance policy is ________
Premiums paid less dividends or withdrawals
A SEP uses employer funded _______ accounts
IRA
What must you do to open an IRA
Earn income or be married to a spouse that has earned income
Information about an applicant’s work behavior or character gathered from neighbors or co-workers would be included on an?
Inspection Report
The specified period that must elapse before new coverage is effective for non-accidental losses is known as the ______ period
Probationary period
Reimbursement benefits may be paid directly to the medical providers under which condition?
Assignment of benefits
The ______ alerts insurer home office underwriters of errors, omissions, or misrepresentation made on insurance applications
MIB
which is not correct concerning a Blue Cross and Blue Shield Plan?
A.In most states, they are considered not-for-profit
B. They are fee for service plans
C. Benefits are paid directly to the insured individual
D. They offer both individual and group coverage
C. Benefits are paid directly to the insured individual
