Pre-Licensing Flashcards by Marcus Toney

IN order to engage in business of financial Planning, an insurance producer must disclose which of the following?

The producer will receive commission for the sale of the insurance product

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Which of the following statements about investigations held by the commissioner is CORRECT

All Judgements reached by the commissioners investigation may be appealed by the national association of insurance commissioner

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In order for an insurer to issue a replacement policy, an application MUST have a copy of which of the following documents attached to it:

A Notice Regarding the Replacement of insurance form signed by both the producer and the applicant

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Temporary insurance license is good for a maximum of:

90 Days

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An insurance company that promises to lower insurance rates than any other company may be charged with:

False Advertising

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According to Tennessee insurance law, a business entity is defined as all of the following EXCEPT:

Designated licensed responsible producer

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Tennessee Insurance law specifically allows the commissioner to issue a temporary license to which of the following:

A Surviving spouse of a deceased producer

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Policy summary

Statement showing that dividends are not guaranteed

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Fiduciary

Nonresident individual is licensed on their home state

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*A person may sell,solicit, or negotiate insurance on behalf of an insurer immediately after:

After being appointed with a company

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*Which action by an insurance producer is considered rebating:

Sharing commission with a POLICY OWNER
who has purchased additional coverage

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*Which of the following is Required for an insurance producer applicant who must pass a written examination for licensure:

Fingerprint and criminal background

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*Tenn Ins law specifically allows the commissioner to issue a temporary license to which of the following individuals:

A surviving spouse of a deceased producer

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Which is considered rebating?

Sharing commissions with POLICYOWNER

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Who must take continuing Education:

Accident and health licensed agents

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*A life insurer that accepts an incomplete app and issues a policy is obligated:

Application will be returned to the writing agent to complete at a later time with the client

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*Which of the following types of group term life insurance plans does a corporation offers if the employee share the premium cost:

Contributory

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*In a life policy insurable interest must exist at which of the following times?

At the time of application

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*Student airplane pilot may buy Life Insurance at a regular price if the policy purchased includes:

Aviation Exclusion

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*Which of the following items requires that an insurance app state that an investigative consumer report may be conducted on a prospective insured:

Fair Credit Reporting Act

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In a life Insurance policy the consideration clause states that the policy owners consideration consists of completing the application and:

Signing the medical authorization form

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*Which of the following policy provisions is designed to protect the insurance company from adverse selection by certain high risk applicants :

Suicide Clause

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*In a life ins policy,the promise by the insurer to pay certain benefits is the:

Insuring clause

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*Which of the following features of a life policy is used to restrict coverage:

Exclusion

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*An immediate annuity can be recognized by which of the following features:

Payout begins one payment period after purchase

*Which of the following statements is correct about the fed income tax law in restriction to 100k worth of group term life ins through an employer :

Death benefits are income tax free to named beneficiaries

*Which of the following statement is Correct about a renewable term policy:

The renewable premium is calculated on the basis of the insured age.

*Which of the annuities pays benefits based on units rather than specific dollar amounts:

Variable Annuity

*A beneficiary that must consent to a change in the beneficiary designation in a life insurance policy is referred to as:

-Irrevocable Beneficiary

*A policy holder dies of heart failure shortly after the 10th policy anniversary. The insured failed to disclose the condition and resulting medical condition on the app,. In this situation the insurer will most likely:

Pay the face amount

*An insurance company formed under the laws of a state other than TN is known in TN as a:

Foreign company

*According to Tenn Ins law a business entity is defined as all of the following EXcept:

Designated licensed responsible for Producer

*The commissioner of Ins is able to suspend or revoke a license except when the license:

Is arrested for possession of drug paraphernalia

*Which document describes elements of specific life ins policy:

Policy Summary

The waiver of premium provision in a life policy Guaranteed that the:

Insurance company will pay premiums for the duration of a disability after a predetermined waiting period

*Which of the following is True of life settlements :

They are the same as Accelerated Death Benefits

*An immediate annuity can be recognized by which of the following features:

Payout begins one payment period after purchase

*If the initial premium does not accompany an app for ins. The producer MUST take which of the following actions when delivering the policy:

Collect initial premium and verify continued good health

*Which of the following annuities provides the highest monthly payout?

Joint and survivor annuity

*For the purpose of obtaining an ins. Prod license which of the following is included in the definition of a person:

A business entity

Payor benefit Clause added to the policy insures the life of a:

Child

*A producer who discover that answers to a series of questions on a life ins app were unanswered which ofthe following actions should they take?

Schedule another appt with the applicant to complete the unanswered questions

The Signed document that starts the free Look period is the:

Policy delivery Receipt

Which of the following types of policies offers the owner investment money market bonds, long term bonds or equities?

Variable life

A prospect with limited financial resources wants to purchase a policy with the highest amount of protection :

Term coverage

Key Employee policy is taken out by Company Z on it's vice president. Ten years later, this employee leaves company Z 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?

Z Company

What is the MAXIMUM dollar amount an insurance producer can give an unlicensed employee or otherwise affiliated individual for a referral?

$50

*B applies for life Ins on B’s Five year old child and submits the initial annual premium. The producer issues B a receipt and says that the coverage will be effective immediately if approved because no medical examination is required. Which of the following types of receipts did the producer issue:

Conditional

A policy owner returned a newly issued policy one week after the policy was delivered by the producer and received a refund of all premiums paid. Which of the following policy sections covers the situation described:

Free Look Provision

Which of the following policies allows the policy owner to select where the cash values are invested:

Variable Life

A beneficiary that must consent to a change in the beneficiary designation in a life insurance policy is referred to as:

Irrevocable Beneficiary

An underwriters evaluation of information on a life insurance application is also known as:

Risk classification

A Policy Summary:

Highlights the critical parts of the policy issued and describes the coverages riders and exclusions

P Is both the policyowner and the insured under a 100k whole life policy. The beneficiary is p’s mother. P carries ownership of the policy and is transferred to p’s spouse . If there were no other changes made the policy proceed with be payable to P’s:

Mother only

Which of the following is a contract in which the perforation of one of both parties is contingent upon the occurrence of a particular event:

Aleatory

Which of the following statements about a five year old whole life policy is correct?

The policy owner may borrow against the cash value of the policy

Two equal partners in a business worth 100k enter into a buy sell agreement to assure continuation of business in the event of the death or the other partner. Which of the following arrangements best meet their needs:

Each partner purchase 100k on one another

*Changing the beneficiary is the right of the :

Contract owner

*The insurance company may charge a higher total premium

To an insured who pays a policy quarterly rather than annually because the quarterly payment

*Which of the following statements is Correct about the death benefit of a life insurance policy:

It can be assigned by the policy owner

A retirement plan that may be established by an employee regardless of any other retirement plan is called:

IRA individual retirement account

*The primary purpose of limited pay life policy is to allow a:

Insured to pay premiums for a predetermined period of time

*Which of the following provides permanent protection at the lowest annual premium?

Whole life

Which of the following policy provisions is designed to protect the ins company from adverse selection by detecting high risk application ?

Suicide clause

*A life insurer that accepts an incomplete application and issues a policy is obligated to:

Complete the application within the contestable period

*Under continuing ed. Laws of TN all of the following courses or programs of instruction qualify for Cont.Ed except :

Any part of the chartered property and casualty designation program

A Producer license app may be denied for which of the following reasons?

Any Felony Convictions

The replacement of existing life ins. Policies regulation applies to which of the following types of Ins?

Individual Term Life

A person May sell,solicit , or negotiate ins. On behalf of an insurer immediately after:

Being appointed by that insurer

A limited lines insurance producer may sell which of the following types of ins?

Credit Life

In order to engage in business of financial planning an insurance producer must disclose which of the following:

That the producer will receive a commission for the sale of the insurance product

Defamation is Best described as publishing or circulating which of the following types of info?

Brochures falsely criticizing the “financial condition” of an insurance company

Which of the following statements about investigations held by the commissioner is correct?

All judgements by the commissioner investigation may be appealed to the national association of insurance commissioner.

What is an example of unfair discrimination:

Offering reduced benefits and charging higher policy fees on a group for firefighters

According to Tenn Ins. Law while transacting ins business, producers act as rep of :

The Insurer

The commissioner of ins is able to suspend or revoke a license except when the license :

Is arrested for possession of drug paraphernalia

According to TN law, a business entity is defined as all of the following except:

Designed licensed responsible producer

What is an example of unfair discrimination:

Offering reduced benefits and charging higher policy fees on a group for firefighters

According to Tenn Ins. Law while transacting ins business, producers act as rep of :

The Insurer

Before the Ins Commissioner can revoke a products license for engaging in unfair business practices the commissioner must do which of the :

Provide opportunity for a hearing to respond to the charges against the producer

*An Insured has a 100k insurance policy with a 100 monthly premium if the insured missed a premium payment for 10 days and dies. How much will the beneficiary receive:

99,900

Which action by an ins producer is considered Rebating?

Splitting commissions with a policyholder who has purchased additional coverage

The signed document that starts the free look period is the ?

Delivery Receipt

In order for an insurer to issue, replacement policy, an application must have a copy of which of the following documents attached?

A notice regarding the replacement insurance form signed by both the producer and the applicant

An immediate annuity will have:

A single premium

A convertible term policy offers which of the following advantages?

The insured does not have to provide evidence of insurability when requesting conversion

Tenn Ins law specifically allows commissioner to issue a temp license to which of the following individuals?

A surviving Spouse of a deceased producer

Which of the following statements is correct about death benefits of a life ins policy?

It can be assigned by the policy owner

Y wants to purchase a policy that allows Y to increase or decrease the premium payment, the premium payment period and the death benefit:

Variable universal life

A policy becomes a Modified endowment contract (MEC) when:

Too much premium is paid in the in the initial policy's years

Which of the following statements is correct about conversion of group term life ins on termination of employee :

If death occurs during the conversion period the death benefit must be paid

If an initial premium is not collected when a life ins app is written the ins becomes effective:

On delivery of the policy to the insured and payment of the initial premium to the home office

Which of the following term policies gaurantees the insured the right to continue with coverage after expiration of the initial policy period?

Renewable

R is an insured in a life policy in which R’s spouse is the designated beneficiary. Both are involved in a car accident which result in R’s spouse surviving 10 days and then dies. Under the common disaster provision in the policy, the benefits will be paid to the:

Insured’s Estate

The purpose of USA Patriot Act is to:

Detect criminal activity

An Example of a limited -pay policy is:

Life paid up at age 65

A convertible term policy offer which of the following advantages:

The insured does not have to provide insurability when requesting conversion

*A payor benefit clause is generally added to a life policy that insures the life of a :

Child

A convertible Term offers which of the following:

The insured does not have to show proof of insurability when requesting conversion

Which of the following policies allow the policy owners to allow where the cash value are invested:

Variable Universal Life

*If an initial premium is not collected when a life ins app is written, the insurance becomes effective:

On delivery of policy to insured and payment of first initial premium to the producer

*In a life insurance policy the consideration clause states that the participants consideration consists of completing the application and:

Paying the initial premium

An Immediate annuity will have:

A single premium

Which of the following is true of life settlements:

They are the same as Accelerated Death Benefits

*The Primary Purpose of a Limited-Pay Policy is to allow an:

Insurance to pay premiums for a predetermined period of time