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all of the following are ownership rights EXCEPT: A: changing the beneficiary of the policy B: borrowing funds against cash value C: switching the policy from on insured to another D: assigning all of the rights of the policy to another person - โโC: switching the policy from on insured to another which of the following is characteristic of a non qualified plan: A: defined vesting schedule B: plan established by the employer C: plan does not meet federal guidelines for tax benefits D: employer contributions are deductible business expense - โโC: plan does not meet federal guidelines for tax benefits How do warranties differ from representations? A: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge B: a representation is guaranteed to be true, a warranty is believed to be true to the best of one's knowledge C: a warranty is issued by the insurer, a representation is a statement provided by the applicant
D: an incorrect representation automatically voids a contract, whereas an incorrect warranty must be proven - โโA: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge in which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company: A: designation option B: recording method C: endorsement method D: succession of beneficiaries - โโB: recording method all of the following are required signature on a life insurance application EXCEPT: A: the agent B: the applicant C: the minor in a juvenile policy D: the proposed insured - โโC: the minor in a juvenile policy all of the following are features of the spendthrift clause EXCEPT: A: proceeds are paid in some other way than a single premium B: proceeds are protected by the insurer from the beneficiary's creditors C: transfer of proceeds to creditors D: the beneficiary may encumber the proceeds - โโD: the beneficiary may encumber the proceeds
which of the following is the time limit on certain defenses after which the policy becomes incontestable: A: 12 months B: 18 months C: 2 years D: 5 years - โโC: 2 years why is relying solely on employer group life insurance generally considered inadequate for most individual needs: A: it is financially insufficient to cover end of life expense - โโA: it is financially insufficient to cover end of life expense current assumption whole life policies are sensitive to which of the following: A: interest rates B: age of the insured C: health of the insured D: current cash value of the policy - โโA: interest rates the group conversion option is allowed for all of the following EXCEPT: A: termination of the master policy B: loss of group coverage due to termination of employment C: upon the loss of eligibility on the part of a class of insureds D: during the annual benefits enrollment period - โโD: during the annual benefits enrollment period
group AD&D policies may be deducted by whom and under which deduction category: A: the employee under business expenses B: the employee under medical expenses C: the employer under business expenses D: the employer under workers' compensation deductible - โโC: the employer under business expenses which of the following is TRUE for a flexible premium annuity: A: the actual amount of the annuity benefit is determined in advance B: a single set amount premium is paid by the annuitant on an annual basis C: the company promises to pay the annuitant amount each period beginning after a single lump sum payment D: the purchaser has the option to vary the amount of each premium payment falling between a minimum an a matrix amount - โโD: the purchaser has the option to vary the amount of each premium payment falling between a minimum an a matrix amount in order to AVOID being classified as an MEC, a policy must pass which of the following: A: five-pay test B: seven-pay test C: policy loan test D: accelerated benefits test - โโB: seven-pay test
C: there will be a delay in the underwriting process D: the incomplete application can be accepted with the missing information added later - โโD: the incomplete application can be accepted with the missing information added later which of the following occurs immediately after the application is submitted and the initial premium paid: A: the underwriting process begins B: the applicant's references are checked C: the beneficiaries are selected D: the insurance goes into effect - โโA: the underwriting process begins why is accidental death benefit referred to as double indemnity: A: it provides for both the actual death as well as other losses form the accident B: it provides twice the face value in the policy for death due to accident C: the beneficiaries have twice the amount of time to provide proof of loss D:the beneficiaries must provide proof of death due to multiple causes - โโB: it provides twice the face value in the policy for death due to accident what producer is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in completed application: A: the applicant and possibly the agent initial any changes made B: the applicant and the agent sign a document that outlines the changes made C: an arbitration agreement is signed at the time of the signing of the application
D: all changes must be approved by the underwriter prior to the submission of the application - โโA: the applicant and possibly the agent initial any changes made which annuity settlement option provides a stated monthly amount to the annuitant and upon the annuitant's death the same or lesser amount paid for the lifetime of the survivor: A: joint life option B: joint and survivorship option C: life annuity certain option D: refund life annuity option - โโB: joint and survivorship option which of the following is common in an increasing term life policy: A: insurance protection decreases over time B: the premium increases over time C: it begins with little or no insurance protection D: it is used as mortgage credit insurance - โโC: it begins with little or no insurance protection all of the following are tax qualified retirement plans except: A: keogh B: 401 (k) C: section 529 plan D: SEP - โโC: section 529 plan
A: exclusions B: free look C: grace period D: insuring clause - โโB: free look which of the following refers to how often a premium is paid: A: level B: mode C: net D: ration - โโB: mode when the courts look at a contract to determine the intent of the parties which of the following is considered: A: the entire contract B: the relevant portions of the contract C: any material added to the basic contract D: any words that have ambiguous definitions - โโA: the entire contract which of the following lists the three common types of permanent individual life insurance: A: variable life, whole life, universal life B: whole life, incidental life, term life C: universal life, AD&D, term life D: group life, whole life, variable life - โโA: variable life, whole life, universal life
for an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following: A: age B: cost of care C: policy value D: premium cost - โโA: age in a level term life policy, which ALWAYS remains constant: A: premium B: beneficiary C: death benefit D: maximum age of the insured - โโC: death benefit all of life insurance and health insurance contracts contain all of the following EXCEPT: A: policy face B: insuring clause C: conditions D: representations - โโD: representations which of the following is an example of a premium payment mode: A: annual premium payment
which type of policy is backed by equity investments and allows the policy holder to adjust the death benefit: A: term life B: variable life C: regular whole life D: variable universal life - โโD: variable universal life what is the purpose of Stranger-originated life insurance (STOLI): A: the policy is originated primarily or solely for the purpose of resale B: the policy is written so as to avoid of insurable interest C: it is a method of insuring a person who has been previously declined D: it is a fraudulent policy meant for financial gain of someone unknown to the insured - โโA: the policy is originated primarily or solely for the purpose of resale what is common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy: A: using class designations B: using contingent beneficiaries C: naming the estate as the beneficiary D: establishing a trust to administer proceeds - โโD: establishing a trust to administer proceeds
obtaining consumer information reports under false pretenses is prosecutable by which of the following: A: USA patriot act B: Fair credit reporting act C: state law where the applicant resides D: securities and exchange commission - โโB: Fair credit reporting act whole life policy premium type is the most common: A: continuous premium B: non-participating C: limited payment D: single premium - โโA: continuous premium under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender misstated on a life insurance policy application: A: if the application is considered fraudulent and no benefits are paid out B: the proceeds of the policy must be determined by a probate court proceeding C: if the death is two years after the originally policy purchase, complete benefits are paid out D: benefits are adjusted to an amount that the premium would have purchased at the correct age or gender - โโD: benefits are adjusted to an amount that the premium would have purchased at the correct age or gender an insured and the beneficiary are both killed in a fatal accident. which provision presumes the insured survived the beneficiary:
C: level D: reentry - โโA: convertible
