1. Qizz 5===============================
    Qizz 5===============================
  2. All of the following are true regarding survivorship life except
    – Survivorship life is a contract that insures one person on the policy and one on a rider.
  3. Which whole life policy insures two or more lives for a premium that is based on a joint age?
    – Survivorship Life
  4. Which of the following is true when comparing whole life with universal life?
    – The interest rate earned in a whole life policy is fixed and guaranteed. The interest rate paid by Universal life is interest–sensitive and the actual rate paid depends upon what the insurer can earn from year to year.
  5. Companies rate their policies based on what mode?
    – Yearly
  6. All the following statements are true about endowments except:
    – The living benefits are always paid to the beneficiaries.
  7. What term insurance provision is an incentive for an insured to obtain lower premiums?
    – Re–entry provision
  8. All of the following statements about Whole Life are true except:
    – The premium generally lower than most permanent plans.
  9. What life policy features a level premium and a death benefit that decreases each year?
    – Decreasing Term
  10. What is the difference between Par and Non–Par insurance policies?
    – Non–Par is a nonparticipating life policy
  11. The death benefit of a whole life insurance policy is:
    – Fixed
  12. Term insurance is considered
    – Temporary with no cash value.
  13. AI of the following concerning variable life is incorrect, except:
    – The premium for the variable life policy purchases units.
  14. What is the difference between a jumping juvenile and a regular juvenile life policy?
    – Jumping juvenile’s face amount increases at a certain age, but premiums remain level.
  15. A form of term insurance that provides the policyowner with a reduced premium rate if he/she can requalify by providing evidence of insurability from time to time is referred to as
    – Re–entry term
  16. A term policy is designed to mature upon
    – The death of the insured during the insured period
  17. A Life Agent license will allow you to sell which of the following products without other licenses?
    – Universal life policy that has the death benefit linked to the $ and P 500.
  18. Which type of life insurance policy has a rate of return that may be able to keep up with inflation, provide flexibility while protecting the cash value from market risk?
    – Index Universal Life
  19. The life insurance policy that is a 20 year pay with a level death benefit and the cash value increases in increments to an amount equal to the face of the policy at 65
    – Endowment
  20. Which of the following are disadvantages to term insurance?
    – Term policies have no living benefits
  21. All the following term policies would have a level premium for at least 10 years except:
    – 10/5 year level
  22. The statement that does not apply to a Modified life policy would be:
    – Premiums increase in the early years of the policy however eventually level out.
  23. Which of the following types of contracts does not have a variable version?
    – Term
  24. Which of the following statements about decreasing term is false?
    – The death benefit decreases over the policy's term until it reaches 20% of the initial face amount.
  25. All of the following apply to universal life except:
    – The policy is considered unbundled as it consists of an increase term and a cash account.
  26. Universal Life is a flexible premium adjustable benefit life insurance policy that:
    – accumulates cash value.
  27. What is a life policy written as a master policy?
    – Group
  28. All the following are true about the term conversion provision except:
    – Policies being waived must wait 30 days before converting.
  29. _______ charges a level annual premium with guaranteed death benefits to the insured when he/she is 100 years old
    – Limited Pay Life
  30. Whole life policies are permanent plans because they last for the duration of:
    – The life of the insured or age 100.
  31. The Payor Rider is mainly used with what policies?
    – Juvenile
  32. Universal term life insurance policies provide all of the following except
    – Though it's a hybrid it has the same 31 day grace period as term insurance.
  33. Which of the following policies endow at age 100?
    – Whole life policies and 10 yr pay.
  34. A term policy where the premium may fluctuate between the current charge and a maximum amount that is stated in the insurers premium table, based on the insurers mortality experience, expenses, and investment return is known as
    – Indeterminate level premium term
  35. Qizz 6 =========================
    Qizz 6 =========================
  36. Of the following correct statements which statement is incorrect?
    – An installment refund annuity guarantees a specific amount of benefits, payable to the annuitant only; if death occurs prior to total payout, a portion of the premium is refunded to the annuitant's estate or beneficiary
  37. When making recommendations to senior citizens, the following information must be taken into account except
    – The seniors awareness of your marital status.
  38. Before you visit a senior citizen's home, you must provide all the following except:
    – 12 point type written notice stating that a sales presentation will be given.
  39. In California, a senior is investor, age 60 and above, in variable annuity contracts receive special consideration during the 30 day free look/cancellation period except
    – These disclaimers must be printed all individual and group contracts.
  40. The IRA early withdrawal penalty does not apply to distributions below except
    – Used to pay for higher education for your friend.
  41. The annuitization period or liquidation period is the:
    – Annuity period
  42. During the accumulation period of a deferred variable annuity, the value of the individual account arises or falls based on the
    – Investment results
  43. What annuity benefit will pay a specific amount for the remainder of the annuitant s life?
    – Straight Life
  44. The future account value of the annuity Jason purchased is connected to the S&P 500 index. What type of annuity did he purchase?
    – Equity–Indexed annuity
  45. A separate account would be used in each of the following except:_x000D_
    – Deferred annuity fixed
  46. An annuity that is purchased with a single, lump sum and provides income within one year is an:
    – Immediate Annuity
  47. The person who receives payments from the annuity is an (most complete answer).
    – Annuitant
  48. If both an older and younger person had annuity funds of the same amount and both annuitize on the same date, exercising one of the life options, which_x000D_
    individual would receive the larger payment?
    – Older person
  49. What is the disadvantage in buying a fixed annuity?
    – Purchasing power may be eroded over time due to inflation.
  50. Premiums paid into a variable annuity purchase which of the following?
    – Accumulation units
  51. Who would receive the highest payout for a $20,000 single premium immediate annuity, assuming all four contracts are identical?
    – Barney, age 65
  52. What annuity payout option provides for lifetime payments to the annuitant but guarantees a certain minimum term of payments, whether or not the annuitant is_x000D_
    – Life with period certain
  53. All of the following are true about variable annuities except:
    – The method of purchase and settlement options differ from a fixed annuity
  54. Which of the following annuity settlement or benefit options might be most appropriate for providing retirement income to a married couple?
    – Joint and survivor
  55. The accumulation phase or period
    – permits the principal to grow by tax–deferred interest
  56. Which of the following annuity payout or benefit options does not guarantee a lifetime income to the annuitant?
    – An annuity certain
  57. Which of the following IRA contributions are not tax deducible when the funds are contributed?
    – Roth IRA
  58. Qz 7 ==============================
    Qz 7 ==============================
  59. A temporary insurance agreement is another term for a
    – Binding Receipt
  60. Which of the following concerning life settlements is incorrect?
    – A life settlement broker is a person who for a fee negotiates the purchase of a life policy between the policyowner and the buyer.
  61. What must be received by the proposed insured no later than policy delivery?
    – Buyers guide and policy summary
  62. The purpose of laws regarding the replacement of life and annuity contracts includes all of the following, except
    – To protect the interests of life insurers and their agents
  63. All of the following relationships present an example of insurable interest except:
    – Bank insuring the life of a customer in the amount of their savings account balance
  64. Identify that which constitutes the “entire contract” in a life insurance policy:
    – Policy, application, riders and any modifications
  65. Model state law of the NAIC requires that two interest adjusted cost indices must be illustrated within each life insurance policy issued:
    – Net payment index and surrender cost index
  66. The type of life insurance that does not require a medical exam and asks only very basic health–related questions on the application is called:
    – Non–medical issue
  67. The premium for a variable annuity may only be invested in all of the following during the free look period except:
    – Individual stocks and bonds from low risk companies.
  68. Which of the following is correct concerning a life insurance application:
    – Part | of the application contains questions concerning driving record, hobbies, and past and present life insurance
  69. Which of the following would not be considered a replacement?
    – Customer cancelled a policy 3 months ago and now decides he wants a new policy.
  70. With regards to life insurance, insurable interest is not a requirement for a
    – Beneficiary
  71. All the following statements are true of replacements except:
    – The information and evidence must be retained for at least 24 months.
  72. All of the following are true statements except:
    – Clients under the age of 60 have at least 10 days for a free look on term conversions.
  73. An agent sells a life policy to a 60 year old client. Which of the following is true regarding a full refund?
    – Policyowner may return the policy within 1 day.
  74. Which is correct about the notice regarding replacement of Life Insurance” that agents are required to deliver to life insurance applicants?"
    – It must be signed prior to taking an application
  75. What is the name of the second part of a life insurance application?
    – Medical Information
  76. Which one of the following Life Policies is the Standard Life Policy for the life insurance industry?
    – There is no standard life policy
  77. An agent must submit all of the following to the insurer, except:
    – A copy of all printed communications used for the presentation
  78. Which of the following describes a standard life policy?
    – There is no such thing as a standard life policy.
  79. Who are parties to the life insurance contract?
    – Applicant and the insurer
  80. The premium for a variable annuity may be invested in any of the following during the free look period, except
    – Balanced funds
  81. All of the following relationships normally indicate the presence of insurable interest except:
    – Bank insuring the life of a customer in the amount of his savings account balance
  82. All of the following would be contained on the first page of the policy except:
    – Name, age, gender and $S# of the insured.
  83. At the time of application, life settlement licensees are required to provide the following disclosures in writing that must be signed by the palicyowner except:
    – That their consent to obtain their personal information needed to complete the transaction and it may be provided to the person who buys the policy or provides the funds for the original purchase.
  84. The interest adjusted cost method differs from the traditional net cost method of comparing the costs of life insurance in that the former takes into account
    – The time value of money
  85. All of the following items would appear on the first page of a life policy except:
    – Cost of insurance
  86. Whose signature is required on the application?
    – Applicant and the agent
  87. Of the following, which is not required to be in insurance product illustrations?
    – A statement that the benefits in the illustration are guaranteed
  88. Within the life insurance policy summary, all the following must be listed except
    – Name of the insured and the beneficiaries.
  89. In the life insurance industry the_____________ is the standard life insurance policy.
    – There are no standard life policies
  90. The section of the life application that contains information about health of the applicant's relatives is:
    – The Medical Information section
  91. Qz 8 ==========================
    Qz 8 ==========================
  92. The common provision that says the insurer will not contest the policy after 2 years of being in force is:
    – Incontestability clause
  93. What is the clause that most life insurance policies contain which prevents the creditors of a beneficiary from claiming any of the benefits the beneficiary hopes to receive before the beneficiary actually receives the money?
    – Spendthrift clause
  94. Which of the following statements is not true about the grace period in individual life insurance policies?
    – If the insured dies during the grace period, no death benefit is payable but all premiums will be returned.
  95. If a beneficiary wants the death proceeds to be paid monthly for the next 20 years, this is called
    – Fixed Period Installments
  96. All of the following are rights of policy ownership except:
    – Changing a policy provision with agent's approval
  97. The following are options for a policyowner when a permanent policy with cash values is terminated, except
    – Cash Value
  98. Suppose that you name someone as your irrevocable beneficiary. Without the permission of the irrevocable beneficiary, you give up the right to do all of the following except:
    – Continue to pay premiums
  99. All the following are common premium modes except
    – Pay bi–monthly
  100. Dividends are normally paid to which of the following?
    – The policyowners of a mutual company
  101. lf Mr. X selects the reduced paid up nonforfeiture option, his coverage will continue
    – Until death or age 100, whichever occurs first, in an amount stated in the policy's Table of Guaranteed values within his policy.
  102. Each of the following is true regarding policy loans except:
    – All life policies contain a policy loan provision.
  103. All of the following are common provisions of life insurance policies except the:
    – Spendthrift clause
  104. If an insurer fails to pay the death claim within 30 days, then it must:
    – Pay interest from the insured’s date of death.
  105. Jason has a $710K life policy that is a per stirpes. What happens when Jason dies after one of his 3 children?_x000D_
    – The 2 remaining children receive their third and the heirs of the child who died would split the final third equally.
  106. The main benefit for reinstating a lapsed policy rather than purchasing a new policy is:
    – The premium remains at the same level, based on the insured’s original age.
  107. A viatical settlement is an
    – Agreement that provides a life insurance policyowner immediate cash in exchange for death benefit.
  108. Mr. and Mrs. Smith are receiving a monthly annuity distribution of $2,000. If Mr Smith dies and Mrs. Smith continues to receive the same amount, which payout option was selected?
    – Joint with last survivor
  109. When can an irrevocable beneficiary designation be changed?
    – With the primary beneficiary’s consent.
  110. A change of beneficiary in an individual life policy can be made by the
    – Policyowner, unless there is an irrevocable beneficiary
  111. All statements made by the insured will be considered representations and not warranties except:
    – In the case of fraud.
  112. Which of the following policy provisions states that the application is part of the policy?
    – Entire contract
  113. If the insured and beneficiary die in a car accident and the accident report determines the insured died first, which of the following is true?
    – The primary beneficiary estate receives the proceeds.
  114. If the insured dies on Monday and the primary beneficiary dies on Tuesday, who receives the proceeds?
    – Primary beneficiary's estate.
  115. All of the following are true about the grace period except
    – Proceeds will be reduced to zero if the insured dies during the grace period.
  116. A reinstatement may not be based on the following circumstances, except:
    – Any time before the grace period ends and the maturity date is reached.
  117. What happens under the automatic premium loan option?
    – This prevents the unintentional lapse of a policy due to nonpayment of the premium.
  118. Transferring all or a portion of a policyowner’s interest to an insurance policy is known as:
    – Assignment of interest
  119. lf an insured commits suicide after the suicide clause in the insured's life insurance policy has expired, the insurance company will:
    – Pay the death benefit
  120. Which of the following premium modes is the least expensive?
    – Pay in full.
  121. Under the provisions of the uniform simultaneous death act, how would the proceeds of an insurance policy settle if the insured and the only primary beneficiary were killed in the same accident, with no evidence as to which died first?
    – The proceeds would be distributed as through the insured survived the beneficiary
  122. The policyowner has the right to do all of the following except
    – Transfer the responsibility to pay the premiums to someone else.
  123. With regard to beneficiaries, what does per capita mean?
    – The death benefit will be split equally between each living child.
  124. All of the following statements regarding the free–look provision of a deferred annuity contract sold in California are correct EXCEPT
    – the amount returned to the buyer requesting to return an annuity contract during the free–look period is the premium minus the contract surrender charge
  125. The promise that the insured has a specified amount of life coverage while the insurer is completing the underwriting is known as:
    – TIA Temporary Insurance Agreement
  126. All of the following incontestability clause statements are true except
    – No statement made in the application may be used to deny a claim if in force for one year.
  127. Which one of the following is not a settlement option?
    – Fixed Interest Only
  128. All of the following statements pertaining to reinstatement of a life insurance policy are correct except:
    – The insurer cannot require that previous loans be repaid.
  129. An insurance producer is prohibited from the following except:
    – Producer may be named as the owner or beneficiary in a life policy for a client who is a relative.
  130. Which of the following could not be named as a beneficiary?
    – Insured
  131. Who has the right to take legal action if the insurer does not pay the death benefit as stated in the policy?
    – The beneficiary.
  132. Which of the following statements about the suicide clause is incorrect?
    – If a suicide is committed in the first 2 years, then the beneficiary receives nothing.
Card Set