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Missouri Life Insurance Producer > Jeff Test > Flashcards

Jeff Test Flashcards

1
Q

All of the following are reasons to buy life insurance EXCEPT:
A. Survivor protection
B. Estate creation
C. Retirement income
D. Estate conservation

A

C. Retirement income

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2
Q

Which of the following is part of the actual life application?
A. Attending physician report
B. Consumer investigation
C. Medical Information Bureau
D. Agent report

A

D. Agent report

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3
Q

Which of these applies to a standard risk classification?
A. uses Mortality table
B. Fixes additional charge to premium
C. A lien is placed against the policy to reduce the amount of insurance
D. Rates person on age, health, habit, and occupation

A

D.

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4
Q

What is a characteristic of term life insurance?
A. Renewable term
B. Adjusts the face amount of the policy
C. Flexible premiums
D. Has death benefit options

A

A.

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5
Q

What is a characteristic of adjustable life?
A. Renewable term
B. Adjusts the face amount of the policy
C. Flexible premiums
D. Has death benefit

A

B

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6
Q

What is a per capita beneficiary?
A. A group beneficiary
B. When a person is too young to be a beneficiary
C. When the money is divided equally among the beneficiaries
D. When the beneficiary dies the proceed goes to heirs

A

C.

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7
Q

What is the type of insurance which pays for workers hurt in the course and scope of duty?

A

Workers compensation

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8
Q

The legal partied to a life insurance contract include the following:
I. Insurer
II. Underwriter
III. Beneficiary
IV. Owner
V. Insured
A. I only
B. I, IV, & V only
C. II, III, & V
D. All are legal parties

A

B

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9
Q

Jack and his wife Lyn just purchased a home with a 15 year mortgage. Wanting to make sure that Lyn would be able to pay off the balance in the event of Jack’s death, Jack had a ‘temporary’ need for life insurance. What type of policy should Jack purchase?
A. Whole life insurance
B. Term life insurance
C. Variable life insurance
D. Viatical Settlements

A

B

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10
Q

Which type of life insurance is considered to be more risky based on its investment component?
A. Level Term Life insurance
B. Whole Life insurance
C. Decreasing Term Life insurance
D. Variable life insurance

A

D

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11
Q

Life insurance underwriters look at a variety of factors when determining the acceptance of an applicant. These factors include:
A. Health history
B. Occupation
C. Hobbies
D. All of the above
E. Both A and B

A

D

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12
Q

Which of the following deals with a set of relationships where one person is authorized to act on behalf of another to create a legal relationship with a third party?
A. Law of principles
B. Law of agency
C. Law of third parties
D. All of the above

A

B.

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13
Q

All of the following can be considered life-changing events that could result in a change in the amount of life insurance coverage needed EXCEPT:
A. Birth of a Child
B. Divorce
C. Marriage
D. Change in job title

A

D.

It doesn’t matter what the title is, only if you get a significant promotion

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14
Q

What is the most common component in all life insurance policies?
A. Living benefits
B. Waiver of premiums
C. Death benefits
D. Cost of living rider

A

C.

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15
Q

Permanent policies ALWAYS have these components:
A. Death benefit
B. Cash value
C. Living benefits
D. A, B, & C

A

D

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16
Q

John, who had a life insurance policy, died on August 31st after a long battle with cancer. He had been hospitalized for a month before his death. His wife contacted the insurance company to file her claim for the death benefit on September 5th, after John’s burial, and after she had time to collect her emotions to deal with the personal loss. The insurance agent filed the papers that day to process the claim with his supervisor. The death benefit was settled on October 30th. Were any laws violated in this scenario?

A

Yes, the claim was not settled within 30 days

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17
Q

Which of the following is a rider that allows a terminally ill person to access at least a portion of their death benefit proceeds prior to death?
A. Waiver
B. Accelerated Death benefit
C. Supplemental payment rider
D. Addendum

A

B

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18
Q

The insured party has no part in determining the wording of an insurance contract. In this respect, insurance contracts are considered to be __________.
A. Contracts of adhesion
B. Contracts of forbearance
C. Contract by regulation
D. Contracts by law

A

A.

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19
Q

Bob is a producer for the Executive Life Insurance Co. his contract states that he is allowed to put the company’s logo on his business cards and the door to his office. This is an example of:
A. Expressed authority
B. Implied authority
C. Lingering implied authority
D. Apparent authority

A

A

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20
Q

Bob has always made it a practice of having his policy holders mail their premium checks directly to him, and forwarding them on to the insurer, so that he is aware of anyone missing a payment and can contact the policy owners directly if that should happen. His contract does not allow this, but the insurer is aware of this practice and has not asked him to stop. This practice is an example of:
A. Expressed authority
B. Implied authority
C. Apparent authority

A

C. apparent authority

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21
Q

Gina accepts the initial premium when she sells an insurance policy and sends it to the company with the application. Nothing in her contract mentions handling of initial premiums. This is an example of:
A. Expressed Authority
B. Apparent authority
C. Implied authority

A

C. Implied authority

22
Q

Albert’s life insurance premium is due on the 10th of the month. Because he gets aid at the end of the month, he has always sent the premium late. the insurer has been accepting his premium this way for 3 years. A new CEO comes in and decides to crack down on late premiums, canceling Albert’s policy for non payment of premiums. Albert contests this decision legally and gets the policy reinstated. The decision to reinstate the policy is an example of:
A. Estoppel
B. Waiver
C. Contract of adhesion
D. Expressed authority

A

A. Estoppel

23
Q

When representing an insurer, a producer acting as an agent has a responsibility to act with the degree of care that
A. A licensed insurance producer would apply under similar circumstances
B. A reasonable person would apply under similar circumstances
C. A lawyer would apply under similar circumstances
D. Anyone would apply under similar circumstances

A

B

24
Q

Which element is not necessary for the formation of a valid contract?
A. Consideration
B. Competent parties
C. Written documents
D. Legal purpose

A

C

25
Q

The initial premium payment that is sent with an application constitutes which part of the formation of an insurance contract?
A. Consideration
B. Agreement
C. Competent parties
D. Legal purpose

A

A consideration

26
Q

Ken has paid only four premiums on his life insurance policy when he is hit by a car and killed. The insurance company pays out the entire death benefit to his beneficiary. This is an example of:
A. Contract of adhesion
B. Aleatory contract
C. Unilateral contract
D. Utmost good faith

A

B. Aleatory contract

An aleatory contract is an agreement concerned with an uncertain event that provides for unequal transfer of value between the parties.

27
Q

Carol applies for a life insurance policy and pays the initial premium. Carol has:
A. Accepted an offer from the insurer
B. Made an offer to the insurer
C. Accepted a counter offer from the insurer
D. Made a counter offer to the insurer

A

B. Made an offer to the insurer

28
Q

The insurer looks at Carol’s application and decides to offer Carol a modified policy, including an exclusion Carol did not request. The insurer has:
A. Accepted an offer from Carol
B. Made an offer to Carol
C. Accepted a counter offer from Carol
D. Made a counter offer to Carol

A

D. Made a counter offer

29
Q

The failure to disclose a known face is:

A

Concealment

30
Q

Which of the following is required for an insurance agent to sell a variable annuity?
A. Life license
B. Series 6 license
C. Life and health license
D. Life and series 6 or 7 license

A

D. Life and series 6 or 7

31
Q

Jack is age 70 and owns a $200,000 Single Premium Deferred Annuity. Which annuitization option would give Jack the highest monthly income amount?
A. Life with 10 year period certain
B. Straight life
C. Life with 5 year period certain
D. Joint and survivor

A

B. Straight life

a retirement income product that pays a benefit until death but forgoes any further beneficiary payments or a death benefit.

32
Q

Which of the following are types of annuities?
A. Single premium deferred annuity
B. Flexible premium deferred annuity
C. Single premium immediate annuity
D. Flexible premium immediate annuity

A

A, B, & C

33
Q

Frank and Mary are both in their early 30s and have good jobs that have the potential to increase dramatically in the future. They both have life insurance through work equal to the amount of their salary. They have purchased a home with a 15 year mortgage. Which of the following is the most financially appropriate type of life insurance for them to buy to cover the value of the mortgage in case either of them died.
A. Whole Life
B. Flexible Premium Life
C. Decreasing term
D. Annual Renewable Term

A

C. Decreasing

Because a mortgage decreases over the life of the loan

34
Q

Which of the following would have the highest income if they annuitized a $100,000 annuity into monthly payments?
A. 80 year old choosing the straight life option
B. 78 year old choosing the straight life option with 10 year period certain
C. 65 year old choosing the straight life option

A

A.

Always the oldest with straight life

35
Q

Living benefits on a life policy can be typically accessed via:
A. Lump Sum
B. Regular installments
C. Loan
D. All of the above

A

D

36
Q

Adhesion

A

A contract prepared solely by one party with little or no involvement of the other party

37
Q

Aleatory

A

Term meaning both parties in a contract don’t exchange equal value

38
Q

Representation

A

Facts that an applicant states are true to the best of his or her knowledge or belief

39
Q

Collusion

A

Cooperation between two or more parties to secretly defraud another

40
Q

Concealment

A

The withholding of facts by an applicant for insurance that effects an insurance risk or loss

41
Q

Consideration

A

The exchange of value on which a contract is based

42
Q

Estoppel

A

A legal doctrine that prevents a party from waiving a right and then later trying to reclaim the right if it would damage the other party.

43
Q

Face Amount

A

The death benefit stated on a life insurance policy

44
Q

Insuring clause

A

The clause in a policy that specifies the risk in the contract.

45
Q

Misrepresentation

A

The use of written or oral statements of the insured or insurance company distorting the risk, term, coverages, etc. of any policy

46
Q

Pure Risk

A

A loss or no-loss situation as opposed to when gain is possible

47
Q

Rebating

A

Promising to or giving to the applicant part of the agent’s commission or something of value to induce them to purchase the policy

48
Q

Speculative risk

A

Type of risk that produces the possibility of gain or loss

49
Q

Twisting

A

Inducing a policy owner by misrepresenting information to terminate an existing policy to take a new policy

50
Q

Warranty

A

A statement made on an application that is stated to be factually true

Missouri Life Insurance Producer (3 decks)

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