Life 6 Flashcards
What is a definition of a unilateral contract?
a) One author: the company wrote the contract;
the insured must accept it as written.
b) If one party makes a condition, the other party can
counteroffer.
c) One-sided: only one party makes an enforceable
promise.
d) Two or more parties go into a contract understanding
there may be an unequal exchange of value.
One-sided: only one party makes an enforceable
promise.
Which of the following is a key distinction between
variable whole life and variable universal life products?
a)
Variable universal life is regulated solely through FINRA.
b) Variable whole life allows policy loans from the
cash value.
c) Variable universal life has a fixed premium.
d) Variable whole life has a guaranteed death benefit.
Variable whole life has a guaranteed death benefit.
The policyowner of an adjustable life policy wants to
increase the death benefit. Which of the following
statements is correct regarding this change?
a) The death benefit can be increased only by
exchanging the existing policy for a new one.
b) The death benefit can be increased by providing
evidence of insurability.
c) The death benefit cannot be increased.
d) The death benefit can be increased only when the
policy has developed a cash value.
The death benefit can be increased by providing
evidence of insurability.
Which of the following is TRUE about the 10-day free-
look period in a Life Insurance policy?
a) It is optional on all life insurance policies.
b) It begins when the policy is delivered.
c) It begins when the application is signed.
d) It applies only to term life insurance policies,
It begins when the policy is delivered.
Which nonforfeiture option provides coverage for the longest period of time? a) Accumulated at interest b) Reduced paid-up c) Extended term d) Paid-up option
Reduced paid up
An insured purchased an insurance policy 5 years ago.
Last year, she received a dividend check from the
insurance company that was not taxable. This year, she
did not receive a check from the insurer. From what type
of insurer did the insured purchase the policy?
a) Reciprocal
b) Nonprofit service organization
c) Stock
d) Mutual
Mutual
All of the following are TRUE of the federal tax
advantages of a qualified plan EXCEPT
a) Funds accumulate on a tax-deferred basis.
b) Employee and employer contributions are not counted
as income to the employee for income tax purposes.
c) At distribution, all amounts received by the employee
are tax free.
d) Employer contributions are tax deductible as ordinary
business expense.
At distribution, all amounts received by the employee
are tax free.
Temporary producer license can be issued to all of the
following EXCEPT
a) A spouse of disabled licensed producer before and after
the sale of the business.
b)
Designee of a licensed producer entering active military
service.
c) An applicant in the process of obtaining a
producer license.
d) A court-appointed representative of a deceased
licensed producer.
A spouse of disabled licensed producer before and after
the sale of the business.
All of the following are true about the bond
requirements in the state of Illinois EXCEPT
a)
Insurance producers with insurance companies that
take responsibility for their actions are still required to
post a bond.
b) Maintaining a bond or appointing insurance company is
a requirement to holding a producer’s license.
C)
The maximum the bond would have to be is
$50,000.
d) The amount of the bond must be $2,500 or 5% of the
premiums collected in the previous year.
Insurance producers with insurance companies that
take responsibility for their actions are still required to
post a bond.
To which of the following policies would the state
regulation on illustrations NOT apply?
a) A term policy
b) An individual variable life policy
c) A whole life policy with a guaranteed death
benefit of $20.000
An individual variable life policy
The Replacement Regulation does not apply to
situations in which the total existing coverage to be
replaced represents less than how much of the face
amount?
a) $2,000
b) $5,000
c) $8,000
d) $10,000
5000
A nonresident licensed producer moves to Illinois and
wants to obtain a license in this state. Which of the
following is true regarding the licensing examination?
a) The producer will need to take a uniform
secondary licensing examination to satisfy the
Illinois examination requirement.
b) If the producer has been licensed for over 10 years in his
home state, the examination requirement will be
waived.
C)
No examination will be required.
d) The producer will be required to take the Illinois
licensing examination.
No examination will be required.
In the event an insurer is found guilty of committing
defamation, the insurer may be subject to the maximum
penalty of
a) $1,000.
b) $5,000
c) $10,000.
d) $20,000.
10000
Any person or entity that violates the Insurance Code
provision on defamation may receive a penalty of at
least $200, but no more than $10,000.
An applicant for a fire insurance producer’s license must
successfully complete an approved prelicensing
education course of at least
a) 10 hours.
b) 12.5 hours.
c) 20 hours.
d) 40 hours.
20 hours
The Life Solicitation Rule applies to which of the following? a) Individual life b) Variable life c) Annuities d) Credit life
Individual life
