Test Review Flashcards
Because an agent is using stationary with logo etc what type of agent authority?
Apparent
When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming them this is called…
Class designation
I’m the executive bonus plan who is the owner of the policy and who pays the premium?
Executive is the owner, and executive pays the premium
Which authority is not stated in an agents contract but is required for the agent to conduct business?
Implied
The premiums paid by the employer in a business life insurance policy are tax __________ by the employer.
Deductible
A universal life policy is best described as a/an
Annually renewable term policy with a cash value account
With a class designation beneficiaries ______ identified by name.
Are not
What kind of policy allows withdrawals or partial surrenders?
Universal life
I’m forming an insurance contract when does acceptance usually occur?
When an insurers underwriter approved coverage
Within how many day of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
The director issues an order to an insurer and immediately receives a request for the charges to be reviewed in court. Within what number of days must the hearing be held?
30 days
Producers are required to report to the director any administrative action taken against them in another jurisdiction or by another governmental agency within how many days of the final disposition?
30 days
During replacement of life insurance, a replacing insurer must do what?
Obtain a list of all life insurance policies that will be replaced.
__ years term director of insurance.
4
__ years examine domestic insurers
5
__ days to hold hearing after receiving demand
30
__ days written notice of hearing
14
Age to apply for insurance license
18
License renewal period
2 years
Days to submit application after passing exam
180
Hours of continuing Ed every — years
24, 2
Hours in ethics
3
Temporary license period
180 days
Days to notify director of agent appointment
15
Days to notify director of termination of appointment
30
Days after license lapse to reinstate
90
Months max imprisonment for violating insurance code
6 months
Days to notify Director of change of address
30
Producer must keep records for
5 years
Days to send suspected fraudulent claims
60
Days to remit funds payable to policy holders
14
Days to remit funds payable to insurer
21
Days to place large funds collected by producer in fiduciary account (2k+)
3
Max fine for each conviction for violating the insurance code or cease and desist order.
$1000
Max fine for transacting insurance without a license
$15,000
Max fine for violation of unfair claims settlement practices by insurer
$10,000
Most insurers but _________ to protect themselves I. The event of catastrauphic loss.
Reinsurance
Dividends to shareholders are or are. Or guaranteed.
Are not
A reciprocal is managed by ….
An attorney in fact
Unincorporated association of individuals who insure each other.
Reciprocal insurer
The government offers insurance for social needs such as flood or workers comp but not for preventing ______
Fraud
A producers _______ authority is expressed in the producers contract with the insurer they represent
Binding
Elements of a legal contract - COAL
Consideration, offer, acceptance, legal purpose
Contracts of ____________ will always favor the insured.
Adhesion
When an insurer voluntarily gives up the right to obtain information
Waiver
Buying a life insurance policy creates an immediate _____
Estate
When life insurance is used to pay estate taxes
Estate conservation
HLVA is based on ______
Income
Needs approach does not consider ______ earnings
Future
___________ in small privately held closed corps often enter into buy/sell agreements with the Corp that are funded by life policies
Stockholders
A Corp may buy a policy on whom in the event of that persons death.
Shareholder
An agreement where a Corp agrees to buy back the stock of a deceased stockholder.
Stock redemption plan
Key person and partnership insurance as well as policies written on life of spouse or minor child are all examples of what
Third party policy ownership
Under executive bonuse premium paid to employee is _________ and amount paid to employee is reportable as ________ income to employee.
Tax deductible; taxable
Executive bonus policy belongs to whom
The employee
Mortality tables are based off what two factors.
People and time
A male has a ______ mortality rate than a female
Higher
Life insurance premiums are based off. What + what - what
Mortality + espense - interest
Conditional or binding receipts are used in what kind of insurance? And binders for what?
Health and life vs property and casualty
A conditional receipt is not given unless what?
Initial premium has been paid
Can life insurers discriminate based off of physical hazards such as age and health?
Yes
What kind of risk is likely to receive a premium discount?
Preferred
What kind of policy is issued to a substandard risk with dangerous hobbies or health problems.
Rated
Can term insurance be renewed without a physical exam?
Yes, up to a certain age
Type of life insurance provided in mortgage redemption insurance?
Decreasing term
Whole life policies must contains. Table showing what?
Guaranteed cash value at the end of each year (shown per unit)
_______ benefits are bundled (packaged) while ________ benefits are transparent (stand alone)
Whole life vs universal
Straight (traditional) life provides coverage until when?
Death or 100
Limited pay policies mature when?
100
Good policy for those with fluctuating income.
Adjustable whole life
Adjusting the premium on adjustable life will adjust the _____\ and vice versa
Face value
