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An |!|agent |!|who |!|sells |!|an |!|individual |!|life |!|insurance |!|policy |!|in |!|NC |!|MUST |!|deliver |!|to |!|the |!| policyowner |!|- |!|correct |!|answer |!| ✔ A |!|policy |!|summary |!|and |!|buyer's |!|guide All |!|of |!|the |!|following |!|actions |!|are |!|considered |!|rebating |!|EXCEPT |!|- |!|correct |!|answer |!| ✔ Sharing |!| commissions |!|with |!|other |!|licensed |!|and |!|appointed |!|agents What |!|benefit |!|does |!|the |!|Payor |!|Clause |!|on |!|a |!|Juvenile |!|Life |!|Policy |!|provide? |!|- |!|correct |!|answer |!| ✔ Premiums |!|are |!|waived |!|if |!|payor |!|becomes |!|disabled An |!|agent |!|who |!|signs |!|a |!|blank |!|contract |!|application |!|or |!|policy |!|of |!|insurance |!|- |!|correct |!|answer |!| ✔ Is |!|guilty |!|of |!|a |!|misdemeanor A |!|person |!|is |!|required |!|to |!|be |!|AT |!|LEAST |!|how |!|old |!|before |!|he |!|or |!|she |!|is |!|licensed |!|as |!|an |!|agent |!|in |!| NC? |!|- |!|correct |!|answer |!| ✔ 18 In |!|a |!|life |!|insurance |!|policy, |!|which |!|feature |!|states |!|that |!|the |!|policy |!|will |!|not |!|cover |!|certain |!|risks? |!|- |!|correct |!|answer |!| ✔ Exclusion Whole |!|Life |!|insurance |!|are |!|contractually |!|guaranteed |!|to |!|provide |!|each |!|of |!|the |!|following |!|EXCEPT? |!|- |!|correct |!|answer |!| ✔ Partial |!|withdrawal |!|features |!|beyond |!|a |!|surrender |!|charge |!|period A |!|term |!|life |!|insurance |!|policy |!|matures |!|- |!|correct |!|answer |!| ✔ Upon |!|the |!|insured's |!|death |!|during |!|the |!|term |!|of |!|the |!|policy Which |!|of |!|these |!|provisions |!|require |!|proof |!|of |!|insurability |!|after |!|a |!|policy |!|has |!|lapsed? |!|- |!|correct |!| answer |!| ✔ Reinstatement
How |!|does |!|a |!|typical |!|Variable |!|Life |!|Policy |!|Investment |!|account |!|grow? |!|- |!|correct |!|answer |!| ✔ Through |!|mutual |!|funds, |!|stocks, |!|and |!|bonds Circulation |!|of |!|any |!|oral |!|or |!|written |!|statement |!|or |!|any |!|pamphlet, |!|circular, |!|article |!|or |!|literature |!| that |!|is |!|false |!|or |!|maliciously |!|critical |!|of |!|or |!|derogatory |!|to |!|the |!|financial |!|condition |!|of |!|an |!|insurer |!| is |!|known |!|as |!|- |!|correct |!|answer |!| ✔ Defamation All |!|of |!|the |!|following |!|are |!|considered |!|characteristics |!|describing |!|the |!|nature |!|of |!|an |!|insurance |!| contract |!|EXCEPT |!|- |!|correct |!|answer |!| ✔ Bilateral A |!|15-year |!|mortgage |!|is |!|best |!|protected |!|by |!|what |!|kind |!|of |!|life |!|policy? |!|- |!|correct |!|answer |!| ✔ 15- year |!|decreasing |!|term Companies |!|in |!|NC |!|may |!|transact |!|solicitations |!|for |!|insurance |!|ONLY |!|through |!|- |!|correct |!|answer |!| ✔ Licensed |!|agents Which |!|of |!|these |!|retirement |!|plans |!|can |!|be |!|started |!|by |!|an |!|employee, |!|even |!|if |!|another |!|plan |!|is |!|in |!|existence |!|- |!|correct |!|answer |!| ✔ Individual |!|Retirement |!|Account |!|(IRA) A |!|life |!|policy |!|with |!|a |!|death |!|benefit |!|that |!|can |!|fluctuate |!|according |!|to |!|the |!|performance |!|of |!|its |!| underlying |!|investment |!|portfolio |!|is |!|referred |!|to |!|as |!|- |!|correct |!|answer |!| ✔ Variable |!|life If |!|an |!|annuity |!|is |!|terminated |!|prior |!|to |!|the |!|beginning |!|of |!|the |!|income |!|payment |!|period, |!|the |!| contract |!|owner |!|receives |!|- |!|correct |!|answer |!| ✔ The |!|contract |!|surrender |!|value |!|at |!|that |!|time A |!|provision |!|in |!|a |!|life |!|insurance |!|policy |!|that |!|pays |!|the |!|policy |!|owner |!|an |!|amount |!|that |!|doesn't |!| surpass |!|the |!|guaranteed |!|cash |!|value |!|is |!|called |!|the |!|- |!|correct |!|answer |!| ✔ Policy |!|Loan |!|Provision When |!|does |!|a |!|Guaranteed |!|Insurability |!|Rider |!|allow |!|the |!|insured |!|to |!|buy |!|additional |!|coverage? |!|- |!| correct |!|answer |!| ✔ At |!|future |!|dates |!|specified |!|in |!|the |!|contract |!|with |!|no |!|evidence |!|of |!|insurability |!| required
Which |!|of |!|the |!|following |!|policies |!|combines |!|investment |!|choices |!|with |!|a |!|form |!|of |!|Term |!|coverage? |!|- |!|correct |!|answer |!| ✔ Variable |!|universal |!|life Under |!|a |!|renewable |!|term |!|policy, |!|- |!|correct |!|answer |!| ✔ The |!|renewal |!|premium |!|is |!|calculated |!|on |!| the |!|basis |!|of |!|the |!|insured's |!|attained |!|age Additional |!|coverage |!|can |!|be |!|added |!|to |!|a |!|Whole |!|Life |!|policy |!|by |!|adding |!|a(n) |!|- |!|correct |!|answer |!| ✔ Decreasing |!|term |!|rider The |!|rules |!|and |!|regulations |!|of |!|the |!|Life |!|and |!|Health |!|Insurance |!|Guaranty |!|Association |!|in |!|NC |!|apply |!|to |!|- |!|correct |!|answer |!| ✔ Life |!|and |!|Health |!|policies |!|insured |!|by |!|companies |!|authorized |!|in |!|NC What |!|type |!|of |!|life |!|policy |!|covers |!| 2 |!|people |!|and |!|pays |!|upon |!|the |!|death |!|of |!|the |!|last |!|insured? |!|- |!| correct |!|answer |!| ✔ Survivorship K |!|works |!|for |!|XYZ |!|clothing |!|store |!|from |!|September |!|through |!|December |!|each |!|year. |!|K |!|works |!| 4 |!| hours |!|a |!|week |!|for |!|this |!|period |!|of |!|time. |!|The |!|employer's |!|Group |!|Policy |!|would |!|consider |!|K |!|- |!| correct |!|answer |!| ✔ Not |!|eligible |!|for |!|the |!|insurance |!|because |!|as |!|a |!|seasonal |!|employee |!|K |!|doesn't |!| meet |!|the |!|definition |!|of |!|"employee" |!|under |!|NC |!|law A |!|written |!|agreement |!|to |!|provide |!|a |!|Life |!|Insurance |!|Policyholder |!|immediate |!|cash |!|in |!|exchange |!| for |!|the |!|sale |!|and |!|transfer |!|of |!|a |!|Life |!|Insurance |!|Policy |!|is |!|a |!|- |!|correct |!|answer |!| ✔ Viatical |!| Settlement When |!|an |!|employee |!|is |!|terminated, |!|which |!|statement |!|about |!|a |!|group |!|term |!|life |!|conversion |!|is |!| true? |!|- |!|correct |!|answer |!| ✔ Policy |!|proceeds |!|will |!|be |!|paid |!|if |!|the |!|employee |!|dies |!|during |!|the |!| conversion |!|period A |!| 42 |!|year |!|old |!|executive |!|wants |!|to |!|purchase |!|life |!|insurance |!|that |!|will |!|allow |!|for |!|increases |!|or |!| decreases |!|to |!|coverage |!|as |!|his/her |!|needs |!|change. |!|Which |!|of |!|the |!|following |!|policies |!|will |!|best |!| meet |!|this |!|need? |!|- |!|correct |!|answer |!| ✔ Universal |!|life
What |!|kind |!|of |!|life |!|insurance |!|policy |!|pays |!|a |!|specified |!|monthly |!|income |!|to |!|a |!|beneficiary |!|for |!| 30 |!| years |!|and |!|then |!|pays |!|a |!|lump |!|sum |!|benefit |!|at |!|the |!|end |!|of |!|that |!| 30 |!|years? |!|- |!|correct |!|answer |!| ✔ Family |!|Maintenance |!|Policy The |!|fund |!|that |!|assures |!|policyholders |!|payment |!|of |!|death |!|benefits |!|on |!|Life |!|Policies, |!|if |!|the |!| company |!|is |!|insolvent |!|at |!|the |!|same |!|time |!|of |!|the |!|claim, |!|is |!|called |!|the |!|- |!|correct |!|answer |!| ✔ Life |!| and |!|Health |!|Insurance |!|Guaranty |!|Association A |!|policy |!|that |!|becomes |!|a |!|Modified |!|Endowment |!|Contract |!|(MEC) |!|- |!|correct |!|answer |!| ✔ Will |!|lose |!| many |!|of |!|its |!|tax |!|advantage Which |!|provision |!|allows |!|the |!|policy |!|owner |!|to |!|change |!|a |!|term |!|life |!|policy |!|to |!|a |!|permanent |!|one |!| without |!|providing |!|proof |!|of |!|health? |!|- |!|correct |!|answer |!| ✔ Conversion T |!|applies |!|for |!|a |!|life |!|insurance |!|policy |!|and |!|is |!|told |!|by |!|the |!|producer |!|that |!|the |!|insurer |!|is |!|bound |!| to |!|the |!|coverage |!|as |!|of |!|the |!|date |!|of |!|the |!|application |!|or |!|medical |!|examination, |!|whichever |!|is |!| later. |!|Assuming |!|that |!|T |!|is |!|an |!|acceptable |!|risk, |!|what |!|item |!|is |!|given |!|to |!|T? |!|- |!|correct |!|answer |!| ✔ Conditional |!|receipt; |!|Binds |!|the |!|insurer |!|to |!|coverage |!|as |!|of |!|the |!|date |!|of |!|the |!|application |!|or |!| medical |!|exam, |!|provided |!|the |!|proposed |!|insured |!|is |!|determined |!|to |!|be |!|an |!|acceptable |!|risk. An |!|insurance |!|company |!|MUST |!|clearly |!|specify |!|questions |!|designed |!|to |!|obtain |!|information |!|solely |!| for |!|marketing |!|research |!|- |!|correct |!|answer |!| ✔ In |!|any |!|insurance |!|transactions In |!|a |!|life |!|insurance |!|policy |!|which |!|provision |!|states |!|who |!|may |!|select |!|policy |!|options, |!|designate |!| and |!|name |!|a |!|beneficiary, |!|and |!|be |!|the |!|recipient |!|of |!|any |!|financial |!|benefits |!|from |!|the |!|policy? |!|- |!| correct |!|answer |!| ✔ Owner's |!|rights No |!|insurer |!|shall |!|refuse |!|to |!|insure |!|an |!|individual |!|because |!|of |!|- |!|correct |!|answer |!| ✔ Race M |!|had |!|an |!|annual |!|life |!|insurance |!|premium |!|payment |!|due |!|January |!|1. |!|She |!|died |!|January |!| 10 |!| without |!|making |!|the |!|premium |!|payment. |!|What |!|action |!|will |!|the |!|insurer |!|take? |!|- |!|correct |!|answer |!| ✔ Pay |!|face |!|amount |!|minus |!|the |!|past |!|due |!|premium, |!|because |!|death |!|occurred |!|within |!|the |!|grace |!| period
M |!|purchases |!|a |!|$70,000 |!|Life |!|Insurance |!|Policy |!|with |!|premium |!|payments |!|of |!|$550 |!|a |!|year |!|for |!| the |!|first |!| 5 |!|years. |!|At |!|the |!|beginning |!|of |!|the |!|6th |!|year, |!|the |!|premium |!|will |!|increase |!|to |!|$800 |!|per |!| year |!|but |!|will |!|remain |!|level |!|thereafter. |!|The |!|face |!|amount |!|will |!|remain |!|at |!|$70,000 |!|throughout |!| the |!|life |!|of |!|the |!|policy. |!|The |!|type |!|of |!|policy |!|that |!|M |!|has |!|purchased |!|is |!|- |!|correct |!|answer |!| ✔ Modified |!|Premium |!|Life; |!|Modified |!|Whole |!|Life |!|policies |!|are |!|distinguished |!|by |!|premiums |!|that |!| are |!|lower |!|than |!|typical |!|whole |!|life |!|premiums |!|during |!|the |!|first |!|few |!|years |!|usually |!|five |!|and |!| higher |!|thereafter. If |!|after |!|satisfactory |!|proof |!|of |!|loss, |!|and |!|insurer |!|fails |!|or |!|refuses |!|to |!|pay |!|death |!|proceeds, |!|the |!| insurer |!|must |!|pay |!|interest |!|on |!|the |!|proceeds |!|after |!|how |!|many |!|days? |!|- |!|correct |!|answer |!| ✔ 30 |!| days The |!|Insurance |!|Information |!|and |!|Privacy |!|Protection |!|Act |!|is |!|designed |!|to |!|limit |!|or |!|direct |!|the |!| information |!|collection |!|activities |!|of |!|all |!|of |!|the |!|following |!|EXCEPT |!|- |!|correct |!|answer |!| ✔ Insurance |!| regulators All |!|of |!|these |!|insurance |!|products |!|require |!|an |!|agent |!|to |!|have |!|proper |!|FINRA |!|securities |!|regulation |!| in |!|order |!|to |!|sell |!|them |!|EXCEPT |!|for |!|- |!|correct |!|answer |!| ✔ Modified |!|Whole |!|Life Which |!|settlement |!|option |!|pays |!|a |!|stated |!|amount |!|to |!|an |!|annuitant, |!|but |!|no |!|residual |!|value |!|to |!|a |!|beneficiary? |!|- |!|correct |!|answer |!| ✔ Life |!|income Life |!|insurance |!|that |!|covers |!|an |!|insured's |!|Whole |!|Life |!|with |!|level |!|premiums |!|paid |!|over |!|a |!|limited |!| time |!|is |!|called |!|- |!|correct |!|answer |!| ✔ Limited |!|pay |!|life W |!|is |!|a |!|39-year |!|old |!|female |!|who |!|just |!|purchased |!|an |!|annuity |!|to |!|provide |!|income |!|for |!|life |!| starting |!|at |!|age60. |!|All |!|of |!|these |!|would |!|be |!|acceptable |!|annuity |!|choices |!|EXCEPT |!|a(n) |!|- |!|correct |!| answer |!| ✔ Immediate |!|annuity; |!|start |!|providing |!|income |!|pay N |!|purchases |!|an |!|annuity |!|by |!|making |!|payments |!|in |!|an |!|amount |!|no |!|less |!|than |!|$100 |!|quarterly. |!| This |!|describes |!|which |!|of |!|the |!|following |!|annuities? |!|- |!|correct |!|answer |!| ✔ Flexible |!|Installment |!| Deferred
How |!|would |!|a |!|contingent |!|beneficiary |!|receive |!|the |!|policy |!|proceeds |!|in |!|an |!|Accidental |!|Death |!|and |!|Dismemberment |!|(AD&D) |!|policy? |!|- |!|correct |!|answer |!| ✔ If |!|the |!|primary |!|beneficiary |!|dies |!|before |!| the |!|insured Which |!|of |!|the |!|following |!|is |!|an |!|element |!|of |!|a |!|Variable |!|Life |!|policy? |!|- |!|correct |!|answer |!| ✔ A |!|fixed, |!| level |!|premium Insurance |!|agents |!|MUST |!|obtain |!|a |!|license |!|from |!|NC's |!|- |!|correct |!|answer |!| ✔ Commissioner |!|of |!| Insurance Which |!|type |!|of |!|life |!|policy |!|contains |!|a |!|monthly |!|mortality |!|charge |!|as |!|well |!|as |!|self-directed |!| investment |!|choices? |!|- |!|correct |!|answer |!| ✔ Variable |!|Universal |!|Life Which |!|of |!|these |!|is |!|NOT |!|a |!|type |!|of |!|agent |!|authority? |!|- |!|correct |!|answer |!| ✔ Principal; |!|express, |!| implied, |!|and |!|apparent The |!|annuity |!|that |!|represents |!|the |!|largest |!|possible |!|monthly |!|payment |!|to |!|an |!|individual |!|annuitant |!|is |!|a(n) |!|- |!|correct |!|answer |!| ✔ Straight |!|Life |!|Annuity; |!|because |!|its |!|based |!|on |!|life |!|expectancy, |!|but |!| it |!|creates |!|a |!|risk |!|that |!|the |!|annuitant |!|may |!|die |!|early |!|and |!|forfeit |!|much |!|of |!|the |!|value |!|of |!|the |!| following |!|annuity |!|to |!|the |!|insurance |!|company. Which |!|of |!|these |!|types |!|of |!|policies |!|may |!|NOT |!|have |!|the |!|Automatic |!|Premium |!|Loan |!|provision |!| attached |!|to |!|it? |!|- |!|correct |!|answer |!| ✔ Decreasing |!|term An |!|engineering |!|firm |!|that |!|would |!|suffer |!|financially |!|from |!|the |!|death |!|of |!|a |!|project |!|manager |!| should |!|purchase |!|a |!|- |!|correct |!|answer |!| ✔ Key |!|person |!|life |!|policy Insurance |!|contracts |!|are |!|known |!|as_______ |!|because |!|certain |!|future |!|conditions |!|or |!|acts |!|must |!|be |!| occur |!|before |!|any |!|claims |!|can |!|be |!|paid. |!|- |!|correct |!|answer |!| ✔ Conditional What |!|type |!|of |!|annuity |!|has |!|a |!|cash |!|value |!|that |!|is |!|based |!|upon |!|the |!|performance |!|of |!|it's |!| underlying |!|investment |!|funds? |!|- |!|correct |!|answer |!| ✔ Variable
What |!|determines |!|the |!|full |!|amount |!|of |!|social |!|security |!|retirement |!|benefits |!|a |!|qualified |!|individual |!|is |!|entitled |!|to |!|receive? |!|- |!|correct |!|answer |!| ✔ Primary |!|Insurance |!|Amount |!|(PIA) K |!|purchased |!|a |!|$10,000 |!|Life |!|Policy |!|that |!|will |!|pay |!|the |!|face |!|amount |!|to |!|her |!|if |!|she |!|lives |!|to |!|age |!|65, |!|or |!|to |!|her |!|beneficiary |!|if |!|she |!|dies |!|before |!|age |!|65. |!|K |!|purchased |!|which |!|of |!|the |!|following |!| types |!|of |!|policies? |!|- |!|correct |!|answer |!| ✔ Endowment |!|at |!|Age |!|65; |!|cash |!|values |!|that |!|grow |!|at |!|a |!| rapid |!|pace |!|so |!|that |!|the |!|policy |!|matures |!|or |!|endows |!|at |!|a |!|specified |!|date |!|before |!|age |!|100. Inducing |!|or |!|attempting |!|to |!|induce |!|any |!|insured |!|person |!|through |!|misrepresentation |!|to |!|lapse, |!| forfeit, |!|or |!|surrender |!|insurance |!|is |!|- |!|correct |!|answer |!| ✔ Twisting Equity |!|indexed |!|annuities |!|are |!|invested |!|in |!|which |!|of |!|the |!|following? |!|- |!|correct |!|answer |!| ✔ S |!|& |!|P |!| 500 How |!|does |!|an |!|indexed |!|annuity |!|differ |!|from |!|a |!|fixed |!|annuity? |!|- |!|correct |!|answer |!| ✔ Indexed |!| annuity |!|owners |!|receive |!|credited |!|interest |!|tied |!|to |!|the |!|fluctuations |!|of |!|the |!|linked |!|indexed D |!|needs |!|life |!|insurance |!|that |!|provides |!|coverage |!|for |!|only |!|a |!|limited |!|amount |!|of |!|time |!|where |!|also |!|paying |!|the |!|lowest |!|possible |!|premium. |!|What |!|kind |!|of |!|policy |!|is |!|needed? |!|- |!|correct |!|answer |!| ✔ Level |!|term The |!|amount |!|of |!|coverage |!|on |!|a |!|group |!|credit |!|life |!|policy |!|is |!|limited |!|to |!|- |!|correct |!|answer |!| ✔ The |!| insured's |!|total |!|loan |!|value In |!|a |!|qualified |!|retirement |!|plan, |!|the |!|yearly |!|contributions |!|to |!|an |!|employee's |!|account |!|- |!|correct |!| answer |!| ✔ Are |!|restricted |!|to |!|maximum |!|levels |!|set |!|by |!|the |!|IRS The |!|Universal |!|Life |!|Policy |!|is |!|called |!|an |!|unbundled |!|Life |!|Policy |!|because |!|the |!|policyholder |!|can |!|see |!|the |!|expense |!|charges, |!|the |!|interest |!|earned, |!|and |!|the |!|- |!|correct |!|answer |!| ✔ Cost |!|of |!|insurance Which |!|provision |!|is |!|NOT |!|a |!|requirement |!|in |!|a |!|group |!|policy? |!|- |!|correct |!|answer |!| ✔ Accidental
An |!|employee |!|with |!|$25,000 |!|group |!|term |!|life |!|coverage |!|was |!|recently |!|fired. |!|The |!|employee's |!| group |!|coverage |!|may |!|be |!|converted |!|to |!|a |!|- |!|correct |!|answer |!| ✔ $25,000 |!|individual |!|whole |!|life |!| policy An |!|individual |!|working |!|part-time |!|has |!|an |!|annual |!|income |!|of |!|$25,000. |!|If |!|this |!|individual |!|has |!|an |!| IRA, |!|what |!|is |!|the |!|maximum |!|deductible |!|IRA |!|contribution |!|allowable? |!|- |!|correct |!|answer |!| ✔ $25, Whose |!|life |!|is |!|covered |!|on |!|a |!|life |!|insurance |!|policy |!|that |!|contains |!|a |!|payor |!|benefit |!|clause? |!|- |!| correct |!|answer |!| ✔ Child; |!|A |!|payor |!|benefit |!|clause |!|is |!|generally |!|added |!|to |!|a |!|life |!|policy |!|that |!| insures |!|the |!|life |!|of |!|a |!|juvenile. |!|It |!|provides |!|continuance |!|of |!|insurance |!|coverage |!|in |!|the |!|event |!|of |!|the |!|death |!|or |!|total |!|disability |!|of |!|the |!|individual |!|responsible |!|for |!|the |!|payment |!|of |!|premiums. Insurers |!|organized |!|under |!|the |!|laws |!|of |!|NC |!|are |!|called |!|- |!|correct |!|answer |!| ✔ Domestic |!|companies Which |!|statement |!|regarding |!|3rd |!|party |!|ownership |!|of |!|a |!|life |!|insurance |!|policy |!|is |!|true? |!|- |!|correct |!| answer |!| ✔ It |!|is |!|used |!|extensively |!|in |!|estate-planning |!|as |!|well |!|as |!|business |!|circumstances Which |!|of |!|the |!|following |!|provisions |!|guarantees |!|that |!|premiums |!|will |!|be |!|waived |!|if |!|a |!|Juvenile |!| Life |!|policy |!|owner |!|becomes |!|disabled? |!|- |!|correct |!|answer |!| ✔ Payor |!|clause When |!|is |!|the |!|face |!|amount |!|paid |!|under |!|a |!|Joint |!|Life |!|and |!|Survivor |!|policy? |!|- |!|correct |!|answer |!| ✔ Upon |!|death |!|of |!|the |!|last |!|insured A |!|policy |!|owner |!|would |!|like |!|to |!|change |!|the |!|beneficiary |!|on |!|a |!|life |!|insurance |!|policy |!|and |!|make |!| the |!|change |!|permanent. |!|Which |!|type |!|of |!|designation |!|would |!|fulfill |!|this |!|need? |!|- |!|correct |!|answer |!| ✔ Irrevocable What |!|kind |!|of |!|life |!|insurance |!|policy |!|pays |!|a |!|specified |!|monthly |!|income |!|to |!|a |!|beneficiary |!|for |!| 30 |!| years |!|and |!|then |!|pays |!|a |!|lump |!|sum |!|benefit |!|at |!|the |!|end |!|of |!|that |!| 30 |!|years? |!|- |!|correct |!|answer |!| ✔ Family |!|Maintenance |!|Policy All |!|these |!|statements |!|concerning |!|Settlement |!|Options |!|are |!|true |!|EXCEPT |!|- |!|correct |!|answer |!| ✔ Only |!|the |!|beneficiary |!|may |!|select
Tom |!|has |!|a |!|qualified |!|retirement |!|plan |!|with |!|his |!|employer |!|that |!|is |!|currently |!|considered |!|to |!|be |!| 80% |!|"vested". |!|How |!|can |!|this |!|be |!|interpreted? |!|- |!|correct |!|answer |!| ✔ If |!|Tom's |!|employment |!|is |!| terminated, |!|20% |!|of |!|the |!|funds |!|would |!|be |!|forfeited How |!|are |!|policy |!|owner |!|dividends |!|treated |!|in |!|regards |!|to |!|income |!|tax? |!|- |!|correct |!|answer |!| ✔ Interest |!|on |!|accumulations |!|is |!|taxed Why |!|is |!|an |!|applicant's |!|signature |!|required |!|on |!|a |!|life |!|insurance |!|application? |!|- |!|correct |!|answer |!| ✔ To |!|attest |!|that |!|the |!|statements |!|on |!|the |!|application |!|are |!|accurate |!|to |!|the |!|best |!|of |!|the |!| applicant's |!|knowledge Which |!|parts |!|of |!|a |!|life |!|insurance |!|policy |!|are |!|guaranteed |!|to |!|be |!|true? |!|- |!|correct |!|answer |!| ✔ Warranty Which |!|of |!|these |!|arrangements |!|allows |!|one |!|to |!|bypass |!|insurable |!|interest |!|laws? |!|- |!|correct |!|answer |!| ✔ Investor-Originated |!|Life |!|Insurance A |!|father |!|who |!|dies |!|within |!| 3 |!|years |!|after |!|purchasing |!|a |!|life |!|insurance |!|policy |!|on |!|his |!|infant |!| daughter |!|can |!|have |!|the |!|policy |!|premiums |!|waived |!|under |!|which |!|provision? |!|- |!|correct |!|answer |!| ✔ Payor |!|provision Which |!|of |!|the |!|following |!|correctly |!|explains |!|the |!|actions |!|an |!|agent |!|should |!|take |!|if |!|a |!|customer |!| wants |!|to |!|apply |!|for |!|a |!|insurance |!|company? |!|- |!|correct |!|answer |!| ✔ Complete |!|the |!|application |!|and |!| review |!|the |!|information |!|with |!|the |!|customer |!|prior |!|to |!|obtaining |!|the |!|customer's |!|signature, |!|then |!| send |!|the |!|application |!|off |!|to |!|the |!|insurance |!|company An |!|insured |!|is |!|past |!|due |!|on |!|his |!|life |!|insurance |!|premium, |!|but |!|is |!|still |!|within |!|the |!|Grace |!|Period. |!| What |!|will |!|the |!|beneficiary |!|receive |!|if |!|the |!|insured |!|dies |!|during |!|this |!|Grace |!|Period? |!|- |!|correct |!| answer |!| ✔ Full |!|face |!|amount |!|minus |!|any |!|past |!|due |!|premiums The |!|premiums |!|paid |!|by |!|an |!|employer |!|for |!|his |!|employee's |!|group |!|life |!|insurance |!|are |!|usually |!| considered |!|to |!|be |!|- |!|correct |!|answer |!| ✔ Tax-deductible |!|to |!|the |!|employer
An |!|IRA |!|owner |!|can |!|start |!|making |!|withdrawals |!|and |!|NOT |!|be |!|subjected |!|to |!|a |!|tax |!|penalty |!| beginning |!|at |!|what |!|age? |!|- |!|correct |!|answer |!| ✔ 59 |!|1/ A |!|young, |!|married |!|teacher |!|has |!| 2 |!|children |!|and |!|owns |!|a |!|Whole |!|Life |!|Policy. |!|If |!|the |!|teacher |!| wants |!|an |!|increasing |!|death |!|benefit |!|to |!|protect |!|against |!|inflation, |!|the |!|teacher |!|showed |!|select |!| which |!|of |!|the |!|following |!|Dividend |!|Options? |!|- |!|correct |!|answer |!| ✔ Paid-up |!|Additional |!|Insurance P |!|died |!| 5 |!|years |!|later |!|after |!|purchasing |!|a |!|life |!|policy. |!|While |!|investigating |!|the |!|claim, |!|the |!|insurer |!|discovered |!|material |!|misrepresentations |!|made |!|by |!|P |!|during |!|the |!|application |!|process. |!|Which |!|of |!|these |!|actions |!|will |!|the |!|insurer |!|take? |!|- |!|correct |!|answer |!| ✔ Beneficiary |!|will |!|be |!|paid |!|the |!|Death |!| Benefit K |!|applies |!|for |!|a |!|life |!|insurance |!|policy |!|on |!|herself |!|and |!|submits |!|the |!|initial |!|premium |!|with |!|the |!| application. |!|She |!|is |!|given |!|a |!|receipt |!|by |!|the |!|agent |!|stating |!|that |!|coverage |!|begins |!|immediately |!|if |!| the |!|application |!|is |!|approved. |!|What |!|kind |!|of |!|receipt |!|was |!|used? |!|- |!|correct |!|answer |!| ✔ Conditional A |!|life |!|insurance |!|arrangement |!|which |!|circumvents |!|(avoid) |!|insurable |!|interest |!|statutes |!|is |!|called |!|- |!|correct |!|answer |!| ✔ Investor-Originated |!|Life |!|Insurance How |!|do |!|life |!|insurance |!|companies |!|handle |!|cases |!|where |!|the |!|insured |!|commits |!|suicide |!|within |!| the |!|contract's |!|stated |!|contestable |!|period? |!|- |!|correct |!|answer |!| ✔ Claims |!|are |!|denied |!|under |!|the |!| Suicide |!|Clause |!|(1 |!|year) |!|of |!|the |!|policy Which |!|action |!|can |!|a |!|policy |!|owner |!|take |!|if |!|an |!|application |!|for |!|a |!|bank |!|loan |!|requires |!|collateral? |!|- |!|correct |!|answer |!| ✔ Assign |!|policy |!|ownership |!|to |!|the |!|bank All |!|of |!|these |!|insurance |!|products |!|require |!|an |!|agent |!|to |!|have |!|proper |!|FINRA |!|securities |!|registration |!|in |!|order |!|to |!|sell |!|them |!|EXCEPT |!|for |!|- |!|correct |!|answer |!| ✔ Modified |!|Whole |!|Life J |!|let |!|her |!|life |!|insurance |!|policy |!|lapse |!| 8 |!|months |!|ago |!|due |!|to |!|nonpayment. |!|She |!|can |!|reestablish |!| coverage |!|under |!|which |!|of |!|the |!|following |!|provisions? |!|- |!|correct |!|answer |!| ✔ Reinstatement |!| Provision
One |!|of |!|the |!|stated |!|purposes |!|of |!|the |!|Life |!|and |!|Health |!|Insurance |!|Guaranty |!|Association |!|is |!|to |!|- |!| correct |!|answer |!| ✔ Assist |!|in |!|the |!|prevention |!|of |!|insurer |!|insolvencies B |!|owns |!|a |!|Whole |!|Life |!|policy |!|with |!|a |!|guaranteed |!|insurability |!|option |!|that |!|allows |!|him |!|to |!| purchase, |!|without |!|evidence |!|of |!|insurability, |!|stated |!|amounts |!|of |!|- |!|correct |!|answer |!| ✔ Additional |!| Whole |!|Life |!|coverage |!|at |!|specified |!|times The |!|part |!|of |!|a |!|life |!|insurance |!|policy |!|guaranteed |!|to |!|be |!|true |!|is |!|called |!|a(n) |!|- |!|correct |!|answer |!| ✔ Warranty All |!|are |!|considered |!|rebating |!|EXCEPT |!|- |!|correct |!|answer |!| ✔ Sharing |!|commissions |!|with |!|other |!| licensed |!|and |!|appointed |!|agents The |!|Consideration |!|Clause |!|in |!|a |!|life |!|insurance |!|policy |!|indicates |!|that |!|a |!|policyowner's |!| consideration |!|consists |!|of |!|a |!|completed |!|application |!|and |!|- |!|correct |!|answer |!| ✔ The |!|initial |!|premium Which |!|statement |!|is |!|TRUE |!|in |!|regards |!|to |!|a |!|policy |!|loan? |!|- |!|correct |!|answer |!| ✔ Past-due |!|interest |!| on |!|a |!|policy |!|loan |!|is |!|added |!|to |!|the |!|total |!|debt T |!|applies |!|for |!|a |!|life |!|insurance |!|policy |!|and |!|is |!|told |!|by |!|the |!|producer |!|that |!|the |!|insurer |!|is |!|bound |!| to |!|the |!|coverage |!|as |!|of |!|the |!|date |!|of |!|the |!|application |!|or |!|medical |!|examination, |!|whichever |!|is |!| later. |!|Assuming |!|that |!|T |!|is |!|an |!|acceptable |!|risk, |!|what |!|item |!|is |!|given |!|to |!|T? |!|- |!|correct |!|answer |!| ✔ Conditional |!|receipt If |!|after |!|satisfactory |!|proof |!|of |!|loss, |!|an |!|insurer |!|fails |!|or |!|refuses |!|to |!|pay |!|death |!|proceeds, |!|the |!| insurer |!|must |!|pay |!|interest |!|on |!|the |!|proceeds |!|after |!|how |!|many |!|days? |!|- |!|correct |!|answer |!| ✔ 30 |!| days The |!|following |!|acts |!|are |!|examples |!|of |!|unfair |!|methods |!|of |!|competition |!|and |!|deceptive |!|practices |!|in |!|the |!|business |!|if |!|insurance |!|EXCEPT |!|the |!|use |!|of |!|- |!|correct |!|answer |!| ✔ Comparisons |!|showing |!|that |!| a |!|policy |!|has |!|higher |!|benefits If |!|the |!|Commissioner |!|of |!|Insurance |!|finds |!|that |!|a |!|licensed |!|person |!|has |!|used |!|fraudulent, |!|coercive, |!|or |!|dishonest |!|practices |!|or |!|has |!|proved |!|to |!|be |!|incompetent, |!|untrustworthy, |!|or |!|financially |!|
irresponsible, |!|the |!|law |!|allows |!|the |!|Commissioner |!|to |!|- |!|correct |!|answer |!| ✔ Suspend, |!|revoke, |!|or |!| refuse |!|to |!|renew |!|the |!|agent's |!|license An |!|insured |!|covered |!|by |!|life |!|insurance |!|just |!|died. |!|What |!|will |!|happen |!|if |!|the |!|primary |!|beneficiary |!| had |!|already |!|died |!|before |!|the |!|insured |!|and |!|contingent |!|beneficiary? |!|- |!|correct |!|answer |!| ✔ Proceeds |!|will |!|go |!|to |!|the |!|contingent |!|beneficiary Which |!|type |!|of |!|plan |!|allows |!|an |!|employer |!|to |!|give |!|money |!|to |!|an |!|employee |!|for |!|buying |!|a |!|life |!| insurance |!|policy |!|and |!|also |!|permits |!|the |!|employee |!|to |!|select |!|the |!|beneficiary? |!|- |!|correct |!|answer |!| ✔ Split-dollar |!|plan Which |!|of |!|these |!|life |!|insurance |!|riders |!|allows |!|the |!|applicant |!|to |!|have |!|excess |!|coverage? |!|- |!|correct |!|answer |!| ✔ Term |!|rider Which |!|of |!|the |!|following |!|best |!|describes |!|a |!|contingent |!|beneficiary? |!|- |!|correct |!|answer |!| ✔ Person |!| designated |!|by |!|the |!|insured |!|to |!|receive |!|policy |!|proceeds |!|in |!|the |!|event |!|that |!|the |!|primary |!| beneficiary |!|dies |!|before |!|the |!|insured K |!|is |!|looking |!|to |!|purchase |!|Renewable |!|Term |!|insurance. |!|Which |!|of |!|these |!|types |!|of |!|Term |!| insurance |!|may |!|be |!|renewable? |!|- |!|correct |!|answer |!| ✔ Level Which |!|of |!|the |!|following |!|annuities |!|pays |!|benefits |!|based |!|on |!|units |!|rather |!|than |!|specific |!|dollar |!| amounts? |!|- |!|correct |!|answer |!| ✔ A |!|variable |!|annuity All |!|of |!|these |!|are |!|considered |!|sources |!|of |!|underwriting |!|information |!|about |!|an |!|applicant |!|EXCEPT |!|- |!|correct |!|answer |!| ✔ Rating |!|services P |!|completes |!|an |!|application |!|for |!|a |!|$10,000 |!|life |!|policy, |!|but |!|doesn't |!|give |!|the |!|producer |!|the |!| initial |!|premium. |!|P's |!|coverage |!|becomes |!|effective |!|when |!|- |!|correct |!|answer |!| ✔ P |!|receives |!|the |!| policy |!|and |!|pays |!|the |!|premium Insurance |!|contracts |!|are |!|know |!|as |!|___________ |!|because |!|certain |!|future |!|conditions |!|or |!|acts |!|must |!|occur |!|before |!|any |!|claims |!|can |!|be |!|paid. |!|- |!|correct |!|answer |!| ✔ Conditional
Which |!|of |!|the |!|following |!|actions |!|is |!|NOT |!|possible |!|with |!|a |!|Universal |!|Life |!|policy? |!|- |!|correct |!| answer |!| ✔ Premiums |!|may |!|be |!|applied |!|as |!|a |!|credit |!|card |!|against |!|income |!|tax A |!|policyowner |!|is |!|able |!|to |!|choose |!|the |!|frequency |!|of |!|premium |!|payments |!|through |!|what |!|policy |!| feature? |!|- |!|correct |!|answer |!| ✔ Premium |!|mode Which |!|of |!|these |!|types |!|of |!|policies |!|may |!|NOT |!|have |!|the |!|Automatic |!|Premium |!|Loan |!|provision |!| attached |!|to |!|it? |!|- |!|correct |!|answer |!| ✔ Decreasing |!|term A |!|statement |!|made |!|by |!|an |!|insured |!|in |!|an |!|insurance |!|application |!|that |!|must |!|be |!|true |!|to |!|the |!|best |!|of |!|one's |!|knowledge |!|and |!|which |!|becomes |!|a |!|part |!|of |!|the |!|contract |!|is |!|known |!|as |!|- |!|correct |!| answer |!| ✔ A |!|representation Which |!|is |!|true |!|concerning |!|a |!|Variable |!|Universal |!|Life |!| policy? |!|- |!|correct |!|answer |!| ✔ Policyowner |!|controls |!|where |!|the |!|investment |!|will |!|go |!|and |!|selects |!| the |!|amount |!|of |!|premium |!|payment An |!|employee |!|requested |!|that |!|the |!|balance |!|of |!|her |!|401(k) |!|account |!|be |!|sent |!|directly |!|to |!|her |!|in |!| one |!|lump |!|sum. |!|Upon |!|receipt |!|of |!|the |!|distribution, |!|she |!|immediately |!|has |!|the |!|funds |!|rolled |!|over |!|into |!|an |!|IRA. |!|What |!|is |!|the |!|tax |!|consequence |!|of |!|the |!|distribution |!|sent |!|to |!|this |!|employee? |!|- |!| correct |!|answer |!| ✔ A |!|participant |!|must |!|complete |!|a |!|rollover |!|to |!|another |!|qualified |!|plan |!|within |!| 60 |!|days |!|or |!|the |!|distribution |!|is |!|considered |!|a |!|nonqualified |!|distribution |!|and |!|is |!|subject |!|to |!|taxes |!| and |!|penalties. |!|A |!|plan |!|sponsor |!|must |!|withhold |!|20% |!|of |!|the |!|distribution |!|for |!|federal |!|taxes |!|on |!|a |!|rollover. |!|Once |!|the |!|rollover |!|takes |!|place |!|to |!|the |!|new |!|custodian, |!|the |!|remainder |!|of |!|the |!| distribution |!|is |!|released. What |!|percent |!|of |!|personal |!|life |!|insurance |!|premiums |!|is |!|usually |!|deductible |!|for |!|federal |!|income |!| tax |!|purposes? |!|- |!|correct |!|answer |!| ✔ 0% N |!|purchases |!|an |!|annuity |!|by |!|making |!|payments |!|in |!|an |!|amount |!|no |!|less |!|than |!|$100 |!|quarterly. |!| This |!|describes |!|which |!|of |!|the |!|following |!|annuities? |!|- |!|correct |!|answer |!| ✔ Flexible |!|Installment |!| Deferred Which |!|provision |!|is |!|not |!|a |!|requirement |!|in |!|a |!|group |!|life |!|policy? |!|- |!|correct |!|answer |!| ✔ Accidental
The |!|rules |!|and |!|regulations |!|of |!|the |!|Life |!|and |!|Health |!|Insurance |!|Guaranty |!|Association |!|in |!|NC |!|apply |!|to |!|- |!|correct |!|answer |!| ✔ Life |!|and |!|Health |!|policies |!|issued |!|by |!|companies |!|authorized |!|in |!|NC K |!|is |!|the |!|insured |!|and |!|P |!|is |!|the |!|sole |!|beneficiary |!|on |!|a |!|life |!|insurance |!|policy. |!|Both |!|are |!|involved |!| in |!|a |!|fatal |!|accident |!|where |!|K |!|dies |!|before |!|P. |!|Under |!|the |!|Common |!|Disaster |!|provision, |!|which |!|of |!| these |!|statements |!|is |!|true? |!|- |!|correct |!|answer |!| ✔ Proceeds |!|will |!|be |!|paid |!|to |!|P's |!|estate What |!|action |!|should |!|a |!|producer |!|take |!|if |!|the |!|initial |!|premium |!|is |!|NOT |!|submitted |!|with |!|the |!| application? |!|- |!|correct |!|answer |!| ✔ Forward |!|the |!|application |!|to |!|the |!|insurer |!|without |!|the |!|initial |!| premium A |!|Limited-Pay |!|Life |!|policy |!|has |!|- |!|correct |!|answer |!| ✔ Premium |!|payments |!|limited |!|to |!|a |!|specified |!| number |!|of |!|years Which |!|of |!|these |!|statements |!|is |!|INCORRECT |!|regarding |!|the |!|federal |!|income |!|tax |!|treatment |!|of |!|life |!|insurance? |!|- |!|correct |!|answer |!| ✔ Entire |!|cash |!|surrender |!|value |!|is |!|taxable D |!|is |!|the |!|policyowner |!|and |!|insured |!|for |!|a |!|$50,000 |!|life |!|insurance |!|policy. |!|The |!|beneficiary |!|is |!|D's |!| wife. |!|D |!|and |!|his |!|wife |!|divorced |!|and |!|D |!|remarries, |!|transferring |!|ownership |!|of |!|his |!|policy |!|to |!|his |!| new |!|wife. |!|If |!|D |!|dies |!|without |!|making |!|any |!|further |!|changes, |!|to |!|whom |!|will |!|the |!|policy |!|proceeds |!| be |!|paid |!|to? |!|- |!|correct |!|answer |!| ✔ Ex-wife What |!|does |!|the |!|insuring |!|agreement |!|in |!|a |!|life |!|insurance |!|contract |!|establish? |!|- |!|correct |!|answer |!| ✔ An |!|insurer's |!|basic |!|promise Which |!|of |!|the |!|following |!|factors |!|affect |!|the |!|amount |!|of |!|monthly |!|disability |!|benefits |!|payable |!| under |!|social |!|security? |!|- |!|correct |!|answer |!| ✔ The |!|amount |!|of |!|the |!|benefits |!|available |!|from |!|other |!| sources A |!|warranty |!|- |!|correct |!|answer |!| ✔ Is |!|a |!|statement |!|guaranteed |!|to |!|be |!|true What |!|does |!|a |!|401(k) |!|plan |!|generally |!|provide |!|its |!|participants? |!|- |!|correct |!|answer |!| ✔ Salary-deferral |!|contributions
