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all of the following are examples of business continuation plan except - ✔✔Deferred Compensation All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified - ✔✔A non forfeiture option can be used to increase the death benefit the superintendent determines an examination of an insurers books and record is necessary. After receiving the notification, the insurer - ✔✔must not impede the examination the double indemnity prevision in a life insurance policy pertains to an insureds death caused by a(n) - ✔✔accident Which of these is not considered to be a risk factor in life insurance underwriting - ✔✔number of children the suicide clause of a life insurance policy states that if an insured commits suicide within the stated period from the policy inception the insurer will only be liable fora return of premiums paid - ✔✔minus indebtedness and without interest
A minor may receive a life inurance polciys death benefit only - ✔✔if the minor has an appointed guardian a life insruacne policy that has premiums fully paid up within a stated time period is called - ✔✔limited payment insurance When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable? Principal Contributions made by employee Contributions made by employer Gains - ✔✔Gains Which of the following does a life insurance policy summary normally include - ✔✔the policys cash value a whole life policy option where extended term insurance is selected is called - ✔✔nonforfeiture option which of the following is a reinstatement condition - ✔✔proof of insurability a securities license is required for the life insurance producer to sell - ✔✔variable life insurance all of these characteristics of a universal life insurance policy except
What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? - ✔✔representation which of the following are the premium payments for a universal life policy not used for death benefits cash value loading costs separate account investments - ✔✔separate account investments a modified endowment contract (MEC) is best described as - ✔✔A life insurance contract with accumulates cash values higher than the IRS will allow Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt - ✔✔dies instantly from a car accident an agents license has been suspended for non-renewal. The agent may apply for reinstatement
- ✔✔within 12 months of the license renewal date Which of these is not considered to be a common life insurance nonforfeiture option cash surrender extended term insurance
reduced paid-up insurance life income annuity - ✔✔life income annuity which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinners death - ✔✔human life value All of these are valid policy dividend options for a life insurance policyowner EXCEPT cash outlay to the policy owner accumulate without interest reduction in policy premium buy additional insurance coverage - ✔✔accumulate without interest all of the following are responsibilities of the superintendent except administering oaths subpoena a witness approving policy forms endorsing insurers - ✔✔endorsing insurers all of the following may be an unfair claims practice except turning down a claim without providing the basis of denial
Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? - ✔✔Nothing What is the purpose of the Medical Information Bureau (MIB) - ✔✔to help underwriters evaluate risk What is the primary purpose of a rating service company such as A.M Best - ✔✔Determine financial strength of an insurance company Which of these factors would an insurer consider when determining whether to accept a group life plan - ✔✔Average age when screening an applicant for HIV, the insurer - ✔✔may require a blood test for HIV Which of the following is considered to be an event of condition that increases the probability of an insured loss - ✔✔hazard James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount? The original face amount will be paid to the beneficiary The policy will be voided with no death benefits paid The death benefit paid will be what the premium would have purchased at the correct age
The amount of premiums paid will be returned with interest - ✔✔The death benefit paid will be what the premium would have purchased at the correct age The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of - ✔✔past due premiums that have not been paid by the end of the grace period all of the following are examples of pure risk except losing money at a casino injured while playing football falling at a casino and breaking a hip jewelry stolen during a home robbery - ✔✔losing money at a casino Which type of annuity stops all payments upon the death of the annuitant? Life annuity Period certain annuity Cash refund annuity Joint and survivor annuity - ✔✔Life annuity
If the annuitant dies before the annuity start date, - ✔✔the premiums paid plus interest earned will be given to the beneficiary Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? - ✔✔life annuity certain Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement? - ✔✔premiums paid plus interest earned is returned to the beneficiary A life insurance applicant in ohio may backdate the application for up to months - ✔✔ 3 Which situation accurately describes a reduced paid-up nonforfeiture option - ✔✔policy has a decreased face amount a life insurance policy that is subject to a contract interest rate is referred to as - ✔✔universal life A partial surrender is allowed in which of the following life policies? - ✔✔universal life which of these statements regarding the annuitant is correct - ✔✔the annuitants life expectancy determines the annuity payments a policy owner can receive a percentage payment of the death benefits prior to death by using what kind of contract - ✔✔Viatical settlement agreement
Insurance companies determine risk exposure by which of the following - ✔✔law of large numbers and risk pooling what would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day - ✔✔claim will be paid if application is approved Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider? Can be converted to permanent coverage without evidence of insurability Coverage can be different for each child Premiums on this rider are not required until the limiting age is reached Increases the policy's overall cash value - ✔✔can be converted to permanent coverage without evidence of insurability The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is - ✔✔the short the payment period, the higher the premium the authority granted to a licensed producer is provided via the - ✔✔Law of agency A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability is called a(n) - ✔✔guaranteed insurability rider a renewable term life insurance policy can be renewed - ✔✔at a predetermined date or age, regardless of the insurers health
A life insurance policyowner is allowed days upon policy delivery to return the policy for a full premium refund - ✔✔ 10 Which contract element is insurable interest a component of? - ✔✔Legal purpose ohio requires that a licensee complete hours of continuing education on the subject of ethics every reporting period - ✔✔ 3 Craig purchased a life insurance policy to enable his heirs to pay estate taxes. What is this called? Estate conservation Liquidity maintenance Survivor fund
Human value protection - ✔✔Estate conservation Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's - ✔✔income period Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis of the beneficiary - ✔✔interest only A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n) insuring clause payor provision reinstatement provision nonforfeiture provision - ✔✔nonforfeiture provision An annuity is primarily used to provide - ✔✔retirement income the term which describes the fact that both parties of a contract may NOT receive the same value is referred to as - ✔✔Aleatory
Which of the following is required for an insurer to conduct business in this state - ✔✔certificate of authority what is an insurer required to do when faced with an error made under the misstatement of age provision - ✔✔pay age-corrected benefits What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus - ✔✔participating life insurance policy Within how many days must a rollover be complete in order to avoid being taxed as current income - ✔✔ 60 A business will typically use which type of life insurance to cover their employees - ✔✔group policy An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of rebating coercion fraud twisting - ✔✔Fraud What is known as the immediate specific event causing loss and giving rise to risk - ✔✔Peril
Which of the following is NOT part of an insurance contract policy application riders certificate of authority - ✔✔certificate of authority Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - ✔✔Life income Which of the following is NOT a specific power given to the superintendent - ✔✔enact insurance legislation Replacement can be BEST described as - ✔✔exchanging a new policy for one already in force If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? - ✔✔A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased as the correct age An advertisement for an insurance product may contain - ✔✔the insurer's name Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place? - ✔✔conversion
