Question 1

Disclosure must state the reason and purpose information is collected and how it is used. This means:

Accepted Answer

A) The reason is for the application process, the purpose is for underwriting the policy 
B) The reason is for underwriting the policy, the purpose is for the application process 
C) The reason is for insurance, the purpose is for collections 
D) The reason is for collections, the purpose is for insurance coverage 
A) The reason is for the application process, the purpose is for underwriting the policy 
B) The reason is for underwriting the policy, the purpose is for the application process 
C) The reason is for insurance, the purpose is for collections 
D) The reason is for collections, the purpose is for insurance coverage

Question 2

Why is the annuitant's age important in the process of determining annuity payments?

Accepted Answer

A) To know how long payments will be made 
B) To know how much the payments should be 
C) To know interest rates for the annuity 
D) To know how to make the payments 
A) To know how long payments will be made 
B) To know how much the payments should be 
C) To know interest rates for the annuity 
D) To know how to make the payments

Question 3

The McCarran-Ferguson Act of 1974 states:

Accepted Answer

A) Federal government can regulate business of insurance only to the extent not regulated by state law. 
B) State government can regulate business of insurance only to the extent not regulated by federal law 
C) Federal government and state government mutually regulate insurance business 
D) Federal law is only relevant to interstate commerce situations. 
A) Federal government can regulate business of insurance only to the extent not regulated by state law. 
B) State government can regulate business of insurance only to the extent not regulated by federal law 
C) Federal government and state government mutually regulate insurance business 
D) Federal law is only relevant to interstate commerce situations.

Question 4

David and his brother Jacob are joint beneficiaries of their grandmother's life insurance policy. While Jacob is single, David is newly married and wants to make sure proceeds will last for his life as well as his wife's life if he should die. Which option would be best for David?

Accepted Answer

A) Joint and survivor life income option 
B) Refund life insurance option 
C) Straight annuity option 
D) Life certain option 
A) Joint and survivor life income option 
B) Refund life insurance option 
C) Straight annuity option 
D) Life certain option

Question 5

Claims on life insurance policies are

Accepted Answer

A) Always negotiated 
B) Rarely negotiated 
C) Always paid in full immediately 
D) Rarely paid in full 
A) Always negotiated 
B) Rarely negotiated 
C) Always paid in full immediately 
D) Rarely paid in full

Question 6

The purpose of insurance to the insured individual is:

Accepted Answer

A) To provide opportunity to get ahead 
B) To cover any type of risk the individual may encounter 
C) To make them whole and restore them to their original financial position 
D) To protect them against speculative risks 
A) To provide opportunity to get ahead 
B) To cover any type of risk the individual may encounter 
C) To make them whole and restore them to their original financial position 
D) To protect them against speculative risks

Question 7

When an individual arranges to pay premiums into their annuity for several years prior to receiving their annuity income payments, t, they have a ______________ annuity.

Accepted Answer

A) Flexible premium 
B) Single premium 
C) Level premium 
D) Payment premium 
A) Flexible premium 
B) Single premium 
C) Level premium 
D) Payment premium

Question 8

As an insurer, if you choose to carry variable life and/or variable annuity products, you are required to carry:

Accepted Answer

A) Securities license and insurance license 
B) Insurance license and credit insurance 
C) Credit insurance and variable insurance 
D) Variable insurance and insurance license 
A) Securities license and insurance license 
B) Insurance license and credit insurance 
C) Credit insurance and variable insurance 
D) Variable insurance and insurance license

Question 9

Whole life insurance can be used as a policy loan. What does this mean to the insured?

Accepted Answer

A) Cash can be loaned and repaid to the policy 
B) Cash can be loaned and repaid with interest before the policy expires 
C) Cash can be loaned and does not have to be repaid 
D) Cash can be loaned and does not have to be repaid cancelling the policy 
A) Cash can be loaned and repaid to the policy 
B) Cash can be loaned and repaid with interest before the policy expires 
C) Cash can be loaned and does not have to be repaid 
D) Cash can be loaned and does not have to be repaid cancelling the policy

Question 10

Standard provisions found in the NAIC Model Group Life Insurance Bill have been adopted by most states. This model designates a specific number of people a group must have. What is this number?

Accepted Answer

A) 10 people 
B) 25 people 
C) 50 people 
D) 100 people 
A) 10 people 
B) 25 people 
C) 50 people 
D) 100 people

Question 11

If a debtor is unable to pay debts due to illness or death, the creditor is protected against financial consequences through

Accepted Answer

A) Life insurance 
B) Health insurance 
C) Variable insurance 
D) Credit insurance 
A) Life insurance 
B) Health insurance 
C) Variable insurance 
D) Credit insurance

Question 12

Bob and Jill are interested in purchasing a life insurance policy. They want to know that should one of them die prematurely, the other will be supported for the rest of their life and upon their death the children will receive a large inheritance. Of the methods to calculate insurance, which one would be best?

Accepted Answer

A) Capital liquidation 
B) Human life value 
C) Needs based 
D) Capital conservation 
A) Capital liquidation 
B) Human life value 
C) Needs based 
D) Capital conservation

Question 13

Because of downsizing, Steve has been terminated from ABC Firearms. Two weeks later Steve is cleaning up his personal items at home and a gun misfires killing Steve. The beneficiary to Steve's policy will still receive payments. Why is this?

Accepted Answer

A) Steve's accident occurred with an ABC Firearm. 
B) Steve's accident occurred in the grace period of conversion to an individual policy 
C) Steve's insurance continues to cover him for up to one year. 
D) Steve's insurance has accidental death clause 
A) Steve's accident occurred with an ABC Firearm. 
B) Steve's accident occurred in the grace period of conversion to an individual policy 
C) Steve's insurance continues to cover him for up to one year. 
D) Steve's insurance has accidental death clause

Question 14

There are exceptions to the full payment of life insurance policies. Which of the following is not an exception to the payment of the full face amount?

Accepted Answer

A) Error in determining the age or gender of the insured at policy issuance 
B) Premium payments are due 
C) Error in the beneficiary address 
D) Outstanding loans against the policy 
A) Error in determining the age or gender of the insured at policy issuance 
B) Premium payments are due 
C) Error in the beneficiary address 
D) Outstanding loans against the policy

Question 15

What is the main difference between a refund life annuity and a life annuity?

Accepted Answer

A) Refund life annuity guarantees more than the amount spent on the annuity purchase price 
B) Life annuity guarantees more than the minimum amount spent on the annuity purchase price 
C) Refund life annuity guarantees the annuitant will receive an amount at least equal to the purchase price. 
D) Life annuity guarantees the annuitant will receive an amount at least equal to the purchase price on the annuity 
A) Refund life annuity guarantees more than the amount spent on the annuity purchase price 
B) Life annuity guarantees more than the minimum amount spent on the annuity purchase price 
C) Refund life annuity guarantees the annuitant will receive an amount at least equal to the purchase price. 
D) Life annuity guarantees the annuitant will receive an amount at least equal to the purchase price on the annuity

Question 16

If Tom wants to borrow money from the bank using part of his life insurance cash values as collateral, what type of assignment will secure this loan?

Accepted Answer

A) Voluntary Assignment 
B) Partial Assignment 
C) Modified Assignment 
D) Complex Assignment 
A) Voluntary Assignment 
B) Partial Assignment 
C) Modified Assignment 
D) Complex Assignment

Question 17

What is a flexible premium, adjustable benefit life insurance contract that accumulates cash values called?

Accepted Answer

A) Term life insurance 
B) Universal life insurance 
C) Variable life insurance 
D) Whole life insurance 
A) Term life insurance 
B) Universal life insurance 
C) Variable life insurance 
D) Whole life insurance

Question 18

Insurance transacted across state lines is deemed interstate commerce. This is based on

Accepted Answer

A) Paul versus Virginia 
B) McCarran-Ferguson Act 
C) South-Eastern Underwriters Decision 
D) Privacy Act of 1974 
A) Paul versus Virginia 
B) McCarran-Ferguson Act 
C) South-Eastern Underwriters Decision 
D) Privacy Act of 1974

Question 19

What type of non-forfeiture option allows the policy owner to use the cash value of a present policy to purchase a single premium insurance policy at attained age rates for a reduced face amount?

Accepted Answer

A) Cash surrender option 
B) Insurance dividend option 
C) Reduced paid-up insurance option 
D) Cash dividend option 
A) Cash surrender option 
B) Insurance dividend option 
C) Reduced paid-up insurance option 
D) Cash dividend option

Question 20

When Alisa's mother died, she designated Alisa as the sole beneficiary of her settlement. Alisa has opted to receive interest only payments on the policy. Prior to the lump sum being paid to Alisa, she dies. What will happen to the balance of Alisa's mother's life insurance policy?

Accepted Answer

A) It will be paid to Alisa's estate 
B) It will be paid to the primary beneficiary named in the original policy. 
C) It is paid to contingent beneficiary from the original policy or it is paid to Alisa's estate if there is no contingent 
D) It is retained by the insured and used as surplus 
A) It will be paid to Alisa's estate 
B) It will be paid to the primary beneficiary named in the original policy. 
C) It is paid to contingent beneficiary from the original policy or it is paid to Alisa's estate if there is no contingent 
D) It is retained by the insured and used as surplus

Disclosure must state the reason and purpose information is collected and how it is used. This means:

Why is the annuitant's age important in the process of determining annuity payments?

The McCarran-Ferguson Act of 1974 states:

David and his brother Jacob are joint beneficiaries of their grandmother's life insurance policy. While Jacob is single, David is newly married and wants to make sure proceeds will last for his life as well as his wife's life if he should die. Which option would be best for David?

Claims on life insurance policies are

The purpose of insurance to the insured individual is:

When an individual arranges to pay premiums into their annuity for several years prior to receiving their annuity income payments, t, they have a ______________ annuity.

As an insurer, if you choose to carry variable life and/or variable annuity products, you are required to carry:

Whole life insurance can be used as a policy loan. What does this mean to the insured?

Standard provisions found in the NAIC Model Group Life Insurance Bill have been adopted by most states. This model designates a specific number of people a group must have. What is this number?

If a debtor is unable to pay debts due to illness or death, the creditor is protected against financial consequences through

Because of downsizing, Steve has been terminated from ABC Firearms. Two weeks later Steve is cleaning up his personal items at home and a gun misfires killing Steve. The beneficiary to Steve's policy will still receive payments. Why is this?

There are exceptions to the full payment of life insurance policies. Which of the following is not an exception to the payment of the full face amount?

What is the main difference between a refund life annuity and a life annuity?

If Tom wants to borrow money from the bank using part of his life insurance cash values as collateral, what type of assignment will secure this loan?

What is a flexible premium, adjustable benefit life insurance contract that accumulates cash values called?

Insurance transacted across state lines is deemed interstate commerce. This is based on

What type of non-forfeiture option allows the policy owner to use the cash value of a present policy to purchase a single premium insurance policy at attained age rates for a reduced face amount?

When Alisa's mother died, she designated Alisa as the sole beneficiary of her settlement. Alisa has opted to receive interest only payments on the policy. Prior to the lump sum being paid to Alisa, she dies. What will happen to the balance of Alisa's mother's life insurance policy?

Health: Disability

Health: Health and Dental

Health: Health Maintenance Organizations

Health: Tax Issues in Life Insurance

Health: Theory in Life Insurance

Comprehensive Examination: English and Language Usage

Comprehensive Examination: Mathematics

Comprehensive Examination: Reading

Comprehensive Examination: Science

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Exam 1: Health: Health and Life Insurance

Disclosure must state the reason and purpose information is collected and how it is used. This means:

Why is the annuitant's age important in the process of determining annuity payments?

The McCarran-Ferguson Act of 1974 states:

David and his brother Jacob are joint beneficiaries of their grandmother's life insurance policy. While Jacob is single, David is newly married and wants to make sure proceeds will last for his life as well as his wife's life if he should die. Which option would be best for David?

Claims on life insurance policies are

The purpose of insurance to the insured individual is:

When an individual arranges to pay premiums into their annuity for several years prior to receiving their annuity income payments, t, they have a ______________ annuity.

As an insurer, if you choose to carry variable life and/or variable annuity products, you are required to carry:

Whole life insurance can be used as a policy loan. What does this mean to the insured?

Standard provisions found in the NAIC Model Group Life Insurance Bill have been adopted by most states. This model designates a specific number of people a group must have. What is this number?

If a debtor is unable to pay debts due to illness or death, the creditor is protected against financial consequences through

Because of downsizing, Steve has been terminated from ABC Firearms. Two weeks later Steve is cleaning up his personal items at home and a gun misfires killing Steve. The beneficiary to Steve's policy will still receive payments. Why is this?

There are exceptions to the full payment of life insurance policies. Which of the following is not an exception to the payment of the full face amount?

What is the main difference between a refund life annuity and a life annuity?

If Tom wants to borrow money from the bank using part of his life insurance cash values as collateral, what type of assignment will secure this loan?

What is a flexible premium, adjustable benefit life insurance contract that accumulates cash values called?

Insurance transacted across state lines is deemed interstate commerce. This is based on

What type of non-forfeiture option allows the policy owner to use the cash value of a present policy to purchase a single premium insurance policy at attained age rates for a reduced face amount?

When Alisa's mother died, she designated Alisa as the sole beneficiary of her settlement. Alisa has opted to receive interest only payments on the policy. Prior to the lump sum being paid to Alisa, she dies. What will happen to the balance of Alisa's mother's life insurance policy?

Health: Disability

Health: Health and Dental

Health: Health Maintenance Organizations

Health: Tax Issues in Life Insurance

Health: Theory in Life Insurance

Comprehensive Examination: English and Language Usage

Comprehensive Examination: Mathematics

Comprehensive Examination: Reading

Comprehensive Examination: Science

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