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WorksheetsExamFX2 pt.3
Total questions: 20
Worksheet time: 10mins
An insurance company sells an insurance policy over the phone in response to a TV ad. Which of the following best describes this act?
Insurance telemarketing
Direct response marketing
Illegal
Independent agency marketing
Which of the following types of agent authority is also called "perceived authority"?
Express
Fiduciary
Apparent
Implied
Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?
Reinstatement
Automatic premium loan
Extended term
Reduced paid-up option
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
If the daughter is disabled for any length of time
If the father is disabled for at least a year
If the father is disabled for more than 6 months
If the daughter is disabled for more than 3 months
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Twisting.
Coercion.
False advertising.
Rebating.
Which of the following is NOT true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity.
It is also known as the pay-in period.
It is the period over which the owner makes payments into an annuity.
It is the period during which the annuity payments earn interest.
Which of the following statements is TRUE concerning whole life insurance?
Lump-sum death benefits are not taxable.
Dividend interest is not taxable.
Premiums are tax deductible.
Policy loans are tax deductible.
All of the following information about a customer must be used in determining annuity suitability EXCEPT
A. Financial experience.
B. Tax status.
C. Annual income.
D. Beneficiary's age.
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
Rollover.
Nonforfeiture option.
Settlement option.
Nontaxable exchange.
Events in which a person has both the chance of winning or losing are classified as
Pure risk.
Speculative risk.
Retained risk.
Insurable.
What type of life insurance is most commonly used for group plans?
Whole life
Decreasing term
Flexible premium whole life
Annually renewable term
Insurers may only use a buyer's guide that has been approved by the NAIC no longer than what time period before use?
6 months
30 days
1 year
90 days
All of the following are characteristics of a group life insurance plan EXCEPT
A. A minimum number of participants is required in order to underwrite the plan.
B. There is a requirement to prove insurability on the part of the participants.
C. The participants receive a Certificate of Insurance as their proof of insurance.
D. The cost of the plan is determined by the average age of the group.
Which type of life insurance policy generates immediate cash value?
Continuous Premium
Decreasing Term
Single Premium
Level Term
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?
Full premium refund without any charges
Annuity dividends
No payments
Guaranteed surrender value
Which of the following documents must be provided to the policyowner or applicant during policy replacement?
Policy illustrations
Buyer's Guide and Policy Summary
Notice Regarding Replacement
Disclosure Authorization Form
All of the following are beneficiary designations EXCEPT
Primary.
Specified.
Contingent.
Tertiary.
An insured who had a life insurance policy for $1 million died. In filing the claim, his wife and children discovered that there was no beneficiary named on the policy. What will happen to the death benefit in this case?
It will go to the insured's estate.
It will be automatically paid to the insured’s surviving family.
The insurer will retain the benefit.
It will be divided among his children.
Which of the following is the basis for a claim against an insurance policy?
Loss
Misrepresentation
Material change
Hazard
Which of the following information about the applicant is NOT included in the General Information section of the application for insurance?
A. Gender
B. Occupation
C. Medical background
D. Marital status
