A term life rider offer the insured - ANS Additional coverage
The Department of business regulations may revoke a producer's license for each of the
following offenses except - ANS Violating an insurer's internal control requirements
The agreement in a life insurance contract that states a specific sum of money will be paid to a
designated person upon an insured's death is called a - ANS insuring agreement
Which of the following statements is a producer Not permitted to say - ANS If my company fails
to pay a claim, the guaranty Association will pay
A producer has influenced an existing policy owner to convert an existing whole-life policy to
reduced Paid-up insurance. The producer then sells the policy owner a new universal life policy.
This transaction is called an - ANS Replacement `
which of these is an element of a Variable life policy? - ANS A fixed level premium
Which provision prevents an insurer from changing the terms of the contract with the
policyowner by referring to documents not found within the policy itself - ANS Entire Contract
provision
An applicant's medical information received from the medical information Bureau (MIB) may be
furnished to the - ANS Applicant's physician
Insurance policies are considered aleatory contracts because - ANS Performance is conditioned
upon a future occurrence
In the event that an insured's premium is not paid by the due date, the result will be? - ANS
Coverage will continue for not more than a maximum of 31 days, beyond which time the policy
will lapse
Which of the following life insurance policies combine term insurance with an investment
element? - ANS Universal Life
Whose life is covered on a life insurance policy that contains a payor benefit clause - ANS Child
Under a Graded Premium Whole Life policy, - ANS The premium increases each year during the
early years of the contract and remains the same after that time.
,Under a Renewable Term policy, - ANS The renewal premium is calculated on the basis of the
insured's attained age
What type of life policy covers two people and pays upon the death of the last insured? - ANS
Survivorship
Variable life products require a producer to - ANS Hold a life insurance license and a securities
license
A(n) _____ rider may be used to include coverage for children under their parents' life insurance
policy. - ANS term
what is being delivered during a policy delivery? - ANS Insurance contract to the proposed
insured
The consideration clause of an insurance contract includes - ANS The schedule and amount of
premium payments
Viatical settlement death benefit proceeds are payable to the - ANS Current beneficiary
A policyowner is able t o choose the frequency of premium payments through what policy
feature? - ANS Premium mode
What is the basic function of an annuity? - ANS The systematic liquidation of accumulated funds
T took out a $50,00 life insurance policy with an accidental death and dismemberment rider.
Five years later T commits suicide. How much will the insurance pay? - ANS $50,000
Which of the following is considered to be misrepresentation - ANS A producer Guaranteeing a
policy's dividends
A policyowner is allowed to pay premiums more than once a year under which provision? - ANS
Mode of premium
Q applied for life insurance and submitted the initial premium on January 1. The policy was
issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and
returns the policy February 13. How much will the insurer handle this situation? - ANS Policy
was returned within the free-look period, premium will be fully refunded
A primary beneficiary has died before the insured in a life insurance policy. A contingent
beneficiary is also named in the policy. which of the following will occur when the insured dies -
ANS Proceeds will go to the contingent beneficiary
, Which of the following best describes a contingent beneficiary? - ANS Person designated by the
insured to receive policy proceeds in the event that the primary beneficiary dies before the
insured
Who owns a stock company? - ANS Its stockholders
What type of employee welfare plans are not subject to ERISA regualtions? - ANS Church plans
P the insurance producer misappropriates premiums during the course of an insurance
transaction. P could be charged with. - ANS Theft
The purpose of Rhode Island replacement regulations is to - ANS Protect the buyers of life
insurance and annuity products
Which of the following best describes a warranty? - ANS Statement guaranteed to be true
AN individual participant personally received eligible rollover funds from a profit-sharing plan.
what is the income tax withholding requirements for this transaction? - ANS 20% is withheld for
income taxes
All are true statements regarding the underwriting process. except - ANS AIDS and HIV virus
can be conducted in a discriminatory fashion.
W is a 39-year old female who just purchased an annuity to provide income for life starting at
age 60. all of these would be acceptable annuity choices, EXEPT a(n): - ANS Immediate
annuity
advising a proposed insured that the required premium is lower that it actually would be, given
the correct rate classification is an example of - ANS Misrepresentation
A potential client, age 40, would like to purchase a Whole life policy that will accumulate cash
value at a faster rate in the early years of the policy. which of these statements made by the
producer would be correct? - ANS 20-pay life accumulates cash faster than straight life
At what time must a policyowner have insurable interest on the insured in order for the life policy
to be valid? - ANS At the time of application
The agreement in a life insurance contract that states a specific sum of money will be paid to a
designated person upon an insured's death is called a(n): - ANS insuring agreement
Which of the following statements is a producer not permitted to say? - ANS If my company fails
to pay a claim, the Guaranty association will pay
Who is a mutual insurance company owned by? - ANS Its policyholders
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