A temporary license in this state is valid for a maximum of C Controlled business. D An offer of employment. What determines the length of time that benefits will be received under the fixed-amount settlement option? It was determined that the accident was his fault. Assuming he never changed his beneficiary, the policy proceeds will go to Who can request changes in premium payments, face value, loans, and policy plans? Who is personally liable for all contracts of insurance unlawfully made with in Tennessee on behalf of an unauthorized insurer? Flashcards - Connecticut Insurance Test 2021 - FreezingBlue Which of the following best describes this practice? In order to enforce the insurance code the commissioner has the power to conduct which of the following? What type of annuity is it? D All of the following would be considered rebating except C C Defamation C 90 days 60. A domestic insurer issuing variable contracts must establish one or more.. An insured has chosen joint and 2/3 survivor as the settlement option. D 10. D 120 days. A C Cease and desist order A If she decides to do a direct transfer from her plan to a traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer? Which of the following would be required to be licensed as an insurance producer? An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. If you like the fitness and motion activity tracking feature on the iPhone, you should have this setting left on. What is the purpose of a disclosure statement in life insurance policies? Company Information; FAQ; Stone Materials. Death benefits payable to a beneficiary under a life insurance policy are generally. There is no limitation on the number of key employee plans in force at any one time, the employer is the owner, Payor and beneficiary of the policy, the key employee is the insured. He never remarried and dies at age 61, leaving 2 grown-up children. The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years? The main difference between immediate and deferred annuities is What does "level" refer to in level term insurance? Define electric potential and electric potential energy. Which type of life insurance policy allows the policyowner to pay more or less than the planned premium? The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the.. Life income joint and survivor settlement option guarantees. C A reasonable understanding of the provisions, terms, and conditions of the type of insurance he/she wishes to counsel. in order to reinstate a life insurance policy the insured must do all of the following except: pay next year's premium in advance. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. D 2 years. What best describes this practice? As the local coffee shop is just initiating the segmentation and targeting process, what has . An annuity owner is funding an annuity that will supplement her retirement. When a company criticizes the financial situation of another company with the intention of injuring that company, it has committed an illegal trade practice called defamation. What is true of the cash surrender nonforfeiture option? Which of the following is an example of a producer being involved in an unfair trade practices of rebating? A father owns a life insurance policy on his 15-year-old daughter. 45 A cease and desist order requires an individual to stop doing a specific activity that the Commissioner believes to be violating the Insurance Code. A policy will pay the death benefit if the insured dies during the 30-year premium-paying period, and nothing if death occurs after the 20-year period. As a condition for renewal of their licenses, how many hours of continuing education required for all resident and nonresident insurance producers? Which of the following activities is not performed by an insurance producer? What is the name of the insured who enters into a viatical settlement. A key person insurance policy can pay for what? When may an insurance company use suicide as a defense against paying a death claim? Rebating is the practice of returning a percentage of the payment or the agent's/fee broker's on the charge to the covered, as well as additional motivators to do company with a certain insurer. Issuing or circulating any sales material that is false or misleading would be considered misrepresentation and is illegal. Which of the following would be required to be licensed as an insurance producer? An insured owns a life insurance policy. A license may be denied, suspended, or revoked if the licensee does any of the following EXCEPT A A good business reputation and good moral character. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. The accelerated benefits provision for an early payment of the death benefit when the insured.. An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. Although the appointment is made by the head of the Insurance Department, that person leaving the office does not terminate existing appointments. If the corporation collects the policy benefit, then. What is the purpose of establishing the target premium for a universal life policy? All of the following acts are considered unfair trade - Course Hero The insurance company discovers at that time that the insured concealed info during the application process. A Provide opinions concerning benefits, coverage, terms, and advantages and disadvantages of a policy or annuity Telling a client that his first premium will be waived if he purchases the insurance policy today. Defamation is making statements that are false as to the financial condition of any insurer and which are calculated to injure any person engaged in the business of insurance. must ensure a pair that's benefit claim after receiving the product of death? His wife dies 10 years later. B 7 days A Defamation 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 What must be acceptable in order for the ride to be able to waive the payment of premium? C Dividends from a mutual insurer. If an insurance company has published a brochure that in accurately portrays the advantages of a particular insurance policy. An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. After five years, she decides to leave the company and work independently. A participating insurance policy will pay _________ to the owner based upon actual mortality cost, interest earned and costs. Which nonforfeiture option provides coverage for the longest period of time? B - In order to collect premiums and explain coverages, a person would need to be licensed. 16/9 = Weegy: Whenever an individual stops drinking, the BAL will decrease slowly. all of the following would be considered rebating except What is this an example of? Business entity means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. What are the two components of a universal policy? A table showing the nonforfeiture values for the next 20 years must be included in the policy. Which of the following would be considered an illegal inducement to purchase insurance? In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. C Coercion. The "accumulation period" is the period of time over which the annuitant makes payments (premiums) into an annuity. D Inviting prospective clients to the grand opening of the producer's new office. What happens when a policy is surrendered for its cash value? What is being defined as the degree to which something is related or useful to what is happening or being talked about? The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. What best describes what will happen? An insured receives an annual life insurance dividend check. How can she obtain an individual policy? The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called? He died on February 28. If she terminates her group coverage, what is true? Which provision of a life insurance policy states that the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid? B$1 What is true regarding a non-qualified retirement plan? This is a personal use of life insurance known as.. When producers give or promise anything of value that is not specified in the policy, they are guilty of rebating. Which of the following would be required to complete pre-licensing education? (Example) your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What describes the tax advantage of a qualified retirement plan? Within how many days of requesting an an investigative consumer report must an (insurer) notify the consumer in writing that the report will be obtained? For an individual who is not covered by an employer sponsored plan, IRA contributions are What is correct concerning a non contributory group plan: To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters? What relationship is not an example of insurable interest? As it turns out, the answer to this question depends upon a variety of factors. All of the following events will terminate a producer's certificate of appointment EXCEPT An applicant for a Counselor's license in Michigan must possess all of the following EXCEPT All of the following would be considered rebating except A corporation is the owner and beneficiary of the key person life policy. A Giving an applicant a $5 pen with the insurer's logo during the insurance application process When is the earliest a policy may go into effect? Ownership is the difference between these two companies. A 15 What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident? Upon policy reinstatement to pay all overdue premiums with interest before the policy is reinstated, The policyowner may assign a part of the policy (collateral assignment) or the entire policy (absolute assignment), Regarding the free-look provision, the insurance company. For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are, Amount of coverage is determined according to nondiscriminatory rules, individuals covered, under the policy receive a certificate of insurance, certificate holders may convert coverage to an individual policy without evidence of insurability. D Producer commission schedules. A C A legal advertising strategy All of the following concerning a non-contributory group plan is true: What is an IRS qualified retirement program for the self-employed? C Dividends from a mutual insurer. If a resident insurance producer moves from Tennessee to another state, he/she must file a change of address and provide certification from the new resident state within how many days of the change of legal resident? Which of the following documents must be provided to the policyowner or applicant during policy replacement? Beneficiaries do not have to have an insurable interest in the policyholder. What dividend option could she use? Updated 10/30/2021 2:46:29 PM. Requirements for life insurance illustrations: If a (consumer) requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? A Restriction of authority Which road apply for the agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? During replacement of life insurance, or replacing ensure musky which of the following? C Sharing commission with the insured Juan is the person employees go to when knowledge of a topic was needed. When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable statement of Good Health, A presentation of non-guaranteed elements of a policy, One-sided: only one party makes an enforceable promise. Regarding the free-look provision, the insurance company.. What happens when a children's rider is added to an insured's permanent life insurance policy? D Unfair Discrimination. An insured committed suicide 6 months after his life insurance policy was issued. Permitting individuals of the same class to be charged a different rate for the same insurance is the unfair trade practice of discrimination. When a beneficiary receives payments consisting of both principal and interest portions, which part are taxable as income? A producer in tensional he violated insurance statues. C Twisting. Employer contributions are tax deductible as ordinary business expense, funds accumulate on tax-deferred basis, employee and employer contributions are not counted as income to the employee for income tax purposes, They are tax free to terminally ill insured, Buy-sell agreements are normally funded with a life insurance policy, The plan must be communicated to all employees, the plan must be for the exclusive benefits of the employees and their beneficiaries, the plan must be permanent, written and legally binding. A Assigning different risk classifications to applicants based on gender identity An insured pays an annual premium to his insurer. What percentage of a company's employees must take part in a noncontributory group life plan? All of the following are true regarding rebates EXCEPT a) Rebates are only allowed if specifically stated in the policy. A 60 days What would be the face amount of the new term policy? Which is NOT required of an applicant for an insurance license in Michigan?