12-GA-62 Georgia Variable Products Exam Prep 2026/2027 | Verified Questions & Answers | Pass Guaranteed

12-GA-62 Georgia Variable Products Exam Prep 2026/2027 | Verified Questions & Answers | Pass Guaranteed Q: All of the following are incorrect about variable annuities EXCEPT Answer The amount of the monthly income payout is not guaranteed. 3 multiple choice options Q: Mr and Mrs Williams have purchased a joint and two-thirds survivor immediate variable annuity. Upon the death of the first of them, the survivor will receive Answer A monthly payment for life that is equal to two-thirds of what the annuity units would have provided prior to the death of the first annuitant 3 multiple choice options Q: All of the following are disclosed prior to or concurrent with the application for variable life insurance policy EXCEPT Answer A statement of the net investment returns of the separate account for each of the last 5 years for which the separate account was in existence 3 multiple choice options Q: When applying to purchase a variable annuity, all of the following disclosures are required EXCEPT Answer the tax status of the payout 3 multiple choice options Q: The application for a variable life insurance policy must contain all of the following EXCEPt Answer None of these are exceptions 3 multiple choice options Q: In a universal life policy, the premium "suggested" by the issuer is called Answer a target premium 3 multiple choice options Q: A variable annuity contract owner paid a $300 premium on a date when the accumulation unit price was $6.60. How many units were acquired? Answer 45.45 3 multiple choice options Q: If a variable policy owner stops paying premiums and gives no notice to the insurer, which of the following is likely to occur? Answer The cash value in the policy will be used to purchase extended term insurance 3 multiple choice options Q: All of the following sub accounts share a similar investment objective EXCEPT Answer Money Market Account 3 multiple choice options Q: Bob just bought a $50,000 variable life policy. Which of the following is NOT true. Answer At his death, his beneficiaries may receive less than $50,000 in proceeds 3 multiple choice options Q: Compared to traditional life and annuity contracts, variable products have more? Answer Compliance issues 3 multiple choice options Q: The net investment return represents Answer the amount credited to the policyholder 3 multiple choice options Q: All of the following would be considered advertising EXCEPT Answer Material only used for internal use 3 multiple choice options Q: Which of the following terms would be acceptable to describe the type of life insurance purchased by those who are hoping to take advantage of higher interest rates? Answer Universal Life Plan 3 multiple choice options Q: In order for a domestic insurer to transfer cash or securities out of the separate account, permission would be needed from Answer The State Insurance Commissioner 3 multiple choice options Q: If a client chooses a variable life insurance plan with a guaranteed minimum death benefit Answer As the cash value increases, the amount at risk decreases 3 multiple choice options Q: A client purchases a flexible premium variable life insurance policy, which of the following is TRUE regarding the death benefit? Answer ll of the other options are true 3 multiple choice options Q: If an agent offered a prospect an inducement, other than something stated in the policy, the agent would be considered to be Answer In violation of rebating rule 3 multiple choice options Q: A variable policy's death benefit will increase if the investment return in the separate account is Answer greater than the AIR 3 multiple choice options Q: A life policy where the death benefit may be less than the original face is Answer A variable universal life policy 3 multiple choice options Q: All these may be deducted from each variable universal premium payment EXCEPT Answer Issue charges 3 multiple choice options Q: A separate account's investment policy Answer must be stated in the prospectus 3 multiple choice options Q: The cash value of a flexible premium variable life policy Answer may rise or fall on the investment experience of the separate account 3 multiple choice options All of the following are true about separate accounts EXCEPT Answer they are guaranteed by the insurer 3 multiple choice options All of the following are correct regarding a variable life insurance policy EXCEPT Answer negative cash value that is not remedied within 31 days will cause the policy to lapse 3 multiple choice options In order to comply with the contract benefit and design requirements of the law, a variable annuity contract must comply with which of the following? Answer any contract providing benefits payable in variable amounts must contain an explanation of how the insurer determines those amounts 3 multiple choice options Which of the following statements regarding the cash value of a variable life insurance policy is CORRECT? Answer it will vary reflecting the investment results of the separate account 3 multiple choice options the holder of a variable life insurance policy must be provided with Answer all of the above 3 multiple choice options One of the distinguishing characteristics of variable life is Answer Cash values are dependent upon the performance of a separate account 3 multiple choice options Which of the following statements regarding variable annuities is CORRECT Answer No one may serve in an executive capacity for the investment adviser who has been convicted of a felony within the past 10 years 3 multiple choice options If you sell a variable insurance product in a state that collects a premium tax, that tax is deducted from Answer the premium 3 multiple choice options An annuity containing both fixed and variable elements is known as Answer a combination annuity 3 multiple choice options The voting rights of a variable annuity contract holder are shown in Answer the prospectus 3 multiple choice options Which of the following is NOT a characteristic of an immediate annuity? Answer Periodic payments 3 multiple choice options during the annuity period, the annuitant's payments are Answer taxed as income for the amount not attributable to cost 3 multiple choice options An annuity holder, age 55, makes a partial withdrawal of $25,000 from a deferred annuity with the current value of $35,000. She has made payments totaling $15,000 over the years. Which of the following statements is true? Answer $20,000 is taxable and a 10% penalty is also due 3 multiple choice options An individual who has terminated annuity premiums would normally be allowed to Answer All of the above 3 multiple choice options The most important reason to purchase a variable life insurance policy is for the death benefit. the cost of this protection is an obligation of? Answer the separate account 3 multiple choice options Describe the relationship between annuity units and their value during the payout period. Answer the number of units remain constant; the unit value varies 3 multiple choice options The variable life insurance policy that you offer is similar to the New York Life Plan. This means that the death benefit is adjusted Answer Monthly 3 multiple choice options When looking at the face page of a variable life insurance policy, you would expect to see all of the following EXCEPT Answer a description of the separate account sub accounts available 3 multiple choice options Which of the following would not be considered replacement of a policy Answer converting a term policy to whole life 3 multiple choice options Taxes on the death benefit for a beneficiary? Answer No tax is due 3 multiple choice options Accumulation unit values in separate accounts must be calculated Answer each business day except for legal holidays 3 multiple choice options All of the following are characteristics of annuities EXCEPT Answer early withdrawals carry no penalties 3 multiple choice options Variable annuities were developed primarily to Answer counter the corrosive effects of inflation on retirement income 3 multiple choice options If an annuitant dies before the annuitization date, which of the following could be used by the insurer to determine the amount payable to the beneficiary? Answer both 3 multiple choice options Unlike mutual funds or other financial products, variable annuities include mortality and expense charges 3 multiple choice options Monthly payments into a deferred variable annuity purchase accumulation units 3 multiple choice options Variable Life insurance policies contain a refund policy quite different from ordinary life policies. Which of the following accurately states the provisions of that policy? All 3 multiple choice options All of the following statements regarding scheduled premium variable life insurance are correct EXCEPT? better than anticipated results in the separate account could lead to a reduction in annual premium 3 multiple choice options There are a number of different day counts found in the regulations. Which of the following entries would generally involve the longest time period? grace period for a flexible premium variable life policy 3 multiple choice options An investment manager under contract to the account usually makes the investment decisions in the separate account. Final authority to approve or disapprove the contract rests with? the shareholders 3 multiple choice options The separate account backing up a variable life insurance policy is required to be independently audited once per year 3 multiple choice options The prospectus of a variable annuity would be permitted to show hypothetical performance projections of no hypothetical projections are permitted 3 multiple choice options All these distributions before 59 1/2 from deferred annuities avoid penalty EXCEPT? in the event of financial hardship 3 multiple choice options The most common restrictions to fund transfers in variable annuities prevents transfers involving the general account 3 multiple choice options In a variable annuity, the payments received by the annuitant are based on? the value of an annuity unit 3 multiple choice options When withdrawing funds from a deferred annuity, the policyholder face possible contract surrender charges 3 multiple choice options Section 1035 of the Internal Revenue Code allows the exchange of one deferred annuity for another without current taxes 3 multiple choice options A very long term investment horizon generally suggests which of these portfolio options? Aggressive growth account 3 multiple choice options The amount of compensation being withheld to buy an annuity under 403(b) plan is called the salary withholding amount 3 multiple choice options All of the following are annuity payout options EXCEPT whole life 3 multiple choice options All these allocations might be appropriate for a typical age 70 annuitant EXCEPT 40% in an aggressive growth sub account 3 multiple choice options If a qualified plan annuitant had no cost basis, payments at retirement would be entirely taxed as ordinary income 3 multiple choice options An example of a higher risk investment would be commodity Futures 3 multiple choice options GHI Insurance Company, licensed to offer variable contract in this state, wishes to use a new advertising piece. The prototype is filed with the commissioner on Monday, Aug 1st. If no response has been received, the piece may be used starting? after 30 business days 3 multiple choice options What is the term used to describe the action of an agent convincing a prospect to buy from him rather than from another agent, alleging the other agent's insufficient knowledge? Defamation 3 multiple choice options Three years ago, an agent sold a variable life insurance policy to Mr. Smith. He now convinces Mr. Smith to drop that policy and purchase a new variable life policy issued by a different insurer. This agent may be guilty of twisting 3 multiple choice options You client owns a scheduled premium variable life insurance policy that contains an assumed interest rate of 4%. If the separate account had a net return for the year of 8%, your client would expect that the premium necessary to fund the contract would remain the same 3 multiple choice options Dollar cost averaging allows variable contract owners to purchase units at a lower average cost than the average market price 3 multiple choice options In assessing variable insurance suitability, the first step is to determine the client's need for insurance protection 3 multiple choice options In general, a separate account is prohibited from owning more than what percentage of total outstanding voting securities of a single issuer? 10% 3 multiple choice options Separate account assets are valued at their market value on the date of valuation 3 multiple choice options Which of the following is NOT included in the definition of "affiliate of an insurer"? a policy owner 3 multiple choice options An agent is prohibited from sharing commissions with a policyowner 3 multiple choice options The net premium paid by the owner of a scheduled premium variable life insurance policy neither of the above 3 multiple choice options Your client's variable life policy states that interest rate on policy loans is fixed. That being the case, state law prohibits the rate from exceeding? 8% 3 multiple choice options The maximum rate of interest that may be charged on a defaulted policy for the purposes of reinstatement is 6% 3 multiple choice options Twenty-one months ago, your client purchases a single premium deferred variable annuity in the amount of $100,000. The client commits suicide and the current value is $94,781. What will the insurance company pay the beneficiaries? $100,000 3 multiple choice options Variable Life Insurance a permanent life insurance policy with a fixed premium, a guaranteed minimum death benefit, and cash values that are not guaranteed. Entire Contract The policy itself and an attached copy of the application. Insuring Clause States that the insurer promises to pay the death benefit to the named beneficiary upon receipt of proof of death of the insured as long as the policy was in force when received at the insurer's home office. Free Look 10 days for fixed premium whole life 45-day free look from the date the application was signed in addition to the 10-day free look for variable Consideration exchange of an act (paying the premium) for a promise to pay. Owner's Rights assigning the policy making changes to the policy changing the beneficiary taking policy loans cash surrendering the policy selecting non-forfeiture and settlement options, make changes to the separate account selections. Primary Beneficiary receives the death benefit when the insured predeceases the primary beneficiary. The contingent beneficiary receives the death benefit if the primary beneficiary predeceases the insured. Revocable has no rights and can be changed at any time by the owner. Changes The policyowner has the right to name and change the beneficiary while alive unless this right has been waived. A written notice must be filed with the insurer in order for the change to become effective as of the date the notice is signed, regardless of whether or not the insured is alive at the time the insurer receives the notice. Common Disaster The primary beneficiary must survive the insured by a specified period of time (usually between 30 to 90 days) or it is assumed the insured died last. This allows the benefit to be paid to the contingent beneficiary instead of the primary beneficiary's estate. Premium Payment must be paid in advance, in full, and on time. Modes Refers to the frequency of premium payment Grace Period For fixed premium policies, a grace period of one month (31 days) For flexible premium variable life policies, the grace period is 61 days from the mailing date of the notice from the insurer that the account values are insufficient to cover the internal costs to provide the coverage. Automatic Premium Loan The policyowner may elect in writing at the time of application to allow the insurer to pay a late premium payment by taking a loan from the cash value of a policy. This will only occur at the end of the grace period and is treated as a policy loan. Level Premium fixed (continuous or scheduled), the same amount throughout the duration of the policy. Flexible is any amount at any time (unscheduled) subject to insurer restrictions to minimum and maximum amounts. Reinstatement For traditional whole life, reinstatement due to policy lapse can occur within 3 years of the due date of the unpaid premium For flexible premium variable life (variable universal life), the amount to be paid varies by company, but it must be enough to bring the policy to current status and to sustain it for a couple of months after. Cash Surrender Values Are stated in the policy's table on an annual basis. Typically, the tables show the cash surrender values for the first 20 years of the policy, at age 62, and at age 65 can be requested if the insured wishes to no longer keep the policy in force. Reduced Paid-up Using the cash values to purchase a paid-up policy with a reduced face amount. Extended Term using the cash values to purchase a term policy with the same face amount for a specified number of years and days. Most variable life polices rarely if ever receive ... dividends and if so, they would most likely be paid in cash. Incontestability 2 years after the date of issuance or reinstatement, the policy becomes incontestable from material misstatements. Assignments A policyowner may assign all (absolute) or some (collateral) of the rights or values in the policy to a third party. The insurer is not responsible for the validity of the assignment, and it is only effective once filed at the insurer's home office. Settlement Options for Variable Life at least one must be offered on a fixed basis only Premiums for Fixed Variable Insurance level needs to be paid in full and on time Death Benefit for Fixed Premium Variable Insurance has a guaranteed minimum death benefit can be greater if there is a positive performance of the separate account Valuation of Death Benfit for Fixed Variable must occur at least once a year Fixed Variable Cash Values not guaranteed Cash Value valuation for Fixed Variable must be valued at least monthly Flexible premium variable life Premiums can be paid at any time for any amount with insurer limitations Premiums for Fixed Variable and Flexible Variable and deposited into the insures ---- Separate Account Variable universal life premiums can be skipped if... there are sufficient funds in the cash value (accumulation) account to cover the monthly mortality costs and other charges. Variable universal life Death Benefit not guaranteed duration and amount contingent on the performance of the separate account Flexible premium variable life death benefit death benefit is adjustable but will not fall below the minimum guaranteed which is usually 50, to 100 k What is the additional tax return for annuity withdraws before 59 and 1/2 10% Separate accounts the funding source for cash values in variable life and variable annuity products. These accounts are described as "separate" due to the fact they are not part of the general account or assets of the insurance company; they are held "separate" from the general assets of the insurer. The investment policy of the separate account cannot change without the consent of... the Insurance Commissioner. The policyowner has the right to exchange the fixed premium variable life insurance policy for a traditional whole life insurance policy where the benefits do not vary with the investment performance of the underlying investment accounts. This opportunity is only available if the investment funds change the investment adviser or if there is a material change in the investment policies or objectives of the investment fund. The Assumed Interest Rate (AIR) the rate of investment return which is required to be credited to a variable life insurance policy after deduction of charges for taxes, investment expenses, and mortality and expense guarantees. It is the net rate of investment return required to maintain the variable death benefit amount from the previous year. net investment return in the separate account is the interest, dividends, and capital gains received minus any and all expenses. Variable insurance policies may be exchanged for a non-variable life insurance policy at any time within.... 24 months after policy issuance The minimum death benefit in most variable annuities is... the premium paid or the account value, whichever is greater The cash values of a variable life insurance policy equals... the net premium minus fees, charges, and expenses, plus interest or dividends. Waiver of Premium This rider pays the scheduled premium starting 6 months from any total and permanent disability to the policyowner. The premiums are waived by the insurance company and any and all benefits of the policy remain in effect until such time as the policyowner recovers from their disability. Waiver of Monthly Deduction he insurance company will waive its right to collect the monthly deduction from the cash values and the policy's death benefit will remain in force in the case of the policyowner's disability. It is likely that the cash values of the policy will stop growing and may in fact drop to minimum levels. Waiver of Planned Premium This rider waives an amount equivalent to the planned (flexible) premium, whether it had actually been paid or not, in cases where the policyowner becomes disabled. This rider will not only keep the death benefit in place but will also fund the policy in such a way as to allow the cash values to grow. The cash values will also be accessible and can be used as needed by the policyowner. Accelerated Death Benefit provides early access to a death benefit if an insured becomes terminally ill. Variable Annuity Contracts long-term investments primarily designed to meet retirement or other long-range goals. Equity Indexed Annuities a fixed annuity that ties its interest credit to the performance of one or more securities indices, primarily stock indices, such as the S&P 500 or the Dow Jones Industrial Average. The goal of this is to try to achieve an interest credit far greater than what an insurance company would declare on an annual basis. Dodd-Frank Wall Street Reform and Consumer Protection Act this act settled years of controversy among regulators by determining that, since indexed annuities are primarily insurance products, they will be regulated by state insurance departments. Therefore, they are considered a fixed type of an annuity and not a security. Accumulation Unit analogous to a share of a mutual fund. Annuity Unit is used to determine the income benefit payment to an annuitant during the annuitization phase Annuitization when the annuity is converted from the pay-in (accumulation) phase, over to the payout (annuity) phase FINRA an independent, not-for-profit organization authorized by Congress to protect America's investors by making sure the securities industry operates fairly and honestly. Prospectus is the most important and complete source of information about a variable contract's inner workings, including fees and charges, goals, government requirements, and investment options.Without this the sale of a variable contract is prohibited Aggressive Growth Stock Fund These subaccounts focus mainly on unit-value appreciation with little or no concern for generating income. Global (International) Stock Funds invest in both U.S. and foreign stocks Specialty/Sector Funds these subaccounts primarily invest in the common stocks of a single industry or sector, such as natural resources (timber or mining), real estate (commercial buildings, hotels, or apartments), or utilities. They can be quite cyclical in their total returns. Index Funds unmanaged and typically is low cost. A portfolio of stocks or bonds is put together to replicate the performance of an index, which cannot be invested into directly. Indices are most often broadly diversified and are used as benchmarks to gauge investment manager's performance. They are considered a passive investment. Growth Funds These subaccounts generally seek capital appreciation, with current income (dividends) as a secondary concern. Growth and Income (Equity-Income) Funds These subaccounts attempt to produce both capital appreciation and current income from dividend paying companies, with priority given to both appreciation potential in the stocks purchased and the income from dividends. Balanced Funds also referred to as total return subaccounts, is to provide both growth and income from stocks and bonds. Subaccount management purchases include: Common stocks for potential unit-value growth and dividends Preferred stocks for dividends Bonds for their income-generating interest payments Convertible securities for flexibility of choice, capital appreciation, and either dividends or interest Overall this is a conservative type of investment Fund of Funds operated as an investment fund consisting of and investing primarily in other funds rather than in individual securities. Asset Allocation Portfolios designed to allow the money managers discretion to invest the portfolio assets among several asset classes within specified minimum and maximum ranges to try to achieve above average investment performance while reducing risk. High-Yield Bond Funds these portfolios invest in corporate bonds rated below BBB, which are non-investment grade. The bonds can go into default. Corporate Bonds Funds Investors seeking stability and lower risk might select subaccounts that hold U.S. corporate bonds, which are interest-paying debt instruments. Higher bond ratings signify a high degree of security against default. U.S. Government Bonds Funds These subaccounts invest in direct and indirect U.S. government obligations. Government bond subaccounts are comprised of one or more of the following: Treasury bills, notes, and bonds issued by the U.S. government Government National Mortgage Association bonds (GNMA or Ginnie Mae's), which are considered an indirect obligation of the government, but are still backed by the full faith and credit of the United States Federal National Mortgage Association bonds (FNMA or Fannie Mae's), which are not issued by the government, but are considered historically virtually identical in safety to GNMAs Money Market Funds a good parking place for funds that are not yet ready to be invested, an emergency fund, or to maintain a stable principal value while receiving a small return for the limited risk posed. They are not guaranteed. Fixed Account Funds with its rate guarantees, is a good choice for the ultra-conservative investor. Most variable policies offer a fixed account, invested primarily in conservative, high-grade corporate and government bonds. It is supported by the general account of the insurer. Suitability information Age Annual income Financial situation and needs, including the financial resources used for the funding of the annuity Financial experience Financial objectives Intended use of the annuity Financial time horizon Existing assets, including investment and life insurance holdings Liquidity needs Liquid net worth Risk tolerance Tax status Suitability Issues Placing the majority of a client's liquid assets into an annuity, especially where withdrawals are limited Requiring a surrender penalty period that is greater than the client's life expectancy according to the commissioner's mortality and life expectancy tables Highlighting contract benefits while omitting or minimizing negative aspects such as surrender charges, fees, annuitization requirements, forfeiture of interest, etc. Failing to match the product and its features to the client's stated needs and goals Having to fulfill several contract requirements to obtain interest credited to the annuity Issuing lengthy contracts of 10 years or more, and high surrender charges, especially with the elderly Eliminating contract guarantees, nursing home, and death benefits when an annuity is replaced with a new annuity Offering bonuses which require the contract owner to meet complicated contract provisions to retain the bonus, especially with dual-tiered interest crediting methods FINRA Rule 2821 applies to all securities licensed agent and brokers. It details their responsibilities in regard to client information gathering, records keeping, insurer oversight/audit responsibilities, and due diligence requirements for the sale of any variable annuity product. The same stringent requirements are extended to the suitability of sale of fixed or equity indexed products for those who are securities licensed. Diversification the process of investing in several different types of individual funds as a way to reduce investment market risk. It is based upon the fundamental aspect of "not putting all of one's eggs in one basket". Asset Allocation a process where an investor spreads the risk not just through diversification but by allotting investments in pre-selected percentages to various asset classes, such as stocks, bonds, and money markets. This would include both large and small companies, as well as domestic and international. Portfolio Rebalancing A portfolio should be re-examined from time to time to see if it needs to be put back into alignment or rebalanced. If the original allocation was 50/50 stocks/bonds based on the investor's risk tolerance and now the portfolio stands at 70/30 due to a bullish stock market, it may be time to rebalance back to 50/50. Dollar Cost Averaging (DCA) a technique typically used for buying mutual fund shares that can be used with equal effectiveness in variable contracts in which investments of the same dollar amounts are made on a regular basis over a period of time. Determination of Variable Benefits Any variable life insurance policy issued under the Georgia Code section must contain a statement of the essential features the company will follow in determining the variable benefits dollar amounts provided under the policy. Any policy, including a group contract, must state on its first page that the dollar amount will vary to reflect investment experience Transacting Variable Life Business in Georgia A company cannot issue or deliver a variable life policy in Georgia unless it has a current Certificate of Authority The Commissioner must be satisfied with the insurer's method of operations so as not to be rendered hazardous to the public or policyholders. The Commissioner may reject an application or revoke, suspend, or refuse to renew a variable contract license for: Anything that would bar the applicant or agent from being licensed to sell life insurance contracts in this state; or A violation of federal or state securities laws. False Information and Advertising Making an advertisement or statement about the insurance business or any person in the conduct of his/her insurance business that is untrue, deceptive, or misleading. Misrepresentation Making a false representation: Of a policy's terms, benefits, dividends, name, or title (these are misdemeanors) Of an insurer's financial condition or a life insurer's legal reserve system To induce a policyholder to lapse, forfeit, or surrender insurance (this misrepresentation is known as twisting) Defamation Making a statement that is false or maliciously critical or misrepresentative of an insurer's financial condition with intent to injure any person in the insurance business Boycott, Coercion, Intimidation Entering into any agreement to commit any act of boycott, coercion, or intimidation resulting in restraint of, or monopoly in, insurance business. Unfair Discrimination Charging different rates, having different policy terms/benefits for individuals of the same class and: Equal expectation of life (life insurance) Hazard (health insurance) Risk (property or casualty insurance) or basing rates on:Race, color, or national/ethnic origin; orSolely upon a property's age or geographic location, (unless the rate differential is based upon sound actuarial principles or is related to actual experience) Rebating/Illegal Inducement Knowingly permitting an agreement other than as expressed in the contract; offering anything of value not specified in the contract as an inducement to insurance, except a rebate approved by the Commissioner. Controlled Business Obtaining a license for the purpose of purchasing insurance on the producer's: Self or a spouse Relative by blood or marriage within the second degree of kinship Employer or the firm of which a person is a member Separate Account Investment Policy the investment policy of a separate account will not be changed without the Commissioner's approval. Any changes will be effective 60 days after the date it was filed with the Commissioner, unless the Commissioner disapproves the changes before the 60-day period ends. The application for a variable life insurance policy will contain: A prominent statement that the death benefit may be variable or fixed under specified conditions A prominent statement that cash values may increase or decrease in accordance with the experience of the separate account (subject to any specified minimum guarantees) Questions designed to determine the suitability of variable life insurance for the applicant Conservation Any attempt by the existing insurer to discourage a policyowner from the replacement of existing life insurance. Direct Response Insurer An insurer that does not use an agent in the sale of insurance. Existing Insurer The insurer whose policy is subject to being replaced. Existing Life Insurance A life insurance policy currently in force. Replacing Insurer The insurer that issues or proposes to issue a new policy or annuity that will replace existing life insurance. Contingent Beneficiary receives the death benefit if the primary beneficiary predeceases the insured. irrevocable beneficiary no change can be made without the written consent of the beneficiary. Flexible Premium any amount at any time (unscheduled) subject to insurer restrictions to minimum and maximum amounts. The following will be taken into consideration by the Commissioner: The history and financial condition of the company The experience, character, responsibility, and fitness of the officers and directors of the company The law and regulation under which the company is authorized in its state of domicile to issue such policies