FINAL EXAM - IDAHO LIFE ONLY QUESTIONS AND
ANSWERS {GRADED A}
All of these are standard exclusions found in a life insurance policy EXCEPT -
✔✔disability
Level premium term life insurance policies - ✔✔have premiums that are averaged over
the policy period
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive? - ✔✔Endowment policy
Converting a group plan to permanent life insurance requires - ✔✔the conversion
being applied for within 31 days of termination
What is the primary feature of a viatical settlement - ✔✔Reduced death benefit
prepayment
Which of these is NOT a characteristic of the Accelerating Death Benefit option -
✔✔The benefit can be offered as a rider at a specific extra cost or may be at no cost
All of the following are examples of a Business Continuation Plan EXCEPT -
✔✔Deferred Compensation
Which of the following is an example of a producer's fiduciary duty? - ✔✔Recording
receipt and remittance of premiums due to the insurance company.
,Who is required to notify the producer in the event of appointment termination? -
✔✔insurer
Which contract element is insurable interest a component of? - ✔✔Legal purpose
Which of the following statements is CORRECT regarding an individual applying for life
or health insurance? - ✔✔The applicant's medical history may be analyzed and
reported.
An example of life insurance replacement is - ✔✔canceling a term life policy to buy a
whole life policy
When a decreasing term policy is purchased, it contains a decreasing death benefit and
- ✔✔level premiums
All of the following are considered to be nonforfeiture options available to the
policyowner EXCEPT - ✔✔Reduction of Premium
All of the following riders are increase the death benefit amount EXCEPT - ✔✔Wavier
of Premium
Who assumes the investment risk with a fixed annuity contract? - ✔✔the insurer
Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit
in payments of $10,000 per month until the principal and interest has been paid out.
Which option was chosen? - ✔✔fixed amount
The power given to an individual producer that is not specifically addressed in his/her
contract is considered what type of authority? - ✔✔implied
, Peter has a policy where 80% to 90% of the premium is invested in traditional fixed
income securities and the remainder of the premium is invested in contracts tied to a
stipulated stock index. What kind of policy is this? - ✔✔Equity index whole life
What is the nonforfeiture value of an annuity before annuitization? - ✔✔All premiums
paid, plus interest, minus any withdrawals and surrender charges
The typical free look period for life insurance policies sold in South Carolina is _ days. -
✔✔20
Within _____ days after policy delivery, an individual life insurance policy can be
returned for a 100% premium refund. - ✔✔20
In conjunction with an Idaho insurance license renewal, which one of the following is the
continuing education REQUIREMENT? - ✔✔24 hours every 2 years
In Idaho, a producer may have his/her license revoked for which of the following acts? -
✔✔Failure to pay state income tax
The Director is appointed by which of the following? - ✔✔The govenor
Which type of beneficiary should be named if the insured wants to give explicit
directions on how the policy proceeds should be paid? - ✔✔individual
Which of the following describes a person who is NOT acceptable by an insurer at
standard rates because of health history, occupation, or hobbies? - ✔✔Substandard
risk
What is the name of the provision which states that a copy of the application must be
attached to the policy when issued? - ✔✔Entire contract
A partial surrender is allowed in which of the following life policies? - ✔✔universal life
ANSWERS {GRADED A}
All of these are standard exclusions found in a life insurance policy EXCEPT -
✔✔disability
Level premium term life insurance policies - ✔✔have premiums that are averaged over
the policy period
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive? - ✔✔Endowment policy
Converting a group plan to permanent life insurance requires - ✔✔the conversion
being applied for within 31 days of termination
What is the primary feature of a viatical settlement - ✔✔Reduced death benefit
prepayment
Which of these is NOT a characteristic of the Accelerating Death Benefit option -
✔✔The benefit can be offered as a rider at a specific extra cost or may be at no cost
All of the following are examples of a Business Continuation Plan EXCEPT -
✔✔Deferred Compensation
Which of the following is an example of a producer's fiduciary duty? - ✔✔Recording
receipt and remittance of premiums due to the insurance company.
,Who is required to notify the producer in the event of appointment termination? -
✔✔insurer
Which contract element is insurable interest a component of? - ✔✔Legal purpose
Which of the following statements is CORRECT regarding an individual applying for life
or health insurance? - ✔✔The applicant's medical history may be analyzed and
reported.
An example of life insurance replacement is - ✔✔canceling a term life policy to buy a
whole life policy
When a decreasing term policy is purchased, it contains a decreasing death benefit and
- ✔✔level premiums
All of the following are considered to be nonforfeiture options available to the
policyowner EXCEPT - ✔✔Reduction of Premium
All of the following riders are increase the death benefit amount EXCEPT - ✔✔Wavier
of Premium
Who assumes the investment risk with a fixed annuity contract? - ✔✔the insurer
Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit
in payments of $10,000 per month until the principal and interest has been paid out.
Which option was chosen? - ✔✔fixed amount
The power given to an individual producer that is not specifically addressed in his/her
contract is considered what type of authority? - ✔✔implied
, Peter has a policy where 80% to 90% of the premium is invested in traditional fixed
income securities and the remainder of the premium is invested in contracts tied to a
stipulated stock index. What kind of policy is this? - ✔✔Equity index whole life
What is the nonforfeiture value of an annuity before annuitization? - ✔✔All premiums
paid, plus interest, minus any withdrawals and surrender charges
The typical free look period for life insurance policies sold in South Carolina is _ days. -
✔✔20
Within _____ days after policy delivery, an individual life insurance policy can be
returned for a 100% premium refund. - ✔✔20
In conjunction with an Idaho insurance license renewal, which one of the following is the
continuing education REQUIREMENT? - ✔✔24 hours every 2 years
In Idaho, a producer may have his/her license revoked for which of the following acts? -
✔✔Failure to pay state income tax
The Director is appointed by which of the following? - ✔✔The govenor
Which type of beneficiary should be named if the insured wants to give explicit
directions on how the policy proceeds should be paid? - ✔✔individual
Which of the following describes a person who is NOT acceptable by an insurer at
standard rates because of health history, occupation, or hobbies? - ✔✔Substandard
risk
What is the name of the provision which states that a copy of the application must be
attached to the policy when issued? - ✔✔Entire contract
A partial surrender is allowed in which of the following life policies? - ✔✔universal life
