LIFE PRODUCER 2025
GAURANTY EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Which of the following is NOT a duty of the existing insurer when replacement is
involved? - ANSWERS-Provide notice to the policy owner the right to return the
policy within 30 days of delivery and receive a full refund
QUESTION 2
An insurer decided to terminate a producer. The insurer just notified the
Commissioner of this decision. How long does the insurer have to mail a copy of
the notification to the producer? - ANSWERS-15 days
QUESTION 3
All of the expenses of an examination must be paid for by the insurer being
examined. To which fund are payments remitted - ANSWERS-Insurance
regulation fund
END OF
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, LIFE PRODUCER 2025
GAURANTY EXAM
QUESTION 4
Which of the following types of life insurance policies include a conversion of
termination provision? - ANSWERS-Whole life
QUESTION 5
An insurer must notify the consumer in writing that an investigative consumer
report has been requested, within how many days of the initial request? -
ANSWERS-3 days
QUESTION 6
An IRA owner who is 57 years old wants to make a withdrawal from her
traditional IRA. What penalty will be imposed - ANSWERS-10 percent (before 59
1/2 = 10 percent penalty)
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, LIFE PRODUCER 2025
GAURANTY EXAM
QUESTION 7
What does the application of contract of adhesion mean? - ANSWERS-Since the
insured does not participate in preparing the contract, any ambiguities would be
resolved in favor of the insured— The insurer prepares the policy and submits it to
the insured on a take-it-or-leave-it basis. Because the insured does not have input
in drafting the policy but simply adheres to the terms of the policy, the policy is
classified as a contract of adhesion. Any uncertain terms in the policy will be
interpreted in favor of the insured.
QUESTION 8
What is the purpose of key-person insurance? - ANSWERS-A To cover decreased
business revenues as a result of the death of a key employee
QUESTION 9
In a life insurance application, all of the following signatures will be required
EXCEPT.... - ANSWERS-home office underwriter
END OF
PAGE 3
GAURANTY EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Which of the following is NOT a duty of the existing insurer when replacement is
involved? - ANSWERS-Provide notice to the policy owner the right to return the
policy within 30 days of delivery and receive a full refund
QUESTION 2
An insurer decided to terminate a producer. The insurer just notified the
Commissioner of this decision. How long does the insurer have to mail a copy of
the notification to the producer? - ANSWERS-15 days
QUESTION 3
All of the expenses of an examination must be paid for by the insurer being
examined. To which fund are payments remitted - ANSWERS-Insurance
regulation fund
END OF
PAGE 1
, LIFE PRODUCER 2025
GAURANTY EXAM
QUESTION 4
Which of the following types of life insurance policies include a conversion of
termination provision? - ANSWERS-Whole life
QUESTION 5
An insurer must notify the consumer in writing that an investigative consumer
report has been requested, within how many days of the initial request? -
ANSWERS-3 days
QUESTION 6
An IRA owner who is 57 years old wants to make a withdrawal from her
traditional IRA. What penalty will be imposed - ANSWERS-10 percent (before 59
1/2 = 10 percent penalty)
END OF
PAGE 2
, LIFE PRODUCER 2025
GAURANTY EXAM
QUESTION 7
What does the application of contract of adhesion mean? - ANSWERS-Since the
insured does not participate in preparing the contract, any ambiguities would be
resolved in favor of the insured— The insurer prepares the policy and submits it to
the insured on a take-it-or-leave-it basis. Because the insured does not have input
in drafting the policy but simply adheres to the terms of the policy, the policy is
classified as a contract of adhesion. Any uncertain terms in the policy will be
interpreted in favor of the insured.
QUESTION 8
What is the purpose of key-person insurance? - ANSWERS-A To cover decreased
business revenues as a result of the death of a key employee
QUESTION 9
In a life insurance application, all of the following signatures will be required
EXCEPT.... - ANSWERS-home office underwriter
END OF
PAGE 3
