LIFE,HEALTH AND ANUITY (BUSINESS
INSURANCE) EXAM 3 QUESTIONS AND
ACCURATE SOLUTIONS RATED AND
VERIFIED A FLORIDA STATE UNIVERSITY.
Insurance advertisements may not refer to premiums as:
Select one:
a. Remittances
b. Deposits
c. Payments
d. Amounts
Insurance advertisements may not refer to premiums as deposits.
The correct answer is: Deposits
What is the biggest source of information used in underwriting?
Select one:
a. HIPAA
b. MIB
c. Representations
d. Application
The application is the biggest source of information used in underwriting.
The correct answer is: Application
The fact that an insurance agent cannot commingle their insurance funds with
their personal funds is referred to in legal terms as:
Select one:
a. Separation of assets
b. Monetary Reconciliation
,c. Legal liability
d. Fiduciary responsibility
All premiums belonging to insurers or others received by an agent are trust funds
received by the licensee in a fiduciary capacity. An agent must keep the funds
belonging to each insurer for which an agent is not appointed in a separate account
so as to allow the department or office to properly audit such funds. Agents must
not use such funds for their own purposes.
The correct answer is: Fiduciary responsibility
What is the advantage of a Waiver of Premium provision in a life policy?
Select one:
a. Reduce an insured's premiums.
b. Increase an insured's coverage.
c. Waive an insured's premiums if he/she becomes disabled.
d. All of the above.
If an insured becomes totally disabled before a certain age, this provision would
waive the premiums.
The correct answer is: Waive an insured's premiums if he/she becomes disabled.
If the cash values of an annuity are invested in securities, it is a:
Select one:
a. Fixed annuity
b. Immediate annuity
c. Variable annuity
d. Deferred annuity
Your answer is correct
Variable annuity
The correct answer is: Variable annuity
What are nonprofit entities that provide life insurance as a benefit for their
members and beneficiaries?
,Select one:
a. Domestic insurers
b. Mutual insurers
c. Fraternal organizations
d. Exclusive organizations
Fraternal organizations are nonprofit entities that provide life insurance as a
benefit for their members and beneficiaries.
The correct answer is: Fraternal organizations
Jeff has limited financial resources, but finds himself in a position where he
needs a good deal of protection. A __________would probably best suit his
needs at this time.
Select one:
a. Adjustable life
b. AD&D
c. Universal life
d. Term policy
A term policy would give him the most protection for the least money up front.
The correct answer is: Term policy
Where replacement is involved, what must the replacing insurance company
provide to the applicant of a policy that does not contain an unconditional
refund provision prior to accepting the applicant's initial premium?
Select one:
a. Buyer's Guide only
b. Policy Summary only
c. Buyer's Guide and Policy Summary
d. Buyer's Guide, Policy Summary, and benefits list
Where replacement is involved, the replacing insurance company must provide a
Buyer's Guide and a Policy Summary prior to accepting the applicant's initial
premium if the policy does not contain an unconditional refund provision.
, The correct answer is: Buyer's Guide and Policy Summary
Which rider on Diane's life policy will help her out when she is confined to a
nursing home with a terminal illness?
Select one:
a. Accidental death rider
b. Consideration
c. Accelerated benefit rider
d. Return of premium rider
The accelerated benefit allows Diane to receive a portion of the death benefit of
her policy, prior to her death. The insured must have been diagnosed as terminally
ill in order for this benefit to be paid.
The correct answer is: Accelerated benefit rider
Becky is a 31 years old and knows she needs to start a retirement plan. She
currently works in a bakery and is worried about how inflation would affect her
retirement plan. Which annuity would be a good fit for her needs?
Select one:
a. Flexible premium deferred annuity
b. Deferred annuity - single premium
c. Immediate annuity - single premium
d. Level premium fixed annuity
The flexible premium deferred annuity would probably be the best fit for her
needs.
The correct answer is: Flexible premium deferred annuity
The Beauty Shop Cosmetic Company purchases a life insurance policy on Anna,
the company's leading salesperson. Which business continuation plan does this
company have?
Select one:
a. Section 303 plan
INSURANCE) EXAM 3 QUESTIONS AND
ACCURATE SOLUTIONS RATED AND
VERIFIED A FLORIDA STATE UNIVERSITY.
Insurance advertisements may not refer to premiums as:
Select one:
a. Remittances
b. Deposits
c. Payments
d. Amounts
Insurance advertisements may not refer to premiums as deposits.
The correct answer is: Deposits
What is the biggest source of information used in underwriting?
Select one:
a. HIPAA
b. MIB
c. Representations
d. Application
The application is the biggest source of information used in underwriting.
The correct answer is: Application
The fact that an insurance agent cannot commingle their insurance funds with
their personal funds is referred to in legal terms as:
Select one:
a. Separation of assets
b. Monetary Reconciliation
,c. Legal liability
d. Fiduciary responsibility
All premiums belonging to insurers or others received by an agent are trust funds
received by the licensee in a fiduciary capacity. An agent must keep the funds
belonging to each insurer for which an agent is not appointed in a separate account
so as to allow the department or office to properly audit such funds. Agents must
not use such funds for their own purposes.
The correct answer is: Fiduciary responsibility
What is the advantage of a Waiver of Premium provision in a life policy?
Select one:
a. Reduce an insured's premiums.
b. Increase an insured's coverage.
c. Waive an insured's premiums if he/she becomes disabled.
d. All of the above.
If an insured becomes totally disabled before a certain age, this provision would
waive the premiums.
The correct answer is: Waive an insured's premiums if he/she becomes disabled.
If the cash values of an annuity are invested in securities, it is a:
Select one:
a. Fixed annuity
b. Immediate annuity
c. Variable annuity
d. Deferred annuity
Your answer is correct
Variable annuity
The correct answer is: Variable annuity
What are nonprofit entities that provide life insurance as a benefit for their
members and beneficiaries?
,Select one:
a. Domestic insurers
b. Mutual insurers
c. Fraternal organizations
d. Exclusive organizations
Fraternal organizations are nonprofit entities that provide life insurance as a
benefit for their members and beneficiaries.
The correct answer is: Fraternal organizations
Jeff has limited financial resources, but finds himself in a position where he
needs a good deal of protection. A __________would probably best suit his
needs at this time.
Select one:
a. Adjustable life
b. AD&D
c. Universal life
d. Term policy
A term policy would give him the most protection for the least money up front.
The correct answer is: Term policy
Where replacement is involved, what must the replacing insurance company
provide to the applicant of a policy that does not contain an unconditional
refund provision prior to accepting the applicant's initial premium?
Select one:
a. Buyer's Guide only
b. Policy Summary only
c. Buyer's Guide and Policy Summary
d. Buyer's Guide, Policy Summary, and benefits list
Where replacement is involved, the replacing insurance company must provide a
Buyer's Guide and a Policy Summary prior to accepting the applicant's initial
premium if the policy does not contain an unconditional refund provision.
, The correct answer is: Buyer's Guide and Policy Summary
Which rider on Diane's life policy will help her out when she is confined to a
nursing home with a terminal illness?
Select one:
a. Accidental death rider
b. Consideration
c. Accelerated benefit rider
d. Return of premium rider
The accelerated benefit allows Diane to receive a portion of the death benefit of
her policy, prior to her death. The insured must have been diagnosed as terminally
ill in order for this benefit to be paid.
The correct answer is: Accelerated benefit rider
Becky is a 31 years old and knows she needs to start a retirement plan. She
currently works in a bakery and is worried about how inflation would affect her
retirement plan. Which annuity would be a good fit for her needs?
Select one:
a. Flexible premium deferred annuity
b. Deferred annuity - single premium
c. Immediate annuity - single premium
d. Level premium fixed annuity
The flexible premium deferred annuity would probably be the best fit for her
needs.
The correct answer is: Flexible premium deferred annuity
The Beauty Shop Cosmetic Company purchases a life insurance policy on Anna,
the company's leading salesperson. Which business continuation plan does this
company have?
Select one:
a. Section 303 plan
