Insurance Exam
which of the following documents must be provided to the Policyowner or applicant during policy
replacement?
A) notice regarding replacement
B) disclosure authorization form
C) buyers guide and policy summary
D) policy illustration - (correct Answer) - notice regarding replacement
a group insurance policy issued to a nonprofit industrial association must cover at least how many
employees at the dat of issue
A) 100
B) 1000
C) 10
D) 50 - (correct Answer) - 1000
what is the purpose of life insurance solicitation regulations
A) to help producers understand different policies
B) to help consumers compare life insurance products in regard to their relative cost
C) to provide information regarding replacement of policies
D) to name producers required and prohibited actions for product advertising - (correct Answer) - to help
consumers compare life insurance products in regard to their relative cost
During replacement of life insurance, a replacing insurer must do which of the following?
A) designate a new producer for a replaced policy
B) send a copy of the notice regarding replacement to the department of insurance
C) obtain a list of all life insurance policies that will be replaced
D) guarantee a replacement for each existing policy - (correct Answer) - obtain a list of all life insurance
policies that will be replaced
which of the following is true if an insurer bases a life insurance policy loan interest rate on a published
monthly average
A) the policy loan must not exceed one half the cash surrender value, or the average cash surrender
value published in the previous year
, B) the average must not exceed the monthly average of the month ending 2 months before the date the
rate is determined
C) the average must be no less than the monthly average of the month of loan issuance
D) the published monthly average must appear in a recognized financial index - (correct Answer) - the
average must not exceed the monthly average of the month ending 2 months before the date the rate is
determined
suitability is based on all of the following EXCEPT
A) the clients age
B) the clients insurance objectives
C) the clients financial situation
D) the clients initial premium - (correct Answer) - the clients initial premium
conversion privilege in group life insurance policies must be exercised within what period of time after
termination of group coverage
A) 10 days
B) 31 days
C) 90 days
D) 6 months - (correct Answer) - 31 days
who has the right to assign the benefits and/or all other incidents of ownership under a group life
insurance policy
A) the insurer
B) the policyholder
C) the person insured
D) the beneficiary - (correct Answer) - the person insured
which of the following statements would best describe the different between vatical settlements and
accelerated death benefits
A) viaticals are determined by morbidity, but accelerated death benefits use mortality tables
B) vatical use morality tables, but accelerated death benefits are determined by morbidity
C) vjiaticals are funded by a third party, accelerated death benefits are provided by the insurer that
issued the original policy
D) viaticals are provided by the insurer that issued the original policy, and accelerated death benefits are
funded by a third party - (correct Answer) - viaticals are funded by a third party and accelerated death
which of the following documents must be provided to the Policyowner or applicant during policy
replacement?
A) notice regarding replacement
B) disclosure authorization form
C) buyers guide and policy summary
D) policy illustration - (correct Answer) - notice regarding replacement
a group insurance policy issued to a nonprofit industrial association must cover at least how many
employees at the dat of issue
A) 100
B) 1000
C) 10
D) 50 - (correct Answer) - 1000
what is the purpose of life insurance solicitation regulations
A) to help producers understand different policies
B) to help consumers compare life insurance products in regard to their relative cost
C) to provide information regarding replacement of policies
D) to name producers required and prohibited actions for product advertising - (correct Answer) - to help
consumers compare life insurance products in regard to their relative cost
During replacement of life insurance, a replacing insurer must do which of the following?
A) designate a new producer for a replaced policy
B) send a copy of the notice regarding replacement to the department of insurance
C) obtain a list of all life insurance policies that will be replaced
D) guarantee a replacement for each existing policy - (correct Answer) - obtain a list of all life insurance
policies that will be replaced
which of the following is true if an insurer bases a life insurance policy loan interest rate on a published
monthly average
A) the policy loan must not exceed one half the cash surrender value, or the average cash surrender
value published in the previous year
, B) the average must not exceed the monthly average of the month ending 2 months before the date the
rate is determined
C) the average must be no less than the monthly average of the month of loan issuance
D) the published monthly average must appear in a recognized financial index - (correct Answer) - the
average must not exceed the monthly average of the month ending 2 months before the date the rate is
determined
suitability is based on all of the following EXCEPT
A) the clients age
B) the clients insurance objectives
C) the clients financial situation
D) the clients initial premium - (correct Answer) - the clients initial premium
conversion privilege in group life insurance policies must be exercised within what period of time after
termination of group coverage
A) 10 days
B) 31 days
C) 90 days
D) 6 months - (correct Answer) - 31 days
who has the right to assign the benefits and/or all other incidents of ownership under a group life
insurance policy
A) the insurer
B) the policyholder
C) the person insured
D) the beneficiary - (correct Answer) - the person insured
which of the following statements would best describe the different between vatical settlements and
accelerated death benefits
A) viaticals are determined by morbidity, but accelerated death benefits use mortality tables
B) vatical use morality tables, but accelerated death benefits are determined by morbidity
C) vjiaticals are funded by a third party, accelerated death benefits are provided by the insurer that
issued the original policy
D) viaticals are provided by the insurer that issued the original policy, and accelerated death benefits are
funded by a third party - (correct Answer) - viaticals are funded by a third party and accelerated death
