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P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when - Answer- P receives the policy and pays the premium A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be carrer? - Answer- 20-Pay Life accumulates cash value faster than Straight Life How ...

Which of these characteristics is consistent with a Straight Life Policy? - Answer- Premiums are payable for as long as there is insurance coverage in force Which of the following are Equity Indexed annuities typically invested in? - Answer- S&P 500 Which of the following does Social Security NOT provide benefits for? - Answer- Dismemberment An example of false advertising would be - Answer- An insurer exaggerating its dividends in a magazine advertisement A 45 year-old woman won...

1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? - Answer- A- $50,000 Whole Life policy B- $50,000 Level Term policy for 20 years C- $50,000 20 Pay Life policy D- $50,000 Decreasing Term policy for 20 years 2) A 45-year old customer who is seeking to supplement his retirement income at age 65 would n...

Who is considered a field underwriter? - Answer- An agent When must insurable interest exist in life insurance? - Answer- Application or issue date If no receipt is issued at the time of application, a statement of good health is usually required at the time of? - Answer- Policy delivery The Medical Information Bureau is?(MIB) - Answer- a source of medical information to alert insurers to adverse medical history A substandard risk compared to a standard risk would pay? - Answer- a ...

Insurance (General concept) - Answer- - transfers the risk of loss from an individual to an insurer - based on the principle of indemnity - based on the principle of risk (risk pooling) insurable interest (General Concept) - Answer- - must exist at the time of the application - insuring one's own life, family member, or a business partner Solicitation and sales presentation - Answer- - illustration- presentation of nonguaranteed elements - buyer's guide is generic information abou...

An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called An installment Refund annuity A Straight Life annuity A Cash Refund annuity A Joint Life annuity - Answer- An installment Refund annuity One becomes eligible for Social Security disability benefits after having been disabled for 3 months 5 month...

Why does an insurer have a 2-year suicide clause? a) because the commissioner of insurance requires it. b) suicide is never paid for in life insurance. c)to prevent payment of an immediate claim for a person contemplating suicide. d) to help an insurer be more profitable. - Answer- Answer: C To prevent payment of an immediate claim for a person contemplating suicide. Which of these could the owner of a life insurance policy do when there is a collateral assignment? a) determine how the...

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - Answer- Upon completion of the application Who elects the governing body of a mutual insurance company? - Answer- policyholders An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - Answer- Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing the...

If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely - Answer- pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the: - Answer- Waiver of Premium P and Q are married and have thr...

What type of reinsurance contract involves two companies automatically sharing their risk exposure? - Answer- Treaty The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called - Answer- reserves When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - Answer- insurable interest Statements made on an insurance application that a...