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MI health life accid
this is from just the exams from module
| Question | Answer |
|---|---|
| An insurers' claim settlement practices are regulated by | State Insurance Department |
| A(n) _____ company is owned by shareholders | Stock |
| Ken is a producer that has obtained Consumer Information Reports under false pretense. Under FCRA what is the maximum penalty? | $5,000 |
| An insurers' ability to make unpredictable payouts to policy owners is called | Liquidity |
| Why are dividends from a mutual insurer not subject to taxation? | They are considered to be a form of premium |
| Under the McCarren-Ferguson Act, what is the minimum penalty? | $10,000 |
| An example of risk sharing would be | Doctors pooling their money to cover malpractice exposure |
| Which of the following is considered to be an event or condition that increases the probabilty of an insured's loss? | Hazard |
| People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called | Adverse Selection |
| Which type of clause describes " we have issued the policy in consideration of the representations in your application and payment of the first-term premium" | Consideration clause |
| Which of these features are held to exclusively with Variable Life | Policy owner has the right to select investment which will provide greatest return |
| a securities license is required for a life insurance to producer to sell | Variable life insurance |
| Which type of multiple protection policy pays on the death of the last person? | Survivorship life policy |
| Life insurance policy which contains cash values that vary according to its investment performance of stacks is | Variable whole life |
| Under a Modified Endowment contract, what are likely tax consequences? | Pre-death distribution will become taxable |
| Which type of insurance policy pays the face amount at the end of the period if the insurer is alive? | Endowment policy |
| All of these are valid options for an Adjustable Life Policy except | A nonforfeiture option can be used to increase death benefits. |
| 3 brothers who have a $100,000 "First to die" joint life insurance policy covering all 3 of their lives. If Mike dies first the proceeds | Will no longer provide insurance protection |
| Which of the following are n=the premium payments for a universal life policy not used for? | Separate account investment |
| Peter has a policy where 80-90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts ties to stipulated stocks index. What kind of policy? | Equity index whole life |
| When a decreasing term policy is purchased, it contains a decreasing death benefit and... | level premiums |
| Which type of life insurance offers flexible premiums, flexible death benefits and the choice of now the cash value will be invested? | Variable Universal policy |
| What is the corridor in relation to a universal life insurance policy? | The gap between the total death benefit and the policy's cash value |
| Index whole life insurance contains a security component that act as a... | Hedge against inflation |
| A modified endowment contract (MEC) is best described as | A life insurance contact which accumulates cash values hight than the IRS will allow |
| A partial surrender is allowed in which policy? | Universal Life policies |
| What type of life insurance are normally used for key employee indemnification? | term, whole, universal |
| Life insurance policy that contains a guarantee interest rate with the chance to earn a rate that is higher than the guaranteed rate? | Universal |
| What does "level" in Level term mean? | the face amount |
| A policy owner may exercise which of these dividends options that uses the dividend to pay all or part of the next premium due? | Reduction of premium dividends |
| Which of the following is NOT part of an insurance contract? | Certificate of Authority |
| A whole life insurance policy accumulates cash value that becomes | a policy loan value which the insured can borrow against |
| Pat owns a 20-year life policy with a paid-up dividends option. Which of the following statements are true? | The policy may be paid up early by using policy dividends |
| A provision that allows a policy holder to withdraw a policy's cash value interest free is a(n) | partial surrender |
| In order to activate the reinstatement clause of a relapsed life insurance policy, the insured MUST | provide evidence of insurability to the insurer |
| The suicide clause of a life insurance policy states that if an insured commits suicide with in a stated period from policy inception, the insurer will only be liable for | A return of premiums paid minus indebtedness and without interest. |
| The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) | Accident |
| Under a life insurance, what does insuring clause state? | Insurer pay death benefits upon approved death |
| A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n) | payor rider |
Created by:
braylengreen