Insurance Test, Part 2

A person who acts, offers to act, or assumes to act in capacity where a license is REQUIRED without having a valid license, is guilty of a

Misdemeanor

Three of four types of benefits given by the Social Security system are listed below. What is the fourth?

Retirement

Lawrence is a “fully insured” worker. If he were to die leaving his 40 year old spouse and 12 year old son, would his surviving spouse be entitled to receive monthly benefits for the remainder of her life?

No

By definition, the U.S. government is not an insurer

False

In financial planning, the human life value concept is based on an individuals

Income

Which government regulation prevents retirement plans from favoring highly compensated employees?

Nondiscrimination

The components of determining policy premiums include all of the following EXCEPT

Dividends

In insurance terminology, “indemnity” means

Make whole

Which of the following information is not required to be communicated in a Life insurance contract?

Personal judgment

What would a person be guilty of who refuses to deliver any books, records, or assets to the commissioner once a seizure order has been executed?

A misdemeanor

The acts that are reasonably necessary to the duties expressly authorized would be covered by an agent’s

Implied authority

A situation in which there is a possibility of loss or gain is a

Speculative risk

Which of the following would an agent be guilty of for misrepresenting the amount of dividends a policy will pay?

A misdemeanor

Which report of an insurance applicant’s creditworthiness and personal characteristics may influence eligibility for life and health insurance?

Consumer report

Which type of insurance guarantees the right to renew the policy each year regardless of health but at an increased premium

Renewable term

A policy owner has the right to change all of the following EXCEPT the

Dividend schedule

Which policy is a savings instrument designed to first accumulate funds and then systematically to liquidate the funds?

Deferred annuity

Which policy provision protects the insurer against possible adverse selection?

Suicide clause

How long is the free cancellation period for life insurance policies offered to individuals 60 and older?

30 days

A 10 year certain annuity with an installment refund is purchased. The annuitant dies after receiving monthly payments for 5 years. How many remaining payments will the insurer make?

60 payments