State test study guide

What law do all insurers and their producers need to comply with in regards to information being obtained from a third party concerning the applicant

Fair Credit Reporting Act

The structure of a credit life insurance policy does NOT allow for.

Conversion privileges

Which of the following statements best describes a single Premium cash value policy

It requires only one payment to make the policy paid up

Contributions made to a Roth IRA

Not tax deductible

Which activity does not require an insurance agents license?

Underwriting

Which of the following is a life insurance contract written on the life of an individual

Survivorship policy

As a form of level premium permanent insurance, ordinary life insurance accumulates a reserve that eventually

equals the face amount of the policy

Which is the name of the policy that combines a universal life policy with investment choices

Variable universal life policy

An applicant would be charged a higher premium for life insurance policy if they were

older

An agent qualified to sell variable products in Ohio must report each of the following to the superintendent of Insurance except

The sharing of commissions with another agent

The Premium mode defies the

Frequency of the premium payment

A policy owner may choose to have his/her life insurance policy dividends do all of the following except

accumulate without interest

An agent's actions or deeds demonstrate what kind of authority

Apparent

In Ohio, an agent must be appointed by the insure within how many days from the date the agency contract is executed with the first insurance application is submitted

15

The type of insurance used to indemnify a firm for the loss of earnings brought about by the death or disability of an officer or other significant employee is

Key person

To avoid tax consequences a rollover from a traditional IRA to another IRA must be done within

60 days

In which of the following fixed annuity features is the surrender value tied to interest rate

Market value adjustments

Risks are generally not enjoyable if

The loss is expected

What is an insurers liability when it is discovered after an insured dies that the insured age on the policy was misstated

The insurer must pay a prorated amount of the policy based on the amount of the insurance the insured premiums would have been if purchased at the correct age

An exposure is a condition or situation that presents the possibility of

Loss

After the hearing, if the insurance superintendent has determined a licensee has committed a violation of Ohio insurance laws what can the insurance superintendent do?

Impose an administrative penalty

Which of the following dividend options would an insurer invest the policy owners money, and add interest earnings to the initial amount of the dividends such as earnings accrue

Accumulation that interest option

The grace period is a period of time

after the premium is due but while the policy remains in force.

Which of the following is a provision and an interest sensitive life policy, which allows the owner to withdraw the policies, cash value interest free

Partial surrender

Without written consent, a policy owner cannot change the beneficiary if he was named

An irrevocable beneficiary

The only beneficiary named in a life insurance policy died before the insured the policy owner did not name a new beneficiary when a claim is filed the death benefit would be paid to

Insured estate

Which writer would allow additional insurance to be purchased at specified dates or event events without additional underwriting

Guaranteed insurability

The primary reason for purchasing life insurance is to provide

Death benefits

An individual buys an annuity that will pay her spouse and income for 20 years. If the spouse dies within that time, the income will be paid to their children for the remainder of the period. What kind of annuity did the insured buy?

Temporary annuity certain

Each of the following are characteristics of a fixed annuity contract, except

funds are invested in a separate account

Insurance agents have duties and responsibilities to the insured and the insure which of the following responsibilities does an agent owe the insured during the policy year

Help the insured file and follow up on claim

When a policy owner request a partial surrender from her universal life policy she is requesting which of the following

cash withdrawal

A single premium immediate annuity is most often used for

retirement income

What annuity payout option has no additional payouts, regardless of when the annuitant dies

Life only

Which of the following retirement plans will allow for a nonworking spouse to set up a separate account and make contributions based on the working spouses income

IRA

They modified endowment contract, receives different tax treatment on pre-death distributions than other life insurance policies because the modified endowment policy

Tends to be an investment vehicle

Under an executive bonus plan premiums paid by the employer are

Reported as taxable income to the employee

An immediate annuity begins making payments after

first premium has been paid

All of the following writers can increase the death benefit amount except

Accidental death rider

An insured owns a whole life insurance policy on himself. He would also like coverage for his minor son one way the insured can accomplish. This goal is to purchase.

Famitp maintenance rider

Competency of an individual to enter into an insurance contract is determined based on

legal age

Betty has a $200,000 whole life policy with a 50,000 cash value. She wishes to borrow 30,000 for the purchase of a new van which of the following is true in this situation.

There is no requirement that she pays back the loan

A policy owner may not pay premiums with which frequency

Biweekly

To receive proceeds from a death benefit a minor

must have an appointed guardian

After a request has been received for verification of coverage from a viatcal settlement provider and insurance company authorized to do business shall respond within

45 days

Making a statement that is false and maliciously critical of the financial condition of an insurer is known as

Misrepresentation

Who surrender an annuity during the accumulation period

The policy owner

All of the following statements apply to the surrender of an annuity contract

The right to surrender is available on immediate and deferred annuities

An insured owns a whole life policy that has accumulated cash value, which of the following statements is true about the policies, cash value

The growth of the policies cash value is not subject to income tax while the policy is enforce

When a beneficiary inherit, a traditional IRA, which is true about the taxation when the money is withdrawn, the beneficiary pays

Income tax

Under Ohio insurance laws, what might their licensee do prior to operating under an assumed business name?

Notify the superintendent

Which of the following policies allows the policy owner to change two policy features

Adjustable life

Under the children's term, writer what occurs when a child reaches the specified age

Muscle show evidence of insurability to remain covered

Which of the following describes the process selection classification, and rating of risks

Underwriting

It is unlawful for a person to provide an advertisement which

Uses a policy title to inaccurately describe a coverage

While texting and driving and insured loses control of the vehicle and hit a tree. The resulting collision is.

A peril

Loans may generally be obtained against the cash value of a personal life insurance policy and policy loan proceeds

Are not treated as taxable income

Loans may generally be obtained against the cash value of a personal life insurance policy and policy loan proceeds

Are not treated as taxable income

Ensures do business in Ohio, only after a thorough financial review most insurance policies written in Ohio are protected by the guarantee association established to protect policy owners in the event an admitted company

Becomes financially insolvent

An agents underwriting duties include, which of the following

Completing all applications and collecting initial premiums

The period after an annuity is purchased, but before distributions begin is referred to as

accumulation phase

Find the divorce of an insured who designated their spouse as the benefit, during which of the following actions will result

The designation of the spouse as a beneficiary is revoked

Which of the following plans will provide a death benefit to the policies beneficiary income tax free

whole life

Reinsurers are a specialized branch of the insurance industry because they

Insure insurers

The purpose of insurance is to

transfer risk

What type of insurance is the cheapest option to pay off a 30 year mortgage balance?

decreasing term life

The group life underwriting risk selection process helps protect insurers from

adverse selection

An insurer would consider, which of the following and determining whether to accept a group life plan

average age

Which of the following represents a syndicate of underwriters that specialize in insurance specific type of events

Risk retention group

The structure of a credit life insurance policy does NOT allow for.

Conversion policies

The settlement option that allows proceeds to remain with the insurer and the earnings to be paid to the beneficiary on a monthly basis is called

Interest only

Kelvin is receiving a tax deferred growth until retirement in what phase would Kelvin's annuity be

Accumulation period

Generally, if a life application is not prepaid, the effective date of coverage begins on the date the

policy is delivered and accepted

An insured wants to purchase a policy with three key elements. Flexible, Premium, death benefit and the choice of mutual funds were the cash will be invested in a separate account. The insured should purchase.

Variable universal life

Which of the following statements best describes a single Premium cash value policy

It requires only one payment to make the policy paid up

All the following policies qualify for a 1035 exchange except

An annuity to a whole life policy

Upon a new addition, which of the following will have the highest monthly payout

Straight life

The extended term insurance can be selected under which whole life policy provision

Nonforfeiture

Interest earned on a traditional IRA is tax

That Distribution

Which of the following statements is true regarding a waiver of Premium rider

there will be no change in the policy other than that the insured no longer has to pay the premium

Which of the following is a characteristic of a contract of adhesion?

the terms must be accepted or rejected in full

Rob Joe and Mike are brothers who have a $60,000 first to die joint life policy covering all three of their lives if Joe dies first the policy proceeds

will not provide further insurance protection

Which of the following visuals has a right to name a beneficiary

Owner

Which nonforfeiture option allows the policy owner to purchase less coverage for life

Reduced paid-up insurance

All of the following statements regarding a group annuity are correct except

Participation is limited to eligible employees

What is the approach to assessing the consumers need for life insurance that focuses on an individuals future stream of income

Human life value approach

Which of the following dividend options are taxable

Accumulation at interest

An accelerated death benefit

Pays an additional benefit if the policyholder dies as a result of an accident

What does a limited payment whole life policy provide?

A lower Premium

An insured has a five-year renewable term life insurance policy upon the renewable privilege. The insured must.

Pay an annual premium that may be higher

An annuitant dies during the accumulation period. What happens to the cash value in the annuity?

The cash value is paid into the estate

If an agent does not send a refund to a policyholder within an acceptable timeframe, the agent

Have his or her license, suspended or revoked

Statements by an applicant concerning personal health, history, family health, history, occupation, and hobbies are referred to as

representations

The most common use of a group life insurance policies is to insure

Company employees

The accumulated cash value of a whole life insurance policy becomes the

policy loan value upon which the policyowner may borrow

Falsifying the term terms, benefits, advantages, or conditions of an insurance policy is an example of which of the following

Misrepresentation

Something that increases the profitability of loss is called

A hazard

In reference to life insurance contract law, a person most likely will have an insurable interest in ensuring a person's life if

The interest exist at the time of application

Generally rates charged for insurance may not be

Excessive, inadequate, or unfairly discriminatory

An insured has chosen to receive the payout from her husband's life insurance policy so that she will receive an income for the next 10 years at the end of that time the entire proceeds from the policy will have been paid out. The insured has selected, which option.

Fixed period