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A person who, for a fee, gives advice or recommendations on benefits provided by an insuranceÂ
contract is called
1.a broker
2.a producer
3.an advisor
4.a navigator
3.an advisor
*An insurance adviser is any person who, for a fee, offers to examine any policy for the purposeÂ
of giving advice or recommendations with respect to the benefits provided by the contract. AnÂ
adviser must be licensed in the State of Maryland.
If an insured's age on a life insurance policy has been misstated, what is the insurer's liability ifÂ
the insured dies?
1.No death benefit is owed because of the misstatement of age
2. The full original death benefit listed on the policy
3. A prorated death benefit based on the amount of insurance the insured's premiums would haveÂ
been if purchased at the correct age
4. The original death benefit listed on the policy minus any outstanding loans and interest
3. A prorated death benefit based on the amount of insurance the insured's premiums would haveÂ
been if purchased at the correct age
How long must an individual be unable to engage in any gainful activity due to physical orÂ
mental disability in order to qualify for Social Security Total Disability?
1. 3 months
2. 6 months
3. 12 months
4. 18 months
3. 12 months
All of the following actions are considered rebating EXCEPT
1. sharing commissions with other licensed and appointed agents
2.refunding part of the premium as an inducement for purchase
3.offering special dividends
4. offering anything of value not specified in the policy
1. sharing commissions with other licensed and appointed agents
Peter has a policy where 80% to 90% of the premium is invested in traditional fixed incomeÂ
securities and the remainder of the premium is invested in contracts tied to a stipulated stockÂ
index. What kind of policy is this?
1. Modified Endowment Contract
2. Current assumptive whole life
3.Credit life insurance
4. Equity index whole life
4."Equity index whole life". The type of policy where 80% to 90% of the premium is invested inÂ
traditional fixed income securities and the remainder of the premium is invested in contracts tiedÂ
to a stipulated stock index is equity index whole life.
A tax-free Section 1035 Exchange of a life insurance policy to a different policy is permitted if itÂ
occurs
1. in the same state as the original transaction
2. within a 12-month period
3. from insurer to insurer and no cash is received by the policyowner
4. from agent to agent as long as the agents are licensed in the same line
3. from insurer to insurer and no cash is received by the policyowner
*The Internal Revenue Code (IRC) enables a tax-free Section 1035 Exchange of a life insuranceÂ
policy to a different policy if it occurs from insurer to insurer and the policyowner does notÂ
receive any cash.
According to life insurance contract law, insurable interest exists
1.when any business relationship exists
2. at the time of application
3. at the time of death
4. only when determined by a judge
2.at the time of application
*According to life insurance in contract law, a person most likely will have an insurable interestÂ
in insuring a person's life if at the time of application
An example of replacement is
1.canceling disability policy to buy a term life policy
2. canceling a term life policy to buy a whole life policy
3. canceling a long-term care policy to buy a whole life policy
4. canceling a whole life policy to buy a major medical policy
2.canceling a term life policy to buy a whole life policy
When must a claim on a life insurance policy be paid after proof of loss has been received by theÂ
insurer?
1. Promptly
2.Within 10 days
3. Within 20 days
4. Within 30 days
1. Promptl
Variable life insurance and Universal life insurance are very similar. Which of these features areÂ
held exclusively by variable universal life insurance?
1. Policyowner may increase or decrease the premium payments
2.Policyowner may increase or decrease the face amount
3.Policyowner can contribute large sums of money
4.Policyowner has the right to select the investment which will provide the greatest return
4.Policyowner has the right to select the investment which will provide the greatest return
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