When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. C Mutual Company An investor buys a life insurance policy on an elderly person in order to sell it for a life settlement.. what is this an example of? These are all considered to be Unfair Trade Practices, which are major violations that can lead to heavy penalties. A fixed annuity is fixed in the sense that it provides a guaranteed minimum rate of interest and income payments that do not vary from one to the next. What describes the tax advantage of a qualified retirement plan? juan holds ________ power. A 40 year old man buys a whole life policy and names his wife as his only beneficiary. If an injured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is? The following areas are regulated by the Insurance Department EXCEPT The "accumulation period" is the period of time over which the annuitant makes payments (premiums) into an annuity. D Unfair Discrimination. Cash surrender, extended term, reduced paid-up. An out-of-state producer wants to start selling insurance in this state. An insured pays $1,200 annually for her life insurance premium. D 10 days. D A domestic insurer issuing variable contracts must establish one or more.. Example: the insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. 1.Reasonable expectations 2.Subrogation 3.Ambiguities in a contract of adhesion 4.Utmost good faith - answerSubrogation There are various optional provision for health policies. All of the following would be considered rebating except. The amount of payments will be determined by taking into account all of the following: When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount.. An insured owns a $50,000 whole life policy. What is the term for how frequently a policyowner is required to pay the policy premium? It would be considered unfair discrimination to ask an applicant for their sexual orientation, as well as using sexual orientation as a rating factor to determine insurability. C A reasonable understanding of the provisions, terms, and conditions of the type of insurance he/she wishes to counsel. Which road apply for the agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? (Example) A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. 1 to 75. In most states, if death results from suicide within a certain period, the insurer is not obligated to pay the death benefit therefore.. What is the purpose of a fixed-period settlement option? A table showing the nonforfeiture values for the next 20 years must be included in the policy. A straight life policy has what type of premium? How many days does the insurer have to deliver this notice? Which of the following is an example of a producer being involved in an unfair trade practices of rebating? The policyowner is entitled to policy loans. What license or licenses are required to sell variable life annuities? C Policyowner rights and disclosures. Upon policy reinstatement to pay all overdue premiums with interest before the policy is reinstated, The policyowner may assign a part of the policy (collateral assignment) or the entire policy (absolute assignment), Regarding the free-look provision, the insurance company. The accelerated benefits provision for an early payment of the death benefit when the insured.. An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. D Audit or abstract insurance policies or annuities. When an employee terminates coverage under group insurance policy, coverage continues in force for how long? Assuming that a policy does not contain an unconditional refund provision of at least 10 days, when must a Buyer's Guide and policy summary be provided? D This misstatement may result in? A A producer's license is suspended or revoked by the Department of Insurance. All of the following events will terminate a producer's certificate of appointment EXCEPT For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are, Amount of coverage is determined according to nondiscriminatory rules, individuals covered, under the policy receive a certificate of insurance, certificate holders may convert coverage to an individual policy without evidence of insurability. A temporary license in this state is valid for a maximum of A Defamation If an insurer terminates a producer, the Commissioner must be notified. Last year, she received a dividend check from the insurance company that was not taxable. The balance is paid out directly to the employee in order for her to move the funds to a new account. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. C Dividends from a mutual insurer. C Defamation. Categories . If an insured continually uses the automatic premium loan option to pay the policy premium. Which of the following is true regarding pre-licensing education requirements for insurance producers in the state? Within how many days of requesting an an investigative consumer report must an (insurer) notify the consumer in writing that the report will be obtained? Rebating is an unfair trade practices and is regulated by law all of the following would be considered to be rebating except When twin brothers applied for life insurance from company a, the company found that while neither of them smoke and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the . An insured owns a life insurance policy. An individual has been making periodic payments on an annuity. D A termination issued by the appointing insurer. What amount would his beneficiary receive as a settlement? This is a personal use of life insurance known as.. The insured applies this year's $300 worth of accumulated dividends to the next year's' premium, thus reducing it to $900. SUGGESTIONS FOR PREPARING SPEAKING NOTES While several of these reminders might strike you as obvious, speakers often ignore them when preparing to speak. Attorney General. An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. It is illegal to participate in any boycott, coercion, or intimidation that is intended to restrict fair trade or create a monopoly. What is this an example of? An applicant for a counselor's license must possess a reasonable understanding of the provisions, terms, and conditions of the type of insurance he/she wishes to counsel, as well as a reasonable understanding of the Michigan insurance code and possess a good business reputation and good moral character. What policy component contains the company's promise to pay? C Your email address will not be published. D 120 days. launchpad classlink nmusd; cantonese text to speech; 15 second tv commercial script examples Telling a client that his first premium will be waived if he purchases the insurance policy today. After five years, she decides to leave the company and work independently. D Adverse selection. If the corporation collect the policy benefit, then. All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy? All of the following would be considered to be rebating EXCEPT A) An agent offers to share his commission with a policyholder B) An agent offers tickets to a baseball game as an inducement to buy insurance C) An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him As a condition for renewal of their licenses, how many hours of continuing education required for all resident and nonresident insurance producers? A. After 5 years, she decides to leave the company and work independently. What statement is correct? The insurer has 15 days to file a notice of producer appointment. If you like the fitness and motion activity tracking feature on the iPhone, you should have this setting left on. Like a fixed annuity, EIA's have guaranteed minimum interest rates, also less risky than variable annuities, the insurance company also keeps a percentage of the returns. A Restriction of authority NAIC. A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. A$500 In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. You dont have to worry about it anymore. The dividend option in which the policyowner used dividends to purchase a term policy for one year is referred to as the An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. All of the following are true regarding rebates EXCEPT. All of the following would be considered rebating except: sharing commissions with other licensed and appointed agents. Issuing or circulating any sales material that is false or misleading would be considered misrepresentation and is illegal. Which of the following is an eligibility requirement for all Social Security disability income benefits? Under a variable annuity, the issuing insurance company does not guarantee a minimum interest rate or the benefit payment amounts. In which instance would the premium be tax deductible? D Producer commission schedules. Licensees who are currently licensed, and have recently become residents of the state of Michigan may not have to complete any prelicensing education. Horse racing is one of the oldest and most popular racing sports in the world, but how long is a horse race? File an application with the Director b. How do you get to Motion settings on iPhone? What must be acceptable in order for the ride to be able to waive the payment of premium? A tax-sheltered annuity is a special tax-favored retirement plan available to. Annuities are characterized by how they can be paid for which is: While equity indexed annuities earn higher interest rates than fixed annuities, both types of annuities guarantee a specific minimum interest rate. Which of the following statements about the reinstatement provision is true? This nonforfeiture option provides coverage for the longest period of time: The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT D Business Entity. Commissioner. And employee has group life insurance through her employer. A. The person or interest to whom the policy proceeds will be paid upon the death of the insured. Will result in having to pay the highest premium due to health, history, habits, etc. Considered to be the average risk; representative of the majority of people in their age and with similar lifestyles, Insurers (this is so the insurers can compare the info that have collected on the individual). D Obtain appropriate signatures on the application for insurance, help prevent adverse selection, and solicit business that will fall within the insurer's underwriting guidelines. Question. In the best interests of the client, rebates are allowed. 30 M, who is not licensed as an insurance agent, works part-time in her father's insurance agency. C Dividends from a mutual insurer. If an agent fails to obtain an applicant's signature on the application, the agent must An insurance contract that requires both the insured and the insurer meet certain conditions in order for the contract to be enforceable is (Example) When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. Describe the relationship between potential difference and electrical potential energy. A father owns a life insurance policy on his 15-year-old daughter. For an individual who is not covered by an employer sponsored plan, IRA contributions are What is correct concerning a non contributory group plan: To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters? If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy? What best describes this practice? Insurers commonly require HIV testing; the insurer must abide by a variety of rules created by its respective state. B 90 days B To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as D Misrepresentation. Rating. I no the truth.Ans: I know the truth.(2). The policyowner pays for her life insurance annually. Commissions are set by a schedule or negotiation between the producer and the insurance company. When does the policy coverage become effective? 60 days. Concerning the taxation of premiums in a key- person life insurance policy is: Internal revenue code provision that specifically provides for an individual retirement plan for public school teachers is a(n), Example of liquidity in a life insurance contract. D Any time in the past. the spouse of a retiring insurance producer There is no limitation on the number of key employee plans in force at any one time, the employer is the owner, Payor and beneficiary of the policy, the key employee is the insured. C A legal advertising strategy Therefore, in the other types of level policies, the first-year premium would not be different from any other year. Weegy: A basic position in American foreign policy has been that America must defend its foreign interests related to Weegy: 15 ? A A good business reputation and good moral character. The main difference between immediate and deferred annuities is What does "level" refer to in level term insurance? How much energy is needed to move one electron through a potential difference of 1.0 102 volts, Includes procedures and techniques that are designed to protect a computer from intentional theft. C What dividend option could she use? When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount. C It requires satisfactory completion of at least 24 hours of approved training every biennium. A key person insurance policy can pay for what? The owner, however, does not have to be the one who receives the benefits; it could be the annuitant or the beneficiary. D Other than the 3 hours of ethics, licensees may take courses in any line. Group life insurance is a single policy written to provide coverage to members of a group. A cease and desist order requires an individual to stop doing a specific activity that the Commissioner believes to be violating the Insurance Code. Which of the following individuals could qualify for a temporary insurance license? Is a program that assesses and reports information about various computer resources and devices. A$500 An insured purchases a policy in 2008 and died in 2013. B 7 days If an insurer wishes to appoint a producer, it must file a notice of appointment within how many days of the date that the contract is executed? The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. The integer 4 is considered all of the following except _____. B Discriminating in benefits and coverages based on the insured's habits and lifestyle An agent who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called. Up to 12 excess credit hours of CE may be carried over to the next review period. The dividend option that the insured has chosen is called? The company is guilty of The death protection component of Universal Life Insurance is always.. A return of Premium term life policy is written as what type of term coverage? An agent offers to share his commission with a policyholder. All of the following would be considered rebating EXCEPT. (Example) your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. B Discrimination The soon-to-be producer does not want to wait until he receives his license in order to begin working. An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. In Michigan the state's continuing education requirement A Upon receipt of notice of appointment, the commissioner must verify the insurance producer is eligible for appointment within how many days? Which nonforfeiture option provides coverage for the longest period of time? Variable life insurance is regulated by..: Equity Indexed Annuities invest on an aggressive basis in order to yield higher returns. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. C Law of large numbers What is being defined as the degree to which something is related or useful to what is happening or being talked about? All of the following would be considered to be rebating EXCEPT, which was part of Insurance MCQs & Answers. And insured has a modified endowment contract. All of the following are penalties for submitting fraudulent claims to the insurer EXCEPT All the following are business uses of life insurance: If I retirement plan or annuity is "qualified," this means Who is the owner and who is the beneficiary on a key person life insurance policy? And employee quits her job where she has a balance of $10,000 in her qualified plan. What statement about a suicide clause in a life insurance policy is true? This answer has been confirmed as correct and helpful. This annuity plan is What is true regarding taxation of accelerated benefits under a life insurance policy? B Twisting E The spouse of a deceased insurance producer. To appoint a producer as it's agent, the appointing insurer must file a notice of appointment with the commissioner within how many days from the date the agency contract is executed? This rider will not cause the death benefit to increase. Indicate the effects of the given transaction on assets, liabilities, and equity, including identifying the individual accounts affected. The insured knows that his financial state will worsen even more with upcoming medical expenses. Any type of fraud or misrepresentation is a violation that may cause a license to be denied, suspended, or revoked. All riders that will cause the death benefit to increase? What type of policy is this? B Coercion B False advertising. Which of the following would be required to be licensed as an insurance producer? D$5,000. A corporation is the owner and beneficiary of the key person life policy. A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. B Criminal offense When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. To qualify for this exemption, they must apply to become resident licensees within a few days of establishing a legal residence within how many days? C 12 months If an applicant has been licensed in the past 12 months, the Commissioner may waive education and examination requirements. The company also guarantees the specified dollar amount for each payment and the length of the payout period. The ownership provision entitles the policyowner to What is correct concerning the taxation of premiums in a key-person life insurance policy? If a live insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illustration used in the sales presentation MUST. Which of the following acts would not get an insurance producer terminated "for cause"? B Community service C Defamation Group life insurance is a single policy written to provide coverage to members of a group. The producer could be found guilty of Ultimately, the commissioner determined that there were a total of 25 separate violations. What is not an example of a business use of life insurance? D The passing of a written examination. If an individual licensee's violation of the entrance code was known or should have been down by one or more of the partners, officers, or managers of the agency, what could happen to agency? 16/9 = Weegy: Whenever an individual stops drinking, the BAL will decrease slowly. A It allows for up to 15 excess credit hours to be carried forward to the next reporting period. Added 30 days ago|10/30/2021 2:46:29 PM. It was determined that the accident was his fault. all of the following would be considered rebating except. Whole life policies offer level premium based on the issue age, guaranteed, level death benefit, cash value that is scheduled to equal the face amount at the insured's age 100, and living benefits, which include policy loans. It is the premium paying period that is limited, not the maturity. 30 days. What is the purpose of a free-look period in insurance policies? Age The policyowner of an adjustable life policy wants to increase the death benefit. D False advertising. How long must an insurer keep a copy of an authorized form in its records? = 2 5/20 An appointment by an insurer is based upon the person maintaining a valid insurance license. When may an insurance company use suicide as a defense against paying a death claim? C Rebating. A Twisting. An agent misrepresents policy benefits to convince a policyowner to replace policies. What is this an example of? What source will it consult for the majority of its underwriting information? = 15 * 3/20 A Unfair claims May be used to customize a permanent life insurance policy to meet the needs of the policyowner, Mandatory free look in a life insurance policy. Nonforfeiture values guarantee which policyowner? What type of license should the producer obtain? A Adverse selection What statement concerning group life is true? What option for Universal Life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? B - In order to collect premiums and explain coverages, a person would need to be licensed. A 7 days B Advertise & solicit business as an insurance counselor or consultant New answers. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. Employer contributions made to a qualified plan.. It can happen just as long as.. Have a guaranteed face amount and a level premium for the life of the insured. Because of this, the company charged him a higher rate for his insurance. A corporation is the owner and beneficiary of the key person life policy. During replacement of life insurance, or replacing ensure musky which of the following? The cinema hall is to far from my house.Ans: The cinema hall is too far from my house.(3). The advantage of qualified plans to employers is. Insurers are also not allowed to cancel individual coverage due to a change in marital status. A Which of the following provisions would NOT be found in Term Life Insurance? A salaried full-time employee who furnishes information for group insurance 1 Answer/Comment. B Materially misrepresents an insurance policy. Which type of life insurance policy generates immediate cash value? All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT A Stocks, securities, or bonds. What best describes what will happen? Employees must receive a minimum of $5,000 in annual compensation, no other qualified plan can be used, no more than 100 employees. The protocol for replacement does not apply to which of the following situations? Which of the following documents must be provided to the policyowner or applicant during policy replacement? As it turns out, the answer to this question depends upon a variety of factors. D What is the official name for the Social Security program? Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner? D$2,000. What type of annuity is it? An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Although the appointment is made by the head of the Insurance Department, that person leaving the office does not terminate existing appointments. Rebating is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. A policyowner who is also yeh insured wants to name her husband as the beneficiary of her life policy. Old-age and retirement benefits, disability benefits, death benefits. C Controlled business. B In the preceding 2 years. Which policy component decreases in decreasing term insurance? B Sending a $20 gift certificate to the insured's employee after the insurance has been effected as a thank you for the referral The cash value of a variable life policy is not guaranteed and fluctuates with the_________________ in which the premiums have been invested by the insurer. Licensed counselors may perform the following duties: audit or abstract insurance policies or annuities; provide advice, counsel, or opinions concerning benefits, coverage, terms, and advantages and disadvantages of a policy or annuity; and advertise and solicit business as an insurance counselor or consultant. The "owner" is the person who purchases the contract and has all of the rights such as naming the beneficiary and surrendering the annuity. When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. What type of policy does the insured most likely have? All of the following would be considered to be rebating EXCEPT? All of the following would be considered to be rebating EXCEPT. 0. Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? Which of the following best describes this practice? A licensed counselor MAY NOT perform which of the following duties? D An offer of employment. An employee quits her job where she has a balance of $10,000 in her qualified plan. A 60 year old participate in a 401(k) plan takes a distribution in rolled it over to it I already within 60 days. Requires the entire premium to be paid in one limp sum at the policy's inception. In an annuity, the accumulated money is converted into a stream of income during what time period? Figure out how many vegetables to plantEver wonder how many vegetable plants to buy when youre planning your garden? f. The subtotal in a responsibility income statement that comes closest to indicating the change in income from operations that would result from closing a particular part of the business. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 index. This is due to what provision? When a persons only options for a contract are on a take it or leave it basis; prepared only by the insurer. What reports include written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources? There are just too many details and specifications which you must be certain of when looking for one. D Collecting a lower premium than what's specified in a policy as a token of client appreciation. All of the following could own a group life insurance EXCEPT A group needing low-cost life insurance An applicant for a producer's license has successfully completed all of the steps to obtain the license. When producers give or promise anything of value that is not specified in the policy, they are guilty of rebating. This is considered to be false, deceptive or misleading advertising. A Discrimination. there is no provision in the insurance code that allows for a temporary licensed to be issued on behalf of a producer. D An offer of employment. What is the maximum fine for submitting a false or fraudulent claim to the insurer?
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