Study guides, Class notes & Summaries

An insurance producer selling a Variable Annuity whose cash value depends on the performance of an underlying investment account must be registered with: - ANSWER; The Financial Industry Regulatory Authority (FINRA, formerly the NASD) A life insurance policy whose cash value will fluctuate depending upon the performance of a separate account is: - ANSWER; Variable Life John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value will equal the face amount of...

ife income with period certain - ANSWER What annuity settlement option provides income payments to the annuitant for the duration of his or her life, and also guarantees payment for a specified number of years when if the annuitant dies, it will go to the beneficiary?

An insurer that operates for one or more social, educational, charitable, benevolent, or religious purposes for the benefit of its members is known as a a) Reciprocal insurer. b) Stock insurer. c) Fraternal insurer. d) Mutual insurer. - ANSWER C Life insurance creates an immediate estate. Which of the following best explains this statement? The policy has cash values and nonforfeiture values. b) The policy generates immediate cash value. c) The death benefit will always be paid to the ...

CCELERATED BENEFITS - ANSWER Riders attached to life insurance policies that allow death benefits to be used to cover nursing or convalescent home expenses ACCIDENTAL DEATH BENEFITS - ANSWER A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death ACCIDENTAL DEATH INSURANCE - ANSWER An insurance policy that provides payment if the insured's death is the result of an accident

Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this? - ANSWER $10,000 or up to one year in jail A type of insurer that is owned by its policyowners is called - ANSWER Mutual insurer What is considered to be the primary reason for buying life insurance? - ANSWER Provide death benefits

Elements of a Contract - ANSWER Competent parties, legal purpose, offer and acceptance, consideration Waiver - ANSWER Voluntary giving up of a known right or privilege, can be express or implied Estoppel - ANSWER A person is prohibited by virtue of his own past actions from claiming a right that would work to the detriment of another who relied on the past conduct Aleatory Contract - ANSWER a contract where the values exchanged may not be equal but depend on an uncertain event

A ____________ company is one that is domiciled in another state and has Not received a license to do business in Alabama. - ANSWER Foreign Nonamitted A 15-year mortgage - ANSWER 15 year decreasing term A collateral assignment allows a policy owner to assign: - ANSWER A portion of the policy provides to the assignee

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant and t submit a medical exam. If the policy was issued, what would be the policy's effective date? A. The date of policy delivery B. The date of the Issue C. The date of application D. The date of the medical exam - ANSWER D. The date of the medical exam

The balance of the loan will be taken out of the death benefit - ANSWER If a policy has a automatic loan provision, what happens if the insured dies before the loan is paid back? Inspection Report - ANSWER An insurer receives a report regarding potential insured that includes financial status, hobbies, and habits. What type of report is that? Spendthrift Clause - ANSWER The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as

Replacement regulation is designed to protect - ANSWER Policyowners from mirepresentation and loss of benefits All Health Benefit Plans issued after January 1, 2014 must provide - ANSWER Preventative health services Which of these will have the highest monthly payout upon annuitization - ANSWER Straight life Which of the following is included in the entire contract according ti the entire contract provison? - ANSWER Clauses

life insurance - ANSWER insurance that pays to a named beneficiary or the deceased's estate upon the death of the insured,may b annuity or endowment, may incl benef for accident death/dismemberment, disability, protects against risk pf premature death which exposes a finNcial riskto family or business. ie:burial expenses, pay debts, loss of family inc/business profits insurance - ANSWER content that indemnifies another against loss, damage, liab arising from unknown event