4. The importance of a representation is demonstrated in what rule?
5. Which statement is CORRECT when describing a contract of adhesion?
4. If an insured dies because of an accident, which type of life insurance rider will provide additional coverage?
15. Which type of worker has Social Security benefits available to them?
10. Which of the following is NOT a requirement for a terminated employee that has exercised the conversion privilege?
7. Which of the following is an insurer established by a parent company for the purpose of insuring the parent company's loss exposure?
7. A creditor would be allowed rights to life insurance policy proceeds if which of the following beneficiaries is chosen?
8. Naming a contingent beneficiary as "all surviving children" is described by which term?
3. Which of the following is NOT required in the content of a policy?
13. Which of the following is NOT a life insurance settlement option?
1. Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"?
1. The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT?
4. Why are dividends from a mutual insurer not subject to taxation?
3. A participating company is also referred to as which type of insurer?
2. John has an insurance policy that gives him the right to share in the insurer's surplus. What kind of policy is this?
5. Which of the following describes a contributory group insurance plan?
7. How does underwriting differ between group life and individual life insurance?
8. Which of the following is NOT a characteristic of the conversion privilege?
1. How is the cost of employer-provided group life insurance with coverage amounts above $50,000 treated for tax purposes?
6. Who is issued a certificate of insurance with a group insurance policy?
5. Which of these factors is NOT taken into account when determining an applicant's life insurance needs?
2. Which of the following describes the statement "The more times an event is repeated, the more predictable the outcome becomes"?
4. How are death benefits that are received by a beneficiary normally treated for tax purposes?
3. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident?
1. John and Mary have a handicapped child that is financially dependent upon them. The death of one of the parents would not be financially disastrous, however the death of both likely would be. Which policy would be best suited for them?
2. Which of the following types of life insurance is normally associated with a mortgage loan?
3. What is the proper order of initial life insurance premiums, from lowest to highest?
5. Which of the following is a life insurance policy that does NOT require a physical exam?
6. Which of the following is NOT a true description of non-medical life insurance?
4. Which of these statements concerning Traditional IRAs is CORRECT?
2. Retirement plans are prevented from favoring highly compensated employees under which government regulation?
6. Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose?
5. When calculating life insurance premium rates, which component is affected by an insured's age and gender?
14. Over the course of a year, which premium payment mode is most expensive?
3. When does a life insurance policy's waiver of premium take effect?
2. When an accidental death benefit is added to a whole life policy, how does this affect the policy's cash value?
1. What does the grace period allow a life insurance policyowner to do?
6. In which of the following relationships would there NOT be an insurable interest?
10. Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"?
9. Which of the following statements correctly describes a contract of indemnity?
10. Rob has a benefit at work which enables him to defer his current receipt of income and have it paid at a later date, when he will probably be in a lower tax bracket. Which benefit fits this description?
9. Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax consequences?
8. What does ESOP stand for?
6. How are Roth IRA's treated for tax purposes?
7. Which of these retirement plans do NOT qualify for a federal income tax deduction?
10. Who is NOT eligible for Social Security survivor benefits?
9. Which of these factors affects the Social Security normal retirement age?
6. At what age is a surviving spouse without dependents eligible for Social Security survivor benefits?
2. Which of the following is NOT a component of determining policy premiums?
1. Which of the following describes the number of deaths in a year compared to the number of people in a select group?
1. What area of group health insurance is regulated under the Employee Retirement Security Act of 1974 (ERISA)?
1. Which of the following refers to a condition that may increase the chance of a loss?
5. Who is eligible for retirement benefits under Social Security?
1. How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability?
2. What is considered to be the definition of disability, according to Social Security?
13. How does one qualify as a fully-insured individual under Social Security disability coverage?
10. Which of the following is NOT a benefit of insurance?
9. Which of the following is a type of insurance where an insurer transfers loss exposures from policies written for its insureds?
6. Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown event?
12. Which Social Security status does a worker with 6 quarters of coverage during the last 13-quarter period have?
8. What distinguishes a deferred annuity from an immediate annuity?
9. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?
2. Which of these will have the highest monthly payout upon annuitization?
4. Which of these statements regarding the annuitant is CORRECT?
5. Which of these is NOT considered to be a purpose of an annuity?
5. What is a participating life insurance policy?
7. Which of the following is NOT a feature of equity-indexed annuities?
11. How long is a person expected to be disabled in order to receive Social Security disability benefits?
6. Who assumes the investment risk with a fixed annuity contract?
16. How are acts of war considered under a group life insurance policy?
5. Jerry is an insured who understated his age on his life insurance application, paying $12 per $1,000 of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be calculated?
6. What does the guaranteed insurability option allow an insured to do?
12. Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death?
13. Which statement is true regarding policy dividends?
14. Which of the following is NOT a common life insurance policy rider?
2. Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?
17. What are collateral assignments normally associated with?
18. What time period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date?
8. Which policy provision protects the policyowner from unintentional lapse of the contract?
15. Which of the following is NOT true regarding a family policy that covers children?
11. Which of the following statements do NOT apply to child coverage in a family policy?
10. Mark, age 45, has a Modified Endowment Contract (MEC). What is the tax penalty for taking a loan against this policy prior to age 59 1/2?
7. Which of the following types of life insurance combines a savings element along with a flexible premium option?
8. Which of the following is NOT a requirement of a contract?
11. When calculating life insurance premium rates, which component would an agent's commission fall under?
7. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured?
7. Which of these is NOT a valid policy dividend option?
1. What are members of the Medical Information Bureau (MIB) required to report?
9. When a life insurance policy is surrendered, how does the cost recovery rule apply?
10. An insurer can be protected from adverse selection with which policy provision?
11. Which provision will pay a portion of the death benefit prior to the insured's death due to a serious illness?
19. After a policy has lapsed, which provision allows the insured to continue coverage?
20. A life insurance policy can be surrendered for its cash value under which policy provision?
3. Which of the following types of information is NOT required for a life insurance application?
7. Which type of risk is gambling?
14. Which of the following would NOT be accomplished with the purchase of an insurance policy?
6. Which of the following is considered to be a situation that has the potential for loss?
5. Which of the following is NOT considered a definition of risk?
12. Which of the following is NOT considered advertising?
4. Which of the following is a circumstance in which there is a possibility of both a loss or a gain?