Insurance agent exam
A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of -
ANS-10%
A consumer who has been recently denied insurance, credit, or employment based on an
unfavorable consumer report MUST be advised as such. Which of the following does this
statute originated from - ANS-Fair credit reporting act
A group life insurance policy can be converted to an individual whole life policy under which
circumstance - ANS-Employment termination
A life insurance policy owner would like a dividend option that results in a limited current outlay
of funds. Which dividend option would be chosen - ANS-Reduction of premium payment
A policy is permitted to take out a policy loan on a whole life policy at what point - ANS-When
the policy has a value
A prospective client was intimidated by an agent to purchase an insurance contract. The agent
could be found guilty of - ANS-Coercion
A signed good health statement may be requested by a life producer at the time of - ANS-Policy
delivery
A single premium deferred annuity sometimes contains a bailout feature. Which statement
regarding this feature is correct - ANS-If the interest rate falls below a specific level, the
surrender charge is waived
After passing the state exam, an applicant is required to obtain the appropriate license within
___ calendar day - ANS-183
All of these are considered features of whole life insurance except - ANS-Initial premium is lower
than for an equivalent amount of term insurance
All of these are duties that a producer may be required to perform when delivering an insurance
policy except - ANS-Leave a conditional receipt with client
All of these are unfair trade practices except - ANS-Reinsurance
All of these statements concerning group credit life insurance are false except - ANS-The face
amount is based on the outstanding loan balance
, An agent must maintain customers records for ___ year(s) following the completion date of the
insurance transaction - ANS-5
An agent MUST notify the Bureau of insurance for - ANS-Conducting business under an
assumed name
An agent who attempts to intimidate is engaging in - ANS-Coercion
An agent who informs an applicant that there are no exclusions in an insurance policy has
engaged in - ANS-Misrepresentation
An agent's insurance records must be provided to the state corporation commission -
ANS-Upon the requests of the state corporation commission
An agents license may on be suspended or revoked if the agent - ANS-Has been afforded a
right to a hearing
An annuity contract may be returned for a full refund during the - ANS-Free look period
An insurance company can be liable for producers unauthorized acts - ANS-When the agency
contract is unclear concerning the authority given
An insurance company or agent must respond within ___ days to an insured's request to access
personal information collected on him/her by the insurer - ANS-30
An insured is entitled to coverage under a policy that a prudent person would expect it to
Provide. This principle is called - ANS-Reasonable expectations
Assets that back the non-guaranteed values of variable life insurance products are held in which
account - ANS-Separate account set up by the insurer
Defamation can be best defined as - ANS-Making a statement that is false or maliciously critical
of the financial condition of an insurer
Greg had recently been terminated from his job that covered him for group life insurance. How
long does he have to convert his coverage to an individual policy - ANS-31 days
How long does protection normally extend to under a limited pay whole life policy - ANS-Until
age 100
If an agent holds 2 license types, the continuing education requirement is ___ credit by
December 31 in even numbered years - ANS-24
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