In a life insurance policy, the promise by the insurance company to pay certain benefits is the:
Insuring clause
The producer's ethical obligations to which of the following is the least important
The agent's creditors
Which of the below has not been considered an insurance industry top ethical concern?
Commission payment methodology
When an insured policy owner makes a transfer-for-value (sells the policy) without addressing the matter of insurable interest, the exchange is called a
Viatical settlement
The following statement regarding a life insurance contract is true?
Cash values are the same as nonforfeiture values
In determining Social Security retirement benefits which of the following statement is not correct?
Average monthly wages (AMW) is the most recent index used.
The basic principles of insurance are which of the following?
Pooling of risk and the law of large numbers
Which of the following is not a feature of group insurance?
The insureds are individually underwritten
Which of the below is not a Variable Universal Life (VUL) characteristic?
It generally has the capacity to be stable during inflation periods.
In the Settlement Option known as Life Income Option:
The beneficiary receives a guaranteed income no matter how long he/she lives.
What group of individuals in an insurance company is responsible for determining life insurance premium rates?
Actuaries
Which of the below are two NAIC developed programs that most states have adopted into their insurance codes
The Advertising Code and The Unfair Practices Act
Which of the following statements is not correct concerning Variable Life contracts?
The premiums vary according to the productivity of the separate accounts.
Which of the following statements about Universal Life is not correct?
UL policies provide for a variety of investment options.
Which of the following statements regarding a life insurance contract is true?
Cash values are the same as nonforfeiture values.
Which of the following statements about a whole life policy is true?
It furnishes permanent protection in the sense that it does not have to be renewed or converted
The death benefits paid to a named beneficiary are:
always free of any federal income tax if taken as a lump sum
Which of the following is not true about Traditional Variable Life insurance?
The policyowner may increase contributions at his discretion.
The premium that reflects mortality rates, assumed interest, and the policy's share of the company's operating expenses is called the:
gross premium
Which of the below is not a characteristic of a mutual insurance company?
Makes a profit for Stockholders
The common disaster provision, in a beneficiary designation:
provides the sequence of beneficiaries
Business continuation plans may be designed as entity plans. In close corporations the entity plans are classified as:
Stock Redemption Plans.