Question 1

Stranger originated life insurance violates which of the following statutory requirements?

Options :

A : Trust ownership.

B : Right of rescission.

C : Insurable interest.

D : Commission sharing.

Answer: C

Question 2

A common disaster clause states that if the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if the

Options :

A : insured individual outlived the beneficiary.

B : beneficiary outlived the insured individual.

C : beneficiary was never named on the policy.

D : beneficiary and the insured individual died simultaneously.

Answer: A

Question 3

An annuity that guarantees a given number of income payments, whether or not the annuitant is alive to receive them, is referred to as

Options :

A : a life annuity certain.

B : an assured life annuity.

C : a guaranteed survivor annuity.

D : an Irrevocable endowed annuity.

Answer: A

Question 4

Which of the following products is designed to pay benefits that can provide a stream of retirement income to the purchaser?

Options :

A : annuity contract

B : tax-deferred growth

C : variable life insurance

D : modified endowment contract

Answer: A

Question 5

Under the Affordable Care Act, insurer may refuse to accept an internal appeal on a denied claim if

Options :

A : the claim is under $500.

B : the insured is unable to pay an appeal fee.

C : the appeal is filed more than 180 days after the claim denial.

D : the insured has submitted three appeals within the calendar year.

Answer: C