Question 1

One area in which errors are commonly made on life insurance applications and for which the incontestable clause does not apply is

Options :

A : Occupation.

B : Age.

C : Education level.

D : State of residence.

Answer: B

Question 2

An immediate annuity is designed to make its first benefit payment to the annuitant typically

Options :

A : When the accumulation period, of at least 24 months, ends.

B : In the form of a lump sum payment.

C : Only after all cash surrender values, with interest, have been calculated.

D : One month from the annuity’s purchase date.

Answer: D

Question 3

An individual must be a licensed producer in order to take which of the following actions?

Options :

A : Compile the names and addresses of prospective insureds for marketing purposes.

B : Accept premiums from insureds at a recorded place of business.

C : Discuss the effects of age or health on premiums with a prospective insured.

D : Type binders or certificates.

Answer: C

Question 4

Generally, the maximum percentage of the face amount paid under an Accelerated Death Benefit would be

Options :

A : 10%.

B : 50%.

C : 100%.

D : 200%.

Answer: B

Question 5

In New Jersey, an insurance company formed in New Jersey with offices in New York is a

Options :

A : Foreign insurer.

B : Domestic insurer.

C : Alien insurer.

D : Mutual insurer.

Answer: B

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