Which type of policy is considered to be overfunded, as stated by IRS guidelines?

Modified Endowment Contract

How does a typical Variable Life Policy investment account grow?

Through mutual funds, stocks, bonds

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

Fair Credit Reporting Act

What is Medicare?

is a hospital and medical expense insurance program

What kind of premium does a Whole Life policy have?

level

Which of these do NOT constitute policy delivery?

Policy issued with a rating

Which of these types of life insurance allows the policyowner to have level premiums and to also choose 

from a selection of investment options?

Variable Life

J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an 

accident. J's age as stated on the application five years ago was found to be understated by ten years. 

Which of the following actions will the insurance company take?

The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual 

age

A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has 

what kind of rider attached?

Waiver of Premium

A producer must report to the Commissioner of Insurance any administrative action or criminal charges 

taken against the producer within __ days of the final disposition of the matter.

30

A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What 

rider would the physician add if he wants the ability to increase his policy benefit as his practice and 

income grow?

Guaranteed Insurability Option rider

T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five 

years later, T commits suicide. How much will the insurer pay?

50,000

Pre-hospitalization authorization is considered an example of:

managed care

Under a Renewable Term policy,

the renewal premium is calculated on the basis of the insured's attained age

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy 

insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural 

causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will 

the mother receive?

$0

A provision in a life insurance policy that pays the policyowner an amount that does not surpass the 

guaranteed cash value is called the:

Policy Loan provision

What action can a policyowner take if an application for a bank loan requires collateral?

Assign policy ownership to the bank

Which of the following statements is CORRECT about the Life and Health Insurance Guaranty 

Association?

It is funded by insurance companies through assessments