Chapter 18 State Portion: Specific To Life Insurance

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| By Vivian Tayor
Vivian Tayor, Insurance & Finance
Vivian, with over a decade of financial and insurance leadership, founded Celevi CE, an elite continuing education organization, aiming to empower industry experts with trust and respect.
Quizzes Created: 19 | Total Attempts: 41,207
| Attempts: 3,255
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  • 1/15 Questions

     All of the following are requirements for a Certificate of Qualification EXCEPT:   

    • Be 18 years old
    • Have a college degree
    • File an application
    • Be trustworthy
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About This Quiz

This quiz focuses on specific regulations and practices in life insurance, assessing knowledge on topics like annuity contract replacements, qualifications for certificates, and policy conditions. It's designed for professionals seeking to deepen their understanding of life insurance requirements and ensure compliance with industry standards.

Life Insurance Quizzes & Trivia

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  • 2. 

    What is the grace period for a Life policy?  

    • 10 days

    • 15 days

    • 20 days

    • 30 days

    Correct Answer
    A. 30 days
    Explanation
    The grace period for a Life policy refers to the period of time after the premium due date during which the policyholder can make a payment without the policy being canceled. In this case, the correct answer is 30 days, meaning that the policyholder has a 30-day window to make the premium payment after the due date before the policy is terminated.

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  • 3. 

    What certificate do individuals receive under a Master policy?  

    • Certificate of Authority

    • Certificate of Qualification

    • Certificate of insurance

    • Certificate of Credit

    Correct Answer
    A. Certificate of insurance
    Explanation
    Under a Master policy, individuals receive a certificate of insurance. This certificate serves as proof that the individual is covered by the insurance policy. It outlines the details of the coverage, such as the policy number, effective dates, and the types of coverage provided. This certificate is often required by third parties, such as landlords or lenders, to demonstrate that the individual has insurance coverage in place.

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  • 4. 

    How long must replacing insurers keep a policy on file?  

    • 5 years

    • 3 years

    • 2 years

    • Always

    Correct Answer
    A. 5 years
    Explanation
    Replacing insurers must keep a policy on file for 5 years. This is likely to ensure that there is a record of the policy in case it needs to be referred to or accessed in the future. Keeping policies on file for a certain period of time is a common practice in the insurance industry to maintain records and comply with regulatory requirements.

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  • 5. 

    Why do producers and insurers meet minimum standards regarding replacement of a policy?

    • To establish Insurance laws

    • To establish rates

    • To provide information to policyholders

    • To protect the interests of policyholders

    Correct Answer
    A. To protect the interests of policyholders
    Explanation
    Producers and insurers meet minimum standards regarding the replacement of a policy to protect the interests of policyholders. By establishing these standards, they ensure that policyholders are not taken advantage of or left without coverage. This helps to maintain the integrity of the insurance industry and build trust with customers. Meeting these standards also helps to prevent fraudulent practices and ensure that policyholders receive fair treatment when it comes to policy replacements. Overall, it is a measure taken to safeguard the rights and well-being of policyholders.

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  • 6. 

    Who pays for a Noncontributory Plan?  

    • Employee

    • Employer

    • Both the employer and employee

    • Executive Officer

    Correct Answer
    A. Employer
    Explanation
    The employer pays for a Noncontributory Plan. This means that the employer is solely responsible for funding and providing the benefits of the plan to the employees. The employees do not contribute any portion of their salary towards the plan.

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  • 7. 

    Who must sign a Life insurance application?  

    • An applicant

    • An agent

    • An agent and the proposed insured

    • An agent and the executive officer

    Correct Answer
    A. An agent and the proposed insured
    Explanation
    The correct answer is that both an agent and the proposed insured must sign a life insurance application. This is because the agent represents the insurance company and is responsible for verifying the accuracy of the information provided by the proposed insured. The proposed insured, on the other hand, is the person seeking the life insurance coverage and must sign the application to indicate their agreement with the terms and conditions of the policy.

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  • 8. 

     Group insurance must be for the sole benefit of the following:  

    • Only the employee

    • Employee and spouse

    • Employee and employer

    • Employee, spouse and their dependents

    Correct Answer
    A. Employee, spouse and their dependents
    Explanation
    Group insurance is a type of insurance coverage that is provided to a group of people, typically employees of a company or members of an organization. The purpose of group insurance is to provide coverage for the members of the group and their dependents. Therefore, the correct answer is "Employee, spouse and their dependents" as it includes the employee, their spouse, and any dependents they may have. This ensures that the insurance coverage is extended to the immediate family members of the employee as well.

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  • 9. 

    What will be adjusted if VHM Moving Company misstated the age of their company, on their group policy?

    • The death benefit

    • Nothing

    • The premium

    • The enrollment period

    Correct Answer
    A. The premium
    Explanation
    If VHM Moving Company misstated the age of their company on their group policy, the premium will be adjusted. This means that the amount of money they will have to pay for the insurance coverage will change. The premium is typically based on various factors, including the age of the company, so if this information is incorrect, it will affect the calculation of the premium.

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  • 10. 

    After a policy is issued, any unanswered questions are considered to be:  

    • Waived by an insurer

    • Representations

    • Considerations

    • Estoppel

    Correct Answer
    A. Waived by an insurer
    Explanation
    After a policy is issued, any unanswered questions are considered to be waived by an insurer. This means that the insurer has chosen not to pursue or ask for clarification on these unanswered questions. The insurer is essentially giving up their right to seek further information or clarification on these matters.

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  • 11. 

     Trustee groups require how many members for group coverage?  

    • 75

    • 10

    • 15

    • 100

    Correct Answer
    A. 100
  • 12. 

    An insurer who issued a policy to be replaced in which of the following?  

    • Existing Insurer

    • Replacing Insurer

    • Conservation

    • Primary Insurer

    Correct Answer
    A. Existing Insurer
    Explanation
    The correct answer is "Existing Insurer". This means that the insurer who issued the policy is the one that will be replaced.

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  • 13. 

    Within what time, must a proposing producer be aware that an annuity contract will be replaced?

    • 6 months

    • 3 months

    • 5 months

    • 30 days

    Correct Answer
    A. 6 months
    Explanation
    A proposing producer must be aware that an annuity contract will be replaced within 6 months. This means that the producer must have knowledge of the replacement and take appropriate action within this time frame. It is important for the producer to be aware of any changes or replacements in order to properly advise their clients and ensure compliance with regulations.

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  • 14. 

    When may a group provide coverage for their eligible members?  

    • When the group is approved by the executive officer

    • When the group is approved by the commissioner

    • When the group has 100 members

    • When the group has 100% participation

    Correct Answer
    A. When the group is approved by the commissioner
    Explanation
    A group may provide coverage for their eligible members when they are approved by the commissioner. This means that the group has met the necessary requirements and regulations set by the commissioner, allowing them to offer coverage to their members. The approval by the commissioner ensures that the group is operating in compliance with the rules and regulations of the insurance industry, providing a level of trust and reliability for the coverage being offered.

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  • 15. 

    In order for a rescue squad to be eligible for group insurance, they must have _______ eligible members.

    • 25

    • 15

    • 100

    • 10

    Correct Answer
    A. 15
    Explanation
    A rescue squad must have a minimum of 15 eligible members in order to be eligible for group insurance.

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Quiz Review Timeline (Updated): Mar 22, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 25, 2012
    Quiz Created by
    Vivian Tayor
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