Questions and Answers
What is usually payable to the beneficiary if the insured dies during the grace period of an unpaid life insurance policy?
When is an insurance agent's license renewed?
What is a restriction on commission sharing for an insurance agent?
What is 'twisting' in the context of insurance?
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When is interest charged on policy loans?
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What can result in the revocation of an insurance agent's license?
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What does 'knocking' mean in the insurance industry?
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What happens to the beneficiary if the insured dies during the grace period of an unpaid life insurance policy?
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What does a joint life annuity promise to pay?
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What is NOT a prohibited practice for an insurer?
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What are the three non-forfeiture values in a permanent policy?
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What are the basic settlement options for a life insurance policy?
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What will the insurance company pay if an applicant misstates their age on a life insurance application?
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What is the use of a mortality table in insurance?
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Study Notes
Life Insurance Policy Provisions
- If the insured dies during the grace period of an unpaid life insurance policy, the beneficiary receives the face amount minus the unpaid premium.
Insurance Agent License
- An insurance agent's license will be renewed when the Commissioner is satisfied that the information in the application is accurate and all requirements are met.
- An insurance agent's license is valid for a specific period, not a lifetime, and requires renewal.
- To renew a license, the corresponding application and fee must be received by the Insurance Commissioner.
Commission Sharing
- An agent is allowed to share commissions with another licensed agent or agents, but not with anyone else.
Policy Replacement
- Persuading a policyowner to surrender or lapse a policy in one company and replace it with a policy from another company is called twisting.
Policy Loans
- Interest is charged on policy loans to replace investment income the insurer cannot earn since a loan has been granted.
- The interest charged on policy loans is not limited to a specific type of policy.
Insurance Agent License Revocation
- An insurance agent's license can be revoked for fraudulent practices, violation of any provision of the Insurance code, or misrepresentation in the application for license.
Insurance Terminology
- Knocking refers to making derogatory remarks about competing underwriters or companies.
Non-Forfeiture Values
- The three non-forfeiture values in a permanent policy are cash surrender value, loan value, and extended term insurance.
Settlement Options
- The basic settlement options are fixed amount, fixed period, interest, fixed period, and life.
Misstatement of Age
- If the policyholder misstates their age or their beneficiary's age, the insurance company will pay the face amount adjusted for the misstatement of age.
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Description
Test your knowledge of life insurance policies, including death during the grace period and license renewal for insurance agents.