A life insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible, Which term describes what the agent has done?
The Director may require a producer to submit fingerprints in all of the following situations EXCEPTUpon insurer insolvency.
Upon license issuance, renewal, suspension, revocation, merger or acquisition, the Director may require producers to submit full sets of fingerprints.Who requires that a prospective producer take and pass a written examination on the kinds of insurance business specified in application?DirectorAll of the following are true regarding rebates EXCEPTDividends are not considered to be rebates.
B. Rebates are allowed if it is in the best interest of the client.
Rebates are only allowed if specifically stated in the policy.
Rebating can be anything of monetary value given as an inducement to purchase insurance.In Arizona, the Director of Insurance servesAt the pleasure of the Governor.If a premium payment is mailed, how can an insurer establish the date of payment?The postmark on the envelopeIf taken as a lump sum, life insurance proceeds to beneficiaries are passedFree of federal income taxation.Which of the following best describes taxation during the accumulation period of an annuity?Taxes are deferred.What part of the Internal Revenue Code allows an owner of a life insurance policy or annuity to exchange or replace their current contract with another contract without creating adverse tax consequences?Section 1035 Policy ExchangeIn life insurance policies, cash value increasesGrow tax deferred.When contributions to an immediate annuity are made with before-tax dollars, which of the following is true of the distributions?Distributions are taxable.An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?He will have to pay a penalty if he is younger than 59 1/2.What type of annuity activity will cause immediate taxation of the interest earned?Surrendering the annuity for cashWhich of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?Withdrawals are not taxable.Which of the following is used to determine the annuity amounts that are not taxable?Exclusion ratioDeath benefits payable to beneficiary under a life insurance policy are generallyNot subject to income taxation by the Federal Government.What is the penalty for IRA distributions that are below the required minimum for the year?50%If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?It is only taxable if the cash value exceeds the amount paid for premiums.The national do not call registry was created to regulatetelemarketersthe 30 day payment of claims requirement applies to which of the following persons?a state worker filling a person injury claimWhich of following is Not qualification for obtaining a producers license?must be retained by a licensed insurance agencyWho decides if a licensed property or casualty insurance producer can be licensed as a resident surplus line brokerthe directorAny person who knowingly attempts to obtain money, goods, or any other things of value with the intent to cheat and defraud is guilty ofa felonyWhich of the following would be considered an illegal inducement to purchase insuranceconfirming future dividends in a life insurance proposalHow many hours of continuing education are producers required to complete every licensing period?48Which of the following could be considered an adjusterpaid claim investigatorsWhich of the following pays for the examination of an insurer's services fees to determine compliance with the state insurance codethe insurerIf after an examination and a hearing the director determines that an insurer has failed to comply with the insurance code statutes regarding charging extra fees or applying service charges, the director will order the insurer torefund the fee to the customerWhich of the following is a qualification for an adjuster's licensemust be at least 18Which of the following best describes the unfair trade practice of defamationmaking derogatory oral statements about another insurer's financial conditionThe following are all causes for the insurance director to suspend or impose conditions upon the continuance for a producers license exceptevidence that the producer is a poor personal credit riskIf an insurance policy does not have the proper countersignaturethe policy will still be considered valid
