An insured wants to purchase a policy with three key elements: flexible premium, death benefit, and the choice of mutual funds where the cash value will be Invested In a separate account. The Insured should purchase

A. universal life.

B. adjustable life.

C. variable universal life.

D. graded premium whole life.

If an agent does NOT send a refund to a policyholder within an expectable time frame, the agent may

A. be barred from seeking an appeal.

B. receive a deduction in commissions.

C. be charged interest on the refund amount.

D. have his or her license suspended or revoked.

Upon the divorce of an insured who designated their spouse as the beneficiary, which of the following actions will result?

A. the insured must pay 50% of the premiums paid to the spouse named as the beneficiary

B. the spouse designated as beneficiary will remain an irrevocable beneficiary

C. the designation of the spouse as a beneficiary is revoked

D. the policy will automatically be terminated

An insured has chosen to receive the payout from her husband's life insurance policy so that she will receive an Income for the next 10 years. At the end of that time, the entire proceeds from the policy will have been paid out. The insured has selected which option?

A. Fixed period.

B. Interest only.

C. Fixed amount.

D. Life income.

An annuitant dies during the accumulation period. What happens to the cash value in the annuity?

A. The cash value is paid to the beneficiary.

B. The cash value is paid into the estate.

C. The cash value is paid to the IRS.

D. The company keeps the cash value.

Insurers do business in Ohio only after a thorough financial review. Most insurance policies written in Ohio are protected by the Guaranty Association established to protect policy owners In the event an admitted company

A. cannot meet it's capital surplus requirements.

B. merges with a foreign insurer.

C. becomes financially insolvent.

D. depletes its loss reserves.

In which of the following fixed annuity features Is the surrender value tied to Interest rates?

A. fixed value rates

B. variable sub accounts

C. market value adjustments

D. interest sensitive trigger

An Individual buys an annuity that will pay her spouse an income for 20 years. If the spouse dies within that time, the Income will be paid to their children for the remainder of the period. What kind of annuity did the Insured buy?

A. Life annuity with period certain

B. Joint life and survivorship annuity

C. Joint life annuity

D. Temporary annuity certain

When a policy owner requests a partial surrender from her Universal Life Policy she Is requesting which of the following?

A. Cash withdrawal.

B. A loan from the policy.

C. Surrender of the policy.

D. Decrease In the coverage amount.

An exposure Is a condition or situation that presents the possibility of

A. hazard.

B. peril.

C. indemnity.

D. loss.