Online Access Free Life-Producer Exam Questions

Which activity is an unfair claims settlement practice?

• A.Offering settlements that are less than the fair value to offset insurer expenses
• B.Negotiating the payment of claims where coverage or liability is in question
• C.Denying claims on the basis of specific policy provisions
• D.Including an arbitration provision in the insurer's policies

A policyholder uses a Section 1035 exchange to replace an existing life insurance policy. If the new policy is later surrendered, the gain realized on termination is taxed as:

• A.Ordinary income
• B.Ordinary income plus a 10% surcharge
• C.A deferred capital gain
• D.A capital gain

How often must insurance licensees subject to continuing education meet the educational requirements?

• A.There is no requirement
• B.Every two years
• C.Each year
• D.Every three years

Who normally receives dividends in a stock insurance company?

• A.Shareholders
• B.Producers
• C.Beneficiaries
• D.Only members of the board of directors

A policyholder uses a Section 1035 exchange to replace an existing life insurance policy. If the new policy is later surrendered, the gain realized on termination is taxed as:

• A.Ordinary income
• B.Ordinary income plus a 10% surcharge
• C.A deferred capital gain
• D.A capital gain