Exam 2

If the owner of an annuity makes a withdrawal from it before age 59 1/2 what will the penalty be

10%

Doris, who is 30 years old, mistakes her age on a life insurance application as being 25 years old so that she could pay $10/$1,000 as opposed to the 30 year old rate of $12/ $1,000. Several years later, when the insurers catches the misstatement of age, how will the difference in premium be adjusted for?

10/12 of the value of the benefit

What % of employee contributions to a 401(k) plane are vested

100%

If an employee elects to continue group health coverage under COBRA after qualifying event, how long must the employer continue coverage for that employee under COBRA and what % of the premium can the employee be required to pay?

18 month/ 102%A

How much continuing education is an agent who holds the life-only and/ or accident & health license AND property and/or casualty broker- agent license required to complete?

24 hours per license term for either license

The pregnancy Discrimination Act requires

Any health insurance provided by an employer must cover expenses for pregnancy- related conditions on the same basis as costs for other medical conditions

Will be automatically deemed qualified as a life settlement broker as if the person were originally licensed as a life settlement broker or provider

Anyone licensed as a Viatical Settlement Broker as of December 31, 2009

If a life insurance producer who has not held a life license for at least one year wishes to act as a broker in arranging life settlements, what must she do first?

Complete 15 hours of required education on life settlement transactions and submit an application for a Life Settlement Broker license along with the applicable fee

A commonly used cost containment measure for emergency hospital care under a major medical expense plan

Deductible

What is the first step in the personal financial planning process?

Define objectives

This government agency would possibly provide coverage if you ran out of coverage under your own health insurance?

Department of Health Care Services (DHCS)

Aleatory contract

If there were a loss, the insurer would pay out considerably more compared to the insured's premium

Not an acceptable reasons for the insured's identity and personal financial and medical information to be disclosed as it pertains to life settlement transactions

It is necessary for the insurer of the policy to be settled to determine if they will allow the life policy to be assigned from the owner to the provider

In a life settlement arrangement between a policy owner and a life settlement provider, how would the policy owner typically be paid?

Lump sum payment

How does Medicare claim get started

Medical provider contacts Medicare

Public Adjuster's letter of representation

Not considered proof of claim under the California Code Regulations

As long as they are representing only the owner and are not being paid directly or indirectly by the provider, what must attorneys, CPAs and financial planners do to be properly licensed to negotiate life settlement contracts on behalf of owners?

Nothing needs to be done as these professionals are allowed by the insurance code to negotiate life settlement contracts on behalf of owners without having to obtain a license as a broker

When an insured reports a loss, the agent becomes obligated by the California Code of regulations to

Notify the insurer immediately

Under ADA this is not considered a disability

Obesity

A distribution made from __ would be a non-taxable distribution

Roth IRA

As it pertains to insurance, which of the following is included in the definition of execution of a policy?

Signing a binder

When an eligible worker dies, this may not be entitled to survivors benefits through SS

The 41 year old widow

What happens to an agents license after all notice of appointments have been terminated

The license is considered to be inactive

Determination of a worker's insured status for Social Security uses

The number of quarters worked

A life settlement broker earns a commission and/or fee for the work he/she does on behalf?

The owner

Best describes how the Return of Premium rider works on a term life policy

The policy owner will receive all or a portion of the premiums paid in over the life of the policy if the insured is still living at the end of the policy's term

When an employee has group term life insurance provided by his employer, how will the policy proceeds paid to the employee's beneficiary be taxed?

The policy proceeds will generally be tax-free to the beneficiary

Main purpose of HICAP

To provide free counseling for the elders

A life settlement between a policy owner and a provider most closely resembles

Viatical Statement

in a group insurance policy, acts of war and aviation are considered examples of

exclusions

How do most disability plans categorize their benefits?

initially own- occupation, then any-occupation

If a life insurance producer who has been licensed as a life agent (or a licensed nonresident producer) in CA for 1 year or longer and wishes to act as a life settlement broker, he must

notify the commissioner within 10 days of the first operating as a Life Settlement Broker and submit the applicable fee to the Department of Insurance

Which type of beneficiary designation gives the policy owner the right to change the beneficiary designation without requiring the beneficiary's consent?

revocable beneficiary designation

Would not be considered a qualifying event under Cal-COBRA

termination, regardless of conduct