EXCEL Final Exam

Which of the following is a type of insurance where an insurer transfers loss exposures from policies written for its insureds?

Reinsurance is an arrangement by which an insurance company transfers a portion of a risk it has assumed to another insurer.

Which of the following types of life insurance is normally associated with a mortgage loan?

Decreasing term insurance is commonly used to protect an insured's mortgage.

Which of the following would be considered an activity of daily living under a long term care policy?

Bathing is considered an activity of daily living (ADL).

Major medical expense plans typically use a cost containment measure for emergency hospital care. This is referred to as a(n): deductible.

Deductibles are used primarily to help control the cost of premiums and reduce overutilization of medical services.

Which of the following types of information is NOT required for a life insurance application?

Ethnicity is not required information needed for a life insurance policy.

What does the term "indemnity" mean as it pertains to insurance?

"Indemnity" means to make whole again, as it pertains to insurance.

Which of the following is NOT a benefit of insurance?

"Losses due to fraud are eliminated" is NOT a benefit of insurance.

Which of these is NOT a valid policy dividend option?

"Monthly income payments" is not a valid policy dividend option.

Who would be most likely to submit a Medicare Part A claim?

A health provider would be responsible for filing the claim.

Which of the following is NOT an important reason for a life insurance application?

A life insurance application is important for all of these reasons EXCEPT "The beneficiary must sign the application before the insurer will issue the policy".

According to section 1729.2 of the California Insurance Code, which of these does qualify as "background information"?

A misdemeanor CONVICTION would qualify as "background information".

In regards to a group health insurance plan, which statement is CORRECT?

A non-contributory group health insurance plan requires 100% participation of all eligible members.

Which of the following risk classifications charges the lowest premium?

A preferred classification charges the lowest premium.

Bruce is involved in an accident and becomes totally and permanently disabled. His insurance policy continues in force without payment of further premiums. Which policy provision is responsible for this?

A waiver of premium provision relieves a policyowner of paying premiums in the event of total and permanent disability.

If a material warranty violation on the part of the insured is found, what recourse does an insurer have?

A warranty in insurance is a statement made by the applicant that is guaranteed to be true in every respect. It becomes part of the contract and, if found to be untrue, can be grounds for revoking the contract.

According to the California Insurance Code, what is "insurance"?

According to the California Insurance Code, "insurance" is a contract to indemnify against loss.

Which of the following is NOT a characteristic of reinsurance?

All of these are reinsurance features EXCEPT "Increase the unaccredited Premium reserve".

What are collateral assignments normally associated with?

Collateral loans are normally associated with bank loans.

Which type of risk is gambling?

Gambling is considered to be speculative risk.

What prevents a life insurance policy from being rescinded by the insurer after being in force for two years?

Insurers are prohibited from denying claims or rescinding a policy based on misstatements in a life, accident, or disability policy application after the policy has been in force for two years. The is called the incontestability clause.

"Life insurance creates an immediate estate". This phrase means: when the insured dies, a death benefit is paid

Life insurance creates an immediate estate by paying a death benefit whenever the insured dies.

Which of the following is considered to be any situation that has the potential for loss?

Loss exposures are situations which have the potential for loss.

How does underwriting differ between group life and individual life insurance?

One difference between group and individual life insurance underwriting is that medical questions must be answered on individual life insurance.

Jim is applying to become an insurance agent and has a past misdemeanor conviction that was later expunged due to California Penal Code 1203.4. Which of the following statements is correct?

Pursuant to California Penal Code Section 1203.4, you are required to report a conviction that was later expunged.

At what age is a surviving spouse without dependents eligible for Social Security survivor benefits?

Reduced widow or widower benefits can be received as early as age 60.

An insurer enters into a contract with a third party to insure itself against losses from insurance policies it issues. What is this agreement called?

Reinsurance is an arrangement by which an insurance company transfers a portion of a risk it has assumed to another insurer.

Which of the following is NOT a factor in determining the morbidity of a group of individuals?

Relevant factors in determining the morbidity of a group of people include all of these EXCEPT race.

Retirement plans cannot favor highly compensated employs. The government regulation that prevents this from happening is called

Retirement plans cannot favor highly compensated employees. The government regulation that prevents this from happening is called nondiscrimination.a

The "blackout period" affects whose benefits?

The "blackout period" is the period of time when a surviving spouse will be unable to receive survivor benefits from Social Security if eligible for benefits. Currently a widow or widower with dependent children will receive survivor benefits until the youngest child reaches age 16 unless the child is disabled.

What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code?

The California Insurance Code defines "illustration" as a presentation of policy features that includes non-guaranteed elements.

Who is financially liable for the payment of covered claims in a fully insured group health plan?

The insurer bears the financial risk for payment of covered claims.

A beneficiary receives only the death benefit earnings in which settlement option?

The interest-only settlement option allows only the death benefit earnings to be paid to the beneficiary.

Which of these is the automatic mode of settlement for life insurance policy proceeds?

The lump-sum cash settlement is considered the automatic (or "default") option for most life insurance contracts.

An insurer can be protected from adverse selection with which policy provision?

The suicide clause protects the insurer against possible adverse selection.

Which statement is CORRECT when describing a contract of adhesion?

With a contract of adhesion, a contract may be accepted or rejected by the insured.

Which of the following types of policies pays a stated amount for each day an individual is hospitalized?

A hospital indemnity policy pays a specified amount on a daily, weekly, or monthly basis to the insured while the insured is confined to a hospital.

Who does a life settlement broker represent?

A life settlement broker represents the individual wanting to sell their life policy to a third party.

Which of the following risk classifications charges the highest premium?

A substandard classification charges the highest premium.

An annuitant would like to determine the current value of her annuity. To do this, she multiplies the number of "accumulation units" she owns times the unit value of the "separate account". What kind of annuity BEST matches this description?

A variable annuity holds its investments in an insurer's separate account, as opposed to the insurer's general account. These separate accounts usually hold non-guaranteed equity investments such as stocks and mutual funds. Variable annuities shift the investment risk from the insurer to the annuity owner.

All of the following circumstances must be met for loss retention to be an effective risk management technique, EXCEPT: Probability of loss is unknown.

Loss retention is an effective risk management technique with all of these conditions exist EXCEPT when the probability of loss is unknown. The loss MUST be predictable.

Restoring an insured to the same condition as before a loss is an example of the principle of

Making an insured whole restoring them to the same condition as before a loss is an example of the principle of indemnity.

Medical expense policies will typically cover which of the following?

Medical expense policies will typically cover injuries caused by accidents.

Individuals age 65 or older are exclusively eligible for which optional program?

Medicare Part B is optional. Those who receive Social Security benefits are automatically enrolled in Medicare Part A. Therefore, participation in Medicare Part A really is not optional. Long-term care plans are not restricted to those age 65 or older.

What are members of the Medical Information Bureau (MIB) required to report?

Members of the Medical Information Bureau are required to report medical impairments found during the underwriting process.

Moral hazard is described as the : increased chance of a loss because of an insured's dishonest tendencies.

Moral hazard can be defined as the increased chance of a loss occurring due to the insured's dishonest tendencies.

The probability of death, listed by year, is demonstrated in mortality tables.

Mortality tables give a measure of the number of deaths in a given population over a certain period of time.

Scott has just purchased a new house. He is now shopping for a life insurance policy that provides a death benefit that matches the projected outstanding debt of his mortgage. Which life policy would best suit his needs?

Mortgage redemption insurance is a decreasing term life policy taken by a debtor to repay the balance on a mortgage loan if he or she dies before repayment.

What does the term coinsurance refer to?

After the insured satisfies the deductible, the insurance company pays a high percentage of the additional expenses (usually 75% or 80%) and the insured pays the remainder.

Which of the following is NOT considered to be insurer expenses?

All of these are insurer expenses EXCEPT policy premiums.

Which of the following is a life insurance policy that does NOT require a physical exam?

Non-medical life insurance policies are written without a physical exam.

If an insured dies because of an accident, which type of life insurance rider will provide additional coverage?

An accidental death rider provides additional coverage in the event of accidental death.

The systematic liquidation of a sum of money is provided by a(n) : annuity.

An annuity contract provides for the systematic liquidation of a fund.

What is an insurance solicitor authorized to do?

An insurance solicitor is a person authorized to assist a broker or agent in selling insurance.

Business Overhead Expense Insurance pays for : business expenses when a business owner becomes disabled.

Business Overhead Expense Insurance is designed to pay business expenses incurred when a business owner is disabled.

Bob and Tom are partners in a business. If one of them were to die, which of the following would guarantee a market for each of their share of the business?

Buy-Sell agreements (also known as Business Continuation agreements) are used to assure the ownership of a business is properly transferred upon the death or disability of an owner or partner.

Buy-sell plans are typically funded by which two types of insurance?

Buy-sell plans are normally funded by life insurance and disability insurance.

Which of the following terms is NOT associated with a Major Medical policy?

Capitation is the method in which HMO providers are paid.

All of the following are considered characteristics of group life insurance, EXCEPT :

Characteristics of group life insurance include all of these, EXCEPT "individual policies".

What does the insurance term "indemnity" refer to?

Contracts of indemnity attempt to return the insured to their original financial position, or "made whole".

Coverage for care received from a network provider pays more than care received from a non-network provider in what type of health plan?

Correct. A Preferred Provider Organization (PPO) pays more for care received from a network provider than it pays for care from a non-network provider.

Mark, age 45, has a Modified Endowment Contract (MEC). What is the tax penalty for taking a loan against this policy prior to age 59 1/2?

Penalty taxes (10%) on premature distributions prior to age 59 ½ from a modified endowment contract (MEC) normally apply to policy loans.

Which of the following does Medicare Part A NOT provide coverage for?

Doctor's services are covered in Medicare Part B.

Individuals become eligible for Medicare Part A benefits at what age?

Eligibility for Medicare Part A benefits begins at age 65.

Which statement is TRUE regarding Workers' Compensation coverage

Employers pay the entire premium for Workers' Compensation coverage.

The California Insurance Code allows an individual how many days to cancel a life policy for a full-refund?

Every policy of individual life insurance shall have a notice stating that after receipt of the policy by the owner, the policy may be returned by the owner for cancellation by delivering it or mailing it to the insurer or to the agent through whom it was purchased. This period shall not be less than 10 days nor more than 30 days.

What type of changes can be made to a guaranteed renewable health insurance policy?

Guaranteed renewable policies normally have increasing premiums after renewal.

What type of coverage pays a benefit for part-time nursing care that can be provided in a patient's home?

Home health care is provided in the insured's home, usually on a part-time basis.

In California, an insurer organized under the state laws of Oregon is called a(n) : foreign insurer.

In California, an insurer organized under the state laws of Oregon is considered a foreign insurer.

Employee Stock Ownership Plan (ESOP)'s are typically invested in : employer stock.

In an ESOP, companies provide their employees with stock ownership, often at no up-front cost to the employees.

An employee for XYZ Corp is injured on the job. Where does coverage for the employee's injuries come from?

In this situation, coverage for the employee's injuries comes from XYZ's Workers' Compensation.

Which of the following is an example of a third-party administrator?

Self-funded plans commonly use the services of an insurance company to act as a third-party administrator of the plan. Insurers may provide such services without responsibility for claims payment.

Which of the following is NOT considered a definition of risk?

Something that can cause a loss, such as an earthquake or tornado, is referred to as a peril, not a risk.

What area of group health insurance is regulated under the Employee Retirement Security Act of 1974 (ERISA)?

The Employee Retirement Security Act of 1974 (ERISA) regulates group health insurance in the area of disclosure and reporting.

Employer-provided group term life insurance is exempt from income taxation up to : $50,000.

The IRS requires the cost of employer-provided group life insurance above $50,000 to be taxable as income to the employee.

How is the cost of employer-provided group life insurance with coverage amounts above $50,000 treated for tax purposes?

The IRS requires the cost of employer-provided group life insurance above $50,000 to be taxable as income to the employee.

Which provision will pay a portion of the death benefit prior to the insured's death due to a serious illness?

The accelerated death benefit provision will pay a portion of the death benefit prior to the insured's death due to a serious illness.

The free-look period for life insurance policyowners age 60 or older is : 30 days.

The free-look period for life insurance policies on individuals age 60 and older is 30 days in California.

What does the grace period allow a life insurance policyowner to do?

The grace period allows a life insurance policyowner to make a premium payment after the due date without any loss of coverage.

A health insurance policy paid on a quarterly basis has a grace period of 31 days.

The grace period on a quarterly-paid health insurance policy is typically 31 days.

Which policy provision protects the policyowner from unintentional lapse of the contract?

The grace period provision protects the policyowner from an unintentional lapse of the contract.

What is the insurance term the State of California uses for an insurer that is eligible to transact business in this state?

The insurance term for an insurer which has met the conditions required to transact business in the State of California is "admitted".

Which of the following statements about aleatory contracts is NOT true?

The insured and the insurer contribute equally to the contract

Kim is insured under a disability income insurance policy with an "own-occupation" clause. She was recently injured in an automobile accident and can no longer perform the tasks of her job. Kim is now considered to be : totally disabled.

The own occupation definition of total disability requires that the insured be unable to perform the insured's current occupation as a result of an accident or sickness.

Who is issued a certificate of insurance with a group insurance policy?

The participant is issued a certificate of insurance with a group insurance policy.

Which of the following is NOT required in the content of a policy?

The probability of loss is not required in the content of a policy.

Which of these statements is true concerning recurrent disabilities?

The recurrent disability insurance provision is designed to make sure that a person does not have to go through more than one elimination period within a certain period of time.

After a policy has lapsed, which provision allows the insured to continue coverage?

The reinstatement provision allows an insured to continue coverage under a previously lapsed policy.

Disabled workers are covered under Workers' Compensation medical expense benefits for how long?

There is no time limit on how long Workers' Compensation medical expense benefits continue for disabled workers.

According to Social Security, an individual with 6 credits of coverage during the previous 13-quarter period is considered to be:

To be considered "currently insured" and eligible for limited survivor benefits, you must have 6 credits of coverage during the last 13-quarter period.

Which of the following is NOT a risk classification that an underwriter would use?

Underwriters classify insurance risks as all of these EXCEPT "Dividend risk".

All of these are common personal uses of life insurance EXCEPT : funding a buy-sell agreement

Using life insurance to fund a Buy-Sell agreement is a business use of life insurance.

Which word implies permissiveness according to the California Insurance Code?

When found in California Insurance Code, the word "may" implies permissiveness.

Jim is the insured on a health insurance policy and holds two jobs. If "occupation" is used to classify the risk, the insurer will most likely classify Jim according to the occupation that : is the most hazardous.

Where a person has more than one occupation, they should be rated for the occupation that represents the higher risk.

Allen has a disability income policy with a $2,500 monthly benefit and a 30-day elimination period. He is unable to work 90 days following an automobile accident. What will the policy pay?

90 days - 30 day elimination period is 60 days (2 months). 2 months X $2,500/month benefit = $5,000 total benefit paid.

Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown event?

An insurance policy is a contract where one party promises to indemnify another against loss that arises from an unknown event.

Which of the following statements do apply to child coverage in a family policy?

Children born AFTER the policy's issue date may be covered in a family policy.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) applies to employers who employ at least 20 employees.

Group health plans obligated by the Consolidated Omnibus Budget Reconciliation Act (COBRA) cover groups of at least 20 employees.

The California Insurance Code has authorized standards for names used by life insurance agents. Which of the following, if any, are automatically acceptable for Lance Manyon, a holder of the CLU designation?

If the word "Insurance" is included in the name, the California Department of Insurance then checks to make sure one of the six definitive words ("Agency," "Services," "Marketing," "Sales", "Center" or "Solutions") is also included in the name. In this instance, Lance Manyon Insurance Services would be acceptable.

An eligible individual who would like to obtain group health insurance without providing evidence of insurability must: enroll within a specified eligibility period.

In order to obtain group insurance without providing evidence of insurability, eligible individuals generally have to enroll within a specified eligibility period.

Non-deductible contributions are typically associated with a : Roth IRA

No income-tax deductions can be taken for contributions made to a Roth IRA, but the earnings on those contributions are entirely tax-free when they are withdrawn.

During the underwriting process for a group health policy, it was discovered that 15 out of 50 members of the group have major health issues. How would the insurer handle this?

The approach in underwriting group health plans evaluates the group as a whole, rather than individuals within the group. Based on the group's risk profile, the group is either accepted or rejected.

What is the proper order of initial life insurance premiums, from lowest to highest?

The order of initial premiums for life insurance policies, from lowest to highest, is the following: modified premium, ordinary life, single premium. (M,O,S)

When a claimant has coverage under more than one health plan, which group medical plan provision applies?

The purpose of the 'coordination of benefits' provision is to avoid duplication of benefit payments and over-insurance when an individual is covered under more than one group health plan. The provision limits the total amount of claims paid from all insurers covering the patient to no more than the total allowable medical expenses.

The insurer has the option of terminating a health insurance policy on a date stated in the contract. What type of policy is this?

The renewability provision in an optionally renewable policy gives the insurer the option to terminate the policy on a date specified in the contract. Furthermore, this provision allows the insurer to increase the premium for any class of optionally renewable insureds.

Paul has an existing annuity and is sold a new one, in which the new policy holds no greater financial benefit to him than the existing contract. This is considered a(n) : unnecessary replacement.

This is an example of unnecessary replacement.

Coverage is limited for vision and dental insurance in all of the following ways, EXCEPT

Vision and dental insurance usually limits coverage in all of these areas, EXCEPT "Specific dollar amount for examinations".

Which of the following is NOT typically covered under vision care insurance?

Vision care insurance usually covers all of these except for eye surgery.

Which of the following best describes the statement "The more times an event is repeated, the more predictable the outcome becomes"?

"The more times an event is repeated, the more predictable the outcome becomes" is an example of the law of large numbers.

Which of the following is NOT included under long-term care insurance?

An acute illness is a serious condition (such as pneumonia or influenza) from which the body can fully recover with proper medical attention. A long-term care policy will typically NOT cover expenses associated with acute care provided in a hospital.

An insurance company entitled to transact business in California is called a(n) : admitted carrier.

An admitted California insurance carrier is one that submits to specific requirements set forth by the California Department of Insurance (CDI).

Which statement is NOT true regarding Social Security benefits?

Social Security Disability benefits are NOT designed to replace 100% of the worker's earnings. Benefits are based on the worker's Primary Insurance Amount (PIA) and paid as a percentage of the worker's PIA.

Which of the following describes the increase in the probability of a loss due to an insured's dishonest tendencies?

The increase in the probability of a loss resulting from an insured's dishonest tendencies is known as moral hazard.

Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary?

The installment refund option guarantees that the total annuity fund will be paid to the annuitant or to the annuitant's beneficiary. In this situation, the annuitant dies 5 years into a 10-year certain annuity. This leaves the remaining 5 years (60 monthly payments) payable to her beneficiary.

Which of the following describes the number of deaths in a year compared to the number of people in a select group?

The number of deaths during a year compared with the total number of persons exposed in the class is known as the mortality rate.

What is the price of insurance for each exposure unit?

The price of insurance for each exposure unit is called the rate.

The problem of overinsurance is addressed in which health insurance provision?

The purpose of the coordination of benefits (COB) provision is to avoid duplication of benefit payments and over insurance when an individual is covered under more than one group health plan.

Jerry is an insured who understated his age on his life insurance application, paying $12 per $1,000 of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be calculated?

In this situation, the adjusted death benefit will be calculated at 12/15th of the policy's face amount.

Which statement about Health Maintenance Organizations is NOT true?

All of these statements are correct about HMOs EXCEPT "When a member uses out-of-network providers, a higher monthly fee is charged".

Health insurance policies typically contain a provision stating that insureds and their insurer will share covered losses in an agreed proportion. Which provision does this refer to?

Coinsurance is a sharing of expenses by the insured and the insurer. Once the insured satisfies the deductible, the insurance company pays a high percentage of the additional expenses (usually 75% or 80%) and the insured pays the remainder.

How are death benefits that are received by a beneficiary normally treated for tax purposes?

Death benefits that are received by a beneficiary are generally exempt from federal income tax.

The misstatement of age provision in a health policy states that if an insured gives the wrong age at the time of application, what action can the insurance company take?

If the insured's age or sex is misstated in an application for insurance, the benefit payable is adjusted to reflect the actual age or sex of the insured.

Manuel is considered to be a disabled person as defined by the Americans with Disabilities Act (ADA). As such, he is unable to perform any of the following life activities EXCEPT : driving.

Major life activities include, but are not limited to, caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, and working.

Christine has a health insurance policy that has been in force beyond the incontestable period. The insurer has discovered that a fraudulent statement was made on the application. What would the insurer have to pay on a claim, assuming this wasn't a guaranteed renewable policy?

Nothing will be paid because fraud was committed during the application process, which is grounds for contest at any time with a health insurance policy.

Dyan is considered partially disabled by her insurance company. Which of the following BEST describes her situation?

Partial disability is the inability of the insured to perform one or more important duties of the job or the inability to work at that job on a full-time basis, either of which results in a decrease in income.

Under a long-term care insurance policy, adult day care coverage will provide for: part time care at a facility for elderly individuals who live at home

Under a long-term care insurance policy, adult day care coverage will provide for part time care at a facility for elderly individuals who live at home.

Which of the following types of life insurance combines a savings element along with a flexible premium option?

Universal life combines a savings element along with a flexible premium option.

Before an insurer is allowed to test an individual for HIV, what must be completed?

A consent form must be completed before an insurer is permitted to test an individual for HIV.

Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"?

A contract that restores an injured party to the condition that was present before the loss is an indemnity contract.

Tom is shopping for a policy that covers two people and would pay the face amount ONLY when the first person dies. The type of life policy he is looking for is called a: joint life policy.

A joint life policy covers two or more people and pays the face amount at the first insured's death.

A savings vehicle designed to first accumulate funds and then systematically liquidates the funds is called a(n): deferred annuity.

A savings vehicle designed to first accumulate funds and then systematically liquidates the funds is called a deferred annuity.

Which of the following is a situation where there is a possibility of either a loss or a gain?

A situation in which there is a possibility of a loss or a gain is a speculative risk.

Under the California Insurance Code, a licensee's license number must be printed at what size on all price quotes, business cards, and printed material?

According to state law, the same size print as the licensee's phone number, fax number, or address must be used for the licensee's license number on all price quotes, business cards, and printed material.

After the annual deductible is met, a Medicare Part B patient will pay ___ of the remaining covered expenses.

After the annual deductible is met, a Medicare Part B insured will pay 20% of the remaining covered expenses. Medicare Part B pays 80%.

Which of the following is NOT a primary objective of insurance regulation?

All of these are considered objectives of insurance regulation EXCEPT "Interpret policy provisions".

Buy-sell plans are normally funded by life insurance and disability insurance.

An agent acting as an insurance agent, broker, solicitor, life agent, or bail agent acts in fiduciary capacity when handling premiums or return premiums.

An agent's attempt to stop the replacement of an existing life insurance policy is known as : conservation

An agent's attempt to stop the replacement of an existing life insurance policy is known as conservation.

An annuity which is backed by a life insurer's separate account is called a(n) : variable annuity.

An annuity which is backed by a life insurer's separate account is called a variable annuity.

Which of the following is NOT a required uniform provision in individual health policies?

An insured's change of occupation is not a required uniform provision in individual health insurance policies.

When an insurance company requests an attending physician's report, the request must be accompanied by a :copy of the signed authorization.

An insurer's request for an attending physician's report must be accompanied by a copy of the signed authorization.

Failure to report background changes within 30 days as required under section 1729.2 of the California insurance code could subject a license or applicant to : denial, fine, suspension.

Failure to report background changes within 30 days as required under Section 1729.2 of the California Insurance Code could subject a licensee or applicant to formal disciplinary action, including a fine, suspension, denial, restriction, or revocation of the license.

Which of the following is NOT included in comprehensive major medical plans?

First-dollar coverage is not normally associated with comprehensive major medical plans.

An agent has advertised that the insurer to which the agent is appointed with is a member of the Insurance Guarantee Association. This agent has committed a(n) : unfair method of competition.

It is considered an unfair method of competition for an agent to advertise that the insurer to which the agent is appointed with is a member of the Insurance Guarantee Association.

How long must life agents keep their transaction records?

Life agents must keep transaction records for 5 years.

Why is a life insurance policy's delivery date important?

The California Insurance Code gives an individual between 10 and 30 days to return a life policy for cancellation. This free-look period begins on the policy delivery date.

Which Social Security status does a worker with 6 quarters of coverage during the last 13-quarter period have?

To be considered "currently insured" you must have 6 quarters of coverage during the last 13-quarter period.

In order to be considered "currently insured" under Social Security, an individual must be credited with: 6 quarters of coverage during the last 13-quarter period

To reach currently insured status under the Social Security system, an individual must be credited with a MINIMUM 6 quarters of coverage during the last 13-quarter period.