Insurance
An insurer has been found guilty of a code violation regarding replacement. The insurer then repeals the violation. What will be the minimum penalty?
$30,000
Anyone convicted of committing an insurance fraud may be fined up to the greater amount of doubts the value of the fraud or?
150,000
As part of the continuing education requirement, what is the minimum number of hours of continuing education specific to long-term care insurance to be completed prior to each license renewal?
8
For senior agents, the requirement for continuing education for California Partnership for long-term care policies is
8 hours each reporting period.
The legal definition of "person" would not include which of the following?
A family
Insurance policy is?
A written instrument in which a contract of insurance is set forth
The set of regulation issued by the California insurance commissioner that identifies the standards for the insurance code and how it is to be administered is known as the?
Administrate code of regulation
An insured pays a 100 premium every month for his insurance coverage. Yet the insurer promises to pay 10,000 for a covered loss. What characteristic of any insurance contracts does this describe?
Aleatory
The least expensive first-year premium is found in which of the following policy's?
Annually renewable term
Who is eligible to purchase an IRA?
Anyone who has earned income
Employer contributions made to a qualified plan?
Are subject to vesting requirements
Any insurance agent who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation
Be fined a sum of $1,000.
An insurer who engages in the insurance business and violates the code with respect to insurance replacement shall on the first violation?
Be fined a sum of $10,000
All of the following are requirement of eligibility for social security disability income benefits except?
Being age 65
When the partners of a business develop an arrangement whereby should one of them die or become permanently disabled, the other partners would purchase the interest of the deceased or disabled partner at a predetermined price, this is called a/an
Business continuation plan
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process?
Buyer's Guide
Which of the following elements in an indexed universal life policy is tied to an index?
Cash values
A tax-sheltered annuity is a special tax-favored retirement plan available to?
Certain groups of employees only.
An insurance contract requires that both the insured and the insurer meet certain condition in order for the contract to be enforceable, what contract characteristic does this describes?
Conditional
Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as?
Contracts of Adhesion
All of the following statements are true of a non qualified retirement plan except?
Contributions are tax exempt
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?
Cost of Living Rider
Which of the following is not fundable by annuities?
Death benefits
Which of the following is not a term for the period of the time during which the annuitant or the beneficiary receives income?
Depreciation period
Of the following, which is not considered a general duty or power of state insurance commissioner?
Develop and implement laws to regulate the business of insurance
The types of police's that are covered under the terms of the associated includes?
Direct no group life, health, annuity and supplemental police's.
What is the term for a sakes campaign conducted through the mail?
Direct-response
In the Executive bonus plan, who is the owner of the policy and who pays the premium?
Executive is the owner, and the executive pays the premium
An agent selling variable annuities must be registered with?
FINRA
To sell variable life insurance police's, an agent must receive all of the following except?
FINRA registration
To make sure that an agent license stays active, the insurer must see that all of the following are done except?
File a surety bond with the commissioner.
Which of the following life insurance police's does not build cash value?
Guaranteed
Event or conditions that increase the chances of an insured loss occurring are referred to as?
Hazards
Which of the following is true regarding a policy with a face value less than 10,000?
If it's returned during the free look period, the agreement will be void.
The key factor of representation, that allows the injured party to rescind the contract is?
If the representation is false in a material point
Annually renewable term police's provide a level death benefit for a premium that?
Increases annually
What type of insurance would be used for a Return of Premium rider?
Increasing Term
A life insurance policy has a legal purpose if both of the following elements exits?
Insurance interest and consent
Which of the following must be disclosed in all advertisements and police's of term life insurance for individuals 55 years of age or older?
Insurance monetary value index
Which of the following best defines earned surplus?
Insurer's unassigned funds.
The policy owner wants to make sure that upon his death, the left policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose?
Interest only option
What is the benefit of choosing extended from as a non forfeiture option?
It has the highest amount of insurance protection
Which is the benefit of choosing extended term as a non forfeiture option?
It has the highest amount of insurance protection.
If a retirement plan or annuity is "qualified", this means
It is approved by the IRS
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date prior to the policy issue.
Variable whole life insurance is based on what type of premium?
Level fixed
Which of the following is an example of a limited pay life policy?
Life Paid-up at Age 65
If a settlement option is not chosen by the policy owner or the beneficiary, what option will be used by the insurer?
Lump-sum payment
When calculating the amount a policy owner may borrow from a variable life policy. What must be subtracted from the policy cash value?
Outstanding loans and interest
An insured who sign a fraudulent claim from may be guilty of?
Perjury
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
Predicted needs of the family after the insured's death.
To achieve the profitable distribution of exposures?
Preferred risk and poor risk are balanced. With average risk in the middle.
When may a representation be withdrawn?
Prior to the issuance of the policy
Profitable distribution of exposures serves the purpose of?
Protecting the insurer against adverse section.
Which of the the following insurance option would be considered a risk sharing arrangement?
Reciprocal
Which non-forfeiture option provides coverage for the longest period of time?
Reduced Paid-Up
All of the following topics may be included in the continuing education requirement for long-term care insurance except?
Sales techniques and overcoming client objectives in the purchase of long-term care insurance.
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 Exchange
Every long-term care insurer in California must submit to the Commissioner a list of all agents or other insurer representatives authorized to solicit individual consumers for the sale of long-term care insurance. These submitted agent lists must be updated at least?
Semiannually
Upon policy delivery, the producer may be required to obtain any of the following except?
Signed waiver of premium
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured age 100 is called?
Single premium whole life
The advantage of qualified plans to employers is?
Tax-deductible contributions
What method is used to determine the taxable portion of each annuity payment?
The Exclusion ratio
All of the following are reason an insurer or an insured would have the right to rescind a policy except?
The amount of paid claims exceeds the premiums paid
Which of the following is not true regarding the annuitant?
The annuitant cannot be the same person as the annuity owner
Which of the following is not the consideration in a policy?
The application given to a prospective insured
If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?
The balance of the loan will be taken out of the death benefit
Which of the following entities may not be an insurer?
The commissioner
In a case where the primary beneficiary pre deceased the insured, in the event of the insured death, the death benefit proceeds will be paid to?
The contingent beneficiary
An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?
The cost of coverage is a deductible expense by the employer
An agent may satisfy the continuing education requirement by attending any course approved by the Commissioner, as long as?
The course satisfies the minimum time requirements for continuing education credit.
Which of the following best describes the insurer's liability for losses arising from the military service?
The insurer's liability may be reduced or excluded.
All of the following are true of an annuity owner except?
The owner must be the party to receive benefits.
All of the following statements are true regarding installments for a fixed amount except?
The payments will stop when the annuitant dies.
All of the following are true about variable products expect?
The premiums are invested in the insurer general account.
When a replacement carrier has a question regarding the prior carriers coverage, from which of the following can they demand a clarification?
The prior carrier
All of the following are true regarding a decreasing term policy except?
The provable premium amount steadily declines throughout the duration of the contract.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
Which of the following statements regarding compensation funds is incorrect?
They are usually qualified plans
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years.
What is the purpose of annuity riders?
To allow investors to obtain additional benefit
The paid up addition option uses the dividend?
To purchase a smaller amount of the same type of insurance as the original policy.
Social Security was created to provide all of the following benefits except?
Unemployment income
During the free-look period, the premium for a variable annuity may be invested in all of the following EXCEPT
Value funds
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
In forming an insurance contract. When does acceptance usually occur?
When an insurer's underwriter approves coverage
Which of the following statements regarding the taxation of modified endowment contracts is false?
Withdrawals are not taxable
Which of the following describe the taxation of an annuity when money is withdrawn during the accumulation phase?
Withdrawn amounts are taxed on a first in, last out basis
When the policy owner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
a fixed amount
Who is protected by a temporary insuring agreement?
applicant and insurer
Life income joint and survivor settlement option guarantees?
income for 2 or more recipients until they die
Which of the following is true regarding a single life settlement option?
it provides income the beneficiary cannot outlive
What is the term used when a person sells his assets as a way to gain money?
liquidation
Another name for a substandard risk classification is?
rated
When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?
spendthrift provision
An applicant buys a nonqualified annuity, but dies before the starting date. For which of the following beneficiaries would the contract's interest NOT be taxable?
spouse
What type of account will most likely be established for a minor?
to trust
To which of the following products does the replacement regulation apply?
whole life insurance
