License Exam

Are considered true to the best of the applicant's knowledge.

Representations are written or oral statements made by the applicants which

Grace Period

The AUTOMATIC PREMIUM LOAN provision is ACTIVATED at THE END of the

Status established by the STATE OF LEGISLATURE

The California Insurance CODE IS?

When the income payments begin.

The MAIN DIFFERENCE between IMMEDIATE and DEFERRED ANNUITIES is...

A presentation of non guaranteed elements of a policy.

The TERM "Illustration" in life insurance policy refers to

Both the insurer and the insured to rescind.

The VIOLATION of a MATERIAL WARRANTY or other MATERIAL PROVISION of a policy allows

Universal Life

The WAIVER of COST of insurance RIDER is FOUND in WHAT TYPE OF insurance?

Cancellation

The act of REVOKING or TERMINATING an insurance policy is Called

The Insured's age death. (The insured age at death will not be covered but the longer the life expectancy of the recipient, the lower the payment will be.

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, the amount of payments will be determined by taking into account all of the following EXCEPT.

$300,000 (triple the amount of policy value)

The insured under $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case. WHAT WILL THE POLICY BENEFICIARY RECEIVE?

Point bold print

The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket in a least what type o print?

Interest Only Option

The policy owner wants to make sure that upon his death, the life 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?

Entire Contract

The provision which states that both the policy and a copy of the APPLICATION FORM the CONTRACT between the POLICY OWNER and the INSURER is CALLED THE

Credit Life

The type of insurance sold to a debtor and designed to pay the amount due loan if the debtor dies before the loan is repaid

Whole life insurance

To which of the following PRODUCTS does the REPLACEMENT REGULATION apply?

Signed waiver of premium

Upon POLICY DELIVERY, the PRODUCER may be required to OBTAIN any of the following EXCEPT

Level fixed

Variable life insurance is based on what kind of premium?

Earned Income

WHAT QUALIFIES an INDIVIDUAL to CONTRIBUTE to an IRA?

Per Stirpes

What TYPE of BENEFICIARY designation ALLOWS the benefit to PASS from DECEASED PRIMARY beneficiary to the BENEFICIARY'S HEIRS, instead of splitting the benefit among SURVIVING primary beneficiaries?

Direct-response

What is the TERM for a SCALES Campaign CONDUCTED trough the MAIL

Foreign

When DOING BUSINESS in THIS STATE, an insurance company that is formed under the LAWS of ANOTHER STATE is known as which TYPE of INSURER

Business Continuation Plan

When the PARTNER of a BUSINESS develop an arrangement whereby should one of them die or become PERMANENTLY DISABLE, the other PARTNERS would purchase the interest of the DECEASED or DISABLED PARTNER at a predetermined price, this IS CALLED A/ AN?

Purchase Insurance

Which of he following is THE MOST COMMON WAY to TRANSFER risk?

Withdrawn amount are taxed on a last in, first out basis.

Which of the following DESCRIBES the TAXATION on AN ANNUITY when MONEY IS WITHDRAWN during the ACCUMULATION PHASE?

The insureds' medical history

Which of the following are GENERAL NOT considered when UNDERWRITING GROUP INSURANCE?

The owner of the life insurance policy

Which of the following best DEFINES the OWNER in a life SETTLEMENT CONTRACT?

It is a level term insurance

Which of the following best describes ANNUALLY RENEWABLE TERM insurance?

aleatory

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?

The Amount of premium payment

Which of the following information will be stated in the consideration clause of a life insurance policy?

Life-Only Agent

Which of the following is AUTHORIZED TO TRANSACT insurance on HUMAN LIFE

The employees receive individual policies

Which of the following is INCORRECT concerning a NONCONTRIBUTORY GROUP PLAN?

Death due plane crash for a fare-paying passenger

Which of the following is NOT typically EXCLUDED from life policies?

The cash Value available to the policy owner

Which of the following is an EXAMPLE of LIQUIDITY in a life insurance CONTRACT

Dividends are not taxable,

Which of the following is true regarding TAXATION of DIVIDENDS in PARTICIPATING POLICIES?

Straight Life

Which of the following policies would be CLASSIFIED as a TRADITIONAL LEVEL PREMIUM contract?

MARRIED INDIVIDUALS must CONTRIBUTE into account for both spouses UP TO SPECIFIED AMOUNT each person.

Which of the following statement is INCORRECT concerning IRA?

It will pay double or triple the face amount

Which of the following statements is TRUE concerning the Accidental Death Rider

Whole Life

Which of the following types of insurance policies would PERFORM the FUNCTION of CASH ACCUMULATION?

Perils

causes of loss insured against in an insurance policy ARE KNOWN AS

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable STATEMENT OF GOOD HEALTH

when the AGENT and an APPLICANT for a life insurance policy FILL OUT and SIGN the APPLICATION. However, the APPLICANT does NOT wish to GIVE the agent THE INITIAL PREMIUM, and no CONDITIONAL RECEIPT is issued. WHEN WILL COVERAGE BEGIN?

Insurance

A CONTRACT which one party UNDERTAKES the INDEMNIFY another against LOSS is call?

An insurance broker.

A PERSON who TRANSACTS INSURANCE BUSINESS, other than LIFE INSURANCE, for compensation from and on behalf of another person, BUT NOT on behalf of or as a REPRESENTATIVE of an INSURANCE COMPANY for which he has an appointment is called

Insurable interest and consent

A life insurance policy has a LEGAL PURPOSE if both of which of the following ELEMENT EXIST?

Morale

A person who does not lock the door or does not repair leaks shows an INDIFFERENT ATTITUDE. This person presents WHAT TYPE OF HAZARD?

Family maintenance

A policy which pays monthly income upon the death of the breadwinner for a predetermined number of years after death, plus a lump sum at death, and combines level term and whole life is know as which policy?

Business Overhead Expense policy

A small hardware store owner is involved in a car accident that renders him TOTALLY DISABLE for half of YEA. WHICH TYPE of insurance will HELP HIM PAY for expenses of the company during the TIME of HIS DISABILITY?

A level annual premium for the life of the insured

A straight life policy has what type of premium?

Family (Protection) Policy

A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would the most likely buy?

Provide enough business to solicit long-term care insurance.

ALL of the following ARE THE RESPONSIBILITIES of every LONG TERM CARE insurer in California EXCEPT

Copy of the original application

According to the ENTIRE CONTRACT PROVISION, what document must be made PART OF THE INSURANCE POLICY?

Surrender Charge

After THREE YEARS of making PAYMENTS into a FLEXIBLE PREMIUM deferred ANNUITY, the insurer RETURNS all the PREMIUM PAYMENTS to the owner EXCEPT for a predetermined PERCENTAGE. What is this PERCENTAGE CALLED?

An insured loses a large sum in a poker game.

All of the following are insurable events as defined in the insurance Code EXCEPT

The plan is funded by permanent insurance only.

All of the following are true of KEY PERSON insurance EXCEPT

The policy is owned by the company

All of the following statements concerning the use of LIFE INSURANCE as an EXECUTIVE BONUS are correct EXCEPT

Annually Renewable Term

All other FACTORS being EQUAL, the LEAST EXPENSIVE first year premium payment is found in

The Principal

An AGENT IS a legal person who acts on behalf of

Consideration

An INSURED PAYS an ANNUAL PREMIUM to his INSURER. IN return, the INSURER promises to PAY BENEFITS in accordance with the terms of the contract THIS IS CALLED

30,000

An INSURER has been found GUILTY of a CODE VIOLATION regarding replacement. The insurer then repeats the violation. WHAT WILL be the MINIMUM PENALTY?

The cost of coverage is a deductible expense by the employer,

An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?

Cash option

An insured receives an ANNUAL LIFE INSURANCE DIVIDED CHECK. What TERM best describes this arrangement?

Be fined a sum of $1000

Any insurance agent who engages in the insurance business and violates the code with respect to insurance replacement shall on the first violation

Needs Approach

Attempting to determine how much insurance an individual would require based upon their financial needs and objectives IS KNOWN AS

Not subject to income taxation by the FEDERAL Government

Death benefits payable to a beneficiary under a life insurance policy are generally

The surrender charge is a percentage of the cash value and decreases over time.

If a DEFERRED ANNUITY is SURRENDERED PREMATURELY, a surrender CHARGE is imposed. HOW IS THE surrender charge determined?

Live at least to his life expectancy.

If an ANNUITANT SELECTS the STRAIGHT LIFE annuity SETTLEMENT option, in order to RECEIVE THE MONEY out of the CONTRACT it would be NECESSARY TO

Decreases

If an insured changes his PAYMENT PLAN from MONTHLY to ANNUALLY, what happens to the TOTAL PAYMENT?

The Beneficiary

In a GROUP LIFE INSURANCE policy the employer select all of the following EXCEPT

General election, for no mere than two four-years term

In the state of California, WHO SELECTS the INSURANCE COMMISSIONER and for HOW LONG?

risk Insurance is the transfer or financial responsibility associated with a potential of loos (RISK) to an insurance company

Insurance is the transfer of

May be covered to permanent insurance for the children without requiring evidence of inscrutability.

One of the ADVANTAGES OF A FAMILY policy that provides COVERAGE for CHILDREN is that it

The cause of loss insured against

Peril is most easily defined as

Protecting the insurer against adverse selection.

Profitable distribution of exposures serves the purpose of