Primerica

Which policy covering two or more individuals terminates after paying benefits only on the second death?

. Survivorship life policy.

The california insurance code requirements regarding the return of life or annuity contracts issued to seniors?

. gives a senior at least 30 days to return specified life andlor annuity contracts for a full refund

A life insurance policy dividend is?

. legally defined as a return of excess premium and not taxable.

The insurer that accepts some or all the loss exposures of the primary insurer is a

. reinsurer.

From the CDI website, an agent or broker will report suspected insurance fraud via what portal?

.Consumer reporting portal

What is the timeframe that an agent or broker has to provide information on a workers compensation file?

60

What is contained is a mortality table?

A history of a group of people from the year they were born until they all die.

Which contract promises to pay the owner a guaranteed minimum income every year for as long as the individual lives?

A survivorship policy.

How can partners guarantee a market for their share of the business in the event of death?

A. Buy-sell agreements.

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

A. Grace period.

Common life insurance policy riders include all of the following EXCEPT?

A. extended term.

Term insurance is typically characterized by

A. low premiums and no cash value.

The items of value given by each party in a contract are known as

A. offer.

A contract of indemnity is one in which

A. one party is restored to the same financial position the party was in before the loss occurred.

All of the following activities constitute transacting insurance EXCEPT

A. recommending a baby sitter to an insured.

Life insurance policy illustrations must include all of the following EXCEPT

A. the name of the insured.

Which contract provides for the systematic liquidations of fund?

Annuity.

A 10-year certain annuity with an installment refund is purchased. The annuitant dies after receiving monthly payments for 5 years. How many remaining payments MUST the insurer make?

B. 60 payments.

What policy is a savings instrument designed to first accumulate funds and then systematically to liquidate the funds?

B. Deferred annuity.

Which provision in a life insurance contract prohibits a beneficiary from assigning his or her interest in the policy proceeds? B. Incontestability clause.

B. Incontestability clause.

in california, an insurer organized under the state laws of nevada is considered?

B. a foreign insurer.

All of the occurrences listed below are examples of an insurable event as defined by the California Insurance Code EXCEPT

B. an insured suffers a financial loss in the state lottery.

An example of the contractual term "utmost good faith" is

B. each party to a contract is determined to be entitled to rely upon the representations of the other.

The theory of probability is applied to life insurance through the use

B. mortality tables.

For income tax purposes, premiums for personal life insurance are

B. not deductible.

The guaranteed insurability option provides the ability to

B. purchase additional insurance regardless of insurability.

Characteristics of group life insurance include all of the following EXCEPT

B. simplified underwriting.

The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT

B. the elimination of the risk.

All of the following are requirement of a contract EXCEPT?

B. there must be equal consideration between the parties

The process by which an insurer decides whether to issue requested insurance is called?

B. underwriting.

how long the free cancellation period for life insurance policies offered individuals who are age 60 or older?

C. 30 days.

Which of the following is NOT ordinary life insurance?

C. A life paid-up-at-age-65 policy.

What is the difference between deferred annuities and immediate annuities?

C. Deferred annuities have longer liquidation periods.

Which benefits are provided by key employee insurance?

C. Payment to a business when an Important employee dies.

Every admitted insurer in the State of California is REQUIRED to maintain a unit or division to investigate which of the following?

C. Possible fraudulent claims made by insureds.

When comparing term life and endowment insurance policies, which of the following is true of endowment policies?

C. The face amount is paid if the insured dies during the policy period.

Which type of life insurance coverage has both a savings element and a flexible premium option?

C. Universal life.

It is a federal offence for an insurance agent to do all of the following EXCEPT?

C. misrepresent facts on an insurance application.

The purpose of the Medical Information Bureau is to

C. prevent risk transfer.

What is the focus of the Fraud Division within the Enforcement Branch?

C.Fraud committed against the insurer

speculative risk.

Chance of loss or gain

A life insurance beneficiary wants to receive the proceeds over a period of 25 years. Which settlement should be chosen?

D. Fixed period option.

An agent must submit all of the following to the insurer EXCEPT a .

D. a copy of all printed communications used for the presentation

All of the following information is gathered during the personal financial planning process EXCEPT

D. a listing of a person's civic and professional organization memberships.

key person disability insurance is primarily used to?

D. protect a business against the untimely disability of an important employee.

A husband and wife have a disable child who is financially dependent upon them. The death of one parent would not result in financial disaster for the child, but the death of both parents would. Which policy should they purchase?

E. second-to-die policy.

Which product create immediate estate?

Life insurance.

All of the following are true about term life insurance policies EXCEPT the?

M. face amount is paid if the insured survives to the end of the policy period

What is the definition of premium?

Money an insured pays an insurer to obtain benefits provided in the policy.

What is the limit of liability in a term life insurance policy?

The face amount of the policy.

How does the cost recovery rule applywhen a life insurance policy is surrendered for its cash value ?

The insured receives only the cost basis.

Which of the following is a correct statement about whole life insurance premium payment mode?

The total premium is greater when its paid semiannually rather than annually

Which life insurance policy rider will allow continuation of coverage when the insured CANNOT make payments due to a disablity?

Waiver of premium.

Which of the following is NOT considered an insurance fraud red flag?

Wanting liability coverage on an old vehicle

Investigative and Fraud

What are the two divisions of the Enforcement Branch of the California Department of Insurance?

Only the cost basis

Which portion of a life insurance policys cash surrender is subject to income taxation?

Any situation that present the possibility of a loss is known as?

a loss exposure.

A policyowner has the right to change all of the following EXCEPT the

dividend schedule.

When a family policy covers children, all of the following are true EXCEPT

evidence of insurability is required to convert coverage for children to permanent insurance.

Which policy provides whole life insurance on the principal insured and term insurance on the spouse and children?

family policy

when an insured holds more than one occupation. and occupation is used to the classify the risk, the insurer will generally classify the insured according to the occupation?

in which the insured has been employed for the longest period of time.

Decreasing term

insurance is usually purchased in connection with a mortgage loan?

Unfair methods of competition laws prohibit a life agent from preparing an insurance quote that includes

misleading dividend payouts.

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

moral hazard.

A unilateral contract is one which?

only one party is legally bound to do anything.

Which of the following information is not required to be communicated in a Life insurance contract?

personal judgement

Under a group life insurance policy, acts of war and aviation risks are examples of

policy exclusions.

Individual life insurance policies sold to a seniors in the state of california must include a prominently placed statement that divulges all of the following information EXCEPT?

proof of surrender must be notarized at the agent's principal office.

In a reinsurance agreement, the insurer that transfer some or all its loss exposure to another insurer is called the?

secondary insurer

The more times an event is repeated, the more predictable the outcome becomes. This is a example of?

the law of large numbers.

The assets of a life insurer's general account provide the backing for all of the following policies EXCEPT

variable annuities.