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An insured recently had a new home built and Insisted of having smoke detectors installed in multiple places in the house. what method of handling risk is the insured using

REDUCTION

which of the following policies would not offer a policy loan option

Term life

Who must approve a licenses use of orbit tisha's name when conducting business in this state?

The federal insurance office

if a basic medical insurance plans benefits are exhausted what type of plan will then begin covering those losses

supplementary major medical

A whole life policy that will generate immediate cash value is on

single premium policy

How long is the grace period for an individual life insurance policy in California?

60 days

An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant during the compilation phase. The beneficiary will receive

$70,000

Which of the following best describes the difference between joint life and join survivor annuity payment options

Joint and survivor is a life contingent option

an annuity would normally be purchased by an individual who wants to

provide income for retirement

What is the purpose of key person insurance?

To cover decreased business revenues as a result of the death of a key employee

Only the agent is involved in completing the agent Report. The agent statement is

only included in the entire contract if it provides information upon which underwriting decision was made

in contrast to stock insurers with mutual insurers which statement is true

stock insurers are owned by the shareholders an issue nonparticipating policies

In a deferred annuity, the difference between the accumulation value and the surrender value is the

surrender charge

how many days is in the free look period in most life insurance policy

10 days

A medic care supplement policy must have a free look period of at least

30 days

The frequency and the amount of the premium payment are known as what?

Level premium

When assessing needs for a life insurance an individual may use retention which means

Purchasing life insurance

The insured 6 months after the policy issue date. Apon death of the insured, it is determined that the insured made a material misstatement on the application period what is the most likely course of action for the insurer

Rescind The policy

if an insured dies and it is discovered that the insured misstated his or her age or gender comma the life insurance company will

adjust the death benefit to what the premium would have purchased at the actual age or gender

a new homeowner wants to purchase life insurance policy that would protect his family against losing the home , should heat die before the mortgage was paid period the most expensive type of policy that would accomplish this need would be

decreasing term

Considering the California insurance code's definition of an insurable event which of the following statement is true

The more predictable a loss, the more insurable it is.

if an individual willfully violates the provision of Fair credit reporting act, what is maximum civil penalty

$2500

Which of the following individuals would be elected candidate to purchase a deffered annuity

Someone who cannot afford life insurance

which of the following is not true regarding a deferred annuity

income payments begin within 1 year from the date of purchase

a jumping juvenile policy is unique in that that benefit automatically

increases at a predetermined age

in a group life policy with a death benefit of more than $50000

premium costs over 50,000 is taxable as income to the employee

an accidental death and dismemberment AD&D policy,the death benefit people is known as

principle sum

For Which of the following reasons may group coverage not be discontinued

the company stock value lowers

the family turned writer incorporates

spell stern and children stern

which of the following is not normally an excluded cause of disability in individual disability income policy

complication from pregnancy

all of the following are features of catastrophic plans except

high premiums

A retail shop owner is insured under a business overhead expense policy that pays a maximum monthly benefit of $2500. His actual monthly expenses are $3000. If the owner becomes disabled, the monthly benefit payable under his policy will be

$2500

which of the following is not a component of insurance policy premium

number of beneficiaries

variable insurance and variable annuities are regulated by

SEC and FINRA only

Under the family medical leave act, what happens to an employee's insurance benefits while he she is on leave?

The benefits aren't remain in effect for the duration of employees leave

All of the following are true of annually renewable term insurance except

The death benefit remains level

employees covered under cobra his previous payment was $100 per month period his employer now collects 102 each month period why does the employer collect an extra $2?

To cover the employers administration costs

an insurance company that is owned by policyholders is called a

mutual insurer

what are the premiums from fixed annuities invested

my general account

unlimited health insurance policy that will pay a lump sum to insure diagnosed with a heart attack , stroke, or renal failure is known as

critical illness insurance

medical Part B covers the following except

long term care services

when assessing needs for life insurance, an individual may use retention, which means

maintaining assets at death

agents may be found guilty of defamation if they make false statements that are intended to

maliciously criticize another insurance company

Which of the following policies would not offer a policy known option

term life

What is the written document called in which insurance coverage is set forth

the contract

all of the following are advantages of qualified retirement plan except

the income at retirement is tax free

which provision may be added to Berman life policy, at no cost, that ensures the policy will not laps so long as there is cash value

automatic premium loan option

if a person qualifies for Social Security disability benefits after the 5 month elimination., when will the benefits begin

benefits begin at the beginning of the 6th month and are not retroactive to the beginning after disability

which of the following is not an indicator of a competent party

business profession

partners in business want to make sure that one of them would pass away their surviving family will receive a fair value for their version of the business what life insurance arrangement would be most suited for transitioning the business

buy sell agreement

An insurer in corporated under the laws of another state but doing business and the state is considered

domestic

all of the following statements about agents are true except

exclusive agents work for themselves

which of the following statement is not true regarding hicap

it is overseen by the state Department of Aging

what does an annuity protect that night end annuitant

living longer than expected

HMO members pay a small fee when they see their primary care physician this fee is called a

Copay

any person to whom commissioner has issued us seizure order or who refuses to deliver books records or assets of an insurer faces the following penalties

a misdemeanor punishment by a fine up to $1000, a year in jail, or both

under Affordable Care Act, when would pregnancy be considered a pre-existing condition

never

which of the following statement is incorrect regarding the definition of total disability

total disability is the inability to perform partial theories of any occupation of which a person is suited by reason of education, training or experience.

For which of the following reasons could an insurer terminate a long term care insurance policy

non payment of premium

only the agent involved in completing the agent's report. the agent statement is

not included in the entire contract

Which of the following best describes our presumptive disability

one that is severe enough that the insured automatically qualifies for full disability benefits

Under writers use all of these methods to protect the interior against adverse selection except

only selecting a small percentage of applicants

When life insurance proceeds are used to pay inheritance taxes add petrol estate taxes, it is known as

state conversion

which of the following losses would be likely be covered under the accidental death rider

that caused my head on collision hmo

Which of the following best describes rebate

a producer returning part of her Commission to her client as an inducement to buy

An employee has a fixable spending convict of 5000 annual benefit this year the employee used 3000 that would be come out of benefit available to the employee next year

5000

which of the statement below is incorrect regarding the type of term insurance that fits best with applicants needs

applicants who may require our larger death benefit in the future should buy convertible term insurance

According to the fair credit reporting act tomorrow all of the following statements are true except

if an applicant is declined for an insurance policy, he or she has no right to know what was in the report

All of the following must sign an application for health insurance except

insurer

how does insurance distribute the financial consequences of individual losses

it transfers the risks to all persons insured

The policy owner chooses animal model payment for the life insurance premium. For the year, the owner will play

less as compared to the other payment modes

Joe, is 63, was disabled and can no longer work period he meets the Social Security definition of total disability period how many work credits must show have accumulated to have the status of fully insured

40

which of the following riders please add beneficiary or death benefit that is double or triple the face amount if the insurance that was got mine accident as defined in the policy

an accidental death rider

according to the life insurance replacement regulation which of the following would be an example of policy replacement

apolosi is reissued with a reduction and cash value

an under writer is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various innocents?

Attending physician statement

Darrell's involved in an automobile accident with another motorist. General was at fault. Drill was injured in hospitalized for 2 months period the other motorists offered 15,000 of medical expenses as a result of the accident. Jarrells disability income policy will pay

There is loss of income

Which statement is accurate description of life insurance policy dividends?

They are paid as I'll return of premium to policyowners by stock insurers

if an insured purchases an insurance policy with a large tractable, what risk management technique is in the insured exercising

retention

Any licensed agent may submit an application for insurance to an insurer without an appointment. However, the insurer must submit the notice of appointment to the Commissioner within how many days?

14

a life insurance policy qualifies as modified endowment contract me C if the amount of premium paid exceeds the amount that would have provided paid up insurance in how many years

7 years

to purchase insurance commander policy owner must face the possibility of losing money or something of value in the event of loss What is this concept called

insurable interest

In order to be financially solvent an insurer must complete all the following except

Contribute do specific amount of capital reserves to the state

aN insured recently had a new home built and insisted on the smoke detectors installed in multiple places of the house which method of handling risk is the insured using

reduction

once the following are true of a multiple employer trust met except

send employee hands are right of conversion upon leaving the group coverage

the following are advantages of our qualified retirement plan except

the income at retirement is tax free

According to the common disaster clause, if the insured and primary beneficiary all killed in the same accident and it cannot be determined who died first come out which of the following would be assumed

the insured died before the primary beneficiary

which of the following statements concerning the medical information Bureau is correct

the medical information Bureau cysts under writers in evaluating and classifying risks

Medicare is a health insurance program for all of the following individuals except

those with low income and low assets

in some cases in order for an insurer to legally disclose privileged information to appropriate sources comma the insured must sign an authorization form. What is the maximum amount of time that can legally pass between the completion of the form and the disclosure of information?

One year

fair Which of the following meets the insured's personal needs, and is provided by non medical personnel

assisted living

All of the following are characteristics of group health insurance plans except

the parties that hold a group health insurance contract are the employee and employer

Which of the following is required in order for a plan to be qualified

the plan must be formally written and communicated to the employees

according to common disaster clause if the insured and the primary beneficiary are killed in the same accident cannot be determined who died 1st come on which of the following will be assumed

the primary beneficiary died before the insured

because of an injury, an injured has been unable to work for 7 months period when his life insurance premium came to you, he was unable to pay, yet the policy remain in force period this policy includes

waiver of premium rider