Life Only 2

Term insurance is typically characterized by

Low premiums and no cash value

The Employee Retirement Income Security Act of 1974 (ERISA) mandates requiring plan sponsor to provide participants with

Plan descriptions and benefit statement

In the state of California

Providing free insurance coverage in connection with the sale of services as an inducement for completing the transaction is not legal

The adjustments that an insurer makes in a cash value account in a universal life policy each time a payment includes all of the following, except

Subtract the policy surrender charges

An individual with a low income and high insurance needs should buy

Term insurance

A $50,000 whole life policy with a cash value of $10,000 has been in force for 11 years. The policy owner is unable to continue the premium payments. Which of the following describes the reduced paid-up non-forfeiture option?

The cash value is used to purchase a $20,000 paid-up policy

According to the CA Insurance Code, an insured's policy must specify all of the following, except:

The financial rating of the insurer

Why is having a large number of similar exposure units important to insurers?

The greater number insureds, the more accurately the insurer can predict losses and set appropriate premiums

The payor rider on a juvenile life policy provides that if the payor dies or becomes disabled before the insured juvenile reaches the specified age on the policy

The insurer will make the payments until the insured juvenile reach the specified age

All of the following statements about survivorship life insurance are true, except

The policy face amount is paid out only upon the death of the first insured to die

While an insurer is paying the premium for life insurance policy under the waiver of premium rider

The policy remains in full force in every respect

Which of the following is a true statement regarding social security (OASDHI) program?

The program provides only a minimum floor of income. Individuals are expected to supplement this with their own personal programs

If an insurer is not able to meet financial obligations when due, the insurer would be considered

Insolvent

Which of the following is a description of a Life and Disability Analyst?

A person licensed to advise clients about life and disability insurance for a fee

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

Accelerated death benefit

A measure for rating an individual's need for LTC benefits is called:

Activities of daily living

The insured, aged 65, owns a $100,000 non-participating whole life policy. The policy is paid-up as of today. When would the cash value reach $100,000?

Age 100

Under social security, the definition of disability is the inability to engage in

Any substantial gainful activity

All of the following statements about social security disability are true, except:

Benefits are designed to replace the entire amount of a worker's earnings

What happens to a license after the death of the natural person who holds a valid insurance license

It always terminates

Under an individual health guaranteed renewal contract, the insurer has the right to

Change premiums for the same class insured

The passage of worker's compensation legislation meant

Employers would be held responsible for the cost of their employee's work injuries regardless of fault

Common life insurance policy riders include all of the following except:

Extended term

Which of the following expenses is never covered by a LTC insurance policy?

Hospital acute care unit

Choose the correct statement about long-term care (LTC) insurance.

Very limited nursing home coverage

The insured is totally and permanently disabled. The insured's policy continues in force without the payment of a premium because the policy contains a

Waiver of premium provision