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What is the minimum free look period for newly issued life policies in this state?
A. 10 days
Employee contributions made to a qualified plan?
A. Are subject to vesting requirements
A small hardware store owners involved in a car accident that renders him totally disabled for half a year which type would help him pay for expenses of the company during the time of his disability ?
A. Business overhead expense policy
If an insured changes his payment from monthly to annually what happens to the total premium?
A. Decreases
A situation in which a person can only lose or have no change represents?
A. Pure risk- Reason: pure risk refers to situation that can only result in a loss or no change pure risk is the only type insurance companies are willing to accept
Adverse selection is a concept best described as
A. Risks with higher probability of loss seeking insurance more often then others risks
Witch of the following is called second to die policy
A. Survivorship life
Th president of a company starting an annuity and decides that his cooperation will be the annuitant which of the following statements is true ?
A. The annuitant must be a natural person
Witch of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policy owner
A.Third party ownership
Which of the following is true about class designation
A.beneficiaries aren't identified by name
In order to become an admitted authorized insurer what is the primary body of law about which applicant company must be concerned ?
A. California insurance code
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable the contact is ?
A. Conditional
When the insured makes truthful statements on the application for insurance and pays the required premium. it is known as witch of the following
A. Consideration
An insured has the right to return the new insurance policy for a full refund during what period?
A. Free-look period
Witch of the following must be disclosed in all advertisements and policies of term life insurance for individuals 55-years of age or older?
A. Insurance monetary value index
Which provision of a life insurance policy states the insurers duty to pay the benefits upon death of the insured and to whom the benefits will be paid
A. Insuring clause
A person who does not lock doors or does not repair leaks shows an indifferent attitude this person represents what hazard?
A. Morale
The dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as the
A. One year term option
Which of the following riders would not cause the death benefit to increase ?
A. Payor benefit rider
The causes of loss insured policy are known as
A. Perils
To achieve profitable distribution of exposures
A. Preferred risk and poor risk are balanced between average risk in the middle
Which of the following is not consideration of the insured?
A. Promise to submit timely claims Reason: The binding force in any contract is consideration on the part of the insured is the payment of premiums and the Health representation made In the health representations made in the application consideration on the part of the insurer is to promise to pay in the event of loss
An agent and an applicant for a life insurance policy fill out and sign the application however the applicant doesn't not wish to give the applicant the initial premium and no conditional receipt is issued when will coverage begin ?
A. When the agent delivers the policy collects the initial premium and the applicant completes a statement of good health
All of the following statements are true of a no qualified retirement plan EXCEPT
A.Contributions are tax exempt
If an annuitant dies before annuitization occurs what will beneficiary receive
A.Either the amount paid into the plan or the cash value of the plan whichever is greater
Which of the following is true concerning concerning the accidental death rider
A.It will pay double and triple the face amount
If a licensee would like to terminate his license what should he do?
A.Send the license to the commissioner for termination
The premiums paid by the employer in a business life's mustangs policy are
A.Tax deductible by the employer
Under an extended term nonforfeiture option the policy cash value is converted to
A.The same face amount as in the whole life policy