Guarantee exam 2

A life agent's records must include which of the following?

All of these

Which of the following must be present in all Medicare supplement plans?

Plan A

The California Insurance Code is

Statutes established by the State Legislature

Giving a client an inducement a sale not stated in the policy is an unlawful practice known as

Rebating

Every long term care insurer in California must submit to the Commissioner a list of all agents or other ensure representatives authorized to solicit individual consumers for the sale of long term care insurance. These submitted agent lists must be updated at least

Semiannually

Which of the following will NOT be included in the buyer's guide?

Specific information about the policy

Which of the following is a permissible reson for an insurance company to contest payment of a claim based on statements in the application?

The application contains material misstatements

A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?

The purpose of the group was to purchase life insurance

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

Concealment as defined by the California insurance code is

Neglect on the part of insured to communicate all information known to be material to the insurer

On a participating insurance policy Issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid

Which of the following is another term for the accumulation period of an annuity?

Pay in period

The Waiver of Cost of Insurance Rider is found in what type of insurance?

Universal Life

In determining how material a piece of information is to each party of a contract, the value is not determined by the event itself, but solely by which of the following?

Influence this information would have in forming an estimate of the advantages or the disadvantages of the contract

The growing tendency of individuals to file lawsuits and to claim tremendous amounts for alleged damages is known as

Legal hazard

A prospective deferred annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. The agent most likely explained which of the following?

Nonforfeiture option guarantees that the owner will receive a surrender value of the contract

Which of the following can an insured submit to the insurer that would provide evidence of a claim and illustrate how severe the loss is?

Proof of claim

All of the following are general requirements of a qualified plan EXCEPT

The plan must provide an offset for social security benefits

What is the education requirement for accident and health agents who want to sell 24 hour care coverage?

The same number of hours of training in workers compensation as required for a property or casualty broker-agent on the same subject

When the breadwinner that is insured by a Family Policy dies, what rights are provided to other family members that are covered under the policy?

They can convert their coverage to permanent life insurance without evidence of insurability

The legal definition of "person" would NOT include which of the following?

a family

Where are premiums from fixed annuities invested?

a general account

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Fixed period

To purchase insurance, the policyowner must face the possibility of losing money or something of value in the event of a loss. What is this concept called?

Insurable interest

Which provision of a life insurance policy states the insurer's duty to pay benefit upon the death of the insured, and to whom the benefits will be paid?

Insuring clause

Which of the following is NOT true regarding the accumulation period of an annuity?

It would not occur in a deferred annuity

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing term

Which of the following is NOT a type of information that needs to be gathered in order to determine and the value of someone's life when using the needs approach?

Estimated longevity

When an agent submits a license renewal application with the required renewal fee on or before the expiration date, Which of the following statements is true?

The agent may transact all normal business for up to 60 days after the specified expiration date

According to the California insurance code, any person legally capable of making an insurance policy is considered

an Insurer

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer

All of the following are true regarding a qualified annuity EXCEPT

At distribution, all amounts received by the employee are tax free

All of the following are true of the Survivorship life policy EXCEPT

The premium is based on the age of each insured

An insurer has made all of the decisions regarding the provisions included in the insureds policy. The insured finds and objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe?

Adhesion

The rate charged for a Good Driver Discount policy should be at least what percent below the rate the insured would otherwise have been charged for the same coverage?

20%

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

Which of the following is INCORRECT concerning a noncontributory group plan?

The employees receive individual policies

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

Be fined a sum of $1000

A 20 year family income policy was purchased effective April 1, 2001. The insured died 4 months later, on August 1, 2001. The beneficiary receives monthly income for

19 years and 8 months

According to the Code, how many separate requirements should an insurance policy have?

6

Which of the following is the best reason to purchase life insurance rather than annuities?

To create an estate

According to the California insurance code, all of the following are general powers and duties of the commissioner of insurance EXCEPT

To delegate the power to approve a settlement

Which of the following would be the beneficiary in credit life insurance?

creditor