Agent 2 exam
Unintentional concealment entitles the injured party to which course of action? If any...
Rescission of the contract
How long is the free cancellation period for life insurance offered to individuals who are 60yo & older?
30 days
How much employer- provided group term life insurance is exempt from income taxation?
50,000
Insurance is called?
A contract
A person authorized by and on behalf on an insurer who transacts life, disability or life and accident and health insurance is defined as?
A life agent
All of the following information is a gathered during the personal financial planning process except?
A list of the persons civic and professional organization memberships
Any situation that presents the possibility of a loss is known as?
A loss exposure
According to Colorado insurance code, governing the use of life insurance policy illustrations. The term illustration means?
A presentation of policy features that included non-guaranteed elements
If an insured is totally and permanently disabled, the insured's policy continues in force without payments of further premiums b/c the policy contains?
A waiver of premium provision
All of the occurrences listed below are examples of an insurable event defined by the insurance code except?
An insured suffers a financial loss in the state lottery
The additional premium charged by an insurer for adding the accidental death benefit to a whole life policy?
Does not affect the policy's cash value
All the following are benefits of insurance except it?
Eliminates fraudulent losses
Which of the following is a correct statement about the premium payment modes? The total premium paid by a life policy owner for one policy year is:?
Greater if the premium is paid semiannually rather than annually
Which two insurance products are commonly used to fund buy-sell agreements?
Life insurance & disability insurance
An agents who violates the laws governing life insurance policy illustrations is subject to all the following except?
Mandatory termination of all insurer appointments
A contract of indemnity is one in which
One party is restored to the same financial position the party was in before the loss occurred
Which of the following statements regarding risk is TRUE?
Only pure risks are insurable
Individual life insurance policies sold to seniors in the state of CA must include a prominently placed statement that divulges all the following information except?
Proof of surrender must be notarized at the agents principle office
Which is an agreement in which an insurer contacts with a third party to insure itself against losses from an insurance policy it issued?
Reinsurance
All of the following statements about aleatory contracts are true except?
The insured and insurer contribute equally to the contract
The payor rider on a juvenile life policy provides that if the payor dies or becomes disabled before the insured juvenile reaches the age specified in the policy the payor rider policy indicates?
The insurer will make the payments until the insured juvenile reaches a specified age (usually 21 or 25)
What rule is used to determine importance of a representation?
The materiality of concealment
Making an insured whole by restoring them to the same condition as before a loss is an example of?
The principle of indemnity
The required contents of a policy includes all of the following except?
The probability of loss
What does the statement "life insurance created an immediate estate" mean?!
The total death benefit is paid whenever the insured dies
The process by which an insurer decides whether to issue requested insurance is called?
Underwriting
Which policy provision protects the policyowner from unintentional lapse of a contract?
grace period
Under which policy provision can a policy be surrendered for its net cash value?
nonforfeiture options
Why is having a large number of similar exposure units important to insurers?
the greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums