insurance simulation exam
what is the minimum free look period for newly issued life insurance policies in this state?
10 days
group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is correct?
100% participation of members is required in non contributory plans
the department of insurance contacts an agent about a claim that was settled two months ago within that time frame must the agent issue a complete response?
21 days
according to the ode, how many separate requirements should an insurance policy have?
6
as part of the continuing education requirements what is the minimum number of hours of continuing education specific to long term care insurance to be completed prior to each license renewal?
8
all of the following are reasons an insurer or an insured would have the right to remind a policy EXCEPT
amount of paid claims exceeds premiums paid
any insurer who engages in the insurance business and violates the code with respect to insurance replacement shall on the first violation
be funded a sum of $10,000
upon the death of the insured the primary beneficiary discovers that the insured chose the interest only settlement option, what does this mean?
beneficiary will only receive payments of interest earned on death benefit
all of the following are personal uses of life insurance EXCEPT
buy sell agreement
an employer offers a group life insurance to its employees for the amount of $10,000, which of the following is true
cost of coverage is deductible expense by employer
which of the following are not fundable by annuities
death benefit
an intentional or unintentional concealment entitles the affected to which of the following
recession of contract
which nonforfeiture option provides coverage for the longest period of time?
reduced paid up
an insured committed suicide one year after his life insurance policy was issued the insurer will
refund premiums paid
in case of a loss, the indemnity provision in insurance policies
restores an insured person to same financial state as b4 loss
insurance is the transfer of
risk
the annuity owner dies while the annuity is still in the acumulation stage, which of the following is TRUE?
beneficiary will receive greater of money paid into annuity or cash value.
in terms of social security, what is the interval spanning between the day which the youngest child of a family turns 16 and before the surviving spouse turns age 60 called?
blackout period
which of the following statements concerning buy-sell agreements is true?
buy-sell agreements normally funded w/ life insurance policy
a life insurance application is asking if the applicant has applied for any other life insurance within the past 6 months. The applicant states that he has applied for $150,000 coverage from XYZ Co. but fails to mention the $150,000 coverage which DEF Co. the applicant is guilty of
concealment
which of the following is TRUE regarding the insurance amount in a credit life policy?
creditor can only insure debtor for amount owed
what kind of policy does not typically require proof of insurability
group insurance
according to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following.
guaranteed surrender value
units with the same or similar exposure to loss are referred to as
homogenous
the type of term insurance that provides increasing death benefits as the insured ages is called
increasing term
what type of insurance would be used for a return of premium rider?
increasing term
stranger oriented life insurance policies are in direct oppositions to the principle of
insurable interest
all of the following are insurable events as defined in the insurance code EXCEPT
insured loses large sum in poker game
which of the following insured has a right to cancel an individual life policy within 30 days
insureds 60 yrs of age of older
which of the following is TRUE regarding the annuity period?
it may last for lifetime of annuitant
which of the following statements best describes the effect the accelerated benefit provision would have on the benefits paid to the beneficiary?
it'll decrease benefits paid to beneficiary
which of the following is NOT required on an illustration used in the sale of a life insurance policy?
name of primary & secondary beneficiaries
what is the advantage of reinstating a policy instead of applying for a new one?
original age is used for premium determination
the causes of insured against in an insurance policy are known as
perils
who is responsible for notifying the commissioner of a licenses change of address?
the licensee
which of the following statements regarding deferred compensation funds is INCORRECT
they are usually qualified plans
which of the following statements is TRUE concerning irrevocable beneficiaries
they can be changed only w/written consent of beneficiary
when the breadwinner that is insured by a family policy dies, what rights are provided to other family members that are covered under the polocy
they can convert their coverage to permanent life insurance w/out evidence of insurability
agents who persuade insured to cancel.a policy in favor of another one when it might not be in the insured's best interest are guilty of
twisting
which of the following statements regarding the taxation of modified endowment contracts is false
w/drawls aren't taxable
which of the following is not a factor in determining qualification for social security disability benefits?
workers occupation
A small hardware store owner is involved in a car accident that renders him totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during this time?
business over head expense policy
B just bought a new car, which he anticipates will be paid for 4 years, from now. He also wants to buy a new life insurance policy but is financially limited until the car is paid off. Which of the following types of policies would be best for B?
modified life
which of the following determines the cash value of a variable life policy?
performance of policy portfolio
all of the following are examples of risk retention except
premiums
all of the following are the responsibilities of every long term care insurer in California except
provide enough business to solicit long term insurance
according to California insurance code, which of the following can be classified as an insurable events?
pure risk
the price of insurance for each exposure units is known as
rate
