California Life Insurance
Earned income
What qualifies an individual to contribute to an IRA?
Policyowner
Which of the following individuals must have insurable interest in the insured?
The cause of loss insured against.
Peril is most easily defined as
Outstanding loans and interest
When calculating the amount a policyowner may borrow from a variable life policy, what must be subtracted from the policy's cash value?
Pure risks
According to California Insurance Code, which of the following can be classified as an insurable event?
Contributions are tax exempt.
All of the following statements are true of a nonqualified retirement plan EXCEPT
Semiannually
Every long-term care insurer in California must submit to the Commissioner a list of all agents or other insurer representatives authorized to solicit individual consumers for the sale of long-term care insurance. These submitted agent lists must be updated at least
The type of investment.
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT
Medical background
Which of the following information about the applicant is NOT included in the General Information section of the application for insurance?
Variable whole life has a guaranteed death benefit.
Which of the following is a key distinction between variable whole life and variable universal life products?
The owner is guaranteed a fixed interest rate for a specific period of time.
Which of the following is true regarding a market value adjusted annuity?
Guaranteed universal life
Which of the following life insurance policies does NOT build cash value?
Be fined a sum of $1,000.
Any insurance agent who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation
The period of time during which a binding receipt covers a policyholder.
In regards to life insurance contracts, the temporary term is
Adhesion
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?
One-sided: only one party makes an enforceable promise.
What is a definition of a unilateral contract?
Pay a reduced death benefit
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Pay a late premium without penalty.
During the grace period, the policyowner can
Employee choosing benefits.
Selection of coverage in employee benefits plans refers to
The people.
The Commissioner of Insurance supervises and regulates the insurance affairs in the State of California, and is chosen by
Insurance policy is
A written instrument in which a contract of insurance is set forth.
Birthplace
If the information is used only for identification and not for underwriting purposes, which of the following information about the applicant may be listed on a life insurance application?
Reduction of Premium
An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe?
200,000
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?
Tax deductible contributions.
The advantage of qualified plans to employers is
Variable universal life
Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?