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
