ins -2
An insured recently had a new home built and Insisted of having smoke detectors installed in multiple places in the house. what method of handling risk is the insured using
REDUCTION
which of the following policies would not offer a policy loan option
Term life
Who must approve a licenses use of orbit tisha's name when conducting business in this state?
The federal insurance office
if a basic medical insurance plans benefits are exhausted what type of plan will then begin covering those losses
supplementary major medical
A whole life policy that will generate immediate cash value is on
single premium policy
How long is the grace period for an individual life insurance policy in California?
60 days
An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant during the compilation phase. The beneficiary will receive
$70,000
Which of the following best describes the difference between joint life and join survivor annuity payment options
Joint and survivor is a life contingent option
an annuity would normally be purchased by an individual who wants to
provide income for retirement
What is the purpose of key person insurance?
To cover decreased business revenues as a result of the death of a key employee
Only the agent is involved in completing the agent Report. The agent statement is
only included in the entire contract if it provides information upon which underwriting decision was made
in contrast to stock insurers with mutual insurers which statement is true
stock insurers are owned by the shareholders an issue nonparticipating policies
In a deferred annuity, the difference between the accumulation value and the surrender value is the
surrender charge
how many days is in the free look period in most life insurance policy
10 days
A medic care supplement policy must have a free look period of at least
30 days
The frequency and the amount of the premium payment are known as what?
Level premium
When assessing needs for a life insurance an individual may use retention which means
Purchasing life insurance
The insured 6 months after the policy issue date. Apon death of the insured, it is determined that the insured made a material misstatement on the application period what is the most likely course of action for the insurer
Rescind The policy
if an insured dies and it is discovered that the insured misstated his or her age or gender comma the life insurance company will
adjust the death benefit to what the premium would have purchased at the actual age or gender
a new homeowner wants to purchase life insurance policy that would protect his family against losing the home , should heat die before the mortgage was paid period the most expensive type of policy that would accomplish this need would be
decreasing term
Considering the California insurance code's definition of an insurable event which of the following statement is true
The more predictable a loss, the more insurable it is.
if an individual willfully violates the provision of Fair credit reporting act, what is maximum civil penalty
$2500
Which of the following individuals would be elected candidate to purchase a deffered annuity
Someone who cannot afford life insurance
which of the following is not true regarding a deferred annuity
income payments begin within 1 year from the date of purchase
a jumping juvenile policy is unique in that that benefit automatically
increases at a predetermined age
in a group life policy with a death benefit of more than $50000
premium costs over 50,000 is taxable as income to the employee
an accidental death and dismemberment AD&D policy,the death benefit people is known as
principle sum
For Which of the following reasons may group coverage not be discontinued
the company stock value lowers
the family turned writer incorporates
spell stern and children stern
which of the following is not normally an excluded cause of disability in individual disability income policy
complication from pregnancy
all of the following are features of catastrophic plans except
high premiums
A retail shop owner is insured under a business overhead expense policy that pays a maximum monthly benefit of $2500. His actual monthly expenses are $3000. If the owner becomes disabled, the monthly benefit payable under his policy will be
$2500
which of the following is not a component of insurance policy premium
number of beneficiaries
variable insurance and variable annuities are regulated by
SEC and FINRA only
Under the family medical leave act, what happens to an employee's insurance benefits while he she is on leave?
The benefits aren't remain in effect for the duration of employees leave
All of the following are true of annually renewable term insurance except
The death benefit remains level
employees covered under cobra his previous payment was $100 per month period his employer now collects 102 each month period why does the employer collect an extra $2?
To cover the employers administration costs
an insurance company that is owned by policyholders is called a
mutual insurer
what are the premiums from fixed annuities invested
my general account
unlimited health insurance policy that will pay a lump sum to insure diagnosed with a heart attack , stroke, or renal failure is known as
critical illness insurance
medical Part B covers the following except
long term care services
when assessing needs for life insurance, an individual may use retention, which means
maintaining assets at death
agents may be found guilty of defamation if they make false statements that are intended to
maliciously criticize another insurance company
Which of the following policies would not offer a policy known option
term life
What is the written document called in which insurance coverage is set forth
the contract
all of the following are advantages of qualified retirement plan except
the income at retirement is tax free
which provision may be added to Berman life policy, at no cost, that ensures the policy will not laps so long as there is cash value
automatic premium loan option
if a person qualifies for Social Security disability benefits after the 5 month elimination., when will the benefits begin
benefits begin at the beginning of the 6th month and are not retroactive to the beginning after disability
which of the following is not an indicator of a competent party
business profession
partners in business want to make sure that one of them would pass away their surviving family will receive a fair value for their version of the business what life insurance arrangement would be most suited for transitioning the business
buy sell agreement
An insurer in corporated under the laws of another state but doing business and the state is considered
domestic
all of the following statements about agents are true except
exclusive agents work for themselves
which of the following statement is not true regarding hicap
it is overseen by the state Department of Aging
what does an annuity protect that night end annuitant
living longer than expected
HMO members pay a small fee when they see their primary care physician this fee is called a
Copay
any person to whom commissioner has issued us seizure order or who refuses to deliver books records or assets of an insurer faces the following penalties
a misdemeanor punishment by a fine up to $1000, a year in jail, or both
under Affordable Care Act, when would pregnancy be considered a pre-existing condition
never
which of the following statement is incorrect regarding the definition of total disability
total disability is the inability to perform partial theories of any occupation of which a person is suited by reason of education, training or experience.
For which of the following reasons could an insurer terminate a long term care insurance policy
non payment of premium
only the agent involved in completing the agent's report. the agent statement is
not included in the entire contract
Which of the following best describes our presumptive disability
one that is severe enough that the insured automatically qualifies for full disability benefits
Under writers use all of these methods to protect the interior against adverse selection except
only selecting a small percentage of applicants
When life insurance proceeds are used to pay inheritance taxes add petrol estate taxes, it is known as
state conversion
which of the following losses would be likely be covered under the accidental death rider
that caused my head on collision hmo
Which of the following best describes rebate
a producer returning part of her Commission to her client as an inducement to buy
An employee has a fixable spending convict of 5000 annual benefit this year the employee used 3000 that would be come out of benefit available to the employee next year
5000
which of the statement below is incorrect regarding the type of term insurance that fits best with applicants needs
applicants who may require our larger death benefit in the future should buy convertible term insurance
According to the fair credit reporting act tomorrow all of the following statements are true except
if an applicant is declined for an insurance policy, he or she has no right to know what was in the report
All of the following must sign an application for health insurance except
insurer
how does insurance distribute the financial consequences of individual losses
it transfers the risks to all persons insured
The policy owner chooses animal model payment for the life insurance premium. For the year, the owner will play
less as compared to the other payment modes
Joe, is 63, was disabled and can no longer work period he meets the Social Security definition of total disability period how many work credits must show have accumulated to have the status of fully insured
40
which of the following riders please add beneficiary or death benefit that is double or triple the face amount if the insurance that was got mine accident as defined in the policy
an accidental death rider
according to the life insurance replacement regulation which of the following would be an example of policy replacement
apolosi is reissued with a reduction and cash value
an under writer is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various innocents?
Attending physician statement
Darrell's involved in an automobile accident with another motorist. General was at fault. Drill was injured in hospitalized for 2 months period the other motorists offered 15,000 of medical expenses as a result of the accident. Jarrells disability income policy will pay
There is loss of income
Which statement is accurate description of life insurance policy dividends?
They are paid as I'll return of premium to policyowners by stock insurers
if an insured purchases an insurance policy with a large tractable, what risk management technique is in the insured exercising
retention
Any licensed agent may submit an application for insurance to an insurer without an appointment. However, the insurer must submit the notice of appointment to the Commissioner within how many days?
14
a life insurance policy qualifies as modified endowment contract me C if the amount of premium paid exceeds the amount that would have provided paid up insurance in how many years
7 years
to purchase insurance commander policy owner must face the possibility of losing money or something of value in the event of loss What is this concept called
insurable interest
In order to be financially solvent an insurer must complete all the following except
Contribute do specific amount of capital reserves to the state
aN insured recently had a new home built and insisted on the smoke detectors installed in multiple places of the house which method of handling risk is the insured using
reduction
once the following are true of a multiple employer trust met except
send employee hands are right of conversion upon leaving the group coverage
the following are advantages of our qualified retirement plan except
the income at retirement is tax free
According to the common disaster clause, if the insured and primary beneficiary all killed in the same accident and it cannot be determined who died first come out which of the following would be assumed
the insured died before the primary beneficiary
which of the following statements concerning the medical information Bureau is correct
the medical information Bureau cysts under writers in evaluating and classifying risks
Medicare is a health insurance program for all of the following individuals except
those with low income and low assets
in some cases in order for an insurer to legally disclose privileged information to appropriate sources comma the insured must sign an authorization form. What is the maximum amount of time that can legally pass between the completion of the form and the disclosure of information?
One year
fair Which of the following meets the insured's personal needs, and is provided by non medical personnel
assisted living
All of the following are characteristics of group health insurance plans except
the parties that hold a group health insurance contract are the employee and employer
Which of the following is required in order for a plan to be qualified
the plan must be formally written and communicated to the employees
according to common disaster clause if the insured and the primary beneficiary are killed in the same accident cannot be determined who died 1st come on which of the following will be assumed
the primary beneficiary died before the insured
because of an injury, an injured has been unable to work for 7 months period when his life insurance premium came to you, he was unable to pay, yet the policy remain in force period this policy includes
waiver of premium rider
