Life Insurance

What is the maximum amount of coverage that may be extended to the insured's dependents under a group life insurance policy? A 100% of the insurance on the life of the insured employee B 75% of the insurance on the life of the insured employee C 50% of the insurance on the life of the insured employee D 30% of the insurance on the life of the insured employee

100% of the insurance on the life of the insured employee

Within how many days of termination of employment must an employer give notice of the employee's right to convert the group policy to an individual policy? A 31 days B 15 days C 25 days D 5 days

15 days

Replacement of life insurance and annuities policies requires for the replacing and existing insurers to retain evidence of all signed applications and disclosures for no less than A 5 years. B 3 years. C 1 year. D 2 years.

3 years.

All life and disability policies issued to individuals who are age 65 or older must offer a right-to-return period of at least how long? A 20 days B 30 days C 90 days D 10 days

30 days

For how long must agents keep records of insurance transactions? A 20 years B 5 years C 10 years D 15 years

5 years

Advertisements for term life insurance must adhere to strict criteria of extensive disclosures if directed to persons A 65 years old. B Under the age of 21. C 55 years of age or older. D Of any age.

55 years of age or older.

According to the Insurance Code provisions regarding investments of variable annuities, what is the minimum age that a person must be to qualify as a "senior citizen"? A 50 B 60 C 62 D 70

60

The youngest possible age for an "elder" is A 55. B 60. C 65. D 70.

65.

When employees are covered by group insurance, they receive A A copy of the policy. B The dividends, if any, in cash. C A certificate of insurance. D The original policy.

A certificate of insurance.

Jenn purchased an annuity contract on March 1st, but after carefully reviewing its limitations, she returned it to the insurer on March 15th. The insurer didn't have any specific instructions from the policyowner on how to invest the premium. What should Jenn expect from the insurance company? A A refund of premium minus administration fees B A refund of premium and policy fees C A refund of premium and the policy's account value at the time of return D Nothing: initial premiums are nonrefundable

A refund of premium and policy fees

In compliance with the California Insurance Code, individual life insurance policies that are delivered in this state must include a disclosure notice on the cover page. This notice should provide all of the following information EXCEPT A Policy limitations. B How to return the policy. C Notice of penalty for late return. D Agent's commissions.

Agent's commissions.

A life agent's records must include which of the following? A All correspondence between the agent and the policy holder B A copy of the outline of coverage C All policies sold by the agent D All of these

All of these

The Commissioner may inspect an agent's records A With 30 days written notice. B At any time. C Once every 5 years. D Once a year.

At any time.

For an insurance contract to be valid in the State of California, when must insurable interest exist? A At the time at which a claim for indemnification is made B At the time at which the first premium is paid C At the time of application for a policy on the insured D At any time prior to the issue of a policy on the beneficiary

At the time of application for a policy on the insured

Where must agents keep records associated with insurance transactions? A There is no specified location, provided that agents can give the Commissioner easy access to records. B In any of their offices, as long as the office is located in this state. C All records must be transferred to the Department of Insurance within 90 days. D At their principal place of business

At their principal place of business

The attempt to "save" an original policy from replacement or lapse is called A A misdemeanor. B Misrepresentation. C Fraud. D Conservation.

Conservation.

Concerning AIDS and HIV risks, all of the following acts may subject an insurer to liability claims or fines EXCEPT A Declining applicant for a positive HIV test result. B Not providing counseling contacts and educational information about HIV and AIDS. C Disclosing test results to third party without applicant's consent. D Requiring applicant to pay for HIV test in order to be underwritten.

Declining applicant for a positive HIV test result.

When replacement of existing coverage is involved, extra requirements apply. The agent must A Present to the applicant a "Notice Regarding Replacement of Life Insurance" as described by the Code. B Have the applicant sign a copy of the "Notice Regarding Replacement of Life Insurance" as described by the Code. C Sign a copy of the "Notice Regarding Replacement of Life Insurance" as described by the Code and leave the copy with the applicant. D Do all of these.

Do all of these.

Which of the following must be disclosed in all advertisements and policies of term life insurance for individuals 55 years of age or older? A Life insurance surrender cost index B MIB report C Life insurance policy illustrations D Insurance monetary value index

Insurance monetary value index

Which of the following is NOT a true statement regarding the disclosure included for variable annuity or variable life insurance contracts? A Surrender charge notice may be omitted. B It must be included in all policies, with no exceptions. C It must provide investment specifications. D It must adhere to strict formatting specifications.

It must be included in all policies, with no exceptions.

Where replacement of existing coverage is involved, in addition to providing the proper notices to the applicant, the agent must A Notify the Department of Insurance that a replacement of existing coverage is being made and that all replacement guidelines have been met. B List any existing life insurance or annuities to be replaced on the application. C Contact the current insurer and give notice that replacement of coverage is being made. D Send a copy of the policy illustration used in making the sale to the current insurer for review.

List any existing life insurance or annuities to be replaced on the application.

According to the CIC, when an insured has functionally identical coverages that overlap or duplicate benefits to the extent that the coverage is not cost-effective, this represents A Overloading. B Overlap. C Excess of coverage. D Twisting.

Overloading.

Signing and dating a delivery receipt for a life insurance policy helps to establish all of the following timeframes EXCEPT A The Free-Look Period. B The Right of Rescission. C The Grace Period. D The Incontestability Period.

The Grace Period.

Tom purchased a variable life insurance contract and instructed the insurance company to invest the premium into stocks right away. Twenty five days later he decided to return the policy. What will Tom receive as a refund from the insurance company? A The policy's account value at the time the policy is returned B The policy's account value at the time the policy was purchased C Nothing: the insurance company will retain the premium for cancellation fees D The paid premium

The policy's account value at the time the policy is returned

Life agents must tell applicants when their coverage will start or the conditions required for their coverage to start either at the time of application or A When the Policy Summary is issued. B When an underwriting decision is rendered. C When the first premium is received. D When the Buyer's Guide is issued.

When the first premium is received.

In 2010, a law firm purchased a buy-sell agreement policy on each of its partners. In 2015, one partner left to start a new practice; however, the firm continued to pay the premiums on the policy. In 2017, the former partner died. The partners of the firm filed a claim on the policy to collect the death benefit despite the fact that the deceased was NOT part of the firm or its leadership. The insurer A Can legally sue the firm for insurance fraud and WILL NOT pay a claim due since the insurable interest no longer exists. B Will pay the death claim to the beneficiary since the premiums were current although according to contract law, insurable interest MUST exist at the time of claim. C Will refund "unearned" premiums and WILL NOT pay the claim since the insurable interest no longer exists. D Will pay the death claim to the beneficiary for this policy as written since insurable interest existed at the time of application.

Will pay the death claim to the beneficiary for this policy as written since insurable interest existed at the time of application.