Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Exam B
Life Insurance CA
| Question | Answer |
|---|---|
| An injured party to a contract is able to rescind the contract for | Concealment regardless of whether the concealment is intentional or unintentional. |
| Long-Term care training in California | The initial training is 8hrs and the training is not required if the rider does not provide services |
| The waiver of premium rider allows an insurance company to | Waive premiums if the insured becomes totally disabled |
| The policy that pays a monthly income to the beneficiary for a stated period of time and pays the face amount at the end of that period | Family Maintenance policy |
| What type of insurance is frequently used in group life plans | Annual renewable term |
| What is true about renewable term policy | It is renewable at the option of the insured without proof of insurability. |
| Which rider may provide a monthly benefit to an insured | Disability Income rider waives the premium and pays a monthly benefit to the insured |
| the receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a | Conditional receipt- |
| How many hours of continuing education are required per renewal for a life-only producer? | 24hrs, 3 hours must be in ethics |
| If a policy does not have a free look period, when must a producer provide a consumer with a Buyers guide | Prior to accepting the initial premium |
| Which of the following components increases in a Jumping Juvenile policy | Face amount increases at predestined age, but the premium remains level |
| A group life insurance program in which the employer pays all of the premium would be considered | Noncontributory-an insurer will require that all employees will be considered in the plan. |
| What contract term states that both parties must comply with certain specified circumstances in order to make the contract enforceable | Conditional |
| What factors determine premiums | Mortality, expense and investments |
| The exclusion ratio is used in annuities to determine the | Untaxed portion of distributions |
| Replacing and existing insurers must retain evidence of all signed applications and disclosures used in replacement for no less than | 3 years |
| A type of cash value policy that allows the policy-owner to select how to invest the policy’s cash value in securities is called | Variable Life-The cash value in not guaranteed and fluctuates with performance in which the premiums have been invested by the insurer |
| Which clause prohibits a company from challenging statements made on the original application after the policy has been in force for 2 years | Incontestability Clause |
| An agreement between two or more parties consist of | An offer and acceptance |
| A legal contract in which only one party makes a legally enforceable promise is called | Unilateral |
| A life insurance policy in which the cash value builds faster than a 7-pay whole life policy is called a | Modified endowment contract |
| What is the minimum administrative penalty for a producer who violates the replacement provisions of the California Code | $1,000 1st and no less than $5,000 and no more than $50,000 |
| For insurance contract, the principle of utmost good faith means | Each party relies upon the truthfulness of the other |
| According to California Insurance Code, the term “shall” describes what kind of actions | Mandatory |
| Which type of beneficiary designation cannot be changed without the written consent of the beneficiary | Irrevocable |
| An indexed whole life policy would have a minimum guaranteed interest rate but may have a higher rate of restrung based upon the | The main feature of indexed whole life(equity index whole life) is that the cash value is dependent upon the performance of an equity index, such as S&P 500 |
| Limited-Pay whole life is designed so that the premium | Will be paid-up before age 100 but coverage last until age 100 |
| What are the 4 requirements elements of a contract agreement | Offer & Acceptance, competent parties, legal purpose, consideration |
| The replacement regulation does not apply to | Credit life, Group life and Group annuities |
| A term insurance policy in which the amount of protection remains constant is | Level Term |
| If an insured dies during the grace period of an insurance policy, what will the insurer do? | Pay the full benefits minus the past due premium |
| The type of hazard that arises from an Attitude of indifference to loss is | Morale-Carelessness and irresponsibility |
| A financial transaction where an owner sells a life insurance policy to a third party for compensation | Life Settlement contract |
| If an agent suspects that one of her clients may be attempting to collect on a false claim, the agent should report this to | The insurers fraud prevention unit |
| Dividends from a participating policy are | Dividends are a return of excess premiums, and for that reason they are not taxable to the policy owner |
| Death must occur within how many days of an accident in order for the accidental death rider to pay the double or triple face amount? | 90 days usually two times(double indemnity) or three times (triple indemnity) |
| Which provision allows a permanent transfer of ownership | Assignment clause: this clause provision Specifies the policy owners righ to assign(Transfer ownership) the policy |
| The equity indexed annuity has a minimum guaranteed interest rate, but may have a higher rate of return based upon the | Standard & Poor's 500 stock index |
| Which annuity option guarantees payments for the lifetime of the annuitant and for a specified period of time | Life with period certain |
| Which method determines the amount of life insurance needed by considering such factors as the cost associated with death, housing, and children’s education | Needs approach |
| An activity, such as scuba diving, which increases the chance of a loss occurring is called | Hazard- are conditions or situations that increase the probability of an insured loss occurring, such as hazardous hobbies |
| The annuity period is defined as the time during which the annuitant | Annuitization period, liquidation period, or pay-out period, is the time during which the sum accumulated is converted into a stream of income |
| What nonforfeiture option allows the policy owner to use to use the cash value as a single premium to purchase a smaller policy that will endow at age 100 | Reduced paid-UP |
Created by:
Sandradiazbohr
Popular Insurance sets