California Life Insurance Study guides, Class notes & Summaries

What is meant by referring to an insurance policy as a unilateral contract? - Only one party makes a legally enforceable promise. When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? - At all times. Any situation that presents the possibility of a loss is known as - a loss exposure Which of the following information is not required to be communicated in a Life insurance contract? - Personal judgment. The direct distribution of insura...

Life-Only Agent Exam 1 Questions and Answers 100% Pass AN example of a moral hazard in relation to a life insurance application would be: - Answer ️️ -Misstating your health history to an insurance company. John applies for a variable annuity and does not request that the premiums be immediately invested in a stock or bond portfolio. After the annuity is issued, John returns the annuity contract to the insurer within the free look period. What will John receive from the insurer? - Ans...

What is meant by referring to an insurance policy as a unilateral contract? - Answer Only one party makes a legally enforceable promise. When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? - Answer At all times. Any situation that presents the possibility of a loss is known as - Answer a loss exposure Which of the following information is not required to be communicated in a Life insurance contract? - Answer Personal judgm...

A key person is typically all of the following, except: - Answer -Not directly involved in sales, production, or service Key persons are employees whose contributions have a significant impact on the revenue and profitability of the company, especially in small businesses. They are typically: part of the management team, more highly paid, respected by customers, creditors, suppliers, and vendors, and have direct responsibilities for sales, production, or service. Which one of the followi...

Carol is injured driving a company car at work. Her Health insurance coverage: AProvides excess or supplementary coverage BWill provide coverage on a pro-rata basis with Workers Compensation CWill cover her injuries DWill not cover her since this is an occupational injury - Answer D Explanation: Most Health insurance provides 'non-occupational' (off the job) coverage for sickness or injury, meaning that occupational coverage is excluded. However, if a person is not required to be c...

Two methods of determining insurance need: - Answer - Human Life Approach - Needs Approach Human Life Value Approach~ - Answer - One of two ways of calculating insurance need. - By discounting estimated future income - Calculating the amount of life insurance a family will need based on the financial loss that they will suffer if the insured person were to pass away today - 10X salary - Based on age, gender, planned retirement age, occupation, annual wage, employment benefits, as we...

A ABC INSURANCE - Answer JOHN IS THE AGENT FOR ABC INSURANCE AND JANE IS THE INSURED. WHO IS THE PRINCIPAL IN THIS AGENCY RELATIONSHIP? A ABC INSURANCE B JOHN C JANE D NONE D ADMITTED - Answer A(N) ________ INSURER IS AUTHORIZED TO WRITE INSURANCE POLICIES IN A PARTICULAR STATE. A DOMESTIC B NON-ADMITTED C FOREIGN D ADMITTED B

Whole Life Policies - Answer also called permanent insurance, builds cash value, policy endows at age 100 401(k) - Answer a Cash or Deferred Arrangement (CODA) plan that is a modified profit-sharing or pension plan. 403(b) - Answer a Cash or Deferred Arrangement (CODA) plan that is a modified profit-sharing or pension plan. Limit of Liability - Answer The total amount the insurer will pay for an insured risk. -Flexible premiums, -Guaranteed minimum death benefit -Guarantee...

Employer-provided group term life insurance is exempt from income taxation up to - Answer $50,000 Medicare Part B has an initial enrollment period. How many months after an individual's 65th birthday month does this enrollment period end? - Answer 3 months Which statement is true regarding policy dividends? - Answer A dividend option is selected by the insured at the time of policy purchase What does the insurance term "indemnity" refer to? - Answer Make whole What is a co...

Exclusion ratio - Answer An annuitant would life to determine the amount of an annuity distribution that is exempt from taxation. What is used to calculate this? Mortality rate, Exclusion ratio, Morbidity rate, Debt-to-Equity ration Offers a maximum interest rate that increases annually - Answer Which of the following is NOT a feature of equity-indexed annuities? Offers long term inflation protection, Offers a minimum guaranteed rate, Offers a maximum interest rate that increases a...

AN ANNUITY THAT IS PURCHASED WITH A LUMP SUM PREMIUM AND WHOSE BENEFITS BEGIN AFTER 12 MONTHS IS CALLED A - Answer SINGLE PREMIUM DEFERRED ANNUITY A TECHNIQUE USED TO DETERMINE THE AMOUNT OF LIFE INSURANCE NEEDED BY FOCUSING ON THE PROJECTED EARNING POTENTIAL OF AN INSURED IS CALLED THE - Answer HUMAN LIFE VALUE APPROACH WHEN REPLACING A POLICY THE PRODUCER MUST PRESENT THE APPLICANT WITH A NOTICE REGARDING REPLACEMENT OF LIFE INSURANCE - Answer AT THE TIME OF TAKING THE APPLICATION ...

Co-insurance - Answer The policy provision which requires the insurer and the insured to share in the cost of services rendered Exclusion ratio - Answer The formula which is used by the IRS to determine how much is taxable to an annuitant during the pay out period. Occupational policy - Answer When a disability income policy provides coverage for injuries which occur on and off the job Most disability income policies are non occupational, meaning - Answer They only cover the ins...