Prepare for your Life Insurance License exam with these practice questions and answers. This guide covers term and whole life policies, universal life, annuities, underwriting, and state insurance regulations.
Q: AABC INSURANCE
Answer: JOHN IS THE AGENT FOR ABC INSURANCE AND JANE IS THE INSURED. WHO IS THE PRINCIPAL IN THIS AGENCY RELATIONSHIP?AABC INSURANCEBJOHNCJANEDNONE
Q: DADMITTED
Answer: A(N) ________ INSURER IS AUTHORIZED TO WRITE INSURANCE POLICIES IN A PARTICULAR STATE.ADOMESTICBNON-ADMITTEDCFOREIGNDADMITTED
Q: BA PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN INSURED
Answer: WHICH OF THE FOLLOWING IS CLASSIFIED AS AN INSURANCE BROKER?AA PERSON WHO PLACES COVERAGE FOR HIS/HER OWN INSURANCEBA PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN INSUREDCA PERSON IN THE HOME OFFICE WHO DOES NOT SOLICIT OUTSIDE OF THE OFFICEDAN EMPLOYEE WHO NEGOTIATES INSURANCE CONTRACTS FOR HIS/HER EMPLOYER
Q: CEACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE OTHER THAT THERE IS NOTHING CONCEALED OR DISHONEST
Answer: THE INSURANCE CONTRACT IS SAID TO BE A CONTRACT OF UTMOST GOOD FAITH, BECAUSE:ACONCEALMENT OF KNOWN FACTS ON THE PART OF THE INSURED WILL VOID THE CONTRACTBTHE INSURER HAS DRAWN UP THE CONTRACT AND, THEREFORE, THERE IS NO INTENT TO DECEIVECEACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE OTHER THAT THERE IS NOTHING CONCEALED OR DISHONESTDTHE INSURED MUST WARRANT THAT HIS/HER REPRESENTATIONS ARE TRUE
Q: ATHE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRIOR TO THE LOSS, WITH NO INTENT OF LOSS OR GAIN
Answer: WHICH OF THE FOLLOWING BEST DESCRIBES A CONTRACT OF INDEMNITY UNDER INSURANCE?ATHE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRIOR TO THE LOSS, WITH NO INTENT OF LOSS OR GAINBTHE INSURED INDEMNIFIES THE INSURER FOR ANY EXPENSES IN ADJUSTING THE LOSSCTHE INSURED SUSTAINS A LOSS AS A RESULT OF THE LOSS
Q: DSURPLUS
Answer: THE INSURED IS RESTORED TO A FINANCIAL CONDITION AS GOOD AS, OR BETTER THAN, THE INSURED WAS BEFORE THE LOSS___________ INSURANCE IS USED TO PROVIDE COVERAGE WHEN INSURANCE IS NOT AVAILABLE FROM AN ADMITTED CARRIER.AFACULTATIVEBDOMESTICCALIENDSURPLUS
Q: CPURE RISK
Answer: WHICH OF THE FOLLOWING RISKS IS PROTECTED BY INSURANCE?ACERTAIN RISKBSPECULATIVE RISKCPURE RISKDINVOLUNTARY RISK
Q: AWHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL LOSS
Answer: A GOOD EXAMPLE OF RISK REDUCTION MIGHT BE:AWHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL LOSSBTHE ELIMINATION OF THE EXPOSURE TO A SPECIFIC RISKCTHE TRANSFER OF THE RISK TO AN INSURANCE COMPANYDINSURING ONLY THOSE RISKS THAT THREATEN THE FINANCIAL STABILITY OF THE INSURED
Q: BADMITTED
Answer: AN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN A PARTICULAR STATE IS SAID TO BE:ANON-ADMITTEDBADMITTEDCDOMESTICDFOREIGN
Q: CSTOCK
Answer: WHICH INSURER’S OWNER RECEIVES TAXABLE CORPORATE DIVIDENDS AS A RETURN OF PROFIT?AMUTUALBRECIPROCALCSTOCKDFRATERNAL
Q: BACCORDING TO THE LAW OF LARGE NUMBERS
Answer: IN INSURANCE, WHEN THE NUMBER OF SIMILAR UNITS INCREASE, THE PREDICTABILITY OF THE LOSS IMPROVES:ABECAUSE OF THE SIMILARITY OF UNITS IN LARGE QUANTITIESBACCORDING TO THE LAW OF LARGE NUMBERSCBECAUSE OF ACCUMULATED EXPERIENCEDACCORDING TO THE LAW OF AVERAGES
Q: AA UNILATERAL CONTRACT
Answer: A CONTRACT WHEREBY ONLY ONE PARTY IS BOUND TO FUTURE PERFORMANCE, IS SAID TO BE:AA UNILATERAL CONTRACTBA BILATERAL CONTRACTCA CONDITIONAL CONTRACTDAN ALEATORY CONTRACT
Q: ACAL-GLBA
Answer: THE CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT IS SOMETIMES KNOWN AS:ACAL-GLBABCA-FIPACCA-HIPAADCA-FCRA
Q: BINSURER
Answer: IN CALIFORNIA, ANY PERSON THAT MANUFACTURES AND SELLS INSURANCE COVERAGE BY WAY OF INSURANCE POLICIES OR CONTRACTS MAY BE AN:AINSUREDBINSURERCAGENCYDAGENT
Q: AA RISK
Answer: IN THE INSURANCE WORLD, A POTENTIAL FOR A LOSS IS SAID TO BE:AA RISKBA PERILCA HAZARDDAN INSURABLE INTEREST
Q: BGROUP LIFE INSURANCE
Answer: AN INSURANCE PLAN OWNED BY AN EMPLOYER, CREDITOR OR ASSOCIATION, PROVIDING COVERAGE FOR THE EMPLOYEES, DEBTORS, OR MEMBERS, REFERS TO WHICH OF THE FOLLOWING?AORDINARY LIFE INSURANCEBGROUP LIFE INSURANCECINDUSTRIAL LIFE INSURANCEDINDIVIDUAL LIFE INSURANCE
Q: AA POLICY SUMMARY
Answer: A PERSONALIZED COMPUTER-GENERATED ILLUSTRATION DETAILING PREMIUMS, CASH VALUES, INTEREST RATES, AND SURRENDER VALUES IS CALLED __________.AA POLICY SUMMARYBSALES LITERATURECAN ADVERTISEMENTDA HYPOTHETICAL
Q: ATO PAY THE CLAIM IN FULL SINCE THE CONDITIONS OF THE RECEIPT WERE FULLY SATISFIED
Answer: A PRODUCER SUBMITS A COMPLETED APPLICATION TO THE INSURER ALONG WITH THE PREMIUM CHECK AFTER GIVING THE APPLICANT A CONDITIONAL RECEIPT. IF THE APPLICANT COMPLETES THE REQUIRED MEDICAL EXAM, BUT DIES PRIOR TO THE INSURER ISSUING A POLICY AS APPLIED FOR, WHAT IS THE INSURER’S RESPONSIBILITY?ATO PAY THE CLAIM IN FULL SINCE THE CONDITIONS OF THE RECEIPT WERE FULLY SATISFIEDBTO REFUND PREMIUMS PAID LESS COSTS ASSOCIATED WITH ANY MEDICAL EXAMSCTO KEEP THE PREMIUM AND REJECT THE CLAIMDTO REFUND ANY AND ALL PREMIUMS PAID
Q: DCONTACT THE CLIENT TO ASSURE THAT THEY UNDERSTAND THE TRANSACTION
Answer: IN A REPLACEMENT TRANSACTION, ALL OF THE FOLLOWING ARE INSURER DUTIES AND RESPONSIBILITIES, EXCEPT:AMAINTAIN COPIES OF THE INFORMATION PROVIDED BY THE PRODUCERBABIDE BY THE STATE REQUIRED HOLDING PERIOD FOR ALL REPLACEMENT DOCUMENTATIONCNOTIFY THE EXISTING INSURERDCONTACT THE CLIENT TO ASSURE THAT THEY UNDERSTAND THE TRANSACTION
Q: A1,000
Answer: THE MORTALITY RATE IS BASED ON MORTALITY TABLES WHICH SHOW LIFE EXPECTANCY AND THE DEATH RATE PER _______ PEOPLE LIVING IN THE U.S.A1,000B100C10,000D100,000
Q: DNAME AND OCCUPATION
Answer: WHICH OF THE FOLLOWING IS INCLUDED IN PART I OF A LIFE INSURANCE APPLICATION?AFAMILY HEALTH HISTORYBHOSPITALIZATIONS AND SURGERIESCPRESENT HEALTHDNAME AND OCCUPATION
Q: CESTATE CONSERVATION
Answer: BUYING LIFE INSURANCE SO THAT THE DEATH BENEFIT WILL BE AVAILABLE FOR PAYING ESTATE TAXES DUE UPON THE DEATH OF THE INSURED IS KNOWN AS:ASURVIVOR PROTECTIONBESTATE CREATIONCESTATE CONSERVATIONDPRENEED PLANNING
Q: DTHE CASH VALUE
Answer: MONEY ACCUMULATED IN A PERMANENT POLICY THAT THE POLICYOWNER MAY BORROW VIA A POLICY LOAN OR RECEIVE IF THE POLICY IS SURRENDERED, REFERS TO:ASAVINGS ACCOUNTBACCUMULATED AT INTEREST ACCOUNTCDEFERRED SAVINGS ACCOUNTDTHE CASH VALUE
Q: CDECREASING TERM RIDER
Answer: SEAN HAS A HOME WITH A MORTGAGE. HE NEEDS LIFE INSURANCE TO PROTECT HIS FAMILY BUT ALSO WANTS TO LEAVE THEM WITHOUT A MORTGAGE PAYMENT IF HE DIES. IDEALLY WHICH OF THE FOLLOWING RIDERS SHOULD HE ACQUIRE?AFAMILY RIDERBINCREASING TERM RIDERCDECREASING TERM RIDERDLEVEL TERM RIDER
Q: ATHE INSURER REFUNDS IT
Answer: AN INSURED OWNS A $50,000 PERMANENT LIFE POLICY THAT SHE PURCHASED 4 YEARS AGO THAT HAS A DISABILITY WAIVER OF PREMIUM. THE INSURED BECOMES DISABLED AND PAYS PREMIUMS DURING THE WAITING PERIOD UNTIL THE WAIVER BEGINS. ONCE THE WAIVER BEGINS, WHAT HAPPENS TO THE PREMIUMS SHE PAID DURING THE WAITING PERIOD?ATHE INSURER REFUNDS ITBIT IS ADDED TO THE POLICY’S CASH VALUESCIT IS HELD IN ESCROW UNTIL THE DISABILITY IS OVER THEN REFUNDEDDIT IS KEPT BY THE INSURER AS PART OF THE COST OF PROVIDING THE BENEFIT
Q: BPERMANENT
Answer: WHOLE LIFE IS ALSO KNOWN AS ________ PROTECTION.ATEMPORARYBPERMANENTCABSOLUTEDPERIODIC
Q: AJOINT SURVIVORSHIP
Answer: ALL OF THE FOLLOWING POLICIES END WHEN AN INSURED DIES, EXCEPT:AJOINT SURVIVORSHIPBJOINT LIFECVARIABLE UNIVERSAL LIFEDJUVENILE LIFE
Q: A$250,000
Answer: A MARRIED COUPLE PURCHASES A $250,000 JOINT LIFE POLICY. WHEN THE OLDER OF THE TWO DIES, WHAT IS THE AMOUNT PAYABLE TO THE SURVIVOR?A$250,000BZEROC$500,000D$125,000
Q: DSEPARATE ACCOUNT
Answer: THE OWNER OF A VARIABLE LIFE POLICY MAY ALLOCATE THE PREMIUM INTO A SUB-ACCOUNT WHICH IS OWNED BY THE INSURER, THIS SUB-ACCOUNT IS A PART OF WHAT IS ALSO KNOWN AS THE:ASIDE FUNDBACCUMULATION ACCOUNTCALLOCATION ACCOUNTDSEPARATE ACCOUNT
Q: CINCREASING TERM
Answer: WHICH TYPE OF TERM PROTECTION HAS AN INCREASING FACE VALUE AS THE INSURED GETS OLDER?ALEVEL TERMBRENEWABLE TERMCINCREASING TERMDCONVERTIBLE TERM
Q: BDEATH BENEFIT
Answer: LEVEL, DECREASING AND INCREASING TERM REFER TO WHICH POLICY FEATURE?ACASH VALUEBDEATH BENEFITCPREMIUMDRENEWABLE AND CONVERTIBLE
Q: DTAKE A POLICY LOAN FROM THE INSURER
Answer: BERT IS THE OWNER AND INSURED OF A TRADITIONAL WHOLE LIFE INSURANCE POLICY HE PURCHASED 20 YEARS AGO. HE HAS NEVER MISSED A PREMIUM PAYMENT. HE WOULD LIKE TO BUY A NEW CAR BUT HIS BANK ACCOUNT IS RUNNING LOW. HOW CAN HE OBTAIN THE NECESSARY FUNDS WHILE STILL MAINTAINING COVERAGE?AREDUCE THE POLICY’S FACE AMOUNT WHICH WILL REDUCE HIS PREMIUM PAYMENTBSURRENDER PART OF THE POLICY AND FOR THE BALANCE TAKE A POLICY LOANCSURRENDER THE POLICY BACK TO THE INSURERDTAKE A POLICY LOAN FROM THE INSURER
Q: BIT CAN PROVIDE ADDITIONAL TEMPORARY COVERAGE ON THE INSURED OR ON OTHER MEMBERS OF THE FAMILY
Answer: WHICH OF THE FOLLOWING IS TRUE OF A TERM RIDER WHEN ATTACHED TO A PERMANENT LIFE POLICY?AIT ALLOWS THE POLICY TO ACHIEVE PAID UP STATUS AT THE END OF THE TERMBIT CAN PROVIDE ADDITIONAL TEMPORARY COVERAGE ON THE INSURED OR ON OTHER MEMBERS OF THE FAMILYCIT ONLY PAYS OUT A DEATH BENEFIT IN CASES OF ACCIDENTAL DEATHDIT ALWAYS IS IN THE AMOUNT OF THE BASE POLICY
Q: DACCIDENTAL DEATH AND DISMEMBERMENT
Answer: WHICH TYPE OF RIDER PAYS OUT A CAPITAL SUM IN CASE AN INSURED LOSES A LIMB OR THEIR EYESIGHT?AACCIDENTAL DEATHBRETURN OF PREMIUMCDISABILITY BENEFITDACCIDENTAL DEATH AND DISMEMBERMENT
Q: ATYPICALLY 6 MONTHS AFTER THE DISABILITY OCCURS
Answer: IF A POLICYOWNER HAS A WHOLE LIFE INSURANCE POLICY WITH A DISABILITY WAIVER OF PREMIUM RIDER, WHEN DOES THE RIDER BENEFIT START IF A QUALIFYING DISABILITY SHOULD OCCUR?ATYPICALLY 6 MONTHS AFTER THE DISABILITY OCCURSBIMMEDIATELYCAFTER THE DOCTOR CERTIFIES THE DISABILITYDONE YEAR AFTER THE CLAIM FORMS ARE RECEIVED BY THE INSURER
Q: DA SPECIFIED PERIOD OF TIME
Answer: TERM LIFE INSURANCE IS DESIGNED TO PROVIDE COVERAGE FOR ___________.AFOR ONE YEARBTO AGE 65CAN ENTIRE LIFETIMEDA SPECIFIED PERIOD OF TIME
Q: CAS LONG AS THERE IS SUFFICIENT CASH VALUE TO COVER POLICY EXPENSES WHEN DUE, THE INSURED IS NOT REQUIRED TO PAY THE PLANNED PREMIUM
Answer: WHICH OF THE FOLLOWING IS A TRUE CHARACTERISTIC OF A VARIABLE UNIVERSAL LIFE POLICY?ATHE POLICY REQUIRES ONLY A LIFE LICENSE TO SELLBTHE INSURER BEARS ALL RISKS IN ACCUMULATING CASH VALUECAS LONG AS THERE IS SUFFICIENT CASH VALUE TO COVER POLICY EXPENSES WHEN DUE, THE INSURED IS NOT REQUIRED TO PAY THE PLANNED PREMIUMDTHE POLICY HAS A FIXED PREMIUM SCHEDULE
Q: CANY REASON
Answer: FOR WHICH OF THE FOLLOWING REASONS MAY AN INSURED RETURN THE POLICY FOR A FULL REFUND WITHIN THE FREE LOOK PERIOD?ADEATH OF THE AGENTBINCREASE IN PREMIUMCANY REASONDDECLINE IN FINANCIAL RATING OF THE INSURANCE COMPANY
Q: ATHE SURRENDER CHARGE
Answer: ON A VARIABLE UNIVERSAL LIFE POLICY WHAT IS THE DIFFERENCE BETWEEN THE CASH VALUE AND THE CASH SURRENDER VALUES?ATHE SURRENDER CHARGEBTHE INVESTMENT PERFORMANCECTHE AMOUNT OF ANY OUTSTANDING POLICY LOANDTHE INTEREST EARNED
Q: DOWNERSHIP PROVISION
Answer: ___________ IN A POLICY ALLOW THE OWNER TO NAME THE BENEFICIARY, CHOOSE A DIVIDEND OPTION OR SETTLEMENT OPTION, OR BORROW AGAINST THE CONTRACT.AINSURING CLAUSEBCONSIDERATION CLAUSECINCONTESTABLE CLAUSEDOWNERSHIP PROVISION
Q: BINSURING CLAUSE
Answer: WHICH OF THE FOLLOWING STATES THE OBLIGATION OF THE INSURER AND THE RISK THAT IS CONSIDERED IN A LIFE INSURANCE POLICY?ACONSIDERATION CLAUSEBINSURING CLAUSECENTIRE CONTRACT CLAUSEDEXCLUSIONS PROVISION
Q: D2
Answer: AFTER A LIFE INSURANCE POLICY HAS BEEN IN FORCE FOR MORE THAN _____ YEARS THE POLICY IS CONSIDERED INCONTESTABLE.A1B3C4D2
Q: CPURCHASE A DECREASING BENEFIT POLICY THAT MATCHES THE LOAN REPAYMENT SCHEDULE
Answer: IN ORDER TO MAKE SURE THAT A CREDITOR OF THE INSURED IS NOT PAID MORE THAN THE OUTSTANDING LOAN AT TIME OF CLAIM, THE POLICYOWNER SHOULD:AINDICATE THE PERCENTAGE OF THE FACE AMOUNT THE CREDITOR WILL RECEIVEBSPECIFY A DOLLAR AMOUNT THE CREDITOR SHOULD RECEIVE AT TIME OF CLAIMCPURCHASE A DECREASING BENEFIT POLICY THAT MATCHES THE LOAN REPAYMENT SCHEDULEDNAME THE CREDITOR AS A PRIMARY BENEFICIARY
Q: AWHOLE LIFE
Answer: AN INSURED FORGETS TO PAY HIS INSURANCE PREMIUM. INSTEAD OF THE POLICY LAPSING, THE PREMIUM IS PAID BY THE COMPANY. THIS WOULD SUGGEST THAT A __________ POLICY WAS PURCHASED.AWHOLE LIFEBDECREASING TERMCRENEWABLE TERMDLEVEL TERM
Q: BPOLICYOWNER
Answer: THE ___________ DECIDES WHICH DIVIDEND OPTION IS IN EFFECT AND CAN CHANGE THEIR ELECTION AT ANY TIME.ABENEFICIARYBPOLICYOWNERCBOARD OF DIRECTORSDINSURER
Q: BNO CLAIM IS PAID OUT
Answer: AN AUNT AND UNCLE PURCHASE A LIFE INSURANCE POLICY ON THEIR NIECE, FOR WHOM THEY ARE THE LEGAL GUARDIANS. BOTH GUARDIANS PERISH IN AN ACCIDENT SOME TIME LATER. WHO RECEIVES THE DEATH BENEFIT?ATHE PRIMARY BENEFICIARYBNO CLAIM IS PAID OUTCTHE CONTINGENT BENEFICIARYDTHE NIECE’S ESTATE
Q: BUSING A LIFE INSURANCE POLICY AS COLLATERAL FOR A LOAN
Answer: ALL OF THE FOLLOWING ARE EXAMPLES OF AN ABSOLUTE ASSIGNMENT, EXCEPT:AA BUSINESS PERMITS THE CHANGE OF OWNERSHIP OF A COMPANY OWNED POLICY OVER TO A RETIRING EXECUTIVEBUSING A LIFE INSURANCE POLICY AS COLLATERAL FOR A LOANCA COURT ORDERS THE EXISTING POLICYOWNER TO CHANGE IT TO THEIR EX-SPOUSEDA GRANDPARENT SIGNS OVER OWNERSHIP OF A JUVENILE POLICY TO THEIR GRANDCHILD WHO IS NOW REACHED AGE OF MAJORITY
Q: BPREMIUM REDUCTION
Answer: A LIFE INSURANCE POLICYOWNER RECEIVES AN ANNUAL DIVIDEND. ONE OPTION FOR THIS DIVIDEND IS TO USE IT TO OFFSET THE ANNUAL OBLIGATION TO THE INSURER. WHAT IS THIS OPTION CALLED?ACASHBPREMIUM REDUCTIONCPAID UP ADDITIONSDCASH SURRENDER
Q: BIRREVOCABLE
Answer: WHICH OF THE FOLLOWING BENEFICIARY DESIGNATIONS PREVENTS A POLICYOWNER FROM ASSIGNING THE POLICY, TAKING A POLICY LOAN, OR SURRENDERING THE POLICY WITHOUT THE BENEFICIARIES CONSENT?AINCONTESTABLEBIRREVOCABLECCLASSDNAMED
Q: ACOLLATERAL ASSIGNMENT
Answer: THE BANK MAY REQUIRE ITS BORROWERS TO HAVE A LIFE INSURANCE POLICY TO SECURE A LOAN IN THE EVENT OF THE BORROWER’S DEATH. WHICH PROVISION GIVES THE BANK PROPORTIONAL PROTECTION BUT NOT CONTROL OF THE POLICY?ACOLLATERAL ASSIGNMENTBCONSIDERATION CLAUSECPOLICY LOAN PROVISIONDENTIRE CONTRACT CLAUSE
Q: BDEATH BENEFIT WILL BE WHAT THE PREMIUM PAID WOULD HAVE PURCHASED AT ISSUANCE AT THE CORRECT AGE
Answer: IF AN APPLICANT FOR LIFE INSURANCE MISSTATES HIS AGE ON THE APPLICATION, WHAT WOULD BE THE CONSEQUENCE IF/WHEN IT IS DISCOVERED?ATHE POLICY WILL BE VOIDEDBDEATH BENEFIT WILL BE WHAT THE PREMIUM PAID WOULD HAVE PURCHASED AT ISSUANCE AT THE CORRECT AGECREAL AGE DIVIDED BY ACTUAL AGE, MULTIPLIED BY DEATH BENEFITDPREMIUMS REFUNDED WITH INTEREST, NO DEATH BENEFIT PAID
Q: BSETTLEMENT
Answer: __________ OPTIONS ALLOW FOR THE DISTRIBUTION OF THE LIFE INSURANCE DEATH BENEFIT, OR ENDOWMENT CONTRACT FACE AMOUNT AT MATURITY, TO THE NAMED BENEFICIARY OR CONTRACT OWNER, AS THE SITUATION WARRANTS.ADIVIDENDBSETTLEMENTCNONFORFEITUREDACCUMULATION
Q: CLUMP SUM
Answer: INSTEAD OF WAITING TO RECEIVE HER PAYMENTS OVER TIME JEANNE DECIDES TO OBTAIN THE GREATEST AMOUNT OF MONEY OUT OF HER ANNUITY IMMEDIATELY. WHICH OPTION DID SHE CHOOSE?ASTRAIGHT LIFE OPTION (LIFE INCOME)BLIFE INCOME PERIOD CERTAINCLUMP SUMDLIFE INCOME WITH REFUND
Q: CSINGLE PREMIUM DEFERRED ANNUITY
Answer: A LUMP SUM OF MONEY IS PLACED INTO AN ACCOUNT FROM WHICH THE ANNUITANT WILL DRAW PERIODIC BENEFITS BEGINNING MORE THAN A YEAR FROM THE DATE OF PURCHASE. THIS DESCRIBES A:AFLEXIBLE PREMIUM DEFERRED ANNUITYBFLEXIBLE PREMIUM IMMEDIATE ANNUITYCSINGLE PREMIUM DEFERRED ANNUITYDSINGLE PREMIUM IMMEDIATE ANNUITY
Q: DVARIABLE
Answer: GENERALLY, WHICH OF THE FOLLOWING ANNUITIES IS NOT DESIGNED TO GUARANTEE THE PRINCIPAL VALUE OF THE POLICY IN STABLE INTEREST RATE ENVIRONMENTS?AFIXEDBMARKET VALUE ADJUSTMENTCINDEXEDDVARIABLE
Q: BNOTHING
Answer: UNDER AN ANNUITY WITH A JOINT LIFE PAYMENT OPTION, WHAT WILL THE SURVIVOR RECEIVE UPON THE DEATH OF THE FIRST ANNUITANT?ATHE UNDISTRIBUTED BALANCEBNOTHINGCTHE SAME AMOUNT THEY WERE RECEIVING TOGETHERDTHE REMAINING PERIOD CERTAIN
Q: APERIODIC, FLEXIBLE
Answer: ANNUITIES MAY BE FUNDED WITH EITHER A LUMP SUM OR ON EITHER A ______ OR A ______ BASIS.APERIODIC, FLEXIBLEBLIFE, PERIODICCPERMANENT, TEMPORARYDGUARANTEED, DISCRETIONARY
Q: AANNUITIES
Answer: WHICH PRODUCT, OFFERED BY INSURERS IS SPECIFICALLY DESIGNED TO ALLOW AN INDIVIDUAL’S SAVINGS TO BE DISTRIBUTED TO HIM/HER PERIODICALLY OVER HIS/HER ENTIRE LIFE, REGARDLESS OF HOW LONG HE/SHE LIVES?AANNUITIESBPARTICIPATING WHOLE LIFECUNIVERSAL LIFE INSURANCEDVARIABLE LIFE INSURANCE
Q: ACROSS PURCHASE
Answer: A(N)__________ PLAN IS WHEN BUSINESS PARTNERS BUY LIFE INSURANCE POLICIES ON ONE ANOTHER.ACROSS PURCHASEBENTITYCPARTNERSHIPDINDUSTRIAL
Q: DTHIRD-PARTY OWNERSHIP
Answer: A GRANDPARENT PURCHASES A LIFE INSURANCE POLICY ON A GRANDDAUGHTER THIS IS AN EXAMPLE OF _________.ATWO PARTY OWNERSHIPBKEY PERSON INSURANCECWEALTH TRANSFERDTHIRD-PARTY OWNERSHIP
Q: BACTUARIAL VALUE OF CONTRIBUTIONS IS RELATED TO ACTUARIAL VALUE OF BENEFITS
Answer: ALL ARE TRUE REGARDING FUNDING OF SOCIAL SECURITY, EXCEPT:ATHE EMPLOYER WITHHOLDS THE EMPLOYEE’S TAX AND REMITS IT WITH THE EMPLOYER’S PORTIONBACTUARIAL VALUE OF CONTRIBUTIONS IS RELATED TO ACTUARIAL VALUE OF BENEFITSCTHE FUNDS ARE KEPT IN A TRUST FUND AND INVESTED IN GOVERNMENT SECURITIESDSELF-EMPLOYED INDIVIDUALS PAY BOTH THE EMPLOYER AND EMPLOYEE AMOUNTS
Q: AA BUSINESS OWNER BUYING A LIFE POLICY ON HIS OWN LIFE
Answer: WHICH OF THE FOLLOWING IS NOT AN EXAMPLE OF THIRD-PARTY OWNERSHIP?AA BUSINESS OWNER BUYING A LIFE POLICY ON HIS OWN LIFEBA KEY EMPLOYEE POLICYCA POLICY USED TO FUND A BUY-SELL AGREEMENTDA PARENT PURCHASING A POLICY ON THE LIFE OF HIS OR HER CHILD
Q: CRETIREMENT, DEATH, AND SURVIVOR
Answer: SOCIAL SECURITY BENEFITS PROVIDED ARE:ARETIREMENT, SURVIVORS, AND FICABRETIREMENT, DISABILITY, AND UNEMPLOYMENTCRETIREMENT, DEATH, AND SURVIVORDRETIREMENT, DEATH, AND DEPENDENT CARE
Q: AACCELERATED BENEFIT (LIVING NEED)
Answer: IF, AS THE RESULT OF AN INJURY OR ILLNESS, THE INSURED IS DEEMED TO BE TERMINAL (I.E., EXPECTED TO DIE WITHIN 1 OR 2 YEARS), WHAT RIDER ADDED TO A LIFE INSURANCE POLICY WOULD ADVANCE A PORTION OF THE FACE VALUE?AACCELERATED BENEFIT (LIVING NEED)BDISABILITY RIDERCRETURN OF CASH VALUE RIDERDVIATICAL RIDER
Q: B10
Answer: IF FUNDS ARE PREMATURELY WITHDRAWN FROM A MODIFIED ENDOWMENT CONTRACT (MEC) THEY ARE SUBJECT TO A _____% PENALTY ON ANY GAINS.A6B10C20D15
Q: DTHE AMOUNT OF THE ACCELERATED PAYMENT, THE REMAINING DEATH BENEFIT AND CASH VALUES
Answer: IN THE EVENT THAT AN INSURED RECEIVES A PERIODIC BENEFIT AS THE RESULT OF EXERCISING THE ACCELERATED DEATH BENEFIT RIDER, WHAT INFORMATION MUST THE INSURER PROVIDE TO THE INSURED?ATHE AMOUNT OF TAXABLE INCOME THAT THEY WILL BE REPORTING TO THE IRSBTHE LIFE EXPECTANCY OF THE INSURED ON A SEMI-ANNUAL BASISCVERIFICATION AND UPDATE OF THE POLICY OWNERSHIP AND BENEFICIARY DESIGNATIONSDTHE AMOUNT OF THE ACCELERATED PAYMENT, THE REMAINING DEATH BENEFIT AND CASH VALUES
Q: ATAX AND 10% PENALTY TAX ON THE WITHDRAWAL THAT REPRESENTS EARNINGS
Answer: IF AN ANNUITANT WITHDRAWS FUNDS FROM THEIR ANNUITY PRIOR TO AGE 59 1/2 WHAT IS THE TAX CONSEQUENCE?ATAX AND 10% PENALTY TAX ON THE WITHDRAWAL THAT REPRESENTS EARNINGSBTAX ON THE TAX DEFERRED PORTION OF THE WITHDRAWAL ALONG WITH A 15% TAX PENALTYCTAX ON COST BASIS AND 10% TAX PENALTY ON THE TAX DEFERRED PORTION OF THE WITHDRAWALDTAX ON THE ENTIRE WITHDRAWAL PLUS A 10% TAX PENALTY
Q: C59 1/2
Answer: DISTRIBUTIONS FROM A MODIFIED ENDOWMENT CONTRACT (MEC) MADE ON OR AFTER AGE _____ ARE NOT SUBJECT TO ANY TAX PENALTIES.A65B62C59 1/2D70 ½
Q: C60
Answer: IF A POLICYOWNER OF A LIFE INSURANCE POLICY ACCIDENTLY PAYS IN PREMIUMS IN EXCESS OF THE MEC GUIDELINES, THE INSURER CAN REFUND THE EXCESS WITHIN ______ DAYS OF THE END OF THE CONTRACT YEAR.A30B10C60D45
Q: APRIVATE
Answer: ERISA SETS MINIMUM STANDARDS FOR PENSION PLANS PRIMARILY IN THE ______ INDUSTRY.APRIVATEBPUBLICCPUBLIC AND PRIVATEDQUASI-GOVERNMENT
Q: AWHEN A TRANSFER OF OWNERSHIP TAKES PLACE WHILE THE INSURED WAS ALIVE
Answer: UNLESS AN EXCEPTION APPLIES, LIFE INSURANCE PROCEEDS ARE INCOME TAXABLE IN WHICH OF THE FOLLOWING CIRCUMSTANCES?AWHEN A TRANSFER OF OWNERSHIP TAKES PLACE WHILE THE INSURED WAS ALIVEBIF A TRANSFER OF OWNERSHIP OCCURS AFTER THE INSURED DIESCWHEN A POLICY IS USED FOR COLLATERAL FOR A BANK LOANDWHEN THERE IS A CHANGE OF BENEFICIARY FROM A NON-POLICYOWNER TO THE POLICYOWNER
Q: ALAST-IN, FIRST OUT (LIFO)
Answer: WITHDRAWALS FROM A NON-QUALIFIED ANNUITY PRIOR TO ANNUITIZATION ARE TAXED ON A ___________ BASIS.ALAST-IN, FIRST OUT (LIFO)BFIRST-IN, FIRST OUT (FIFO)CAVERAGE COST BASIS (ACB)DFIRST IN, LAST OUT (FILO)
Q: CFEDERAL ESTATE
Answer: IF LIFE INSURANCE PROCEEDS ARE PAID TO THE DECEASED’S ESTATE THEY MAY BE SUBJECT TO ________ TAXES.ASTATE INCOMEBFEDERAL INCOMECFEDERAL ESTATEDPROBATE
Q: CPRESENT HEALTH AND MEDICAL BACKGROUND OF APPLICANT AND FAMILY
Answer: WHICH OF THE FOLLOWING ARE INCLUDED IN PART II OF A HEALTH INSURANCE APPLICATION?AADDRESSBOCCUPATIONCPRESENT HEALTH AND MEDICAL BACKGROUND OF APPLICANT AND FAMILYDMARITAL STATUS
Q: BSTATING THAT ‘WE HAVE BEEN IN BUSINESS FOR OVER 50 YEARS, FOR MORE INFORMATION CONTACT A LOCAL AGENT.’
Answer: ALL OF THE FOLLOWING ARE A PROHIBITED FORM OF ADVERTISING, EXCEPT:AAN ADVERTISEMENT THAT USES THE WORDS ‘ONLY’, ‘JUST’, ‘MERELY’, ‘MINIMUM’, OR SIMILAR WORDS TO IMPLY A MINIMAL IMPOSITION OF RESTRICTIONS AND REDUCTIONSBSTATING THAT ‘WE HAVE BEEN IN BUSINESS FOR OVER 50 YEARS, FOR MORE INFORMATION CONTACT A LOCAL AGENT.’CADVERTISEMENTS FOR MEDICARE SUPPLEMENTS CONTAINING INFORMATION THAT CREATE UNDO ANXIETY IN THE MINDS OF THE INSUREDSDWHEN AN INSURER EXCLUDES COVERAGE FOR PREEXISTING CONDITIONS, AN ADVERTISEMENT OF THE POLICY THAT IMPLIES
Q: BACCIDENTAL BODILY INJURY
Answer: THAT THE APPLICANT’S MEDICAL CONDITION OR HISTORY WILL NOT AFFECT ELIGIBILITY OR PAYMENTTIMOTHY OWNS AN INDIVIDUAL A&H POLICY, AND IN THE EVENT OF AN ACCIDENT, HE IS REQUIRED TO PROVE ONLY THAT THE INJURY ITSELF IS UNFORESEEN AND UNINTENDED. TIM’S POLICY IS BASED ON WHICH OF THE FOLLOWING DEFINITIONS OF ACCIDENT?AACCIDENTAL DISMEMBERMENTBACCIDENTAL BODILY INJURYCACCIDENTAL DEATHDACCIDENTAL MEANS
Q: APRODUCER
Answer: WHICH OF THE FOLLOWING HAS PRIMARY RESPONSIBILITY FOR ENSURING THAT THE APPLICATION IS FILLED OUT COMPLETELY?APRODUCERBHOME OFFICE UNDERWRITERCINSURERDACTUARY
Q: CA STATEMENT OF GOOD HEALTH
Answer: IN THE EVENT A POLICY IS DELIVERED BY AN AGENT TO THE INSURED, AND THE PREMIUM PAYMENT IS TO BE COLLECTED AT THE TIME OF THIS DELIVERY, NORMALLY WHAT ELSE MUST THE AGENT OBTAIN TO MAKE THE DELIVERY COMPLETE?APOSTAGE AND HANDLING FEESBAN AFFIDAVIT FROM THE APPLICANTCA STATEMENT OF GOOD HEALTHDADDITIONAL PAYMENT REFLECTING LOST INTEREST
Q: CACCIDENTAL DEATH
Answer: THIS IS THE ONLY ACCIDENT AND HEALTH INSURANCE POLICY THAT PAYS OUT A LUMP-SUM BENEFIT UPON THE DEATH OF THE INSURED IN CERTAIN SITUATIONS.AMEDICAL EXPENSEBLONG-TERM CARECACCIDENTAL DEATHDDISABILITY INCOME
Q: DCONSUMER INVESTIGATIVE REPORT
Answer: THE INSURER’S UNDERWRITER MAY FIND INFORMATION ABOUT AN APPLICANT’S MORAL CHARACTER, HOBBIES, WORK AND GENERAL REPUTATION FROM A:AMEDICAL EXAMINATIONBATTENDING PHYSICIAN STATEMENTCAGENT’S REPORTDCONSUMER INVESTIGATIVE REPORT
Q: DINSPECTION REPORT
Answer: INFORMATION ABOUT AN APPLICANT’S WORK BEHAVIOR OR CHARACTER GATHERED FROM NEIGHBORS OR CO-WORKERS WOULD BE INCLUDED ON AN?AMIBBAPSCAGENT’S REPORTDINSPECTION REPORT
Q: CBLANKET PLAN
Answer: WHICH OF THE FOLLOWING TYPES OF LIMITED POLICIES WOULD A COMMON CARRIER PURCHASE TO PROVIDE MEDICAL AND SURGICAL BENEFITS IN EXCESS OF ANY PRIMARY COVERAGE?AACCIDENTAL DEATH AND DISMEMBERMENTBSHORT TERM MEDICAL EXPENSECBLANKET PLANDHOSPITAL INDEMNITY
Q: BLONG-TERM CARE
Answer: WHICH IS NOT CONSIDERED ONE OF THE BASIC BENEFITS REQUIRED OF ALL HMOS?APRE-PAID ROUTINE MEDICAL EXAMSBLONG-TERM CARECLABORATORY AND X-RAY SERVICESDANNUAL OPEN ENROLLMENT FOR GROUP PLANS
Q: B90
Answer: ACCIDENTAL DEATH AND DISMEMBERMENT PROVIDES THAT THE FACE AMOUNT, OR PRINCIPAL SUM, WILL BE PAID IF THE INSURED DIES DUE TO AN ACCIDENT WITHIN HOW MANY DAYS FROM THE DATE OF THE ACCIDENT?A120B90C150D180
Q: D$2,500
Answer: WHICH MAJOR MEDICAL PLAN DEDUCTIBLE WILL RESULT IN THE LOWEST PREMIUM?A$1,000B$1,500C$2,000D$2,500
Q: COPEN PANEL, CLOSED PANEL
Answer: HMOS ARE ESTABLISHED AS EITHER ________, WHICH MEANS THE DOCTOR CAN WORK WITH ANYONE, INCLUDING HMO MEMBERS, OR ________, WHICH MEANS THE DOCTOR CAN ONLY WORK WITH HMO MEMBERS.AOPEN GROUP, SPECIFIED GROUPBSTAFF MODEL, GROUP MODELCOPEN PANEL, CLOSED PANELDVARIABLE GROUP, FIXED GROUP
Q: DEXCLUSIONS
Answer: WHAT IS THE NAME GIVEN TO CAUSES OR CONDITIONS LISTED IN THE POLICY THAT ARE NOT COVERED AND FOR WHICH NO BENEFITS ARE PAYABLE?APROBATIONARY PERIODSBWAITING PERIODSCELIMINATION PERIODSDEXCLUSIONS
Q: CSUPPLEMENTARY MAJOR MEDICAL
Answer: WHICH POLICY UTILIZES A CORRIDOR DEDUCTIBLE AFTER BASIC MEDICAL EXPENSE COVERAGE BENEFITS HAVE BEEN EXHAUSTED AND BEFORE MAJOR MEDICAL BENEFITS BEGIN?AHOSPITAL EXPENSEBCOMPREHENSIVE MAJOR MEDICALCSUPPLEMENTARY MAJOR MEDICALDSURGICAL EXPENSE
Q: DUSUAL, CUSTOMARY, REASONABLE (UCR) PAYMENT
Answer: WHEN PAYMENT UNDER A MEDICAL EXPENSE POLICY IS BASED ON THE AVERAGE FEE CHARGED BY ALL DOCTORS IN A GIVEN GEOGRAPHICAL AREA, AND THE BALANCE OF ANY OVERCHARGES OR COSTS OF ANY DISALLOWED SERVICES ARE THE INSURED’S RESPONSIBILITY, THE PAYMENT IS KNOWN AS:ASCHEDULED PAYMENTBCASH PAYMENTCBLANKET PAYMENTDUSUAL, CUSTOMARY, REASONABLE (UCR) PAYMENT
Q: CTHE INSURED HAS A FINANCIAL INCENTIVE TO USE PROVIDERS WHO HAVE AGREED TO PREDETERMINED REIMBURSEMENTS FOR MEDICAL SERVICES RENDERED
Answer: CONCERNING PPOS, WHICH IS A TRUE STATEMENT?APPOS ARE TYPICALLY NOT FOR PROFITBTHE INSURED MAY ONLY UTILIZE PROVIDERS CONTRACTED WITH THE INSURERCTHE INSURED HAS A FINANCIAL INCENTIVE TO USE PROVIDERS WHO HAVE AGREED TO PREDETERMINED REIMBURSEMENTS FOR MEDICAL SERVICES RENDEREDDPPOS PROVIDE ALL SERVICES AT ONE LOCATION
Q: DSURGICENTER
Answer: A FACILITY WHERE OUTPATIENT SURGERY IS PERFORMED FOR THOSE PATIENTS THAT REQUIRE GENERAL ANESTHESIA BUT ARE NOT REQUIRED TO STAY OVERNIGHT IS CALLED A(N):ASKILLED NURSING FACILITYBURGENT CARE CENTERCHOME HEALTH CARE CENTERDSURGICENTER
Q: ARECURRENT DISABILITY PROVISION
Answer: PENELOPE RECEIVED BENEFITS FROM HER DISABILITY POLICY AND WENT BACK TO WORK. AFTER 30 DAYS SHE FOUND SHE WAS NOT ABLE TO WORK AND BEGAN TO IMMEDIATELY RECEIVE HER DISABILITY PAYMENTS. WHICH OF FOLLOWING PROVISIONS MADE THIS POSSIBLE?ARECURRENT DISABILITY PROVISIONBSECOND INJURY PROVISIONCRESIDUAL DISABILITY PROVISIONDPRESUMPTIVE DISABILITY PROVISION
Q: CBUSINESS OVERHEAD EXPENSE
Answer: WHAT TYPE OF DISABILITY INCOME INSURANCE PROVIDES FUNDS TO COVER BUSINESS EXPENSES WHEN THE BUSINESS OWNER BECOMES DISABLED?AKEY EMPLOYEEBREDUCING TERMCBUSINESS OVERHEAD EXPENSEDBUY-SELL
Q: DBUSINESS OVERHEAD EXPENSE
Answer: THE TYPE OF DISABILITY COVERAGE PURCHASED BY A SMALL BUSINESS OWNER, TO COVER ONGOING OVERHEAD IN THE EVENT OF THE OWNER BECOMING DISABLED, WOULD BE CALLED:AKEY EMPLOYEE INSURANCEBBUY-SELL AGREEMENTCDISABILITY REDUCING TERMDBUSINESS OVERHEAD EXPENSE
Q: BREMOVE ALL OF THE EXCLUSION RIDERS
Answer: TO REDUCE ITS EXPOSURE TO CLAIMS FROM A SUBSTANDARD DISABILITY RISK, AN INSURER MAY TAKE ALL OF THE FOLLOWING ACTIONS, EXCEPT:AREDUCE THE AMOUNT OF BENEFITBREMOVE ALL OF THE EXCLUSION RIDERSCCHARGE ADDITIONAL PREMIUMDINCREASE THE ELIMINATION PERIOD
Q: AONLY A LICENSED ACCIDENT & HEALTH AGENT
Answer: 24-HOUR CARE COVERAGE IN CALIFORNIA IS TRANSACTED BY:AONLY A LICENSED ACCIDENT & HEALTH AGENTBONLY A LICENSED PROPERTY & CASUALTY AGENTCANY LICENSED AGENTDANY LICENSED LIFE INSURANCE AGENT
Q: DTOTAL DISABILITY
Answer: RESIDUAL DISABILITY INCOME PAYS FUNDS TO THE INSURED, TO MAKE UP FOR WHAT THE INSURED WOULD HAVE EARNED AFTER RETURNING TO WORK, AND WHILE RECOVERING FROM ___________.ALONG-TERM DISABILITYBSHORT-TERM DISABILITYCPARTIAL DISABILITYDTOTAL DISABILITY
Q: DBE EITHER CURRENTLY OR FULLY INSURED
Answer: WHICH OF THE FOLLOWING IS NEEDED TO QUALIFY FOR A SOCIAL SECURITY DISABILITY BENEFIT?AHAVE LESS THAN $1,000 IN ASSETSBFULFILL A 4-MONTH WAITING PERIOD, AND HAVE PAID INTO SOCIAL SECURITYCBE AGE 60, WIDOWED, AND HAVE ONE DEPENDENTDBE EITHER CURRENTLY OR FULLY INSURED
Q: CNOT MORE THAN 2 YEARS
Answer: A SHORT-TERM DISABILITY POLICY GENERALLY IS FOR A DISABILITY LASTING FOR:A2 WEEKSB3-5 YEARSCNOT MORE THAN 2 YEARSD2-3 YEARS
Q: BIMPAIRMENT RIDER
Answer: WHICH RIDER WOULD ELIMINATE COVERAGE FOR A PREEXISTING CONDITION?ANONE OF THESEBIMPAIRMENT RIDERCRETURN OF PREMIUM RIDERDLIFETIME BENEFIT RIDER
Q: D6
Answer: IN A MEDICARE SUPPLEMENT REPLACEMENT SALE, IF THE ORIGINAL POLICY HAS BEEN IN FORCE FOR LESS THAN ______ MONTHS, THE REPLACING INSURER SHALL WAIVE ANY TIME PERIODS APPLICABLE TO PREEXISTING CONDITIONS TO THE EXTENT THAT THEY HAVE ALREADY BEEN SATISFIED UNDER THE ORIGINAL POLICY.A12B9C3D6
Q: CANNUAL ELECTION
Answer: A MEDICARE BENEFICIARY MAY ENROLL IN A MEDICARE ADVANTAGE PLAN WHEN THEY ARE FIRST ELIGIBLE FOR MEDICARE OR DURING THE _____________ PERIOD, WHERE A PERSON MAY CHANGE TO ANOTHER MEDICARE ADVANTAGE PLAN OR SWITCH FROM ORIGINAL MEDICARE TO A MEDICARE ADVANTAGE PLAN.ASPECIAL ENROLLMENTBMEDICARE OPEN-ENROLLMENTCANNUAL ELECTIONDGENERAL ENROLLMENT
Q: BBEST PRICES
Answer: ALL INSURERS, BROKERS, AGENTS AND OTHERS ENGAGED IN THE BUSINESS OF INSURANCE OWE A CONSUMER ALL OF THE FOLLOWING DUTIES, EXCEPT:AGOOD FAITHBBEST PRICESCFAIR DEALINGDHONESTY
Q: CADULT DAY CARE
Answer: WHICH OF THE FOLLOWING TYPES OF COVERAGE PROVIDES CUSTODIAL CARE OUTSIDE THE HOME FOR INDIVIDUALS NOT REQUIRING CONFINEMENT?ARESPITE CAREBHOSPICE CARECADULT DAY CAREDHOME HEALTH CARE
Q: DAT THE TIME OF INITIAL SOLICITATION AND PRIOR TO THE APPLICATION
Answer: IN A LONG-TERM CARE POLICY TRANSACTION, WHEN MUST THE OUTLINE OF COVERAGE BE PROVIDED TO THE APPLICANT?AAT THE TIME OF PREMIUM COLLECTIONBAT THE TIME OF DELIVERYCAT THE TIME OF ISSUANCEDAT THE TIME OF INITIAL SOLICITATION AND PRIOR TO THE APPLICATION
Q: A2
Answer: A LISTING OF PRESCRIPTION DRUGS THAT ARE COVERED UNDER MEDICARE PART D ARE PLACED INTO DIFFERENT TIERS, WHICH ARE CATEGORIZED BASED ON COST AND MUST INCLUDE AT LEAST _____ DRUGS IN EACH TREATMENT CATEGORY, BUT IS NOT REQUIRED TO INCLUDE ALL DRUGS.A2B4C5D3
Q: D90
Answer: FAVORABLE TAX TREATMENT IS GIVEN TO LONG-TERM CARE CONTRACTS THAT EXPECT PERSONS TO BE FUNCTIONALLY UNABLE TO CARE FOR THEMSELVES FOR A PERIOD OF ______ DAYS DUE TO THE LOSS OF 2 FUNCTIONS OF ACTIVITIES OF DAILY LIVING (ADLS), AND NEEDING SUBSTANTIAL ASSISTANCE FROM ANOTHER PERSON.A30B45C60D90
Q: CMEDICARE PART A
Answer: WHICH OF THE FOLLOWING WILL COVER THE COST OF INPATIENT BLOOD TRANSFUSIONS:AMEDICARE PART DBMEDICARE PART BCMEDICARE PART ADLONG-TERM CARE
Q: C20%
Answer: A MEDICARE SUPPLEMENT POLICY MUST INCLUDE, AS A CORE BENEFIT, MEDICARE PART B COINSURANCE IN THE AMOUNT OF _______.A15%B25%C20%D10%
Q: B65
Answer: MEDICARE PART A ENROLLMENT IS MANDATORY FOR ALL CITIZENS AND LEGAL RESIDENTS AT AGE:A60B65C59 1/2D62
Q: CA AND B
Answer: IN ORDER TO PURCHASE A MEDICARE SUPPLEMENT, AN ELIGIBLE INDIVIDUAL USUALLY MUST HAVE MEDICARE PARTS __________.AA AND DBA AND CCA AND BDB AND C
Q: A10
Answer: FAILURE TO ENROLL IN MEDICARE PART B, WHEN REQUIRED, MAY RESULT IN A LIFETIME CUMULATIVE PREMIUM PENALTY OF _____% FOR EACH 12 MONTH PERIOD A BENEFICIARY WAS NOT ENROLLED IN PART B.A10B15C20D5
Q: BMEDICAID
Answer: IN ORDER FOR A CLAIMANT TO BE ELIGIBLE FOR _______ BENEFITS, THEY MUST QUALIFY BASED UPON NEED.ALONG-TERM CAREBMEDICAIDCMEDICARE SUPPLEMENTDMEDICARE
Q: CRENEWABLE WITH ADJUSTABLE PREMIUMS, BY CLASSIFICATION ONLY
Answer: GUARANTEED RENEWABLE MEANS:ARENEWABLE WITH GUARANTEED PREMIUMBRENEWABLE WITH ADJUSTABLE PREMIUMS DETERMINED BY FREQUENCY OF CLAIMCRENEWABLE WITH ADJUSTABLE PREMIUMS, BY CLASSIFICATION ONLYDRENEWABLE ONLY AT THE OPTION OF THE INSURER
Q: D90
Answer: PROOF OF LOSS IS REQUIRED WITHIN _____ DAYS OF LOSS.A180B60C45D90
Q: D31 DAYS
Answer: THE GRACE PERIOD FOR AN INDIVIDUAL HEALTH INSURANCE POLICY BEING PAID ON A QUARTERLY BASIS IS:A10 DAYSB7 DAYSC45 DAYSD31 DAYS
Q: BTHE PROMISE TO PAY IN THE EVENT OF A COVERED CLAIM
Answer: WHICH OF THE FOLLOWING BEST DESCRIBES THE CONSIDERATION ON THE PART OF AN INSURER?ATHE OFFER OF THE CONTRACTBTHE PROMISE TO PAY IN THE EVENT OF A COVERED CLAIMCTHE PURPOSE OF THE CONTRACT MUST BE LEGALDTHE ACCEPTANCE OF THE CONTRACT
Q: B60
Answer: IF AN INSURER MAKES A PAYMENT FOR A CLAIM BUT THE INSURED IS DISSATISFIED WITH IT, HE/SHE MUST WAIT _____ DAYS AFTER PROOF OF LOSS BEFORE HE/SHE MIGHT TAKE ANY LEGAL ACTION.A90B60C45D20
Q: COTHER INSURANCE WITH THIS INSURER
Answer: WHICH PROVISION IS AN OPTIONAL UNIFORM PROVISION?APHYSICAL EXAMINATIONBPAYMENT OF CLAIMSCOTHER INSURANCE WITH THIS INSURERDCLAIM FORMS
Q: BLEGAL ACTIONS
Answer: ALL OF THE FOLLOWING ARE OPTIONAL UNIFORM PROVISIONS, EXCEPT:AMISSTATEMENT OF AGEBLEGAL ACTIONSCILLEGAL OCCUPATIONDCHANGE OF OCCUPATION
Q: B15
Answer: AN INSURED SHOULD RECEIVE NECESSARY CLAIM FORMS WITHIN _____ DAYS AFTER NOTICE OF CLAIM.A20B15C10D5
Q: C20
Answer: NOTICE OF CLAIM IS REQUIRED WITHIN _____ DAYS OF LOSS.A10B90C20D15
Q: CSTATEMENTS MADE TO THE APPLICANT BY THE PRODUCER DURING THE APPLICATION PROCESS
Answer: UNDER THE ENTIRE CONTRACT PROVISION, ALL OF THE FOLLOWING MAY BE PART OF THE AGREEMENT BETWEEN THE INSURED AND THE INSURER, EXCEPT:AANY RIDERS OR ENDORSEMENTSBA COPY OF THE APPLICATIONCSTATEMENTS MADE TO THE APPLICANT BY THE PRODUCER DURING THE APPLICATION PROCESSDTHE POLICY
Q: BPRIMARY CARE PHYSICIAN
Answer: WITH A MANAGED HEALTH CARE PLAN, IN A BONA FIDE EMERGENCY, WHEN LOSS OF LIFE OR SERIOUS COMPLICATIONS MAY RESULT IF TREATMENT IS DELAYED, AN INSURED WILL NOT BE REQUIRED TO OBTAIN PERMISSION FROM A ____________ TO USE A HOSPITAL EMERGENCY ROOM.ASPECIALISTBPRIMARY CARE PHYSICIANCSURGEONDHEALTH CARE COORDINATOR
Q: D6
Answer: IF THE INSURED IS RECEIVING REGULAR DISABILITY INCOME PAYMENTS, THE INSURER CAN REQUIRE NOTICE OF CONTINUANCE OF CLAIM EVERY ______ MONTHS.A9B3C12D6
Q: CPARTIAL CASE MANAGEMENT
Answer: MANAGED HEALTH CARE ATTEMPTS TO CONTAIN COSTS BY CONTROLLING THE BEHAVIOR OF PARTICIPANTS IN ALL OF THE FOLLOWING WAYS, EXCEPT:ACOPAYMENTS AND/OR COINSURANCEBCONTROLLED PROVIDER ACCESSCPARTIAL CASE MANAGEMENTDPREVENTIVE CARE
Q: ANOTHING
Answer: IF MR. STANLEY IS INJURED WHILE ATTEMPTING TO ESCAPE FROM THE POLICE AFTER COMMITTING A BANK ROBBERY, HIS A & H COVERAGE WILL PROBABLY PAY:ANOTHINGBAMOUNT SCHEDULEDCONE HALF OF NORMAL BENEFITDFULL CLAIM, LESS THE DEDUCTIBLE
Q: DPAYS HIS OR HER SHARE OF THE PREMIUMS
Answer: UNDER THE FAMILY AND MEDICAL LEAVE ACT, AN EMPLOYER MUST MAINTAIN THE EMPLOYEE’S EXISTING LEVEL OF HEALTH COVERAGE (INCLUDING FAMILY OR DEPENDENT COVERAGE) UNDER A GROUP HEALTH PLAN DURING THE PERIOD OF, PROVIDED THE EMPLOYEE:APROMISES TO RETURN TO WORKBIS VESTEDCHAS WORKED FOR THE COMPANY FOR AT LEAST 5 YEARSDPAYS HIS OR HER SHARE OF THE PREMIUMS
Q: CCOORDINATION OF BENEFITS
Answer: WHICH PROVISION IN A HEALTH INSURANCE PLAN IS USED TO AVOID OVERINSURANCE WHEN A PERSON IS COVERED BY MORE THAN ONE PLAN?ASCHEDULE OF BENEFITSBPRIMARY CARE COVERAGECCOORDINATION OF BENEFITSDEXTENSION OF BENEFITS
Q: CGROUPS FORMED TO REDUCE PREMIUMS
Answer: ALL OF THE FOLLOWING GROUPS ARE ELIGIBLE FOR GROUP RATES, EXCEPT:AASSOCIATIONSBLABOR UNIONSCGROUPS FORMED TO REDUCE PREMIUMSDEMPLOYERS
Q: BAPPLIES TO EMPLOYERS WITH 20 OR MORE EMPLOYEES
Answer: CONCERNING COBRA, WHICH OF THE FOLLOWING IS CORRECT?APROVIDES 18 MONTHS OF CONTINUATION OF COVERAGE FOR DEPENDENTS OF MEDICARE-ELIGIBLE EMPLOYEESBAPPLIES TO EMPLOYERS WITH 20 OR MORE EMPLOYEESCPROVIDES 36 MONTHS OF CONTINUATION OF COVERAGE FOR DISABLED PARTICIPANTSDPROVIDES EMPLOYEES AND DEPENDENTS 36 MONTHS OF CONTINUATION OF COVERAGE AFTER TERMINATION OF EMPLOYMENT
Q: C31 DAYS
Answer: PAYMENT OF THE FIRST PREMIUM AND AN APPLICATION MUST BE SUBMITTED TO AN INSURER FOR INDIVIDUAL COVERAGE WITHIN HOW MANY DAYS TO CONVERT GROUP COVERAGE TO AN INDIVIDUAL POLICY NOT REQUIRING PROOF OF INSURABILITY?A45 DAYSB10 DAYSC31 DAYSD7 DAYS
Q: A2
Answer: HIPAA LAWS APPLY TO GROUPS OF _____ OR MORE.A2B20C100D5
Q: DIF SHE ITEMIZES DEDUCTIONS AND HER MEDICAL EXPENSES, INCLUDING PREMIUMS, EXCEED 10% OF HER ADJUSTED GROSS INCOME, THE PORTION EXCEEDING THAT AMOUNT MAY BE DEDUCTED
Answer: AMY OWNS HER OWN INDIVIDUAL MEDICAL EXPENSE POLICY. WHICH OF THE FOLLOWING IS TRUE ABOUT THE TAXATION OF HER PREMIUMS AND MEDICAL EXPENSES?AONLY UNREIMBURSED MEDICAL EXPENSES, EXCLUDING PREMIUMS, ARE DEDUCTIBLEBBENEFITS SHE RECEIVES FROM HER POLICY ARE TAXABLE TO THE EXTENT THEY EXCEED HER PREMIUMSCIN ALL CASES, THE PREMIUMS FOR MEDICAL EXPENSE POLICIES ARE DEDUCTIBLE, BUT EXPENSES ARE NOTDIF SHE ITEMIZES DEDUCTIONS AND HER MEDICAL EXPENSES, INCLUDING PREMIUMS, EXCEED 10% OF HER ADJUSTED GROSS INCOME, THE PORTION EXCEEDING THAT AMOUNT MAY BE DEDUCTED
Q: ASHARED RESPONSIBILITY PAYMENT
Answer: UNDER THE PPACA INDIVIDUAL MANDATE, ALL INDIVIDUALS WITHOUT MINIMUM ESSENTIAL COVERAGE, EITHER GROUP OR INDIVIDUAL, WILL BE ASSESSED A PENALTY CALLED THE:ASHARED RESPONSIBILITY PAYMENTBACA PENALTYCEXCISE TAXDPREMIUM TAX
Q: DEMPLOYER SHARED RESPONSIBILITY
Answer: UNDER THE PPACA, EMPLOYERS WITH MORE THAN 50 EMPLOYEES THAT DON’T PROVIDE AN AFFORDABLE HEALTH PLAN THAT PROVIDES THE MINIMUM ESSENTIAL BENEFITS WILL BE REQUIRED TO PAY AN __________ PENALTY IF THE GOVERNMENT HAS TO SUBSIDIZE AT LEAST ONE EMPLOYEE’S INDIVIDUAL PLAN PURCHASED THROUGH AN EXCHANGE.AADVANCED PREMIUM TAXBEMPLOYEE SHARED RESPONSIBILITYCESSENTIAL HEALTH CAREDEMPLOYER SHARED RESPONSIBILITY
Q: CDEDUCTIBLE
Answer: GROUP ACCIDENTAL DEATH AND DISMEMBERMENT PREMIUMS ARE _______ BY THE COMPANY PAYING THE PREMIUMS AS A BUSINESS EXPENSE.ATAX-DEFERREDBTAXABLECDEDUCTIBLEDTAX-FREE
Q: BPREMIUMS
Answer: ALL OF THE FOLLOWING WERE ELIMINATED UNDER THE PPACA FOR PREVENTIVE CARE AND MEDICAL SCREENINGS, EXCEPT:ACOPAYMENTSBPREMIUMSCDEDUCTIBLESDCOINSURANCE
Q: D3
Answer: CONSUMER-DRIVEN HEALTH CARE ALLOWS INDIVIDUALS TO USE A _____-TIERED APPROACH TO FUNDING THE COSTS OF MEDICAL SERVICES AND TREATMENT.A5B4C2D3
Q: BTHE CALIFORNIA INSURANCE CODE
Answer: WHICH OF THE FOLLOWING IS ENACTED BY THE CALIFORNIA LEGISLATION?AA CEASE AND DESIST ORDERBTHE CALIFORNIA INSURANCE CODECTHE CALIFORNIA REGULATORY CODEDTHE CODE OF ETHICS
Q: BEXAMINATION OF THE FINANCIAL STATUS OF EACH INSURED
Answer: THE COMMISSIONER OF INSURANCE HAS SOME GENERAL DUTIES, WHICH INCLUDE ALL OF THE FOLLOWING, EXCEPT:AINTERPRETING AND ENFORCING STATE LAWS RELATING TO INSURANCEBEXAMINATION OF THE FINANCIAL STATUS OF EACH INSUREDCREGULATION OF THE INTERNAL AFFAIRS OF THE DEPARTMENT OR DIVISION OF INSURANCEDPRESCRIBING PROCEDURES TO BE FOLLOWED IN HEARINGS BEFORE THE DEPARTMENT OR DIVISION OF INSURANCE
Q: DENFORCE LAWS RELATING TO INSURANCE
Answer: THE INSURANCE COMMISSIONER HAS THE AUTHORITY TO:ASET INSURANCE PREMIUM RATESBWRITE LAWS RELATING TO INSURANCECAMEND EXISTING INSURANCE LAWS BUT NOT WRITE NEW ONESDENFORCE LAWS RELATING TO INSURANCE
Q: D24
Answer: ALL LICENSED PRODUCERS MUST COMPLETE HOW MANY HOURS OF CE TO RENEW THEIR LICENSE?A16B8C32D24
Q: BMISREPRESENTATION
Answer: WHAT IS IT CALLED WHEN A PRODUCER, AGENT, OR BROKER MAKES A FALSE STATEMENT ABOUT AN INSURER’S FINANCIAL CONDITION?AREPLACEMENTBMISREPRESENTATIONCREBATINGDTWISTING
Q: ADESCRIBES THE TRUE NATURE OF THE WORK THE LICENSEE IS AUTHORIZED TO TRANSACT
Answer: THE COMMISSIONER MAY DISAPPROVE THE USE OF ANY TRUE OR FICTITIOUS NAME FOR ALL OF THE FOLLOWING REASONS, EXCEPT THE NAME:ADESCRIBES THE TRUE NATURE OF THE WORK THE LICENSEE IS AUTHORIZED TO TRANSACTBINFERS THAT THE LICENSEE WILL ENGAGE IN ACTIVITIES NOT PERMITTED UNDER LICENSES HELDCIMPLIES THAT THE LICENSEE IS AN UNDERWRITER, THOUGH THE LICENSEE CAN USE THE DESIGNATIONS OF CHARTERED LIFE UNDERWRITER WHEN ENTITLEDDINTERFERES WITH A NAME ALREADY FILED BY ANOTHER LICENSEE
Q: DATTEMPTING TO SETTLE A CLAIM FOR LESS THAN THE AMOUNT THAT THE INSURED IS ENTITLED TO UNDER THE POLICY
Answer: WHICH OF THE FOLLOWING ACTIONS BY AN INSURER IS CONSIDERED AN UNFAIR CLAIMS PRACTICE?AREQUIRING THAT A PROOF OF LOSS BE FILED WITHIN A CERTAIN PERIODBREQUIRING THE INSURED TO SUBMIT A COMPLETE INVENTORY OF PROPERTY LOSSCNOTIFICATION THAT A FAIR AND REASONABLE ESTIMATE MUST BE PROVIDED BEFORE STARTING REPAIRSDATTEMPTING TO SETTLE A CLAIM FOR LESS THAN THE AMOUNT THAT THE INSURED IS ENTITLED TO UNDER THE POLICY
Q: CPRETENDS TO BE SOMEONE OR SOMETHING OTHER THAN AN INSURANCE PRODUCER IN ORDER TO OBTAIN PERSONAL NON-PUBLIC INFORMATION ABOUT SOMEONE IN CONNECTION WITH AN INSURANCE TRANSACTION
Answer: AN AGENT WOULD BE GUILTY OF ‘PRETEXTING’ OR CONDUCTING A ‘PRETEXT INTERVIEW’ IN WHICH OF THE FOLLOWING SITUATIONS?AADVISES A CLIENT TO LAPSE, FORFEIT, OR SURRENDER ANY INSURANCE CONTRACT ON THE BASIS OF MISREPRESENTATION OR FRAUDBSENDS UNSOLICITED TEXT MESSAGES TO PERSONS WHO ARE NOT EXISTING CLIENTCPRETENDS TO BE SOMEONE OR SOMETHING OTHER THAN AN INSURANCE PRODUCER IN ORDER TO OBTAIN PERSONAL NON-PUBLIC INFORMATION ABOUT SOMEONE IN CONNECTION WITH AN INSURANCE TRANSACTIONDPRETENDING TO BE AN EMPLOYEE OF A LOCAL UTILITY COMPANY WHEN ATTEMPTING TO OBTAIN INFORMATION IN THE INVESTIGATION OF AN INSURANCE CLAIM
Q: A$1,000,000
Answer: ERRORS AND OMISSIONS (E&O) POLICIES ARE TYPICALLY OFFERED WITH A MINIMUM LIMIT OF LIABILITY OF HOW MUCH?A$1,000,000B$100,000,000C$10,000,000D$100,000
Q: CAS AN INCENTIVE TO CLOSE A SALE, THEY MAY OFFER DISCOUNTS OF PREMIUM TO A PROSPECTIVE CLIENT
Answer: ALL OF THE FOLLOWING ARE ALLOWED OR TRUE REGARDING A PRODUCER OR AGENT, EXCEPT:AAS AN INCENTIVE TO CLOSE A SALE, THEY MAY PLACE COVERAGE ON A BROKERAGE BASIS WITH A COMPANY THE AGENT DOES NOT REPRESENT, TO SERVE A PROSPECTIVE CLIENTBAS AN INCENTIVE TO CLOSE A SALE, THEY MAY SELECT THE LOWEST PRICED POLICY FROM THE COMPANIES THEY REPRESENT TO OFFER TO A PROSPECTIVE CLIENTCAS AN INCENTIVE TO CLOSE A SALE, THEY MAY OFFER DISCOUNTS OF PREMIUM TO A PROSPECTIVE CLIENTDAS AN INCENTIVE TO CLOSE A SALE, THEY MAY COMMIT THEMSELVES TO PROFESSIONAL INSURANCE COUNSELING AT NO CHARGE TO THE PROSPECTIVE CLIENT
Q: ATO SET INSURANCE RATES
Answer: ALL OF THE FOLLOWING ARE CONSIDERED DUTIES OF THE CALIFORNIA INSURANCE COMMISSIONER, EXCEPT:ATO SET INSURANCE RATESBTO REGULATE THE INTERNAL AFFAIRS OF THE DEPARTMENT OF INSURANCECTO STRUCTURE AND CONTROL INSOLVENCY PROCEDURESDTO KEEP ALL PAPERS AS REQUIRED BY LAW
Q: A3 YEARS
Answer: ANY LICENSED AGENT WHO HAS COMMITTED ANY OFFENSE DENOUNCED BY THE CODE MAY HAVE AN INSURANCE LICENSE SUSPENDED BY THE COMMISSIONER FOR UP TO:A3 YEARSB2 YEARSC18 MONTHSD1 YEAR
Q: CMISREPRESENTATION
Answer: WHEN A PRODUCER, AGENT, OR BROKER MAKES A FALSE STATEMENT ABOUT THE BENEFITS OR THE NATURE OF AN INSURANCE POLICY, THE PERSON IS GUILTY OF:ADEFAMATIONBTWISTINGCMISREPRESENTATIONDINTIMIDATION
Q: ATHE PRIMARY PURPOSE IS TO PROTECT INSUREDS FROM INSURERS THAT BECOME INSOLVENT
Answer: WHICH OF THE FOLLOWING IS TRUE REGARDING THE CALIFORNIA INSURANCE GUARANTEE ASSOCIATION?ATHE PRIMARY PURPOSE IS TO PROTECT INSUREDS FROM INSURERS THAT BECOME INSOLVENTBMEMBERSHIP IN THE ASSOCIATION IS VOLUNTARY ON THE PART OF PRODUCERS, AGENTS, AND BROKERSCIT GIVES PRODUCERS, AGENTS, AND BROKERS AN EXCELLENT TOOL TO INDUCE PROSPECTS TO PURCHASE INSURANCEDMEMBERSHIP IN THE ASSOCIATION IS VOLUNTARY ON THE PART OF INSURERS
Q: BLIFE
Answer: THERE ARE NO BROKERS FOR WHICH LINE OF INSURANCE IN CALIFORNIA?APERSONAL LINESBLIFECSURETYDCASUALTY
Q: B12
Answer: A LICENSE MAY BE RENEWED WITHOUT EXAMINATION WITHIN _____ MONTHS OF ITS EXPIRATION DATE BY PAYMENT OF A PENALTY FEE EQUAL TO 50% OF THE 2-YEAR LICENSE FEE.A18B12C30D24
Q: D60
Answer: THE CODE REQUIRES INSURERS TO NOTIFY THE FRAUD DIVISION WITHIN HOW MANY DAYS OF UNCOVERING AN INCIDENT OF ACTUAL OR SUSPECTED FRAUD?A20B30C10D60
Q: C2
Answer: ALL CA RESIDENT INSURANCE LICENSES RENEW EVERY _____ YEARS ON THE LAST DAY OF THE MONTH IN WHICH THE LICENSE WAS ORIGINALLY ISSUED.A3B5C2D4
Q: DCOMMISSIONER OF INSURANCE
Answer: AN INSURANCE LICENSE MAY BE SUSPENDED OR REVOKED BY THE _________ AFTER IT HAS BEEN ISSUED.AAGENCYBNAICCINSURERDCOMMISSIONER OF INSURANCE
Q: APROVIDE THE COMMISSIONER WITH THE ABILITY TO REWRITE LAWS AS THE NEED ARISES
Answer: WHICH OF THESE IS NOT ONE OF THE IDENTIFIED PURPOSES OF THE INSURANCE CODE?APROVIDE THE COMMISSIONER WITH THE ABILITY TO REWRITE LAWS AS THE NEED ARISESBPREVENT INSURANCE COMPANY INSOLVENCYCASSURE THAT POLICIES ARE WIDELY AVAILABLE A REASONABLY PRICEDDREGULATE THE CONDUCT OF INSURANCE COMPANIES AND PRODUCERS
Q: AHOME ADDRESS LABELS
Answer: EVERY LICENSEE MUST INCLUDE THE LICENSE NUMBER ON ALL OF THE FOLLOWING, EXCEPT:AHOME ADDRESS LABELSBPRINTED ADVERTISEMENTSCPRICE QUOTATIONSDBUSINESS CARDS
Q: DINSOLVENT
Answer: AN INSURER THAT EXPERIENCES THE IMPAIRMENT OF ITS FINANCIAL STANDING HAS BECOME:ANON-ADMITTEDBDELINQUENTCUNAUTHORIZEDDINSOLVENT
Q: CUNLIMITED
Answer: WHAT IS THE MAXIMUM NUMBER OF APPOINTMENTS A PRODUCER MAY ACCEPT?A2B3CUNLIMITEDD1
Q: D30
Answer: INSURERS AND AGENTS MUST PROVIDE BOOKS AND RECORDS WITHIN HOW MANY DAYS OF REQUEST?A15B10C5D30
Q: CA DISCRIMINATORY PRACTICE
Answer: FAILURE OF AN ADMITTED INSURER TO ACCEPT AN APPLICATION OR CANCEL INSURANCE UNDER CONDITIONS LESS FAVORABLE TO THE INSURED, EXCEPT FOR REASONS THAT APPLY TO ALL PERSONS OF THE SAME MARITAL STATUS, GENDER, RACE, COLOR, RELIGION, NATIONAL ORIGIN OR SEXUAL ORIENTATION IS CONSIDERED:ACOMMON PRACTICEBA METHOD OF PROTECTING AGAINST ADVERSE SELECTIONCA DISCRIMINATORY PRACTICEDA FELONY
Q: BVOIDANCE OF THE CONTRACT
Answer: A BREACH UNDER THE DOCTRINE OF WARRANTY MAY RESULT IN:AA NULLIFICATION OF THE WARRANTYBVOIDANCE OF THE CONTRACTCA WAIVER OF THE PROVISIONS OF THE WARRANTYDESTABLISHMENT OF A MONETARY PENALTY
Q: CEXPRESS
Answer: THE TYPE OF PRODUCER AUTHORITY STATED IN THE AGENCY CONTRACT IS:AAPPARENTBASSUMEDCEXPRESSDIMPLIED
Q: CTHE COMPANY IS DIRECTED BY OFFICERS AND DIRECTORS AND HAS A STATED AMOUNT OF CAPITAL STOCK OWNED BY STOCKHOLDERS
Answer: WHICH OF THE FOLLOWING IS TRUE ABOUT A STOCK INSURANCE COMPANY?AAN INSURANCE COMPANY WHOSE HOME OFFICE IS IN SOME OTHER STATE, BUT DOES BUSINESS IN THIS STATEBANY INSURANCE COMPANY WHOSE HOME OFFICE IS IN THIS STATE AND IS INCORPORATED IN THIS STATECTHE COMPANY IS DIRECTED BY OFFICERS AND DIRECTORS AND HAS A STATED AMOUNT OF CAPITAL STOCK OWNED BY STOCKHOLDERSDPOLICYHOLDERS OWN THE INSURANCE COMPANY
Q: DUNEQUAL
Answer: UNDER ALEATORY CONTRACTS THE EXCHANGE OF VALUES MAY BE:AWAIVEDBINDEFINITECEQUALDUNEQUAL
Q: BCONSIDERATION
Answer: IN INSURANCE, THE INSURER’S PROMISE TO PAY A COVERED LOSS AND DEFEND THE INSURED IN A LAWSUIT AND THE INSURED’S PAYMENT OF THE FIRST PREMIUM, ARE ALL EXAMPLES OF:ALEGAL PURPOSEBCONSIDERATIONCACCEPTANCEDOFFER
Q: DSALARIED EMPLOYEES
Answer: THE DIRECT WRITING DISTRIBUTION MODEL UTILIZES:AGENERAL BROKERSBGENERAL AGENTSCINDEPENDENT AGENTSDSALARIED EMPLOYEES
Q: DCONCEALMENT
Answer: IN INSURANCE, WHEN AN APPLICANT INTENTIONALLY FAILS TO MAKE A MATERIAL FACT KNOWN, IT IS KNOWN AS:ABAD FAITHBDECEPTIONCMISREPRESENTATIONDCONCEALMENT
Q: BIT IS DESIGNED TO BE USED TO PROTECT THE INSURED FROM DISHONEST ACTS
Answer: WHICH OF THE FOLLOWING IS NOT A FUNCTION OF INSURANCE?AIT PROTECTS AGAINST UNCERTAINTY AND REDUCES ANXIETYBIT IS DESIGNED TO BE USED TO PROTECT THE INSURED FROM DISHONEST ACTSCIT TRANSFERS RISK FROM THE INSURED TO THE INSURERDIT IS THE SUBSTITUTION OF A SMALL CERTAIN EXPENSE FOR A LARGE UNCERTAIN LOSS
Q: DTHE POLICY IS A CONTRACT OF ADHESION
Answer: WHEN AN INSURANCE POLICY IS NOT CLEAR, THE COURT WILL USUALLY INTERPRET IN FAVOR OF THE INSURED BECAUSE:ATHE POLICY IS A BILATERAL CONTRACTBTHE POLICY IS A CONDITIONAL CONTRACTCTHE POLICY IS AN ALEATORY CONTRACTDTHE POLICY IS A CONTRACT OF ADHESION
Q: CLAW OF LARGE NUMBERS
Answer: WHAT IS THE TERM FOR THE INCREASE IN PREDICTABILITY OF THE LOSS WHEN THE NUMBER OF SIMILAR UNITS OF RISK INCREASE?ALAW OF AVERAGESBACCUMULATED EXPERIENCECLAW OF LARGE NUMBERSDSIMILARITY OF UNITS
Q: ATHE STORAGE OF FLAMMABLES NEAR A FURNACE
Answer: WHICH OF THE FOLLOWING MIGHT BE CONSIDERED A PHYSICAL HAZARD?ATHE STORAGE OF FLAMMABLES NEAR A FURNACEBTHE STORAGE OF ALL FLAMMABLES IN A FIREPROOF CONTAINERCDISHONESTY ON THE PART OF AN INSUREDDTHE INSURED’S ATTITUDE THAT GOOD HOUSEKEEPING IS NOT IMPORTANT
Q: APURE RISK
Answer: INSURANCE IS DESIGNED TO PROVIDE PROTECTION AGAINST WHICH OF THE FOLLOWING?APURE RISKBCERTAIN RISKCSPECULATIVE RISKDINVOLUNTARY RISK
Q: BMUTUAL
Answer: A BOARD OF DIRECTORS, ELECTED BY THE POLICYHOLDERS, DIRECTS THE COMPANY OPERATIONS IN WHICH TYPE OF INSURER?AFRATERNALBMUTUALCSTOCKDRECIPROCAL
Q: BSURPLUS LINES BROKER
Answer: WHEN INSURANCE CANNOT BE PLACED WITH A LICENSED INSURER, IT MAY BE PLACED WITH AN AUTHORIZED/NON-ADMITTED INSURER BY A:AGENERAL SURPLUS PRODUCERBSURPLUS LINES BROKERCGENERAL CONSULTANTDGENERAL USE PRODUCER
Q: CUNDERWRITER
Answer: IN INSURANCE, TO DETERMINE ACCEPTABLE RISKS IS THE PRIMARY RESPONSIBILITY OF THE:APRODUCERBAUDITORCUNDERWRITERDADJUSTER
Q: AON THE DATE THE POLICY IS DELIVERED AND PREMIUM COLLECTED
Answer: WHEN A PRODUCER RECEIVES AN APPLICATION FOR LIFE INSURANCE THAT IS COMPLETED AND SIGNED, BUT WITHOUT PREMIUM PAYMENT, WHEN DOES COVERAGE START?AON THE DATE THE POLICY IS DELIVERED AND PREMIUM COLLECTEDBON THE DATE THE APPLICATION IS RECEIVEDC30 DAYS AFTER THE APPLICATION IS RECEIVEDDAT THE END OF THE FREE-LOOK PERIOD
Q: CDECREASE
Answer: WHEN AN INSURED DECIDES TO CHANGE HER MODE OF PREMIUM PAYMENT FROM MONTHLY TO ANNUALLY, THE TOTAL PREMIUM DUE WOULD:AFLUCTUATEBREMAIN THE SAMECDECREASEDINCREASE
Q: CPREFERRED STATUS AND PAY A LOWER PREMIUM
Answer: WHEN AN APPLICANT DOES NOT SMOKE, EXERCISES REGULARLY, SELDOM DRINKS, AND EATS MODERATELY AND IS CONSIDERED TO BE A BETTER-THAN-AVERAGE RISK, THEY WOULD LIKELY QUALIFY FOR:ASTANDARD STATUS AND PAY A STANDARD PREMIUMBPREFERRED STATUS AND PAY A HIGHER PREMIUMCPREFERRED STATUS AND PAY A LOWER PREMIUMDSUBSTANDARD STATUS AND PAY A HIGHER PREMIUM
Q: CCREDITORS
Answer: A GROUP PLAN IS DESIGNED TO INSURE ALL OF THE FOLLOWING, EXCEPT:AEMPLOYEESBMEMBERSCCREDITORSDDEBTORS
Q: BAPPLICATION
Answer: IN ORDER FOR A LIFE INSURANCE POLICY TO BE VALID, INSURABLE INTEREST MUST EXIST AT TIME OF _________.ACLAIMBAPPLICATIONCCONVERSIONDISSUANCE CHANGE TO EXPIRATION
Q: CPOLICYOWNER
Answer: THE INDIVIDUAL WHO HAS THE OWNERSHIP RIGHTS OF A POLICY IS CALLED THE:AINSUREDBAPPLICANTCPOLICYOWNERDBENEFICIARY
Q: BSUBTRACT ANY ASSETS AVAILABLE TO FUND FINANCIAL NEEDS AFTER DEATH
Answer: ONCE THE GROSS AMOUNT OF DOLLARS REQUIRED TO FUND AN INSURED’S NEEDS HAS BEEN DETERMINED USING THE NEEDS ANALYSIS APPROACH, WHAT IS THE NEXT STEP?ASUBTRACT ANY PRE-PAID FUNERAL AND BURIAL ARRANGEMENTSBSUBTRACT ANY ASSETS AVAILABLE TO FUND FINANCIAL NEEDS AFTER DEATHCSUBTRACT ANY CASH IN THE BANKDSUBTRACT EXISTING COLLEGE FUNDING PLANS ALREADY IN PLACE
Q: CBENEFICIARY
Answer: WHOSE SIGNATURE IS NOT REQUIRED ON A LIFE INSURANCE APPLICATION?APOLICYOWNERBINSUREDCBENEFICIARYDPRODUCER
Q: CTHE OVERALL POLICY PERFORMANCE HAS SOMETHING TO DO WITH THE STOCK MARKET IN GENERAL
Answer: EQUITY UNIVERSAL, VARIABLE, AND VARIABLE UNIVERSAL ALL HAVE WHICH OF THE FOLLOWING CHARACTERISTICS IN COMMON?AALL HAVE A GUARANTEED DEATH BENEFITBA SECURITIES LICENSE IS REQUIRED TO SELL EACH POLICYCTHE OVERALL POLICY PERFORMANCE HAS SOMETHING TO DO WITH THE STOCK MARKET IN GENERALDTHE OWNER CHOOSES THE SEPARATE ACCOUNT(S) TO INVEST THE CASH VALUES IN
Q: DTHE PREMIUMS ARE WAIVED UNTIL EITHER THE INSURED RECOVERS FROM THE DISABILITY, THE POLICY ACHIEVES PAID-UP STATUS, OR THE INSURED DIES
Answer: WHICH OF THE FOLLOWING STATEMENTS IS CORRECT REGARDING A WAIVER OF PREMIUM RIDER ON A PARTICIPATING WHOLE LIFE POLICY?ACASH VALUES DO NOT GROWBDIVIDENDS CEASE WHEN THE RIDER ACTIVATESCTHE DEATH BENEFIT IS REDUCED BY THE AMOUNT OF ALL PREMIUMS WAIVEDDTHE PREMIUMS ARE WAIVED UNTIL EITHER THE INSURED RECOVERS FROM THE DISABILITY, THE POLICY ACHIEVES PAID-UP STATUS, OR THE INSURED DIES
Q: CVIATICAL SETTLEMENT
Answer: A __________ IS A CONTRACTUAL AGREEMENT THAT ALLOWS A COMPANY OR PERSON TO BUY ONE OR MORE OF THE RIGHTS OF OWNERSHIP IN A LIFE POLICY ON THE LIFE OF ANOTHER PERSON, SHOULD THE OWNER/INSURED BECOME TERMINALLY ILL.ALIVING NEEDS RIDERBLEVERAGED INSURANCE AGREEMENTCVIATICAL SETTLEMENTDEMERGENCY FUND RIDER
Q: ATERM LIFE INSURANCE
Answer: WHICH OF THE FOLLOWING IS DESIGNED FOR SOMEONE WITH A LARGE INSURANCE NEED BUT WITH LIMITED CASH FLOW?ATERM LIFE INSURANCEBVARIABLE LIFE INSURANCECWHOLE LIFE INSURANCEDHOME SERVICE LIFE INSURANCE
Q: BSINGLE PREMIUM WHOLE LIFE POLICY
Answer: WHICH WHOLE LIFE POLICY IS DESIGNED TO PROVIDE A SUBSTANTIAL IMMEDIATE CASH VALUE?AADJUSTABLEBSINGLE PREMIUM WHOLE LIFE POLICYCORDINARY STRAIGHT LIFEDINDETERMINATE
Q: B2
Answer: GENERALLY, UNIVERSAL LIFE HAS HOW MANY DEATH BENEFIT OPTIONS TO CHOOSE FROM?A4B2C3D1
Q: ATHE POLICY CAN BE CONVERTED INTO A TERM LIFE INSURANCE PLAN AT ANYTIME
Answer: EACH OF THE FOLLOWING CHOICES ARE TRUE OF WHOLE LIFE, EXCEPT:ATHE POLICY CAN BE CONVERTED INTO A TERM LIFE INSURANCE PLAN AT ANYTIMEBTHEY HAVE NONFORFEITURE VALUES AND OPTIONS ARE OFFEREDCTHE DEATH BENEFIT AND CASH VALUES ARE GUARANTEEDDAS AN INSURED AGES, THE PREMIUMS REMAIN THE SAME
Q: BFACE AMOUNT
Answer: THE ________ IS THE AMOUNT PAYABLE TO THE BENEFICIARY UPON DEATH OF THE INSURED NAMED IN A LIFE INSURANCE POLICY.APREMIUM REFUNDBFACE AMOUNTCCASH VALUEDLOAN VALUE
Q: CIT IS AN ADVANCE OF THE FACE AMOUNT OF THE POLICY
Answer: ADJUSTING THE FACE AMOUNT UP ON A UNIVERSAL LIFE INSURANCE POLICY WITH OPTION A DEATH BENEFIT SELECTEDA PARTICIPATING LIFE INSURANCE POLICY HAS A LONG-TERM CARE RIDER. THE INSURED QUALIFIES FOR THE BENEFIT. WHERE DOES THE INITIAL BENEFIT MONEY COME FROM?AFROM THE INSURANCE COMPANY BY POLICY LOANBFROM THE POLICY’S DIVIDENDSCIT IS AN ADVANCE OF THE FACE AMOUNT OF THE POLICYDFROM THE CASH VALUES OF THE POLICY
Q: CPAYOR BENEFIT (WAIVER OF PAYOR PREMIUM)
Answer: IN THE EVENT A PARENT BECOMES DISABLED OR DIES WHILE PAYING PREMIUMS ON A LIFE INSURANCE POLICY FOR A MINOR CHILD, WHICH PROVISION WOULD ALLOW THE POLICY TO CONTINUE IN FORCE UNTIL THE CHILD REACHES A PREDETERMINED AGE?AMINOR CHILD RIDERBCOST OF PREMIUM RIDERCPAYOR BENEFIT (WAIVER OF PAYOR PREMIUM)DRETURN OF PREMIUM RIDER
Q: BIT GOES DOWN
Answer: WHAT HAPPENS TO THE OVERALL POLICY PREMIUM WHEN MOST RIDERS ON A LIFE INSURANCE POLICY EXPIRE?AIT STAYS THE SAMEBIT GOES DOWNCIT GOES UPDIT IS REFUNDED
Q: DVARIABLE WHOLE LIFE
Answer: WHICH OF THE FOLLOWING POLICIES MUST BE SOLD BY PROSPECTUS?AORDINARY WHOLE LIFEBUNIVERSAL LIFECEQUITY INDEXED WHOLE LIFEDVARIABLE WHOLE LIFE
Q: CPURCHASE A JOINT LIFE POLICY
Answer: A MARRIED COUPLE WANTS TO MAKE SURE THAT IF EITHER OF THEM DIES, THE SURVIVOR HAS ENOUGH FUNDS TO MAINTAIN THEIR STANDARD OF LIVING BUT WANT TO ACCOMPLISH THIS IN THE MOST ECONOMICAL WAY. WHICH OF THE FOLLOWING RECOMMENDATIONS IS BEST SUITED TO ACCOMPLISH THEIR GOAL?ABUY TWO SEPARATE WHOLE LIFE POLICIESBBUY A JOINT AND SURVIVORSHIP LIFE POLICYCPURCHASE A JOINT LIFE POLICYDBUY TWO SEPARATE LIMITED PAYMENT LIFE POLICIES
Q: CTHE INSURED IS THE PREMIUM PAYOR
Answer: ALL OF THE FOLLOWING STATEMENTS ARE TRUE OF A JUVENILE POLICY, EXCEPT:ATHE DEATH BENEFIT CAN INCREASE AT A SPECIFIED AGE USUALLY 21 OR 25 WITHOUT PROOF OF INSURABILITYBTHE PREMIUMS REMAIN LEVELCTHE INSURED IS THE PREMIUM PAYORDTHE DEATH BENEFIT INCREASE IS TYPICALLY 5 TIMES THE ORIGINAL ISSUE AMOUNT
Q: DENTIRE CONTRACT
Answer: ONCE ISSUED, IF THE APPLICATION IS ATTACHED TO THE POLICY ITSELF, IT THEN BECOMES PART OF THE ___________.ACONSIDERATION CLAUSEBINCONTESTABILITY CLAUSECINSURING CLAUSEDENTIRE CONTRACT
Q: DANNUALLY
Answer: WHICH OF THE FOLLOWING OVERALL IS THE LEAST EXPENSIVE PREMIUM MODE?AMONTHLYBQUARTERLYCSEMI-ANNUALLYDANNUALLY
Q: DMONTHLY
Answer: WHICH OF THE FOLLOWING IS THE MOST EXPENSIVE PREMIUM MODE OVERALL?AQUARTERLYBANNUALLYCSEMI-ANNUALLYDMONTHLY
Q: BEXTENDED TERM
Answer: AN INSURED HAS A $175,000 PERMANENT LIFE INSURANCE POLICY AND IS HAVING DIFFICULTY KEEPING UP WITH THE PREMIUM PAYMENTS. WHICH NONFORFEITURE OPTION WOULD ALLOW HIM TO FOREGO THE PREMIUMS AND RETAIN THE SAME FACE AMOUNT UNTIL THE CASH SURRENDER VALUE IS EXHAUSTED?APREMIUM REDUCTIONBEXTENDED TERMCCASH SURRENDERDREDUCED PAID-UP
Q: BTHE POLICYOWNER
Answer: AN INSURED BOUGHT A WHOLE LIFE POLICY 15 YEARS AGO AND IT HAS ACCUMULATED A CASH VALUE OF SEVERAL HUNDRED DOLLARS. SHE NAMED HER SPOUSE AS THE OWNER AT THE TIME OF PURCHASE. WHO HAS THE RIGHT TO CHANGE BENEFICIARIES AND ACCESS THE CASH VALUE?ATHE INSUREDBTHE POLICYOWNERCTHE INSURERDTHE BENEFICIARY
Q: A$90,000
Answer: A SMALL BUSINESS OWNER USED HER LIFE INSURANCE POLICY AS COLLATERAL FOR A BANK LOAN. THE FACE AMOUNT OF THE WHOLE LIFE POLICY WAS $100,000 AND THE ORIGINAL AMOUNT OF THE LOAN WAS $20,000. IF THE OUTSTANDING LOAN BALANCE AT THE TIME THE SMALL BUSINESS OWNER DIED WAS $10,000, HOW MUCH WILL THE POLICY’S NAMED BENEFICIARY RECEIVE?A$90,000B$100,000C$80,000D$70,000
Q: AANY CHILDREN OF THIS MARRIAGE
Answer: WHICH OF THE FOLLOWING BENEFICIARY DESIGNATIONS IS A CLASS DESIGNATION?AANY CHILDREN OF THIS MARRIAGEBMARY SMITH – SPOUSECBANK OF SPRINGFIELD – CREDITORDFRANK JONES – SON
Q: ATHE OWNER SPECIFIES THE AMOUNT OF EACH PERIODIC PAYMENT AND THE INSURER PAYS THAT AMOUNT UNTIL THE FUNDS PLUS INTEREST ARE DEPLETED
Answer: A POLICYOWNER HAS CHOSEN THE FIXED AMOUNT SETTLEMENT OPTION. WHICH OF THE FOLLOWING BEST DESCRIBES THIS OPTION?ATHE OWNER SPECIFIES THE AMOUNT OF EACH PERIODIC PAYMENT AND THE INSURER PAYS THAT AMOUNT UNTIL THE FUNDS PLUS INTEREST ARE DEPLETEDBONLY THE DEATH BENEFIT WITH NO INTEREST IS PAIDCTHE INSURER DETERMINES THE NUMBER OF PERIODS THAT PAYMENTS ARE MADEDTHE DEATH BENEFIT IS PAID IN LUMP SUM FASHION
Q: CTHE DEATH BENEFIT OR CASH ACCUMULATION WILL BE REDUCED BY THE PARTIAL WITHDRAWAL
Answer: A UNIVERSAL LIFE POLICY HAS A DEATH BENEFIT OF $125,000 AND A CASH ACCUMULATION VALUE OF $15,000. GENERALLY, WHAT WILL HAPPEN TO THE POLICY IF THERE IS A $5,000 PARTIAL WITHDRAWAL?ATHE POLICY WILL BE USED AS COLLATERAL FOR A LOAN FROM THE INSURER FOR WHICH INTEREST WILL BE CHARGEDBTHE POLICY WILL BECOME PAID UPCTHE DEATH BENEFIT OR CASH ACCUMULATION WILL BE REDUCED BY THE PARTIAL WITHDRAWALDTHE POLICY WILL IMMEDIATELY BE VOIDED BY THE INSURER
Q: CPRIMARY BENEFICIARY
Answer: WITH A LIFE INSURANCE POLICY, IN THE EVENT OF THE PREMATURE DEATH OF THE INSURED, WHO HAS FIRST CLAIM TO THE POLICY BENEFITS?AESTATE OF THE INSUREDBPER STIRPES BENEFICIARYCPRIMARY BENEFICIARYDTHE PROBATE COURT
Q: DLIST A PRIMARY AND CONTINGENT BENEFICIARY BY THEIR FULL NAME AND RELATIONSHIP TO THE INSURED
Answer: WHAT IS THE EASIEST AND BEST WAY TO ASSURE THAT THE LIFE INSURANCE POLICY’S DEATH PROCEEDS DON’T END UP IN PROBATE COURT PROCESS?AMAKE SURE THE CLIENT HAS A WILL THAT IS CURRENT AND IN AN EASILY ACCESSIBLE LOCATIONBNAME THE ESTATE AS BENEFICIARYCASCERTAIN THAT THE CLIENT HAS A TRUST THAT IS FILED WITH THE COUNTY COURTDLIST A PRIMARY AND CONTINGENT BENEFICIARY BY THEIR FULL NAME AND RELATIONSHIP TO THE INSURED
Q: DANNUALLY
Answer: DIVIDENDS IF DECLARED ARE PAID __________.AQUARTERLYBMONTHLYCSEMI-ANNUALLYDANNUALLY
Q: CAUTOMATIC PREMIUM LOAN
Answer: THE ____________ PROVISION PREVENTS A WHOLE LIFE POLICY FROM LAPSING, AS LONG AS THERE IS ADEQUATE CASH VALUE, IF THE INSURED/POLICYOWNER FORGETS TO PAY THE PREMIUM BY THE END OF THE GRACE PERIOD.AMODE OF PREMIUMBREINSTATEMENTCAUTOMATIC PREMIUM LOANDCONSERVATION
Q: A$94,500
Answer: JEANNE HAS A $100,000 WHOLE LIFE INSURANCE POLICY THAT HAS $1,000 OF DIVIDEND ADDITIONS, A $6,000 OUTSTANDING LOAN THAT INCLUDES UNPAID INTEREST, AND A MONTHLY PREMIUM OF $500. IF SHE DIES DURING THE GRACE PERIOD, WHICH OF THE FOLLOWING INSURANCE SETTLEMENTS WOULD BE PERMITTED?A$94,500B$100,000C$92,500D$93,000
Q: BPER STIRPES
Answer: THE NAME OF THE BENEFICIARY DESIGNATION THAT WILL PAY A DECEASED BENEFICIARY’S SHARE TO THE HEIRS OF THAT BENEFICIARY WHO PREDECEASES THE INSURED IS CALLED:APER INDIVIDUALBPER STIRPESCPER CLASSDPER CAPITA
Q: A6 MORE YEARS OF PAYMENTS
Answer: AN INDIVIDUAL PURCHASED A FIXED ANNUITY WITH FLEXIBLE PREMIUMS. WHEN SHE ANNUITIZED THE POLICY, SHE CHOSE THE LIFE INCOME 10-YEAR CERTAIN OPTION. WHAT WOULD THE BENEFICIARY RECEIVE IF THE ANNUITANT DIES 4 YEARS AFTER THE ANNUITY PAYOUT BEGAN?A6 MORE YEARS OF PAYMENTSB10 MORE YEARS OF PAYMENTSCTHE UNDISTRIBUTED BALANCEDNOTHING
Q: CTHE ACTUAL PERFORMANCE OF THE SEPARATE ACCOUNT MUST BE GREATER THAN THE POLICY’S ASSUMED INTEREST RATE
Answer: IN ORDER FOR THE NEXT VARIABLE ANNUITY INCOME BENEFIT PAYMENT TO INCREASE FROM THE PREVIOUS ONE RECEIVED WHICH OF THE FOLLOWING MUST OCCUR?ATHE ACTUAL PERFORMANCE OF THE SEPARATE ACCOUNT MUST BE THE SAME AS THE POLICY’S ASSUMED INTEREST RATEBMORE PREMIUM DOLLARS MUST BE DEPOSITED INTO THE POLICYCTHE ACTUAL PERFORMANCE OF THE SEPARATE ACCOUNT MUST BE GREATER THAN THE POLICY’S ASSUMED INTEREST RATE
Q: CTHEY ARE PROTECTED BY THE NONFORFEITURE PROVISION
Answer: IF AN ANNUITY POLICYOWNER STOPS PUTTING MONEY INTO THEIR PERIODIC OR FLEXIBLE PREMIUM ANNUITY WHAT HAPPENS TO THE POLICY VALUES?ATHEY AUTOMATICALLY PURCHASE AN IMMEDIATE PAYOUT OPTIONBTHEY ARE FORFEITED TO THE INSURER FOR BREACH OF CONTRACTCTHEY ARE PROTECTED BY THE NONFORFEITURE PROVISIONDTHEY ARE REFUNDED TO THE POLICYOWNER IN A LUMP SUM
Q: AESTATE CREATION
Answer: GENERALLY, CORPORATIONS CAN USE ANNUITIES TO FUND ALL OF THE FOLLOWING, EXCEPT:AESTATE CREATIONBSTRUCTURED SETTLEMENTSCNONQUALIFIED DEFERRED COMPENSATION PLANSDEMPLOYEE PENSIONS
Q: CANNUITIZATION PERIOD
Answer: THE PERIOD OF TIME OVER WHICH DISTRIBUTIONS OF THE ACCUMULATED BALANCE IS MADE TO THE ANNUITANT IS REFERRED TO AS THE:AACCUMULATION PERIODBACTUARIAL PERIODCANNUITIZATION PERIODDBENEFICIARY PERIOD
Q: BVARIABLE
Answer: WHICH OF THE FOLLOWING ANNUITIES IS GENERALLY NOT BACKED BY THE INSURER’S GENERAL ACCOUNT ASSETS?AINDEXEDBVARIABLECMARKET VALUE ADJUSTMENTDFIXED
Q: DPREMIUMS ARE DEDUCTED FROM THE EMPLOYEE’S SALARY
Answer: ALL OF THE FOLLOWING ARE CORRECT REGARDING KEY EMPLOYEE LIFE INSURANCE, EXCEPT:ATHE BENEFICIARY (THE EMPLOYER) TYPICALLY RECEIVES THE DEATH BENEFIT FREE OF FEDERAL INCOME TAXBTHE EMPLOYER IS THE OWNER/APPLICANT OF THE POLICYCTHE EMPLOYER HAS AN INSURABLE INTEREST IN THE KEY EMPLOYEEDPREMIUMS ARE DEDUCTED FROM THE EMPLOYEE’S SALARY
Q: BPREMIUMS ARE CALCULATED BY UNDERWRITING EACH INDIVIDUAL IN THE GROUP
Answer: ALL ARE CORRECT STATEMENTS CONCERNING NONCONTRIBUTORY GROUP LIFE, EXCEPT:AIF EMPLOYER-SPONSORED, AN EMPLOYEE MUST WORK A MINIMUM NUMBER OF HOURS PER WEEK TO BE ELIGIBLEBPREMIUMS ARE CALCULATED BY UNDERWRITING EACH INDIVIDUAL IN THE GROUPCTHE CONVERSION PERIOD IS 31 DAYSDONLY THE PLAN SPONSOR IS RESPONSIBLE FOR PAYING PREMIUMS
Q: BPIA
Answer: THE SOCIAL SECURITY SURVIVOR BENEFIT IS COMPUTED USING WHICH OF THE FOLLOWING?AFICABPIACFUTADERISA
Q: D10
Answer: TO BE FULLY INSURED FOR SOCIAL SECURITY, GENERALLY A PERSON MUST HAVE WORKED AND PAID INTO THE SOCIAL SECURITY SYSTEM FOR A MINIMUM OF ______ YEARS.A40B30C20D10
Q: DAT LEAST 6 CREDITS EARNED IN THE 13 CALENDAR QUARTERS PRIOR TO DEATH, DISABILITY, OR IS ENTITLED TO RETIREMENT BENEFITS
Answer: WHAT IS THE MINIMUM REQUIREMENT FOR CURRENTLY INSURED STATUS UNDER THE SOCIAL SECURITY SYSTEM?AEARNED MORE THAN MINIMUM WAGEBHAVE 40 QUARTERS OF COVERED EMPLOYMENTCHAVE NOT HAD A PREVIOUS SOCIAL SECURITY CLAIMDAT LEAST 6 CREDITS EARNED IN THE 13 CALENDAR QUARTERS PRIOR TO DEATH, DISABILITY, OR IS ENTITLED TO RETIREMENT BENEFITS
Q: BNONQUALIFIED TAX DEFERRED ANNUITIES MAY BE EXCHANGED FOR LIFE INSURANCE POLICIES
Answer: ALL OF THE FOLLOWING TRANSACTIONS QUALIFY FOR IRC SECTION 1035 EXCHANGE TAX TREATMENT, EXCEPT:AA LIFE INSURANCE POLICY MAY BE EXCHANGED FOR ANOTHER LIFE INSURANCE POLICYBNONQUALIFIED TAX DEFERRED ANNUITIES MAY BE EXCHANGED FOR LIFE INSURANCE POLICIESCLIFE INSURANCE MAY BE EXCHANGED FOR AN ANNUITYDA LIFE INSURANCE POLICY CAN BE EXCHANGE FOR A LONG-TERM CARE POLICY
Q: DEMPLOYEES RECEIVE A TAX DEDUCTION FOR EMPLOYER PAID PREMIUMS
Answer: ALL OF THE FOLLOWING STATEMENTS ABOUT GROUP LIFE INSURANCE ARE TRUE, EXCEPT:AEMPLOYEE PAID PREMIUMS ARE NOT TAX DEDUCTIBLEBEMPLOYEES ARE TAXED ON ANY PREMIUMS PAID ON INSURANCE IN EXCESS OF $50,000CEMPLOYER PAID PREMIUMS ARE TAX DEDUCTIBLEDEMPLOYEES RECEIVE A TAX DEDUCTION FOR EMPLOYER PAID PREMIUMS
Q: CTHERE IS NO TAX DEFERRAL BENEFIT ON ANY EARNINGS
Answer: IF A CORPORATION OWNS AN ANNUITY, WHAT IS THE TAX RAMIFICATIONS?AANY WITHDRAWALS ARE TAXED AT THE FAVORABLE CORPORATE TAX RATEBTHE PREMIUMS ARE TAX DEDUCTIBLE AS AN ORDINARY AND NECESSARY BUSINESS EXPENSECTHERE IS NO TAX DEFERRAL BENEFIT ON ANY EARNINGSDSINCE THE CORPORATION IS A NON-NATURAL PERSON THERE IS NO TAX PENALTY FOR EARLY WITHDRAWAL
Q: BFULLY TAXABLE SINCE THE EXCESS PAYMENTS MUST REPRESENT ONLY EARNINGS
Answer: THE EXCLUSION RATIO STATES THAT ONCE THE ENTIRE COST BASIS HAS BEEN RECOVERED FROM A NON-QUALIFIED ANNUITY INCOME BENEFIT PAYOUT THEN ANY FURTHER PAYMENTS ARE __________.ATAXED AS CAPITAL GAIN BUT ONLY 50% OF THE GAIN IS APPLIEDBFULLY TAXABLE SINCE THE EXCESS PAYMENTS MUST REPRESENT ONLY EARNINGSCSTILL TAX FAVORED FOR ANNUITANTS OVER THE AGE OF 70DTAXED AT THE FAVORABLE ANNUITY CONTINUATION INCOME RATES
Q: CINTEREST EARNED ON DIVIDENDS LEFT ON DEPOSIT WITH THE INSURER
Answer: WHICH OF THE FOLLOWING SCENARIOS WILL TRIGGER AN INCOME TAX DUE?ACANCELLING THE POLICY DURING THE FREE LOOK PERIODBRECEIVING A PARTICIPATING POLICY’S CASH DIVIDENDCINTEREST EARNED ON DIVIDENDS LEFT ON DEPOSIT WITH THE INSURERDTAKING OUT A POLICY LOAN IN AN AMOUNT GREATER THAN THE TOTAL PREMIUMS PAID IN
Q: AA CONDITION THAT IS TERMINAL
Answer: WHICH OF THE FOLLOWING COULD INITIATE THE ACCELERATED BENEFITS PROVISION OR RIDER OF A LIFE POLICY?AA CONDITION THAT IS TERMINALBA PRESUMPTIVE DISABILITYCINABILITY TO PERFORM SOME ACTIVITIES OF DAILY LIVINGDA TOTAL DISABILITY NOT REDUCING LIFE EXPECTANCY
Q: BTHE CASH VALUES GROW BASED ON PREMIUM PAYMENTS AND INTEREST CREDITS IN THE POLICY
Answer: EARNINGS ON THE CASH VALUE INCREASE IN A PERMANENT POLICY ARE TAXABLE, EXCEPT:ATHE POLICY NO LONGER MEETS THE IRS DEFINITION OF LIFE INSURANCEBTHE CASH VALUES GROW BASED ON PREMIUM PAYMENTS AND INTEREST CREDITS IN THE POLICYCIF THE POLICY IS SURRENDERED AND THE AMOUNT RECEIVED IS IN EXCESS OF BASISDTHE POLICY IS TRANSFERRED FOR VALUE
Q: AEMPLOYER PAID GROUP LIFE INSURANCE PREMIUM UP TO $50,000 OF COVERAGE
Answer: THE EXCEPTION TO THE RULE CONCERNING THE NON-DEDUCTIBILITY OF LIFE INSURANCE PREMIUMS IS:AEMPLOYER PAID GROUP LIFE INSURANCE PREMIUM UP TO $50,000 OF COVERAGEBKEY EMPLOYEE INSURANCECTHIRD-PARTY OWNERSHIP POLICIESDLIFE INSURANCE TO FUND A BUY-SELL AGREEMENT
Q: CA DIVIDEND
Answer: _________ CONSIST(S) OF THE AMOUNT OF PREMIUM THAT IS RETURNED TO THE POLICYOWNER IF THE INSURER ACHIEVES LOWER MORTALITY AND EXPENSE COSTS THAN EXPECTED.ATHE DEATH BENEFITBA POLICY LOANCA DIVIDENDDTHE CASH VALUE
Q: CTHE AMOUNT OF THE ACCELERATED PAYMENT, THE REMAINING DEATH BENEFIT AND CASH VALUES
Answer: IN THE EVENT THAT AN INSURED RECEIVES A PERIODIC BENEFIT AS THE RESULT OF EXERCISING THE ACCELERATED DEATH BENEFIT RIDER, WHAT INFORMATION MUST THE INSURER PROVIDE TO THE INSURED?AVERIFICATION AND UPDATE OF THE POLICY OWNERSHIP AND BENEFICIARY DESIGNATIONSBTHE LIFE EXPECTANCY OF THE INSURED ON A SEMI-ANNUAL BASISCTHE AMOUNT OF THE ACCELERATED PAYMENT, THE REMAINING DEATH BENEFIT AND CASH VALUESDTHE AMOUNT OF TAXABLE INCOME THAT THEY WILL BE REPORTING TO THE IRS
Q: CDELIVERED
Answer: WHEN A POLICY IS MAILED TO AN INSURED BY AN INSURER, IT IS CONSIDERED TO BE:AISSUEDBRATEDCDELIVEREDDPURCHASED
Q: DSUBRATED
Answer: WHICH OF THE FOLLOWING IS NOT A COMMON RATING CLASSIFICATION?APREFERREDBSUBSTANDARDCSTANDARDDSUBRATED
Q: BREPRESENTATIONS
Answer: STATEMENTS MADE ON THE APPLICATION ARE CONSIDERED TRUE TO THE BEST OF THE APPLICANT’S KNOWLEDGE AND BELIEF ARE CONSIDERED TO BE:ACONCEALMENTSBREPRESENTATIONSCWAIVERSDWARRANTIES
Q: DDECLINED
Answer: IF A POLICY WAS ISSUED AT A HIGHER PREMIUM DUE TO A HIGHER RISK EXPOSURE, ALL OF THE FOLLOWING CAN BE USED TO REFLECT THE HIGHER RISK, EXCEPT:AFLAT RATEBTABLE RATECRATED-UP AGEDDECLINED
Q: DPRODUCER
Answer: WHICH OF THE FOLLOWING HAS PRIMARY RESPONSIBILITY FOR ENSURING THAT THE APPLICATION IS FILLED OUT COMPLETELY?AHOME OFFICE UNDERWRITERBACTUARYCINSURERDPRODUCER
Q: BACCIDENTAL BODILY INJURY
Answer: TIMOTHY OWNS AN INDIVIDUAL A&H POLICY, AND IN THE EVENT OF AN ACCIDENT, HE IS REQUIRED TO PROVE ONLY THAT THE INJURY ITSELF IS UNFORESEEN AND UNINTENDED. TIM’S POLICY IS BASED ON WHICH OF THE FOLLOWING DEFINITIONS OF ACCIDENT?AACCIDENTAL DEATHBACCIDENTAL BODILY INJURYCACCIDENTAL DISMEMBERMENTDACCIDENTAL MEANS
Q: CACCIDENTAL DEATH
Answer: THIS IS THE ONLY ACCIDENT AND HEALTH INSURANCE POLICY THAT PAYS OUT A LUMP-SUM BENEFIT UPON THE DEATH OF THE INSURED IN CERTAIN SITUATIONS.ALONG-TERM CAREBDISABILITY INCOMECACCIDENTAL DEATHDMEDICAL EXPENSE
Q: CA STATEMENT OF GOOD HEALTH
Answer: IN THE EVENT A POLICY IS DELIVERED BY AN AGENT TO THE INSURED, AND THE PREMIUM PAYMENT IS TO BE COLLECTED AT THE TIME OF THIS DELIVERY, NORMALLY WHAT ELSE MUST THE AGENT OBTAIN TO MAKE THE DELIVERY COMPLETE?APOSTAGE AND HANDLING FEESBADDITIONAL PAYMENT REFLECTING LOST INTERESTCA STATEMENT OF GOOD HEALTHDAN AFFIDAVIT FROM THE APPLICANT
Q: BBLUE CROSS/BLUE SHIELD
Answer: WHICH IS NOT A CLASSIFICATION OF A HEALTHCARE PLAN?AREIMBURSEMENTBBLUE CROSS/BLUE SHIELDCSERVICEDSELF-INSURED
Q: ATHE INSURED HAS A FINANCIAL INCENTIVE TO USE PROVIDERS WHO HAVE AGREED TO PREDETERMINED REIMBURSEMENTS FOR MEDICAL SERVICES RENDERED
Answer: CONCERNING PPOS, WHICH IS A TRUE STATEMENT?ATHE INSURED HAS A FINANCIAL INCENTIVE TO USE PROVIDERS WHO HAVE AGREED TO PREDETERMINED REIMBURSEMENTS FOR MEDICAL SERVICES RENDEREDBPPOS PROVIDE ALL SERVICES AT ONE LOCATIONCPPOS ARE TYPICALLY NOT FOR PROFITDTHE INSURED MAY ONLY UTILIZE PROVIDERS CONTRACTED WITH THE INSURER
Q: DLONG-TERM CARE
Answer: WHICH IS NOT CONSIDERED ONE OF THE BASIC BENEFITS REQUIRED OF ALL HMOS?ALABORATORY AND X-RAY SERVICESBPRE-PAID ROUTINE MEDICAL EXAMSCANNUAL OPEN ENROLLMENT FOR GROUP PLANSDLONG-TERM CARE
Q: CEXCLUSIONS
Answer: WHAT IS THE NAME GIVEN TO CAUSES OR CONDITIONS LISTED IN THE POLICY THAT ARE NOT COVERED AND FOR WHICH NO BENEFITS ARE PAYABLE?AWAITING PERIODSBPROBATIONARY PERIODSCEXCLUSIONSDELIMINATION PERIODS
Q: BUSUAL, CUSTOMARY, REASONABLE (UCR) PAYMENT
Answer: WHEN PAYMENT UNDER A MEDICAL EXPENSE POLICY IS BASED ON THE AVERAGE FEE CHARGED BY ALL DOCTORS IN A GIVEN GEOGRAPHICAL AREA, AND THE BALANCE OF ANY OVERCHARGES OR COSTS OF ANY DISALLOWED SERVICES ARE THE INSURED’S RESPONSIBILITY, THE PAYMENT IS KNOWN AS:ASCHEDULED PAYMENTBUSUAL, CUSTOMARY, REASONABLE (UCR) PAYMENTCBLANKET PAYMENTDCASH PAYMENT
Q: AELIMINATION PERIOD
Answer: A DISABILITY INCOME POLICY HAS A PERIOD OF DEDUCTIBILITY IMMEDIATELY FOLLOWING A DISABILITY DURING WHICH TIME BENEFITS ARE NOT PAYABLE. THIS PERIOD IS CALLED A(N):AELIMINATION PERIODBLOSS OF INCOMECLOSS OF TIMEDWAITING PERIOD
Q: ABE EITHER CURRENTLY OR FULLY INSURED
Answer: WHICH OF THE FOLLOWING IS NEEDED TO QUALIFY FOR A SOCIAL SECURITY DISABILITY BENEFIT?ABE EITHER CURRENTLY OR FULLY INSUREDBBE AGE 60, WIDOWED, AND HAVE ONE DEPENDENTCFULFILL A 4-MONTH WAITING PERIOD, AND HAVE PAID INTO SOCIAL SECURITYDHAVE LESS THAN $1,000 IN ASSETS
Q: ATOTAL DISABILITY
Answer: RESIDUAL DISABILITY INCOME PAYS FUNDS TO THE INSURED, TO MAKE UP FOR WHAT THE INSURED WOULD HAVE EARNED AFTER RETURNING TO WORK, AND WHILE RECOVERING FROM ___________.ATOTAL DISABILITYBSHORT-TERM DISABILITYCLONG-TERM DISABILITYDPARTIAL DISABILITY
Q: BBUSINESS OVERHEAD EXPENSE
Answer: THE TYPE OF DISABILITY COVERAGE PURCHASED BY A SMALL BUSINESS OWNER, TO COVER ONGOING OVERHEAD IN THE EVENT OF THE OWNER BECOMING DISABLED, WOULD BE CALLED:AKEY EMPLOYEE INSURANCEBBUSINESS OVERHEAD EXPENSECBUY-SELL AGREEMENTDDISABILITY REDUCING TERM
Q: BBENEFIT PERIOD
Answer: WITH LONG-TERM CARE INSURANCE COVERAGE, THE LONGER THE _________IS, THE HIGHER THE PREMIUM IS.AWAITING PERIODBBENEFIT PERIODCPREEXISTING PERIODDELIMINATION PERIOD
Q: CHOSPITAL EXPENSES
Answer: PART A OF MEDICARE PAYS FOR:ANONE OF THE ANSWERS LISTEDBOUTPATIENT EXPENSESCHOSPITAL EXPENSESDDENTAL EXPENSES
Q: BMEDICARE PART B
Answer: WITH _______, THE PATIENT MUST PAY 20% OF COVERED CHARGES PLUS THE DEDUCTIBLE.AA MEDICARE SUPPLEMENTBMEDICARE PART BCNONE OF THE ANSWERS LISTEDDMEDICAID
Q: AAT THE TIME OF APPLICATION
Answer: WHEN MUST AN INSURER PROVIDE A MEDICARE SUPPLEMENT BUYER’S GUIDE AND AN OUTLINE OF COVERAGE?AAT THE TIME OF APPLICATIONBAT THE TIME OF DELIVERYCAT THE TIME OF INITIAL SOLICITATIONDAT THE TIME OF ISSUANCE
Q: BMEDICAID
Answer: UNDER A CALIFORNIA LTC PARTNERSHIP POLICY ASSET DISREGARD MEANS WHATEVER BENEFIT AMOUNT A PARTNERSHIP POLICY PAID WILL BE DISREGARDED FROM A PERSON’S ASSETS IF _________ IS APPLIED FOR IN THE FUTURE.AUNEMPLOYMENTBMEDICAIDCMEDICAREDSOCIAL SECURITY DISABILITY
Q: DBENEFITS ARE FUNDED BY A COMBINATION OF TAXES AND PREMIUM DOLLARS AND COVERAGE IS ELECTIVE
Answer: WHICH OF THE FOLLOWING IS TRUE OF MEDICARE PART B?AIT COVERS ROUTINE DENTAL CHECKUPSBPROVIDES COVERAGE FOR INPATIENT SERVICESCIT IS FREE FOR THOSE WHO QUALIFYDBENEFITS ARE FUNDED BY A COMBINATION OF TAXES AND PREMIUM DOLLARS AND COVERAGE IS ELECTIVE
Q: A90
Answer: FAVORABLE TAX TREATMENT IS GIVEN TO LONG-TERM CARE CONTRACTS THAT EXPECT PERSONS TO BE FUNCTIONALLY UNABLE TO CARE FOR THEMSELVES FOR A PERIOD OF ______ DAYS DUE TO THE LOSS OF 2 FUNCTIONS OF ACTIVITIES OF DAILY LIVING (ADLS), AND NEEDING SUBSTANTIAL ASSISTANCE FROM ANOTHER PERSON.A90B30C60D45
Q: A20%
Answer: A MEDICARE SUPPLEMENT POLICY MUST INCLUDE, AS A CORE BENEFIT, MEDICARE PART B COINSURANCE IN THE AMOUNT OF _______.A20%B15%C25%D10%
Q: CBEST PRICES
Answer: ALL INSURERS, BROKERS, AGENTS AND OTHERS ENGAGED IN THE BUSINESS OF INSURANCE OWE A CONSUMER ALL OF THE FOLLOWING DUTIES, EXCEPT:AGOOD FAITHBFAIR DEALINGCBEST PRICESDHONESTY
Q: D10
Answer: FAILURE TO ENROLL IN MEDICARE PART B, WHEN REQUIRED, MAY RESULT IN A LIFETIME CUMULATIVE PREMIUM PENALTY OF _____% FOR EACH 12 MONTH PERIOD A BENEFICIARY WAS NOT ENROLLED IN PART B.A15B20C5D10
Q: D2
Answer: A LISTING OF PRESCRIPTION DRUGS THAT ARE COVERED UNDER MEDICARE PART D ARE PLACED INTO DIFFERENT TIERS, WHICH ARE CATEGORIZED BASED ON COST AND MUST INCLUDE AT LEAST _____ DRUGS IN EACH TREATMENT CATEGORY, BUT IS NOT REQUIRED TO INCLUDE ALL DRUGS.A4B5C3D2
Q: AIT EXCLUDES SPECIFIC CONDITIONS THAT NORMALLY WOULD CAUSE THE ENTIRE POLICY TO BE DECLINED
Answer: WHAT IS AN IMPAIRMENT RIDER?AIT EXCLUDES SPECIFIC CONDITIONS THAT NORMALLY WOULD CAUSE THE ENTIRE POLICY TO BE DECLINEDBIT PAYS OUT AN ADDITIONAL BENEFIT IF THE INSURED CANNOT PERFORM 2 OF THE 5 SPECIFIED FUNCTIONAL ACTIVITIESCIT GUARANTEES THE INSURED’S FUTURE INSURABILITYDIT PAYS OUT AN ADDITIONAL BENEFIT IN CASES WHERE THE CAUSE OF LOSS IS A RESULT OF AN ACCIDENT
Q: A2
Answer: THE TIME LIMIT ON CERTAIN DEFENSES (INCONTESTABLE) PERIOD IS _____ YEARS UNDER INDIVIDUAL HEALTH AND DISABILITY CONTRACTS.A2B5C7D3
Q: B20
Answer: NOTICE OF CLAIM IS REQUIRED WITHIN _____ DAYS OF LOSS.A90B20C10D15
Q: B31 DAYS
Answer: THE GRACE PERIOD FOR AN INDIVIDUAL HEALTH INSURANCE POLICY BEING PAID ON A QUARTERLY BASIS IS:A45 DAYSB31 DAYSC7 DAYSD10 DAYS
Q: B90
Answer: PROOF OF LOSS IS REQUIRED WITHIN _____ DAYS OF LOSS.A60B90C45D180
Q: BRENEWABLE WITH ADJUSTABLE PREMIUMS, BY CLASSIFICATION ONLY
Answer: GUARANTEED RENEWABLE MEANS:ARENEWABLE WITH ADJUSTABLE PREMIUMS DETERMINED BY FREQUENCY OF CLAIMBRENEWABLE WITH ADJUSTABLE PREMIUMS, BY CLASSIFICATION ONLYCRENEWABLE WITH GUARANTEED PREMIUMDRENEWABLE ONLY AT THE OPTION OF THE INSURER
Q: CNOTHING
Answer: IF MR. STANLEY IS INJURED WHILE ATTEMPTING TO ESCAPE FROM THE POLICE AFTER COMMITTING A BANK ROBBERY, HIS A & H COVERAGE WILL PROBABLY PAY:AFULL CLAIM, LESS THE DEDUCTIBLEBONE HALF OF NORMAL BENEFITCNOTHINGDAMOUNT SCHEDULED
Q: C15
Answer: AN INSURED SHOULD RECEIVE NECESSARY CLAIM FORMS WITHIN _____ DAYS AFTER NOTICE OF CLAIM.A20B5C15D10
Q: CPARTIAL CASE MANAGEMENT
Answer: MANAGED HEALTH CARE ATTEMPTS TO CONTAIN COSTS BY CONTROLLING THE BEHAVIOR OF PARTICIPANTS IN ALL OF THE FOLLOWING WAYS, EXCEPT:ACONTROLLED PROVIDER ACCESSBPREVENTIVE CARECPARTIAL CASE MANAGEMENTDCOPAYMENTS AND/OR COINSURANCE
Q: DLEGAL ACTIONS
Answer: ALL OF THE FOLLOWING ARE OPTIONAL UNIFORM PROVISIONS, EXCEPT:AILLEGAL OCCUPATIONBMISSTATEMENT OF AGECCHANGE OF OCCUPATIONDLEGAL ACTIONS
Q: ASTATEMENTS MADE TO THE APPLICANT BY THE PRODUCER DURING THE APPLICATION PROCESS
Answer: UNDER THE ENTIRE CONTRACT PROVISION, ALL OF THE FOLLOWING MAY BE PART OF THE AGREEMENT BETWEEN THE INSURED AND THE INSURER, EXCEPT:ASTATEMENTS MADE TO THE APPLICANT BY THE PRODUCER DURING THE APPLICATION PROCESSBA COPY OF THE APPLICATIONCTHE POLICYDANY RIDERS OR ENDORSEMENTS
Q: CIT COVERS PARTICIPANTS WHO HAVE RESIGNED FOR 36 MONTHS FOLLOWING THE DATE OF THEIR RESIGNATION
Answer: REGARDING COBRA, WHICH OF THE FOLLOWING IS NOT TRUE?AIT PROVIDES CONTINUATION OF COVERAGE FOR 29 MONTHS FOR THE DISABLEDBIT PROVIDES CONTINUATION OF COVERAGE FOR 36 MONTHS FOR AN INDIVIDUAL LOSING DEPENDENT STATUSCIT COVERS PARTICIPANTS WHO HAVE RESIGNED FOR 36 MONTHS FOLLOWING THE DATE OF THEIR RESIGNATIONDIT PROVIDES CONTINUATION OF COVERAGE FOR 36 MONTHS FOR A SURVIVING SPOUSE
Q: BACTUAL LOSS EXPERIENCE OF THE GROUP
Answer: EXPERIENCE RATING UTILIZES _______ IN DETERMINING THE RATE THE INSURER WILL CHARGE FOR GROUP COVERAGE IN EACH YEAR OF COVERAGE.ACREDIT RATING OF ALL PARTICIPANTSBACTUAL LOSS EXPERIENCE OF THE GROUPCTHE PLAN SPONSOR’S CREDIT RATINGDACTUAL LOSS EXPERIENCE OF EVERYONE IN THAT ZIP CODE
Q: BMULTIPLE EMPLOYER WELFARE ASSOCIATION (MEWA)
Answer: WHEN EMPLOYERS WHO SELF-FUND THEIR EMPLOYEE BENEFITS FORM A LARGER GROUP IN ORDER TO OFFER HEALTH INSURANCE BENEFITS TO EACH EMPLOYER’S WORKERS, IT IS CALLED A (AN):ATRADE ASSOCIATIONBMULTIPLE EMPLOYER WELFARE ASSOCIATION (MEWA)CPREMIUM DISCOUNT PLANDINSURANCE ALLIANCE
Q: CAN INSURANCE COMPANY
Answer: A GROUP HEALTH PLAN IS AN EMPLOYEE WELFARE BENEFIT PLAN ESTABLISHED OR MAINTAINED BY AN EMPLOYER, AN EMPLOYEE ORGANIZATION (SUCH AS A UNION), OR BOTH, THAT PROVIDES MEDICAL CARE FOR PARTICIPANTS OR THEIR DEPENDENTS DIRECTLY OR THROUGH:ATHE STATE OR FEDERAL GOVERNMENTBMEDI-CALCAN INSURANCE COMPANYDCAL-COBRA
Q: B50
Answer: A SMALL EMPLOYER IS DEFINED AS ANY PERSON, FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION THAT IS ACTIVELY ENGAGED IN BUSINESS AND HAS ______ EMPLOYEES OR LESS.A100B50C20D2
Q: C2
Answer: HIPAA LAWS APPLY TO GROUPS OF _____ OR MORE.A5B100C2D20
Q: D$7,500
Answer: JAY RECEIVES AN ANNUAL DISABILITY BENEFIT OF $10,000. HIS EMPLOYER CONTRIBUTED 75% OF THE PREMIUM. HOW MUCH OF JAY’S BENEFIT IS SUBJECT TO INCOME TAX?A$2,500B$10,000CNONED$7,500
Q: CIF SHE ITEMIZES DEDUCTIONS AND HER MEDICAL EXPENSES, INCLUDING PREMIUMS, EXCEED 10% OF HER ADJUSTED GROSS INCOME, THE PORTION EXCEEDING THAT AMOUNT MAY BE DEDUCTED
Answer: AMY OWNS HER OWN INDIVIDUAL MEDICAL EXPENSE POLICY. WHICH OF THE FOLLOWING IS TRUE ABOUT THE TAXATION OF HER PREMIUMS AND MEDICAL EXPENSES?ABENEFITS SHE RECEIVES FROM HER POLICY ARE TAXABLE TO THE EXTENT THEY EXCEED HER PREMIUMSBONLY UNREIMBURSED MEDICAL EXPENSES, EXCLUDING PREMIUMS, ARE DEDUCTIBLECIF SHE ITEMIZES DEDUCTIONS AND HER MEDICAL EXPENSES, INCLUDING PREMIUMS, EXCEED 10% OF HER ADJUSTED GROSS INCOME, THE PORTION EXCEEDING THAT AMOUNT MAY BE DEDUCTEDDIN ALL CASES, THE PREMIUMS FOR MEDICAL EXPENSE POLICIES ARE DEDUCTIBLE, BUT EXPENSES ARE NOT
Q: BSHARED RESPONSIBILITY PAYMENT
Answer: UNDER THE PPACA INDIVIDUAL MANDATE, ALL INDIVIDUALS WITHOUT MINIMUM ESSENTIAL COVERAGE, EITHER GROUP OR INDIVIDUAL, WILL BE ASSESSED A PENALTY CALLED THE:APREMIUM TAXBSHARED RESPONSIBILITY PAYMENTCACA PENALTYDEXCISE TAX
Q: C3
Answer: CONSUMER-DRIVEN HEALTH CARE ALLOWS INDIVIDUALS TO USE A _____-TIERED APPROACH TO FUNDING THE COSTS OF MEDICAL SERVICES AND TREATMENT.A2B4C3D5
Q: DPREMIUMS
Answer: ALL OF THE FOLLOWING WERE ELIMINATED UNDER THE PPACA FOR PREVENTIVE CARE AND MEDICAL SCREENINGS, EXCEPT:ADEDUCTIBLESBCOPAYMENTSCCOINSURANCEDPREMIUMS
Q: ACOMMISSIONER OF INSURANCE
Answer: AN INSURANCE LICENSE MAY BE SUSPENDED OR REVOKED BY THE _________ AFTER IT HAS BEEN ISSUED.ACOMMISSIONER OF INSURANCEBNAICCINSURERDAGENCY
Q: CLIFE
Answer: THERE ARE NO BROKERS FOR WHICH LINE OF INSURANCE IN CALIFORNIA?ACASUALTYBSURETYCLIFEDPERSONAL LINES
Q: BAS AN INCENTIVE TO CLOSE A SALE, THEY MAY OFFER DISCOUNTS OF PREMIUM TO A PROSPECTIVE CLIENT
Answer: ALL OF THE FOLLOWING ARE ALLOWED OR TRUE REGARDING A PRODUCER OR AGENT, EXCEPT:AAS AN INCENTIVE TO CLOSE A SALE, THEY MAY PLACE COVERAGE ON A BROKERAGE BASIS WITH A COMPANY THE AGENT DOES NOT REPRESENT, TO SERVE A PROSPECTIVE CLIENTBAS AN INCENTIVE TO CLOSE A SALE, THEY MAY OFFER DISCOUNTS OF PREMIUM TO A PROSPECTIVE CLIENTCAS AN INCENTIVE TO CLOSE A SALE, THEY MAY COMMIT THEMSELVES TO PROFESSIONAL INSURANCE COUNSELING AT NO CHARGE TO THE PROSPECTIVE CLIENTDAS AN INCENTIVE TO CLOSE A SALE, THEY MAY SELECT THE LOWEST PRICED POLICY FROM THE COMPANIES THEY REPRESENT TO OFFER TO A PROSPECTIVE CLIENT
Q: B3 YEARS
Answer: ANY LICENSED AGENT WHO HAS COMMITTED ANY OFFENSE DENOUNCED BY THE CODE MAY HAVE AN INSURANCE LICENSE SUSPENDED BY THE COMMISSIONER FOR UP TO:A18 MONTHSB3 YEARSC2 YEARSD1 YEAR
Q: CTHE CALIFORNIA INSURANCE CODE
Answer: WHICH OF THE FOLLOWING IS ENACTED BY THE CALIFORNIA LEGISLATION?AA CEASE AND DESIST ORDERBTHE CALIFORNIA REGULATORY CODECTHE CALIFORNIA INSURANCE CODEDTHE CODE OF ETHICS
Q: DPROVIDE THE COMMISSIONER WITH THE ABILITY TO REWRITE LAWS AS THE NEED ARISES
Answer: WHICH OF THESE IS NOT ONE OF THE IDENTIFIED PURPOSES OF THE INSURANCE CODE?AASSURE THAT POLICIES ARE WIDELY AVAILABLE A REASONABLY PRICEDBPREVENT INSURANCE COMPANY INSOLVENCYCREGULATE THE CONDUCT OF INSURANCE COMPANIES AND PRODUCERSDPROVIDE THE COMMISSIONER WITH THE ABILITY TO REWRITE LAWS AS THE NEED ARISES
Q: BDESCRIBES THE TRUE NATURE OF THE WORK THE LICENSEE IS AUTHORIZED TO TRANSACT
Answer: THE COMMISSIONER MAY DISAPPROVE THE USE OF ANY TRUE OR FICTITIOUS NAME FOR ALL OF THE FOLLOWING REASONS, EXCEPT THE NAME:AINTERFERES WITH A NAME ALREADY FILED BY ANOTHER LICENSEEBDESCRIBES THE TRUE NATURE OF THE WORK THE LICENSEE IS AUTHORIZED TO TRANSACTCIMPLIES THAT THE LICENSEE IS AN UNDERWRITER, THOUGH THE LICENSEE CAN USE THE DESIGNATIONS OF CHARTERED LIFE UNDERWRITER WHEN ENTITLEDDINFERS THAT THE LICENSEE WILL ENGAGE IN ACTIVITIES NOT PERMITTED UNDER LICENSES HELD
Q: CTO SET INSURANCE RATES
Answer: ALL OF THE FOLLOWING ARE CONSIDERED DUTIES OF THE CALIFORNIA INSURANCE COMMISSIONER, EXCEPT:ATO KEEP ALL PAPERS AS REQUIRED BY LAWBTO STRUCTURE AND CONTROL INSOLVENCY PROCEDURESCTO SET INSURANCE RATESDTO REGULATE THE INTERNAL AFFAIRS OF THE DEPARTMENT OF INSURANCE
Q: A2
Answer: ALL CA RESIDENT INSURANCE LICENSES RENEW EVERY _____ YEARS ON THE LAST DAY OF THE MONTH IN WHICH THE LICENSE WAS ORIGINALLY ISSUED.A2B4C5D3
Q: DTHE PRIMARY PURPOSE IS TO PROTECT INSUREDS FROM INSURERS THAT BECOME INSOLVENT
Answer: WHICH OF THE FOLLOWING IS TRUE REGARDING THE CALIFORNIA INSURANCE GUARANTEE ASSOCIATION?AMEMBERSHIP IN THE ASSOCIATION IS VOLUNTARY ON THE PART OF PRODUCERS, AGENTS, AND BROKERSBIT GIVES PRODUCERS, AGENTS, AND BROKERS AN EXCELLENT TOOL TO INDUCE PROSPECTS TO PURCHASE INSURANCECMEMBERSHIP IN THE ASSOCIATION IS VOLUNTARY ON THE PART OF INSURERSDTHE PRIMARY PURPOSE IS TO PROTECT INSUREDS FROM INSURERS THAT BECOME INSOLVENT
Q: A24
Answer: ALL LICENSED PRODUCERS MUST COMPLETE HOW MANY HOURS OF CE TO RENEW THEIR LICENSE?A24B32C16D8
Q: BHOME ADDRESS LABELS
Answer: EVERY LICENSEE MUST INCLUDE THE LICENSE NUMBER ON ALL OF THE FOLLOWING, EXCEPT:APRINTED ADVERTISEMENTSBHOME ADDRESS LABELSCBUSINESS CARDSDPRICE QUOTATIONS
Q: BPRETENDS TO BE SOMEONE OR SOMETHING OTHER THAN AN INSURANCE PRODUCER IN ORDER TO OBTAIN PERSONAL NON-PUBLIC INFORMATION ABOUT SOMEONE IN CONNECTION WITH AN INSURANCE TRANSACTION
Answer: AN AGENT WOULD BE GUILTY OF ‘PRETEXTING’ OR CONDUCTING A ‘PRETEXT INTERVIEW’ IN WHICH OF THE FOLLOWING SITUATIONS?APRETENDING TO BE AN EMPLOYEE OF A LOCAL UTILITY COMPANY WHEN ATTEMPTING TO OBTAIN INFORMATION IN THE INVESTIGATION OF AN INSURANCE CLAIMBPRETENDS TO BE SOMEONE OR SOMETHING OTHER THAN AN INSURANCE PRODUCER IN ORDER TO OBTAIN PERSONAL NON-PUBLIC INFORMATION ABOUT SOMEONE IN CONNECTION WITH AN INSURANCE TRANSACTIONCSENDS UNSOLICITED TEXT MESSAGES TO PERSONS WHO ARE NOT EXISTING CLIENTDADVISES A CLIENT TO LAPSE, FORFEIT, OR SURRENDER ANY INSURANCE CONTRACT ON THE BASIS OF MISREPRESENTATION OR FRAUD
Q: B30
Answer: INSURERS AND AGENTS MUST PROVIDE BOOKS AND RECORDS WITHIN HOW MANY DAYS OF REQUEST?A15B30C10D5
Q: CATTEMPTING TO SETTLE A CLAIM FOR LESS THAN THE AMOUNT THAT THE INSURED IS ENTITLED TO UNDER THE POLICY
Answer: WHICH OF THE FOLLOWING ACTIONS BY AN INSURER IS CONSIDERED AN UNFAIR CLAIMS PRACTICE?AREQUIRING THE INSURED TO SUBMIT A COMPLETE INVENTORY OF PROPERTY LOSSBREQUIRING THAT A PROOF OF LOSS BE FILED WITHIN A CERTAIN PERIODCATTEMPTING TO SETTLE A CLAIM FOR LESS THAN THE AMOUNT THAT THE INSURED IS ENTITLED TO UNDER THE POLICYDNOTIFICATION THAT A FAIR AND REASONABLE ESTIMATE MUST BE PROVIDED BEFORE STARTING REPAIRS
Q: BENFORCE LAWS RELATING TO INSURANCE
Answer: THE INSURANCE COMMISSIONER HAS THE AUTHORITY TO:AWRITE LAWS RELATING TO INSURANCEBENFORCE LAWS RELATING TO INSURANCECAMEND EXISTING INSURANCE LAWS BUT NOT WRITE NEW ONESDSET INSURANCE PREMIUM RATES
Q: B60
Answer: THE CODE REQUIRES INSURERS TO NOTIFY THE FRAUD DIVISION WITHIN HOW MANY DAYS OF UNCOVERING AN INCIDENT OF ACTUAL OR SUSPECTED FRAUD?A30B60C10D20
Q: AINSOLVENT
Answer: AN INSURER THAT EXPERIENCES THE IMPAIRMENT OF ITS FINANCIAL STANDING HAS BECOME:AINSOLVENTBNON-ADMITTEDCDELINQUENTDUNAUTHORIZED
Q: BTHE PREDICTION OF INDIVIDUAL LOSSES IS BASED UPON PAST EXPERIENCE
Answer: ALL OF THE FOLLOWING ARE TRUE OF THE LAW OF LARGE NUMBERS, EXCEPT:AIT RELATES TO THE DETERMINATION OF THE PROBABILITY OF LOSSBTHE PREDICTION OF INDIVIDUAL LOSSES IS BASED UPON PAST EXPERIENCECTHERE IS A DECREASED DEGREE OF ERROR IN PREDICTING LOSSES OF LARGE GROUPSDTHE PREDICTION OF GROUP LOSS IS BASED UPON PAST EXPERIENCE
Q: CRETIRED PERSONS
Answer: ALL OF THE FOLLOWING ARE CONSIDERED INCOMPETENT PERSONS UNDER ELEMENTS OF A LEGAL CONTRACT, EXCEPT:AMENTALLY INCOMPETENT PERSONSBPEOPLE UNDER THE INFLUENCE OF DRUGS OR ALCOHOLCRETIRED PERSONSDMINORS
Q: CCONSIDERATION
Answer: IN AN INSURANCE CONTRACT THE VALUE THAT EACH PARTY GIVES THE OTHER IS SAID TO BE THE:AOFFERBSUBJECT MATTERCCONSIDERATIONDACCEPTANCE
Q: AINCREASE
Answer: WHEN AN INSURED DECIDES TO CHANGE HER MODE OF PREMIUM PAYMENT FROM ANNUALLY TO MONTHLY, THE TOTAL PREMIUM DUE WOULD:AINCREASEBFLUCTUATECDECREASEDREMAINS THE SAME
Q: BTHE INSURER
Answer: WHEN AN INSURER REQUIRES THAT AN INSURED BE SUBJECTED TO A MEDICAL EXAMINATION, WHO PAYS FOR THE MEDICAL EXAM?ATHE APPLICANTBTHE INSURERCTHE INSUREDDTHE PRODUCER
Q: DTHE INSURER WILL REFUND ANY PREMIUMS PAID
Answer: AN APPLICANT FOR LIFE INSURANCE PAYS THE AGENT THE INITIAL PREMIUM AND RECEIVES A CONDITIONAL RECEIPT IN RETURN. IF THE POLICY WAS TO BE ISSUED AS SUBSTANDARD, BUT THE APPLICANT DIES PRIOR TO POLICY ISSUE, WHAT IS THE RESULT?ATHE INSURER PAYS THE AMOUNT OF DEATH BENEFIT THE PREMIUM WOULD HAVE PURCHASED AT THE SUBSTANDARD RATEBTHE INSURER WILL PAY THE DEATH CLAIM MINUS THE ADDITIONAL AMOUNT OF PREMIUM DUECTHE INSURER MUST PAY THE DEATH BENEFITDTHE INSURER WILL REFUND ANY PREMIUMS PAID
Q: BPERSONALLY DELIVER THE POLICY, EXPLAIN THE RATING, AND REINFORCE THE VALUE OF THE POLICY
Answer: WHAT SHOULD A PRODUCER DO IF THE POLICY APPLIED FOR IS ISSUED AT A HIGHER RATE THAN WAS EXPECTED?ADELIVER THE POLICY TO THE APPLICANT AND HAVE THE HOME OFFICE REDUCE THE COMMISSION PAYOUT TO COVER THE HIGHER PREMIUMBPERSONALLY DELIVER THE POLICY, EXPLAIN THE RATING, AND REINFORCE THE VALUE OF THE POLICYCIMMEDIATELY RETURN THE POLICY TO THE HOME OFFICE BECAUSE THE APPLICANT WILL NEVER ACCEPT ITDHAVE THE HOME OFFICE RE-ISSUE THE POLICY FOR A REDUCED AMOUNT OF COVERAGE FOR THE ORIGINAL PREMIUM QUOTED SO THAT IT WILL BE EASIER TO EXPLAIN AT TIME OF DELIVERY
Q: CAGENT’S REPORT
Answer: CONFIDENTIAL INFORMATION SHARED BY THE PRODUCER TO THE INSURER AND DOES NOT BECOME PART OF THE POLICY IS THE __________.AMEDICAL EXAMINATIONBCONSUMER INVESTIGATIVE REPORTCAGENT’S REPORTDATTENDING PHYSICIAN STATEMENT
Q: CFAMILY MEMBER’S AGE AND CAUSE OF DEATH
Answer: WHICH OF THE FOLLOWING IS INCLUDED IN PART II OF A LIFE INSURANCE APPLICATION?AGENDERBDATE OF BIRTHCFAMILY MEMBER’S AGE AND CAUSE OF DEATHDMARITAL STATUS
Q: DTHE PREMIUM WOULD BE DISCOUNTED
Answer: ALL OF THE FOLLOWING ARE TRUE OF A SUBSTANDARD RISK, EXCEPT:ATHE COVERAGE COULD BE REDUCED FOR A PERIOD OF TIMEBTHE INSURED MAY HAVE A FLAT ADDITIONAL PREMIUM ADDED TO THEIR BASE PREMIUMCTHE INSURED MAY BE RATED AS OLDER THAN THEIR ACTUAL AGEDTHE PREMIUM WOULD BE DISCOUNTED
Q: BTHE LIFE SETTLEMENT BROKER
Answer: IN A LIFE SETTLEMENT TRANSACTION WHO REPRESENTS ONLY THE OWNER AND OWES A FIDUCIARY DUTY TO THE OWNER TO ACT IN THE BEST INTEREST ACCORDING TO THE OWNER’S INSTRUCTIONS, REGARDLESS OF THE MANNER IN WHICH THEY ARE COMPENSATED?ATHE THIRD-PARTY PURCHASERBTHE LIFE SETTLEMENT BROKERCTHE LIFE SETTLEMENT PROVIDERDTHE ISSUER OF THE LIFE INSURANCE POLICY
Q: AIT PAYS OUT THE POLICY’S FACE AMOUNT
Answer: HOW DOES AN OPTION A DEATH BENEFIT FEATURE OF A UNIVERSAL LIFE POLICY WORK?AIT PAYS OUT THE POLICY’S FACE AMOUNTBIT PAYS OUT THE POLICY’S FACE AMOUNT PLUS THE CASH VALUESCIT PAYS OUT THE FACE AMOUNT LESS THE CASH VALUESDIT PAYS OUT THE POLICY’S CASH VALUES
Q: AMODIFIED
Answer: IF THE PREMIUM PAYABLE FOR THE FIRST FEW YEARS OF THE POLICY (E.G. 3-5) ARE LOWER THAN AN ORDINARY WHOLE LIFE POLICY IN ORDER TO MAKE IT MORE AFFORDABLE, WHAT PREMIUM PAYING METHOD WAS USED?AMODIFIEDBREDUCEDCADJUSTABLEDGRADED
Q: DCOST OF LIVING
Answer: WHAT RIDER IS DESIGNED TO HELP THE INSURED OFFSET THE EFFECTS OF FUTURE INFLATION ON THE POLICY’S FACE AMOUNT?ADECREASING TERMBACCELERATING BENEFITSCLIVING NEEDSDCOST OF LIVING
Q: CBUY A JOINT AND SURVIVORSHIP LIFE POLICY
Answer: A MARRIED COUPLE WANTS TO MAKE SURE THAT IF EITHER OF THEM DIES, THE SURVIVOR HAS ENOUGH FUNDS TO MAINTAIN THEIR STANDARD OF LIVING BUT WANT TO ACCOMPLISH THIS IN THE MOST ECONOMICAL WAY. WHICH OF THE FOLLOWING RECOMMENDATIONS IS BEST SUITED TO ACCOMPLISH THEIR GOAL?APURCHASE A JOINT LIFE POLICYBBUY TWO SEPARATE WHOLE LIFE POLICIESCBUY A JOINT AND SURVIVORSHIP LIFE POLICYDBUY TWO SEPARATE LIMITED PAYMENT LIFE POLICIES
Q: DPAID-UP ADDITIONS
Answer: AN INSURED WITH A PARTICIPATING LIFE INSURANCE POLICY RECEIVES ANNUAL DIVIDENDS. SHE HAS OPTED FOR THE INSURER TO USE THESE FUNDS TO INCREASE HER OVERALL AMOUNT OF INSURANCE. THIS WOULD REFER TO WHICH OPTION:AONE-YEAR TERMBREDUCED PAID-UPCPREMIUM REDUCTIONDPAID-UP ADDITIONS
Q: APAID-UP ADDITIONS
Answer: LUCY USES HER DIVIDENDS TO PURCHASE SINGLE PREMIUM ADDITIONAL PERMANENT BENEFITS AT HER ATTAINED AGE. WHICH DIVIDEND OPTION IS LUCY EXERCISING?APAID-UP ADDITIONSBPAID-UP OPTIONCONE-YEAR TERMDREDUCED PAID-UP
Q: CDECREASES
Answer: THE SURRENDER CHARGE SCHEDULE FOR A VARIABLE UNIVERSAL LIFE POLICY GENERALLY ________ OVER TIME.AREMAINS THE SAMEBFLUCTUATESCDECREASESDINCREASES
Q: BTHE PREMIUMS HAVE NOT BEEN PAID AND HAVE BEEN OVERDUE FOR 3 YEARS
Answer: ALL OF THE FOLLOWING ARE SITUATIONS IN WHICH THE INSURER IS OBLIGATED TO PAY OUT A DEATH BENEFIT AFTER THE INSURED HAS DIED, EXCEPT:ATHE INSURER DISCOVERS THE GENDER OF THE INSURED WAS MISSTATEDBTHE PREMIUMS HAVE NOT BEEN PAID AND HAVE BEEN OVERDUE FOR 3 YEARSCAN INSURED COMMITS SUICIDE 7 YEARS AFTER THE POLICY WAS ISSUEDDTHE INSURED WAS AN EXPERIENCED PILOT WHO DIED IN A PLANE CRASH BUT HAD A POLICY ISSUED WITH AN AVIATION RIDERFOR AN ADDITIONAL PREMIUM
Q: AAN EXECUTIVE OFFICER OF THE INSURER
Answer: A POLICY IS ISSUED WITH A RIDER. YEARS LATER THE POLICYOWNER WOULD LIKE TO DROP THE RIDER IN ORDER TO SAVE SOME MONEY. WHO HAS THE AUTHORITY TO EFFECT THAT POLICY CHANGE?AAN EXECUTIVE OFFICER OF THE INSURERBTHE INSUREDCTHE BENEFICIARYDTHE PRODUCER
Q: ANOTICE REGARDING STANDARDS FOR MEDI-CAL ELIGIBILITY
Answer: A LIFE AGENT WHO OFFERS FOR SALE, OR SELLS ANY FINANCIAL PRODUCT BASED ON ITS TREATMENT UNDER THE MEDI-CAL PROGRAM MUST PROVIDE, IN WRITING, A DISCLOSURE ENTITLED:ANOTICE REGARDING STANDARDS FOR MEDI-CAL ELIGIBILITYBIMPORTANT INFORMATION FOR SENIORS PURCHASING INSURANCECEVERYTHING A SENIOR NEEDS TO KNOW ABOUT MEDI-CALDTHE NAIC’S 2010 MODEL SUITABILITY IN ANNUITY TRANSACTIONS MODEL REGULATIONS
Q: DVARIABLE
Answer: WHICH OF THE FOLLOWING ANNUITIES REQUIRES THE PRODUCER TO HOLD A SECURITIES REGISTRATION (LICENSE) IN ORDER TO SELL IT?AINDEXEDBFIXEDCMARKET VALUE ADJUSTMENTDVARIABLE
Q: BSUITABILITY QUESTIONNAIRES
Answer: WHAT MUST INSURERS USE TO GATHER REQUIRED INFORMATION AND PRODUCERS MUST RECEIVE PRODUCT-SPECIFIC TRAINING FOR EACH ANNUITY THEY MARKET TO SENIORS BEFORE THEY MAY EVEN MARKET THE ANNUITY?AIRS FORMS 1040S, W-2S, AND 1099SBSUITABILITY QUESTIONNAIRESCMIB REPORTSDATTENDING PHYSICIAN’S STATEMENTS
Q: ALIFE INSURANCE WHEN THE INSURED DIES WHILE THE POLICY IS IN FORCE
Answer: WHICH OF THE FOLLOWING DEATH BENEFITS IS PAID OUT TO THE BENEFICIARY INCOME TAX FREE?ALIFE INSURANCE WHEN THE INSURED DIES WHILE THE POLICY IS IN FORCEBAN ANNUITY WHOSE ANNUITANT DIES DURING THE DISTRIBUTION PHASECAN ANNUITY WHOSE ANNUITANT DIES WHEN USED FOR RETIREMENT INCOME PLANNINGDAN ANNUITY WHOSE ANNUITANT DIES DURING THE ACCUMULATION PHASE
Q: DTHROUGH FICA TAXES THAT ARE PAID BY BOTH EMPLOYERS AND EMPLOYEES
Answer: HOW IS THE FUNDING FOR SOCIAL SECURITY PROVIDED?ATHROUGH FICA TAXES THAT ARE PAID BY EMPLOYERSBTHROUGH FICA TAXES THAT ARE PAID BY EMPLOYEESCTHROUGH THE PIADTHROUGH FICA TAXES THAT ARE PAID BY BOTH EMPLOYERS AND EMPLOYEES
Q: DLARGE PUBLIC CORPORATIONS
Answer: BUY-SELL AGREEMENTS ARE USED FOR ALL OF THE FOLLOWING ENTITIES, EXCEPT:APARTNERSHIPSBCLOSELY HELD BUSINESSESCSOLE PROPRIETORSHIPSDLARGE PUBLIC CORPORATIONS
Q: AAT LEAST 75%
Answer: WITH A CONTRIBUTORY GROUP LIFE PLAN, WHAT PERCENTAGE OF THE EMPLOYEES MUST PARTICIPATE?AAT LEAST 75%BA FULL 100%CAT LEAST 50%DAT LEAST 60%
Q: BTHE SURVIVING SPOUSE OF THE DECEASED BECOMES THE OTHER PARTNER
Answer: WHICH OF THE FOLLOWING IS A LIKELY OUTCOME IF A BUY-SELL AGREEMENT IN A TWO PERSON PARTNERSHIP IS NOT IN PLACE WHEN ONE OF THE PARTNERS DIES?ATHE VALUE OF THE BUSINESS WILL INCREASEBTHE SURVIVING SPOUSE OF THE DECEASED BECOMES THE OTHER PARTNERCTHE AGREEMENT WILL NEED TO GO THROUGH THE PROBATE PROCESSDPARTNERSHIP TRANSFER TAXES ARE DUE WITHIN 9 MONTHS
Q: DFEDERAL ESTATE
Answer: IF LIFE INSURANCE PROCEEDS ARE PAID TO THE DECEASED’S ESTATE THEY MAY BE SUBJECT TO ________ TAXES.APROBATEBSTATE INCOMECFEDERAL INCOMEDFEDERAL ESTATE
Q: CTHERE IS NO TAX DEFERRAL BENEFIT ON ANY EARNINGS
Answer: IF A CORPORATION OWNS AN ANNUITY, WHAT IS THE TAX RAMIFICATIONS?AANY WITHDRAWALS ARE TAXED AT THE FAVORABLE CORPORATE TAX RATEBSINCE THE CORPORATION IS A NON-NATURAL PERSON THERE IS NO TAX PENALTY FOR EARLY WITHDRAWALCTHERE IS NO TAX DEFERRAL BENEFIT ON ANY EARNINGSDTHE PREMIUMS ARE TAX DEDUCTIBLE AS AN ORDINARY AND NECESSARY BUSINESS EXPENSE
Q: BACTUAL LOSS EXPERIENCE OF THE GROUP
Answer: EXPERIENCE RATING UTILIZES _______ IN DETERMINING THE RATE THE INSURER WILL CHARGE FOR GROUP COVERAGE IN EACH YEAR OF COVERAGE.AACTUAL LOSS EXPERIENCE OF EVERYONE IN THAT ZIP CODEBACTUAL LOSS EXPERIENCE OF THE GROUPCTHE PLAN SPONSOR’S CREDIT RATINGDCREDIT RATING OF ALL PARTICIPANTS
Q: AFRATERNAL INSURER
Answer: A NONPROFIT SOCIAL ORGANIZATION THAT ENGAGES IN CHARITABLE ACTIVITIES AND PROVIDES INSURANCE PRIMARILY TO ITS MEMBERS IS KNOWN AS A:AFRATERNAL INSURERBRISK RETENTION GROUPCMUTUAL INSURANCE COMPANYDSTOCK INSURANCE COMPANY
Q: DTHE PREDICTION OF INDIVIDUAL LOSSES IS BASED UPON PAST EXPERIENCE
Answer: ALL OF THE FOLLOWING ARE TRUE OF THE LAW OF LARGE NUMBERS, EXCEPT:ATHE PREDICTION OF GROUP LOSS IS BASED UPON PAST EXPERIENCEBTHERE IS A DECREASED DEGREE OF ERROR IN PREDICTING LOSSES OF LARGE GROUPSCIT RELATES TO THE DETERMINATION OF THE PROBABILITY OF LOSSDTHE PREDICTION OF INDIVIDUAL LOSSES IS BASED UPON PAST EXPERIENCE
Q: AA POLICY SUMMARY
Answer: A PRODUCER MUST INCLUDE THEIR NAME AND ADDRESS ON WHICH OF THE FOLLOWING?AA POLICY SUMMARYBA BUYER’S GUIDECAN INSURANCE POLICY’S COVER PAGEDANY POLICY AMENDMENT OR RIDER
Q: BDIVIDENDS
Answer: IN A POLICY SUMMARY ALL OF THE FOLLOWING MUST BE SHOWN ON BOTH A GUARANTEED AND NON-GUARANTEED BASIS, EXCEPT:APREMIUMSBDIVIDENDSCINTEREST RATESDCASH VALUES
Q: BAPPLICANT
Answer: A PERSON MAKING APPLICATION FOR THEMSELVES OR ANOTHER TO BE INSURED UNDER AN INSURANCE POLICY IS CALLED THE:AFIDUCIARYBAPPLICANTCBENEFICIARYDSPONSOR
Q: ATHE TEST RESULTS
Answer: THE HIV CONSENT FORM SPECIFIES WHICH TYPES OF INDIVIDUALS MAY RECEIVE __________.ATHE TEST RESULTSBTHE AMOUNT AND TYPE OF POLICY APPLIED FORCTHE UNDERWRITER’S DECISIONDTHE NAME OF THE MEDICAL LAB USED AND LAB WORK
Q: CREFUND ANY AND ALL PREMIUMS PAID WITH THE APPLICATION
Answer: A PRODUCER SUBMITS A COMPLETED APPLICATION TO THE INSURER ALONG WITH THE PREMIUM CHECK AFTER GIVING THE APPLICANT A CONDITIONAL RECEIPT. IF THE APPLICANT COMPLETES THE REQUIRED MEDICAL EXAM, BUT DIES PRIOR TO THE INSURER DECLINING THE APPLICATION BASED UPON THE RESULTS OF THE MEDICAL EXAM, WHAT IS THE INSURER’S RESPONSIBILITY?APAY A DEATH CLAIM LESS THE PREMIUMS PAID AND COSTS FOR THE MEDICAL EXAMBREFUND THE PREMIUMS PAID IN EXCESS OF ANY MEDICAL EXAM COSTS INCURRED BY THE INSURERCREFUND ANY AND ALL PREMIUMS PAID WITH THE APPLICATIONDPAY THE CLAIM IN FULL SINCE THE DEATH OCCURRED PRIOR TO DENIAL OF THE APPLICATION
Q: DLEVEL GUARANTEED PREMIUM AND FACE VALUE FOR THE LIFE OF THE INSURED
Answer: OF THE FOLLOWING, WHICH BEST DESCRIBES A STRAIGHT WHOLE LIFE POLICY?AINCREASING CASH VALUE AND DECREASING PREMIUMSBDECREASING FACE AMOUNT AND LEVEL PREMIUMSCINCREASING PREMIUM AND LEVEL DEATH BENEFIT FOR THE LIFE OF THE INSUREDDLEVEL GUARANTEED PREMIUM AND FACE VALUE FOR THE LIFE OF THE INSURED
Q: BTHE PREMIUM DECLINES THROUGHOUT THE TERM OF THE POLICY
Answer: ALL OF THE FOLLOWING ARE CORRECT PERTAINING TO DECREASING TERM, EXCEPT:ATHE DEATH BENEFIT DECREASESBTHE PREMIUM DECLINES THROUGHOUT THE TERM OF THE POLICYCTHE PREMIUM STAYS LEVELDITS MOST COMMON USE IS IN CREDIT LIFE INSURANCE
Q: D10
Answer: A CLIENT PURCHASES AN INDIVIDUAL DISABILITY INCOME POLICY AND RECEIVES THE POLICY FROM THE INSURER 45 DAYS AFTER APPLICATION. UPON RECEIPT OF THE POLICY, THE CLIENT TYPICALLY HAS ______DAYS TO REVIEW AND RETURN THE POLICY TO RECEIVE A FULL REFUND FOR ANY REASON.A35B45C20D10
Q: ALIFE INCOME
Answer: JAMES IS NEARING RETIREMENT AND HAS ACCUMULATED $175,000 IN AN ANNUITY. HE WANTS THE LARGEST POSSIBLE MONTHLY BENEFIT FOR AS LONG AS HE LIVES. WHICH OPTION SHOULD HE CHOOSE?ALIFE INCOMEBLIFE INCOME WITH REFUNDCFIXED AMOUNTDJOINT LIFE
Q: AGUARANTEED VALUES ARE INSURED BY THE CALIFORNIA INSURANCE GUARANTY ASSOCIATION
Answer: EVERY INSURER AND LIFE AGENT OFFERING FOR SALE INDIVIDUAL LIFE INSURANCE POLICIES, OR INDIVIDUAL ANNUITY CONTRACTS THAT ARE ISSUED FOR DELIVERY TO SENIOR CITIZENS IN CALIFORNIA WITH THE USE OF NON-PREPRINTED ILLUSTRATIONS OF NON-GUARANTEED VALUES MUST DISCLOSE ON THOSE ILLUSTRATIONS, OR ON AN ATTACHED COVER SHEET, ALL OF THE FOLLOWING, EXCEPT:AGUARANTEED VALUES ARE INSURED BY THE CALIFORNIA INSURANCE GUARANTY ASSOCIATIONBTHIS IS AN ILLUSTRATION ONLYCAN ILLUSTRATION IS NOT INTENDED TO PREDICT ACTUAL PERFORMANCEDINTEREST RATES, DIVIDENDS, OR VALUES THAT ARE SET FORTH IN THE ILLUSTRATION ARE NOT GUARANTEED, EXCEPT FOR THOSE ITEMS CLEARLY LABELED AS GUARANTEED
Q: DTHE GROUP SPONSOR
Answer: WHEN AN INSURER WISHES TO IMPLEMENT CHANGES TO A GROUP LIFE POLICY, WHOM MUST IT NOTIFY?ATHE BENEFICIARIESBEACH PARTICIPANT INDIVIDUALLYCMANAGEMENT ONLYDTHE GROUP SPONSOR
Q: AINCOME TAX FREE
Answer: PROCEEDS FROM A BUY-SELL AGREEMENT ARE RECEIVED ___________.AINCOME TAX FREEBONLY AFTER THE DECEASED’S ESTATE IS SETTLED AND A PROPER VALUATION OF THEIR SHARE OF THE BUSINESSCTAXABLE AS INCOMEDTAXED TO THE EXTENT THAT THE AMOUNT EXCEEDS $50,000
Q: CBUY-SELL AGREEMENT
Answer: AN AGREEMENT THAT ESTABLISHES A PRICE WITH THE INTENT TO PURCHASE THE ASSETS OF A BUSINESS SHOULD ONE OF THE PARTIES TO THE AGREEMENT PREDECEASES THE OTHER IS CALLED A ___________.AA KEY PERSON PLANBA GROUP PLANCBUY-SELL AGREEMENTDA BUSINESS PLAN
Q: ATHE EMPLOYEE CHOOSES WHICH TYPE OF INSURANCE TO CONVERT TO
Answer: AN EMPLOYEE WHO IS COVERED UNDER AN EMPLOYER GROUP LIFE INSURANCE PLAN MAY ASSUME ALL OF THE FOLLOWING ARE TRUE OF THE OPPORTUNITY OF CONVERSION, EXCEPT:ATHE EMPLOYEE CHOOSES WHICH TYPE OF INSURANCE TO CONVERT TOBNO PROOF OF INSURABILITY IS REQUIREDCTHE POLICY TO WHICH THE EMPLOYEE CONVERTS IS INDIVIDUAL PERMANENT INSURANCED
Q: CKEY EMPLOYEE
Answer: THE PROCEEDS FROM A _________ PLAN PROVIDE THE NECESSARY FUNDS TO RECRUIT, HIRE, AND TRAIN A REPLACEMENT EMPLOYEE.AGROUPBENTITYCKEY EMPLOYEEDCROSS PURCHASE