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Agent 2 Exam
Terms in this set (29)
a loss exposure
Any situation that presents the possibility of a loss is known as
an insured suffers a financial loss in the state lottery
All of the occurrences listed below are examples of an insurable event as defined by the California Insurance Code EXCEPT
the insured and insurer contribute equally to the contract.
All of the following statements about aleatory contracts are true EXCEPT
one party is restored to the same financial position the party was in before the loss occurred.
A contract of indemnity is one in which
As defined in the California insurance Code, "insurance" is a
Only pure risks are insurable
Which of the following statements regarding risk is TRUE?
the probability of loss
The required contents of a policy include all of the following EXCEPT
The greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums.
Why is having a large number of similar exposure units important to insurers
eliminates fraudulent losses.
All of the following are benefits of insurance EXCEPT it
The process by which an insurer decides whether to issue requested insurance is called
Rescission of the contract.
Unintentional concealment entitles the injured party to which course of action, if any?
the principle of indemnity
Making an insured whole by restoring them to the same condition as before a loss is an example of
A person authorized by and on behalf of an insurer who transacts life, disability or life and accident and health insurance is defined as a
Which is an agreement in which an insurer contacts with a third party to insure itself against losses from insurance policies it issues?
The materiality of concealment.
What rule is used to determine the importance of a representation?
a listing of a person's civic and professional organization memberships.
All of the following information is gathered during the personal financial planning process EXCEPT
a presentation of policy features that includes non-guaranteed elements.
According to the California Insurance Code, governing the use of life insurance policy illustrations, the term illustration means
does not affect the policy's cash value.
The additional premium charged by an insurer for adding the accidental death benefit to a whole life policy
How much employer-provided group term life insurance is exempt from income taxation?
How long is the free cancellation period for the life insurance offered to individuals who are 60 or older?
The total death benefit is paid whenever the insured dies.
What does the statement "life insurance created an immediate estate" mean?
Life insurance and disability insurance.
Which two insurance products are commonly used to fund buy-sell agreements?
mandatory termination of all insurer appointments.
An agent who violates the laws governing life insurance policy illustrations is subject to all of the following EXCEPT
proof of surrender must be notarized at the agent's principal office.
Individual life insurance policies sold to seniors in the State of California must include a prominently placed statement that divulges all of the following information EXCEPT
insurer will make the payments until the insured juvenile reaches a specified age-usually twenty-one or twenty-five.
The payor rider on a juvenile life policy provides that if the payor dies or becomes disabled before the insured juvenile reaches the age specified in the policy that the
waiver of premium provision.
The insured is totally and permanently disabled. The insured's policy continues in force without payment of further premiums because the policy contains a
greater if the premium is paid semiannually rather than annually
Which of the following is a correct statement about the premium payment modes? The total premium paid by a life policyowner for one policy year is:
Which policy provision protects the policyowner from unintentional lapse of the contract?
Under which policy provision can a policy be surrendered for its net cash value?
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