Insurance w/A

Term
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Every licensee must indicate on which of following documents his or her license number?

A. Print advertisements

B. Business cards

C. Written price quotations

D. All the above
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Terms in this set (36)
Every licensee must indicate on which of following documents his or her license number?

A. Print advertisements

B. Business cards

C. Written price quotations

D. All the above
...
When any change in residence address occurs, every licensee and every applicant for a license must notify the Commissioner......?
A. Within 6 months after the move has taken place

B. Within 6 months before the license is to expire

C. 30 days before submitting a continuing education certificate

D. Immediately
...
An agent makes a misleading comparison of a policy he is selling in order to convince a prospect to lapse an old insurance policy. What is this called?

A. Intimidation

B. Rebating

C. Boycotting

D. Twisting
...
Which of the following cannot legally be sued when determining premium rates for life insurance?

A. Gender

B. Age

C. Nationality

D. All the above may not be used
...
Generally, it is unfair to discriminate against any one class of individuals in the business of insurance. However, the code does permit the charging of a higher premium if such premiums can be supported by mortality tables segregated by sex (gender)

A. True

B. False
...
Which of the following is not legal activity in this state?

A. Participating in a plan to offer free insurance if a person buys some form of service

B. Disregarding age in the determination of insurance rates

C. Refusing to apply the practice of twisting in sales

D. All the above are legal in the state of California
...
Employees that have group life policies covering them are required to be issued a/an,,,,,,

A. Estimate of employers premiums

B. Certificate of insurance

C. Master policy

D. Monthly premium notification on a non-participating plan
B. Certificate of insurance
Jerry is using a new time management technique in his insurance sales presentation. In order to cut the amount of time he spends at each appointment he now longer answers questions when they are first asked. Instead he answers them only if they are asked twice. He feels this will allows him to get to his next meeting quicker. Most insurance professionals would consider this:

A. An unethical practice

B. A clever and ethical practice
...
In the life insurance planning process, the "blackout period" is considered:

A. The period of time after a life insurance application is written and the date the coverage takes effect

B. The period of time when there is not enough income available as required by the insured's beneficiaries

C. The period of time when a surviving spouse does not receive any social security benefits

D. None of the above
...
All of the following are reasons for an individual to purchase personal life insurance, except:

A. To have funds that can supplement social security at retirement

B. To cover a buy/sell agreement

C. For the creation of an immediate estate

D. To have cash available for emergencies
...
Why would a business use a key person life insurance policy A. To provide the key employee's surviving family members with funds to live on after the death of the employee B. To help the employee's spouse supplement her Social security benefits C. To better allow the employee qualify for a bank loan D. To protect the company from the financial consequence of the death of a vice presidentD. To protect the company from the financial consequence of the death of a vice presidentIdentify the statement that is true about contributory group life insurance A. The employer will make a cash contribution to the estate of a deceased employee B. The employer will contribute the full amount fo the premium C. The employee will contribute to the premium payments D. None of the aboveSelect the correct statement about the social security system: A. It is, for the most part, a voluntary program B. It is only meant to be a supplement to an individual's major income; it only supplies a minimum floor of income C. The system is completely and fully funded D. The amount each person gets out is nearly exactly what they put inWhich of the following is true regarding the government's social insurance program known as Social Security? A. The majority of worker in the U.S must pay into the program B. The contributions paid in closely match the benefits received C. Participants sign a contractual agreement with the insurer D. Both A and B above are trueChoose the payments from an insurance policy which are not subject to federal income taxes: A. Any part of the death benefit paid as the result of choosing the "life income" settlement option B. The death benefit paid to a beneficiary in a lump sum C. Any cash value received upon the surrender of a life insurance policy D. None of the aboveWhich of the following is false about dividends paid from life insurance policies? A dividend is: A. Treated as a return of excess premium paid by the owner and is therefore taxable B. If interest is earned on dividends and paid to the policy owner, it is considered taxable C. Not guaranteed to be paid to the policy ownerWhich of these statements with regard to the tax treatment of life insurance is true? A. Death benefits are generally exempt from taxation B. Individual policy premium are tax deductible C. Policy premiums that provide benefits to employees are not tax deductible D. There are all trueWhich of the following is false regrading the taxation of life insurance A. Annuity death benefits are totally exempt from taxation B. Businesses that buy group term life insurance for its employees can generally deduct the premiums because they are considered a business expense C. Individuals making premiums payments on life insurance can not deduct those premiums D. None of the above are falsePatrick has been diligent in investing money for his retirement. He has managed to put $100,000 of after-tax money into a tax-deferred annuity. Now he is ready to take it out, and the insurance company that issued the annuity says his guaranteed payment is $8,000 a year for the remainder of his life. This means he can expect a total amount of $200,000 back over his life. How much of each year's annuity payment is taxable? A. $8,000 B. $4,000 C. $2,000 D. $0When applying for insurance, there is usually the owner of the contract, the insured and the applicant. They may be: 1. Three different individuals 2. the same person A. 1 only B. 2 only C. Both 1 and 2 D. Neither of the aboveInsurance companies have several departments handling various responsibilities in the issuance of policies. Which department involved with the selection of risks? A. The sales unit B. The claims unit C. The underwriting unit D. The actuarial unitBill holds two jobs. If Bill were to apply for an insurance policy and the insurer reviews the risk exposure based on his occupation, which of the following would the insurer must lively use to classify him? The job: A. Which would constitute the highest premium B. That Bill has worked at the longest C. That represents the highest hazard D. That Bill devotes the most time to every weekWhich of the following supports the Medical Information Bureau? A. Insurance companies B. The Department of insurance C. Insurance agents D. None of the aboveSelect the incorrect statement form the choices below concerning insurance applications: A. Before the insurer can issue the policy, the beneficiary must acknowledge any changes by providing her/her original initial B. Applications become a part of the contract, when attached C. The statements made on the application are viewed as representations (statements made to the best of the applicant's knowledge) D. The name of the insured must appear somewhere on the applicationFrom the following, identify that which constitutes the "entire contract" in a life insurance policy. The policy: A. And any oral statements along with the application B. And a copy of application when attached C. And a brochure on the insurer including code-approved financial information D. But not the applicationJerry is using a new time management technique in his insurance sales presentation. In order to cut the amount of time he spends at each appointment he now longer answers questions when they are first asked. Instead he answers them only if they are asked twice. He feels this will allowed him to get to his next meeting quicker. Most insurance professionals would consider this: a). An unethical practice b). A clever and ethical practicea). An unethical practiceOscar owns a whole life policy that he has been paying into for many years. He would like to continue having life insurance, and can afford to make the premium payments, but needs about 30% of the cash value for a couple of years. What would be the best course of action for Oscar to take? a). Continue making the premium payments to keep the contract in force and borrow form cash value b). Since he must surrender the policy to get any money out he can do so, then buy another policy with the other 70% of the funds he received from the cash value c). Find another source of funds. He has no access to cash value until the age of 100 d).Find another source of funds. Whole life policies do not build cash valuea). Continue making the premium payments to keep the contract in force and borrow form cash valueA policy owner makes the last premium payment on his $250,000 non-par whole life policy today. The owner is 70 years of age. When will the cash value reach $250,000? a.) About 13 years from now b.) The cash value is $250,000 today c.) Never, he didn't pay up to age 100 d.) When he reaches the age of 100d.) When he reaches the age of 100All of the following are used in determining life insurance rates, except: a.) Investment and interest return b.) Insurance company expenses c.) Mortality expense d.) Policy reservesd.) Policy reservesIn the life insurance planning process, the "blackout period" is considered: a.) The period of time after a life insurance application is written and the date the coverage takes effect b.) The period of time when there is not enough income available as required by the insured's beneficiaries c.) The period of time when a surviving spouse does not receive any social security benefits d.) None of the abovec.) The period of time when a surviving spouse does not receive any social security benefitsWhat does the incontestable clause of a life insurance policy do? a.) It keeps the cash value from losing value if the premium is not paid b.) It keeps the insurer form canceling the policy if, after two years, there is a discovery of error, concealment, or misstatement by the policy owner c.) It insures the insurance company will not liable for the acts of fraud by its agents d.) All the aboveb.) It keeps the insurer form canceling the policy if, after two years, there is a discovery of error, concealment, or misstatement by the policy ownerAll of the following are reasons for an individual to purchase personal life insurance, except: a.) To have funds that can supplement social security at retirement b.) To cover a buy/sell agreement c.) For the creation of an immediate estate d.) To have cash available for emergenciesb.) To cover a buy/sell agreementIf the owner of a life insurance policy elects to pay an annual premium, she will: a.) Find her premiums the same as compared to all other payment methods b.) Pay more as compared to paying premiums every 6 months c.) Pay less as compared to paying premium every 6 months d.) Pay a reduced amount if she pays earlier in the year, rather than at the end of the term of coverage, as is customaryc.) Pay less as compared to paying premium every 6 monthsA binding receipt issued on the sale of a life insurance policy becomes effective from the date the receipt is given -- no matter what the insurability of the applicant. a.) True b.) False -binding receipts do not apply to life insurance policiesa.) TrueOne of the provisions commonly found in life insurance is the "misstatement of age" clause. If the age of the insured is in error but not discovered until much later, the insurance company will: a.) Make an adjustment tot he face amount to properly reflect the premiums that have been paid b.) Send back all collected premiums to the insured and cancel the policy c.) Send back all collected premiums to the insured, pay interest on that amount and cancel the policy d.) Try to establish if there was intent to defraud. If not, the insurer will most likely nor pursue legal actionsa.) Make an adjustment tot he face amount to properly reflect the premiums that have been paid