Question 11 pts How would a pure risk best be described? Group of answer choices Winning at
Question:
Question 11 pts
How would a "pure" risk best be described?
Group of answer choices
Winning at the poker tables in Las Vegas
Experiencing a loss in the stock market
Losing some pay from work because of an injury
The fluctuations of international currency
Flag question: Question 2Question 21 pts
Insurable interest in a life insurance policy:
Group of answer choices
Does not need to exist at the time of loss, only at the time the policy is written
Must exist only at the time of a loss
Throughout the entire life of the policy
Flag question: Question 3Question 31 pts
The Maple Insurance Company has only the Milehigh Manufacturing account for disability income insurance for all of Milehighs employees. A high concentration of these insureds is in one location. Oak Grove Insurance Company previously had the account along with many other large manufacturing companies around the country. Choose from below the correct statement(s) regarding the "law of large numbers" as it relates to these two insurers:The more employees are insured, the better a company can predict the injury of any one employee
Group of answer choices
Oak Grove can use the law of large numbers better than Maple
Catastrophic loss exposure was the same for both insurers
The more employees insured, the better a company can predict the injury of any one employee
Maple can use the "law of small numbers"
Flag question: Question 4Question 41 pts
Non-participating policies:
Group of answer choices
Use their dividends for purchasing other products
Can not be whole life insurance
Are tied to the Consumer Price Index
Will not pay a dividend
Flag question: Question 5Question 51 pts
Raymond, an agent who represents the Sterling Insurance Company advertises in the yellow pages: STERLING INSURANCE CO. Raymond Insurance Agency Raymond no longer has a contract to sell for Sterling but since Sterling has such a good name he decides to let the ad run again. This would be considered:
Group of answer choices
Creative marketing, and an encouraged practice
Twisting
Express authority
Apparent authority
Flag question: Question 6Question 61 pts
Insurance firms and their agents have to identify questions that are asked of the applicants for insurance that are (partly) used for marketing research as long as they are specified for underwriting purposes. This is per the California Insurance Code.
Group of answer choices
True
False
Flag question: Question 7Question 71 pts
If a court were to decide your insurance policy was written in an ambiguous or unclear fashion the special characteristic of an insurance policy that will prompt the court to rule in your favor is:
Group of answer choices
Adhesion
Unilateral
Negligence
Aleatory
Flag question: Question 8Question 81 pts
Among other powers, the California Insurance Commissioner has the responsibility and authority to redraft parts of the Code whenever he/she sees fit.
Group of answer choices
True
False
Flag question: Question 9Question 91 pts
Which of the following is correct about a representation provided by either the insurance company or applicant in negotiations for an insurance policy?
Group of answer choices
Could not be a misrepresentation if it was provided orally and not written.
May be altered, or withdrawn
Only the insurer is allowed to rescind if a representation involves a material point.
none of the above
Flag question: Question 10Question 101 pts
As defined by the Insurance Code, "transacting" insurance means:
Group of answer choices
The negotiations leading up to the final execution of a policy.
Taking your family on a Hawaiian vacation paid for by the commissions earned on a large life insurance sale.
Both of the above.
Flag question: Question 11Question 111 pts
In order to obtain the license of a life and disability insurance analyst, an individual is required to have a good business and general reputation, a thorough knowledge of life, health, and disability insurances, and must be a fit and proper person.
Group of answer choices
True
False
Flag question: Question 12Question 121 pts
When can an application for a life agents license be denied without a hearing?
Group of answer choices
The applicant has had no prior insurance experience.
The applicant has been charged with a felony.
The applicant has had an application for a license denied previously within the past 5 years for cause.
All of these are grounds for denial without hearing.
Flag question: Question 13Question 131 pts
When does the license of a life agent become inactive?
Group of answer choices
When the agent is not transacting with the general public.
When the agent is not currently appointed by an insurer, but renewal fees are paid and continuing education requirements have been met.
When the license passes its renewal date.
When the appointment agreement time period expires.
Flag question: Question 14Question 141 pts
Any agency name used by life producers who have earned the CLU designation are automatically approved by the Department in recognition of this special title.
Group of answer choices
True
False
Flag question: Question 15Question 151 pts
Life insurers are required to maintain records on policies they have sold. How long from the date of delivery must these records be kept?
Group of answer choices
6 months
1 year
3 years
5 years
Flag question: Question 16Question 161 pts
A licensed life agent tells a prospect he is guaranteed the amount he will get in dividends. Being convicted of this misdemeanor could result in going to jail for 30 days.
Group of answer choices
True
False
Flag question: Question 17Question 171 pts
The Unfair Practices Act allows:
Group of answer choices
Associations to recommend to their members to not sell products for companies that may sell insurance direct to the public.
Tell people who have filed claims not to engage attorneys.
Having different life policy and annuity premiums for men and women based on gender specific mortality table information.
All the above
Flag question: Question 18Question 181 pts
Which of the following is/are true?
Group of answer choices
Staying educated on insurance issues can help one act more ethically.
Increased sales volume does not necessarily mean an agent is acting more ethically.
Both the above are correct.
Flag question: Question 19Question 191 pts
Insurers are not allowed to refuse insurance, charge a higher rate, or limit coverage on a person who has a physical handicap if these limitations, restrictions, or ratings are based on sound actuarial statistics or are related to reasonable anticipated experience.
Group of answer choices
True -
False
Flag question: Question 20Question 201 pts
Select from below the potential costs related with a person's death:
Group of answer choices
Paying off a new car
Medical payments
Both of the above
Neither of the above
Flag question: Question 21Question 211 pts
Choose the correct statement:
Group of answer choices
Death occurring without a will is called dying interstate
Annuities create an immediate estate
Life insurance creates an immediate estate
Flag question: Question 22Question 221 pts
There are many unique features in life policies written for groups. They typically don't require evidence of insurability, don't focus on individual selection, and spread their risk among a large number of people, thus avoiding adverse selection. Since the groups can be quite large, does the insurer become too busy processing applications to do a good job of underwriting?
Group of answer choices
Yes
No
Flag question: Question 23Question 231 pts
From the choices below select the one which is false about Social Security (OASDHI):
Group of answer choices
The program is considered "fully funded".
The benefits received are not closely related to the contributions made, actuarially speaking.
It will likely need to be supplemented by the individual participant since it was designed only to provide a minimum floor of income.
It is, for the most part, a compulsory system.
Flag question: Question 24Question 241 pts
A very serious accident occurs rendering a 47-year-old warehouse manager completely disabled. He is not expected to recover from his total paralysis. Select the program(s) below which would most likely entitle him to disability income benefits.
Group of answer choices
Medicare
MediCal
Social Security
All the above
Flag question: Question 25Question 251 pts
An "exclusion ratio" applies to payouts of annuities. An annuity purchaser who contributes $100,000 of premium after tax, is expected to live for 10 years and will receive 20,000 per year for a total of $200,000. In each of the first 10 years his taxable amount will be:
Group of answer choices
$10,000
$20,000
$0
Flag question: Question 26Question 261 pts
How do tax laws treat the premature distribution of Modified Endowment Contracts?
Group of answer choices
Like IRA accounts
Like a regular life insurance policy
Tax laws do not affect MECs
Flag question: Question 27Question 271 pts
Applicant forms used for life insurance:
Group of answer choices
Express facts about the person applying.
Are required to be submitted to begin the process of acquiring the life plan.
Represent a request to an insurer to provide an insurance contract based on the information contained in the application
All the above are correct
Flag question: Question 28Question 281 pts
Which of the following are elements of "non-medical" applications?
Group of answer choices
A medical exam may not be needed regardless of the insurer's underwriting standards.
Answers to application questions could trigger a requirement to have a physical exam performed.
A medical exam may not be needed.
all are correct
Flag question: Question 29Question 291 pts
Which of the below often acts as a "field underwriter?"
Group of answer choices
The claims department
A person being interview by the insurance company for a large policy application.
The agent
Flag question: Question 30Question 301 pts
A schedule illustrating the probabilities of death each year for life insurance is called:
Group of answer choices
A morbidity table
An annuity table
A premium table
A mortality table
Flag question: Question 31Question 311 pts
John pays the premium for a $200,000 life, insurance policy, and is issued a binding receipt. John dies in an accident the next day. In the course of underwriting, the company determines John was not insurable by their guidelines at the time the binding receipt was issued. What must the insurer do?
Group of answer choices
Nothing, they are not liable to pay the death benefit.
Pay a percentage prescribed by the California Insurance Code
Return only the initial premium
Pay the claim in full
Flag question: Question 32Question 321 pts
The replacement of life insurance and annuity contracts require which of the following:
Group of answer choices
A statement to the effect that the policy being applied for is replacing a prior one.
That laws apply alike for group or individual plans
A disclosure by the applicant that they own other policies
All the above
Flag question: Question 33Question 331 pts
The professional liability insurance that an agent should purchase is known as Errors and Omissions coverage. Which of the following statements concerning this type of insurance is correct?
Group of answer choices
It would have a relatively low deductible of $100 or $250.
It would cover the dishonest omission of an agent or broker.
It would cover an agent who created a financial loss by forgetting to renew a policy - a negligent act.
None of the above
Flag question: Question 34Question 341 pts
If Bill were to expose the insurer to an increased risk on his life insurance policy because he has taken up sky diving, can the policy be non-renewed for cause or the premiums raised?
Group of answer choices
Yes, if it is a non-renewable contract
No, only renewable contracts can be issued
No, renewable and non-renewable apply only to health insurance
Flag question: Question 35Question 351 pts
Clark, a 25-year-old, would like to buy $50,000 of life insurance protection. He wants to select the policy with the lowest premium among the following plans. What would you suggest he buy?
Group of answer choices
A 20-pay life policy
A life paid-up age 65 policy
An endowment age 65 policy
Flag question: Question 36Question 361 pts
A policy is issued to a 32 year old that has a face amount of $100,000. When the insured reaches the age of 55, the policy has built up $100,000 of cash value. Choose from the selections below the type of policy this most likely describes:
Group of answer choices
A 20-pay life insurance policy
A life paid-up at age 55 policy
A term to age 55 policy
An endowment at age 55 policy
Flag question: Question 37Question 371 pts
A policy that makes funds available to pay off a mortgage, and is structured so that the face amount follows the debt amount closely, is often called a decreasing term policy.
Group of answer choices
True
False
Flag question: Question 38Question 381 pts
Universal life insurance contains which of the features listed below:
Group of answer choices
Flexible premium
Fixed premium
Fixed rate of interest
Current rate of interest
All of the above
Flag question: Question 39Question 391 pts
Select the incorrect choice regarding variable life contracts:
Group of answer choices
They always offset inflation
The value of the investment with the policy could conceivably fall to zero.
They often contain mutual funds as their investment
Flag question: Question 40Question 401 pts
When using the guaranteed insurability rider on a contract, an agent can state that the policyowner is allowed to purchase more insurance on their own life, on certain dates and ages, and without insurability requirements:
Group of answer choices
True
False
Flag question: Question 41Question 411 pts
A Life Insurance Policy Owner may reinstate a policy under what conditions:
Group of answer choices
That reinstatement can only be done within a grace period.
Are found in the reinstatement provision of the policy
Say you can reinstate if past due premiums are paid back with interest within 5 years
Are not normally a part of a policy, they must be requested.
Flag question: Question 42Question 421 pts
The "entire contract" clause of life insurance policies states that the use of evidence is limited to the contract and the attached application in determining the policy's validity.
Group of answer choices
True
False
Flag question: Question 43Question 431 pts
The Free Look provision of life insurance issued in California states that certain conditions exist in order for a policy to be delivered to the insured properly. Which of the following is not correct in determining good delivery?
Group of answer choices
The policy was mailed with a signed delivery receipt
The policy was mailed certified
The policy was hand delivered personally, no receipt of delivery needed.
None of the above
Flag question: Question 44Question 441 pts
The insured cannot borrow against the loan value of the policy without the permission and consent of which of the following?
Group of answer choices
Revocable beneficiary
Irrevocable beneficiary
It doesn't matter what kind of beneficiary is designated. As long as there is enough cash value, the insured can borrow funds without permission from anyone.
Flag question: Question 45Question 451 pts
The Uniform Simultaneous Death Act (survivorship or time clause) was created to address situations in which the beneficiary survives the insured. Which of the following is false?
Group of answer choices
It is a time period after the death of the insured as stated in the policy. The time is always very short
It is also known as the common disaster clause
The act assumes a certain order of death occurs in determining who gets paid the face amount.
Flag question: Question 46Question 461 pts
If the insured of a life insurance policy does not select a settlement option on behalf of the beneficiary, the beneficiary:
Group of answer choices
Must take a lump sum payment
Can choose a settlement since it was not chosen by the insured
Now becomes the new owner and will make premium payments to build tax deferred cash value.
None of the above
Flag question: Question 47Question 471 pts
What recommendation would you give to a client who wants to receive the highest monthly income from a whole life policy purchased many years ago? This client needs an income that cannot be outlived and will not fluctuate monthly.
Group of answer choices
Take all the cash value and buy a good variable annuity
Get a life income with period certain option
Get a fixed period option
None of the above, there is nothing that can accomplish the request.
Flag question: Question 48Question 481 pts
Identify how the cash surrender value of a policy can be used:
Group of answer choices
Buy paid-up insurance in a reduced amount
Buy extended term insurance for a full face amount
Receive cash
All the above are true
Flag question: Question 49Question 491 pts
Utilizing the "extended term option" means taking the cash value and using it as a single premium payment to buy a paid up policy with the same face amount for a specified length of time.
Group of answer choices
True
False
Flag question: Question 50Question 501 pts
A participating policy gives the policy owner the right to receive dividends. These dividends are not guaranteed.
Group of answer choices
True
False
Question 11 pts
How would a "pure" risk best be described?
Group of answer choices
Winning at the poker tables in Las Vegas
Experiencing a loss in the stock market
Losing some pay from work because of an injury
The fluctuations of international currency
Flag question: Question 2Question 21 pts
Insurable interest in a life insurance policy:
Group of answer choices
Does not need to exist at the time of loss, only at the time the policy is written
Must exist only at the time of a loss
Throughout the entire life of the policy
Flag question: Question 3Question 31 pts
The Maple Insurance Company has only the Milehigh Manufacturing account for disability income insurance for all of Milehighs employees. A high concentration of these insureds is in one location. Oak Grove Insurance Company previously had the account along with many other large manufacturing companies around the country. Choose from below the correct statement(s) regarding the "law of large numbers" as it relates to these two insurers:The more employees are insured, the better a company can predict the injury of any one employee
Group of answer choices
Oak Grove can use the law of large numbers better than Maple
Catastrophic loss exposure was the same for both insurers
The more employees insured, the better a company can predict the injury of any one employee
Maple can use the "law of small numbers"
Flag question: Question 4Question 41 pts
Non-participating policies:
Group of answer choices
Use their dividends for purchasing other products
Can not be whole life insurance
Are tied to the Consumer Price Index
Will not pay a dividend
Flag question: Question 5Question 51 pts
Raymond, an agent who represents the Sterling Insurance Company advertises in the yellow pages: STERLING INSURANCE CO. Raymond Insurance Agency Raymond no longer has a contract to sell for Sterling but since Sterling has such a good name he decides to let the ad run again. This would be considered:
Group of answer choices
Creative marketing, and an encouraged practice
Twisting
Express authority
Apparent authority
Flag question: Question 6Question 61 pts
Insurance firms and their agents have to identify questions that are asked of the applicants for insurance that are (partly) used for marketing research as long as they are specified for underwriting purposes. This is per the California Insurance Code.
Group of answer choices
True
False
Flag question: Question 7Question 71 pts
If a court were to decide your insurance policy was written in an ambiguous or unclear fashion the special characteristic of an insurance policy that will prompt the court to rule in your favor is:
Group of answer choices
Adhesion
Unilateral
Negligence
Aleatory
Flag question: Question 8Question 81 pts
Among other powers, the California Insurance Commissioner has the responsibility and authority to redraft parts of the Code whenever he/she sees fit.
Group of answer choices
True
False
Flag question: Question 9Question 91 pts
Which of the following is correct about a representation provided by either the insurance company or applicant in negotiations for an insurance policy?
Group of answer choices
Could not be a misrepresentation if it was provided orally and not written.
May be altered, or withdrawn
Only the insurer is allowed to rescind if a representation involves a material point.
none of the above
Flag question: Question 10Question 101 pts
As defined by the Insurance Code, "transacting" insurance means:
Group of answer choices
The negotiations leading up to the final execution of a policy.
Taking your family on a Hawaiian vacation paid for by the commissions earned on a large life insurance sale.
Both of the above.
Flag question: Question 11Question 111 pts
In order to obtain the license of a life and disability insurance analyst, an individual is required to have a good business and general reputation, a thorough knowledge of life, health, and disability insurances, and must be a fit and proper person.
Group of answer choices
True
False
Flag question: Question 12Question 121 pts
When can an application for a life agents license be denied without a hearing?
Group of answer choices
The applicant has had no prior insurance experience.
The applicant has been charged with a felony.
The applicant has had an application for a license denied previously within the past 5 years for cause.
All of these are grounds for denial without hearing.
Flag question: Question 13Question 131 pts
When does the license of a life agent become inactive?
Group of answer choices
When the agent is not transacting with the general public.
When the agent is not currently appointed by an insurer, but renewal fees are paid and continuing education requirements have been met.
When the license passes its renewal date.
When the appointment agreement time period expires.
Flag question: Question 14Question 141 pts
Any agency name used by life producers who have earned the CLU designation are automatically approved by the Department in recognition of this special title.
Group of answer choices
True
False
Flag question: Question 15Question 151 pts
Life insurers are required to maintain records on policies they have sold. How long from the date of delivery must these records be kept?
Group of answer choices
6 months
1 year
3 years
5 years
Flag question: Question 16Question 161 pts
A licensed life agent tells a prospect he is guaranteed the amount he will get in dividends. Being convicted of this misdemeanor could result in going to jail for 30 days.
Group of answer choices
True
False
Flag question: Question 17Question 171 pts
The Unfair Practices Act allows:
Group of answer choices
Associations to recommend to their members to not sell products for companies that may sell insurance direct to the public.
Tell people who have filed claims not to engage attorneys.
Having different life policy and annuity premiums for men and women based on gender specific mortality table information.
All the above
Flag question: Question 18Question 181 pts
Which of the following is/are true?
Group of answer choices
Staying educated on insurance issues can help one act more ethically.
Increased sales volume does not necessarily mean an agent is acting more ethically.
Both the above are correct.
Flag question: Question 19Question 191 pts
Insurers are not allowed to refuse insurance, charge a higher rate, or limit coverage on a person who has a physical handicap if these limitations, restrictions, or ratings are based on sound actuarial statistics or are related to reasonable anticipated experience.
Group of answer choices
True -
False
Flag question: Question 20Question 201 pts
Select from below the potential costs related with a person's death:
Group of answer choices
Paying off a new car
Medical payments
Both of the above
Neither of the above
Flag question: Question 21Question 211 pts
Choose the correct statement:
Group of answer choices
Death occurring without a will is called dying interstate
Annuities create an immediate estate
Life insurance creates an immediate estate
Flag question: Question 22Question 221 pts
There are many unique features in life policies written for groups. They typically don't require evidence of insurability, don't focus on individual selection, and spread their risk among a large number of people, thus avoiding adverse selection. Since the groups can be quite large, does the insurer become too busy processing applications to do a good job of underwriting?
Group of answer choices
Yes
No
Flag question: Question 23Question 231 pts
From the choices below select the one which is false about Social Security (OASDHI):
Group of answer choices
The program is considered "fully funded".
The benefits received are not closely related to the contributions made, actuarially speaking.
It will likely need to be supplemented by the individual participant since it was designed only to provide a minimum floor of income.
It is, for the most part, a compulsory system.
Flag question: Question 24Question 241 pts
A very serious accident occurs rendering a 47-year-old warehouse manager completely disabled. He is not expected to recover from his total paralysis. Select the program(s) below which would most likely entitle him to disability income benefits.
Group of answer choices
Medicare
MediCal
Social Security
All the above
Flag question: Question 25Question 251 pts
An "exclusion ratio" applies to payouts of annuities. An annuity purchaser who contributes $100,000 of premium after tax, is expected to live for 10 years and will receive 20,000 per year for a total of $200,000. In each of the first 10 years his taxable amount will be:
Group of answer choices
$10,000
$20,000
$0
Flag question: Question 26Question 261 pts
How do tax laws treat the premature distribution of Modified Endowment Contracts?
Group of answer choices
Like IRA accounts
Like a regular life insurance policy
Tax laws do not affect MECs
Flag question: Question 27Question 271 pts
Applicant forms used for life insurance:
Group of answer choices
Express facts about the person applying.
Are required to be submitted to begin the process of acquiring the life plan.
Represent a request to an insurer to provide an insurance contract based on the information contained in the application
All the above are correct
Flag question: Question 28Question 281 pts
Which of the following are elements of "non-medical" applications?
Group of answer choices
A medical exam may not be needed regardless of the insurer's underwriting standards.
Answers to application questions could trigger a requirement to have a physical exam performed.
A medical exam may not be needed.
all are correct
Flag question: Question 29Question 291 pts
Which of the below often acts as a "field underwriter?"
Group of answer choices
The claims department
A person being interview by the insurance company for a large policy application.
The agent
Flag question: Question 30Question 301 pts
A schedule illustrating the probabilities of death each year for life insurance is called:
Group of answer choices
A morbidity table
An annuity table
A premium table
A mortality table
Flag question: Question 31Question 311 pts
John pays the premium for a $200,000 life, insurance policy, and is issued a binding receipt. John dies in an accident the next day. In the course of underwriting, the company determines John was not insurable by their guidelines at the time the binding receipt was issued. What must the insurer do?
Group of answer choices
Nothing, they are not liable to pay the death benefit.
Pay a percentage prescribed by the California Insurance Code
Return only the initial premium
Pay the claim in full
Flag question: Question 32Question 321 pts
The replacement of life insurance and annuity contracts require which of the following:
Group of answer choices
A statement to the effect that the policy being applied for is replacing a prior one.
That laws apply alike for group or individual plans
A disclosure by the applicant that they own other policies
All the above
Flag question: Question 33Question 331 pts
The professional liability insurance that an agent should purchase is known as Errors and Omissions coverage. Which of the following statements concerning this type of insurance is correct?
Group of answer choices
It would have a relatively low deductible of $100 or $250.
It would cover the dishonest omission of an agent or broker.
It would cover an agent who created a financial loss by forgetting to renew a policy - a negligent act.
None of the above
Flag question: Question 34Question 341 pts
If Bill were to expose the insurer to an increased risk on his life insurance policy because he has taken up sky diving, can the policy be non-renewed for cause or the premiums raised?
Group of answer choices
Yes, if it is a non-renewable contract
No, only renewable contracts can be issued
No, renewable and non-renewable apply only to health insurance
Flag question: Question 35Question 351 pts
Clark, a 25-year-old, would like to buy $50,000 of life insurance protection. He wants to select the policy with the lowest premium among the following plans. What would you suggest he buy?
Group of answer choices
A 20-pay life policy
A life paid-up age 65 policy
An endowment age 65 policy
Flag question: Question 36Question 361 pts
A policy is issued to a 32 year old that has a face amount of $100,000. When the insured reaches the age of 55, the policy has built up $100,000 of cash value. Choose from the selections below the type of policy this most likely describes:
Group of answer choices
A 20-pay life insurance policy
A life paid-up at age 55 policy
A term to age 55 policy
An endowment at age 55 policy
Flag question: Question 37Question 371 pts
A policy that makes funds available to pay off a mortgage, and is structured so that the face amount follows the debt amount closely, is often called a decreasing term policy.
Group of answer choices
True
False
Flag question: Question 38Question 381 pts
Universal life insurance contains which of the features listed below:
Group of answer choices
Flexible premium
Fixed premium
Fixed rate of interest
Current rate of interest
All of the above
Flag question: Question 39Question 391 pts
Select the incorrect choice regarding variable life contracts:
Group of answer choices
They always offset inflation
The value of the investment with the policy could conceivably fall to zero.
They often contain mutual funds as their investment
Flag question: Question 40Question 401 pts
When using the guaranteed insurability rider on a contract, an agent can state that the policyowner is allowed to purchase more insurance on their own life, on certain dates and ages, and without insurability requirements:
Group of answer choices
True
False
Flag question: Question 41Question 411 pts
A Life Insurance Policy Owner may reinstate a policy under what conditions:
Group of answer choices
That reinstatement can only be done within a grace period.
Are found in the reinstatement provision of the policy
Say you can reinstate if past due premiums are paid back with interest within 5 years
Are not normally a part of a policy, they must be requested.
Flag question: Question 42Question 421 pts
The "entire contract" clause of life insurance policies states that the use of evidence is limited to the contract and the attached application in determining the policy's validity.
Group of answer choices
True
False
Flag question: Question 43Question 431 pts
The Free Look provision of life insurance issued in California states that certain conditions exist in order for a policy to be delivered to the insured properly. Which of the following is not correct in determining good delivery?
Group of answer choices
The policy was mailed with a signed delivery receipt
The policy was mailed certified
The policy was hand delivered personally, no receipt of delivery needed.
None of the above
Flag question: Question 44Question 441 pts
The insured cannot borrow against the loan value of the policy without the permission and consent of which of the following?
Group of answer choices
Revocable beneficiary
Irrevocable beneficiary
It doesn't matter what kind of beneficiary is designated. As long as there is enough cash value, the insured can borrow funds without permission from anyone.
Flag question: Question 45Question 451 pts
The Uniform Simultaneous Death Act (survivorship or time clause) was created to address situations in which the beneficiary survives the insured. Which of the following is false?
Group of answer choices
It is a time period after the death of the insured as stated in the policy. The time is always very short
It is also known as the common disaster clause
The act assumes a certain order of death occurs in determining who gets paid the face amount.
Flag question: Question 46Question 461 pts
If the insured of a life insurance policy does not select a settlement option on behalf of the beneficiary, the beneficiary:
Group of answer choices
Must take a lump sum payment
Can choose a settlement since it was not chosen by the insured
Now becomes the new owner and will make premium payments to build tax deferred cash value.
None of the above
Flag question: Question 47Question 471 pts
What recommendation would you give to a client who wants to receive the highest monthly income from a whole life policy purchased many years ago? This client needs an income that cannot be outlived and will not fluctuate monthly.
Group of answer choices
Take all the cash value and buy a good variable annuity
Get a life income with period certain option
Get a fixed period option
None of the above, there is nothing that can accomplish the request.
Flag question: Question 48Question 481 pts
Identify how the cash surrender value of a policy can be used:
Group of answer choices
Buy paid-up insurance in a reduced amount
Buy extended term insurance for a full face amount
Receive cash
All the above are true
Flag question: Question 49Question 491 pts
Utilizing the "extended term option" means taking the cash value and using it as a single premium payment to buy a paid up policy with the same face amount for a specified length of time.
Group of answer choices
True
False
Flag question: Question 50Question 501 pts
A participating policy gives the policy owner the right to receive dividends. These dividends are not guaranteed.
Group of answer choices
True
False
Expert Answer:
