Question 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