WORLD FINANCIAL GROUPWFG ACTUAL EXAM

WORLD FINANCIAL GROUP{WFG} ACTUAL EXAM

TESTBANK 400 QUESTIONS AND CORRECT ANSWERS

- MOST TESTED

QUESTIONS COVERED

Which of the following is true in regard to health insurance issued on a group basis?

• All eligible members must be covered under a "non-contributory" group health plan
• All eligible members must be covered under a "contributory" group health plan
• No less than 50% of the eligible employees must elect to participate in the plan if it is considered a

"contributory" plan

• No less than 75% of the eligible employees must elect to participate in the plan if it is considered a

"non-contributory" plan - CORRECT ANSWER-a. All eligible members must be covered under a "non- contributory" group health plan

If the owner of a life insurance policy has a payment term of is annually, which of the following statement is true?

• The premium is the same if pay monthly
• Pay more on quarterly than semi-annually
• Pay more semi-annual than annually
• Pay a reduced amount if paid earlier in the year rather than at the end of the period of coverage,

as it is customary - CORRECT ANSWER-c. Pay more semi-annual than annually

As authorized by the California insurance code, the insurance commissioner has provided standards for names used by life insurance agents. Under these standards which, if any, of the following are automatically acceptable for Mary Brown, a holder of the CLU designation?

• Mary Brown, CLU and Company.
• Brownies' insurance services.
• Mary Brown insurance company.
• Mary Brown insurance services. - CORRECT ANSWER-d. Mary Brown insurance services.

The required contents of a policy include all of the following EXCEPT

• / 4

• Risks insured against.
• Parties to the contract.
• The probability of loss.
• The period during which the insurance is to continue. - CORRECT ANSWER-c. The probability of

loss.

Risk can be defined as all of the following EXCEPT

• Uncertainty.
• The cause of loss.
• The chance of loss.
• The probability of an unexpected outcome. - CORRECT ANSWER-b. The cause of loss.

Insureds are entitled to recover an amount NOT greater than the amount of their loss under the principle of

• Adhesion.
• Indemnity.
• Utmost good faith
• Warranty. - CORRECT ANSWER-b. Indemnity.

A contract in which one party promises to indemnify another against loss that arises from an unknown event is

• An insurance policy.
• A restoration policy.
• A retrocession agreement.
• A hold-harmless agreement. - CORRECT ANSWER-a. An insurance policy.

The process by which an insurer decides whether to issue requested insurance is called

• Adverse selection
• Underwriting
• Application.
• Competition. - CORRECT ANSWER-b. Underwriting
• / 4

All of the following statements about aleatory contracts are true EXCEPT

• They may be interpreted as a form of gambling.
• There are cases where the insurer pays nothing.
• The insured and insurer contribute equally to the contract.
• If a loss occurs, the insured's premium is small in relation to the amount the insurer pays. -

CORRECT ANSWER-c. The insured and insurer contribute equally to the contract.

If an insurer must have its rates accepted by the Insurance Department prior to using them, the insurer would be operating in which of the following types of jurisdictions?

• File and use.
• Use and file.
• Prior approval
• State mandated. - CORRECT ANSWER-c. Prior approval

The California Code of Regulations governing claim settlement practices prohibits all of the following acts of unfair discrimination EXCEPT denial of claim based on

• Gender
• Income.
• Reckless behavior.
• A physical handicap. - CORRECT ANSWER-c. Reckless behavior.

An insurance solicitor is a person authorized to

• Sell life insurance.
• Charge a service fee.
• Act as a broker on behalf of an insurer.
• Assist a broker or agent in selling insurance. - CORRECT ANSWER-d. Assist a broker or agent in

selling insurance.

When a person charges an insured a fee to review the insured's existing life policy, what type of license does that person need?

• A life agent.
• A personal lines agent. 3 / 4

• A life and disability analyst.
• A life or disability adjuster. - CORRECT ANSWER-c. A life and disability analyst.

In order to qualify to sell LTC insurance in the state of California, agent must comply with all of the following EXCEPT

• All licensees are required to pass a LTC knowledge exam every 10 years
• For licenses issued after Jan 1, 1982, 8 hours of training for the first 4 12-month period from dat of

license issuance, then 8 hours prior to each renewal

• Non-resident licensees file with the Insurance Commissioner and have Commissioner approve

education requirement

• Eight hours prior to renewal for licenses issued prior to January 1, 19 - CORRECT ANSWER-a. All

licensees are required to pass a LTC knowledge exam every 10 years

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), which of the following is a qualifying event?

• Promotion
• Divorce
• Marriage
• Relocation - CORRECT ANSWER-b. Divorce

Unless it is merely a statement of an expectation or a belief, a representation as to the future is considered which of the following?

• Promise
• Provision
• Liability
• Description - CORRECT ANSWER-a. Promise

Which insurance policy pays on the death of the second insured?

• Promise
• Provision
• Liability
• / 4