FREE INSURANCE AND STUDY GAMES ABOUT EXAM A

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FREE INSURANCE AND STUDY GAMES ABOUT EXAM A

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -84 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Indexed annuity

Answer:

Medium risk has higher income potential and set amount will not drop below set level can change according to index like stock market Question 2: When replacing a policy the producer must present the applicant with a Notice Regarding Replacement of Life Insurance

Answer:

At the time of taking the application

Question 3: What method of handling risk is self-insurance

Answer:

Retention : self insurance when the insured accepts the responsibility for the loss before the insurance co pays Question 4: Which document describes the specific features and elements of a policy

Answer:

Policy Summary

Question 5: Term limit on liability refers to the

Answer:

Death Benefit of a life insurance policy

Question 6: Characteristics if The Accelerated Benefit (living Needs) rider

Answer:

Simply an advance payment of death benefit, Insured must be diagnosed with terminal illness, Provides early payment of a portion of death benefit

Question 7: The cause of a loss is known as a/an

Answer:

Peril Question 8: A Technique used to determine the amount of life insurance needed by focusing on the projected earning potential of an insured is called

Answer:

Human life value approach Question 9: Which nonforfeiture values maintains the original face value of the contract but sacrifices the length of the contract

Answer:

Extended term Question 10: The law of large numbers allows an insurance company to predict the expected losses among

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Members of a group of individuals with similar risk Question 11: According to the California Insurance Code, life-only producers must keep records of their transactions for at least

Answer:

• years

Question 12: Insurance contracts are based upon a doctrine which requires all parties to the contract to be honest . This is known as the doctrine of

Answer:

Utmost good Faith Question 13: The right to a full refund of premium for insureds age 60 or older is

Answer:

30 days Question 14: Selling which of the following polices would require a license issued by FINRA

Answer:

Variable Universal life Question 15: Statements made by an applicant on an application for insurance are considered to be

Answer:

Representations Question 16: If a policy allows the policy owner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Answer:

Guaranteed insurability rider

Question 17: Which provision allows a lapsed policy to be put back in force

Answer:

Reinstatement Question 18: The Attempt that an insurer makes to keep its existing insurance policy in force after receipt of a notice of replacement from another company is called

Answer:

Conservation Question 19: When a producer collects the initial premium and issues a conditional receipt, the receipt

Answer:

May allow life insurance companies to start coverage before policy delivery

Question 20: The Accelerated Benefit (living Needs) rider

Answer:

Simply advance payment of the death benefit many insurance companies do not charge for the living rider

Question 21: A contract agreement for life insurance is composed of a

Answer:

Offer and acceptance

Question 22: The pay-in time for deferred annuities is known as the

Answer:

Accumulation period Question 23: A producer who knowingly misrepresents material information for the purpose of inducing a client to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

Answer:

Twisting

Question 24: Characteristics of a group life insurance

Answer:

The insurance is written as a master policy Members receive a certificate of insurance Conversion rights without evidence of insurability must be offered

Question 25: Who can make a fully deductible contribution to a traditional IRA

Answer:

Individual who has earned income Question 26: If the cash value exceeds the premiums paid in a whole life policy, what are the tax consequences if the policy is surrendered.

Answer:

The portion that exceeds the premium paid is taxable