Section 1
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Which of the following insureds has a right to cancel an individual life policy within 30 days?
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Last updated
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Date created
Mar 1, 2020
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Section 1
(50 cards)
Which of the following insureds has a right to cancel an individual life policy within 30 days?
Insureds 60 years of age of older
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?
Adhesion
An insured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does the insured have?
Variable
Which of the following would be the beneficiary in credit life insurance?
creditor
best description of a premium
the amount an insured pays for each unit of coverage. $7 for every $1,000 of coverage is an example
Units with the same or similar exposure to loss are referred to as
homogeneous
When an annuity is written, whose life expectancy is taken into account?
Annuitant
The premiums paid by the employer in a business life insurance policy are
Tax deductible by the employer
stranger- originated life insurance policies are in direct opposition to the principle of
insurable interest
Any insurance agent who commits a repeated violation of the Insurance Code with respect to insurance replacement will be liable for
An administrative penalty of no less than $5,000 and no more than $50,000 per violation.
When the policy owner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
fixed amount
Regarding the taxation of Business Overhead policies
premiums are deductible, and benefits are taxed
representations in insurance contracts qualify as
implied warrants
W owns a policy in which she is covered as the bread-winner with permanent insurance and with decreasing term insurance in the form of a rider. What type of policy is this?
Family Income Policy
sam's insurance policy pays a dividend. The agent that told Sam the policy refers to the shareholders of the company as "participating", therefore it is a (n) insurer:
mutual
every individual life insurance policy must provide for a free-lock provision that lasts for at least
10 days
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n
Executive bonus
An exclusive agent
Has a contract with one company.
Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as
Contracts of adhesion.
When the breadwinner that is insured by a Family Policy dies, what rights are provided to other family members that are covered under the policy?
They can convert their coverage to permanent life insurance without evidence of insurability
Best description of a speculative risk
involving the possibility of a gain in additions to the uncertainty of loss.
Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?
Law of large numbers
what is the benefit of choosing extended term as a nonforfeiture option?
it has the highest amount of insurance protection
What type of insurance would be used for a Return of Premium rider?
Increasing Term
when an employee or dependent who is currently receiving benefits qualities for an extension of benefits due to a discontinuance which was followed by a replacement, which of the following is responsible for that disabled person's continuance of benefits?
the old insurer
Which of the following is another term for the accumulation period of an annuity?
Pay-in period
When may a representation be withdrawn?
prior to the issuance of the policy
the risk management technique that is used to prevent a specific loss by not exposing oneself to that activity is called
avoidance
what is an injured party entitled to receive if an intentional concealment is discovered?
recession of the policy
The California Insurance Codes cites a specific definitions for a "life agent". A life agent is :
not an insurance broker, not an insurance agent, not a person authorized to aid an insurance agent to solicit life insurance
An agent has completed 30 hours of continuing education by the end of a license period instead of the required 24 hours. What will happen to the 6 hours in excess?
They will be carried over into the next licensing period.
according to state law, what size print must be used for the licensee's license number on all price quotes, business cards, and printed material?
The same size print as the license's phone number, fax number or address
What is the term used when a person sells his assets as a way to gain money?
Liquidation
Installing deadbolt locks on the doors of a home is an example of which method of handling risk?
Reduction
All other factors being equal, the least expensive first-year premium payment is found in
Annually Renewable Term
what are the consequences of a failure to comply with the commissioner's office while it is executing a seizure order?
it is a misdemeanor punishable by a fine of $1,000, on-year imprisonment, or both
An insurer receives a claim, by what date can the claimant expect the payment?
Insurers are required to receive payment within 30 days
for the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular of loss for that particular class, the insured group must become
larger
Julie is a licensed insurance salesperson who represents the Silver Dollar Insurance Company. If you were to look at the front of her office you would see a sign that reads : SILVER DOLLAR INSURANCE COMPANY Julie Insurance Agency. If Julie performs acts that are not specifically names in the written contract she has with Silver Dollar she is exercising her ______ authority
implied
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
sam's insurance policy does not pay a dividend. The agent that sold Sam the policy refers to the policy that the company offers as "non-participating" therefore it is a(n) insurer:
stock
during the grace period, the policy owner can
pay a late premium without penalty
When is insurable interest required to exist with a life insurance policy?
at the time the policy is written but not at the time of death
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?
any form of life insurance
An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?
$3,000
Who is a third-party owner?
A policyowner who is not the insured
In case of a loss, the indemnity provision in insurance policies
Restores an insured person to the same financial state as before the loss.
The federal act that mandates that a credit reporting company responds to a consumer complaint when the company's credit report inaccurately reflects information about the consumer is known as:
Fair Credit Reporting Act
Best description of a hazards is a/an
condition that may increase the chance that a loss may occur
why would a business use a key person life insurance policy?
To protect the company from the financial consequences of the death of a vice president
Section 2
(7 cards)