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California Life Accident and Health Exam Practice 353 questions and detailed Solutions 100, Exams of Insurance law

California Life Accident and Health Exam Practice 353 questions and detailed Solutions 100% California Life Accident and Health Exam Practice 353 questions and detailed Solutions 100% California Life Accident and Health Exam Practice 353 questions and detailed Solutions 100%

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California Life Accident and Health Exam
Practice 353 questions and detailed
Solutions 100%
California Life Accident and Health Exam
Practice 353 questions and detailed
Solutions 100%
JOHN IS THE AGENT FOR ABC INSURANCE AND JANE IS THE INSURED. WHO IS THE PRINCIPAL IN THIS
AGENCY RELATIONSHIP?
A
ABC INSURANCE
B
JOHN
C
JANE
D
NONE - ANSWER A
ABC INSURANCE
A(N) ________ INSURER IS AUTHORIZED TO WRITE INSURANCE POLICIES IN A PARTICULAR STATE.
A
DOMESTIC
B
NON-ADMITTED
C
FOREIGN
D
ADMITTED - ANSWER D
ADMITTED
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Download California Life Accident and Health Exam Practice 353 questions and detailed Solutions 100 and more Exams Insurance law in PDF only on Docsity!

Practice 353 questions and detailed

Solutions 100%

California Life Accident and Health Exam

Practice 353 questions and detailed

Solutions 100%

JOHN IS THE AGENT FOR ABC INSURANCE AND JANE IS THE INSURED. WHO IS THE PRINCIPAL IN THIS

AGENCY RELATIONSHIP?

A

ABC INSURANCE

B

JOHN

C

JANE

D

NONE - ANSWER A

ABC INSURANCE

A(N) ________ INSURER IS AUTHORIZED TO WRITE INSURANCE POLICIES IN A PARTICULAR STATE.

A

DOMESTIC

B

NON-ADMITTED

C

FOREIGN

D

ADMITTED - ANSWER D

ADMITTED

Practice 353 questions and detailed

Solutions 100%

WHICH OF THE FOLLOWING IS CLASSIFIED AS AN INSURANCE BROKER?

A

A PERSON WHO PLACES COVERAGE FOR HIS/HER OWN INSURANCE

B

A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN INSURED

C

A PERSON IN THE HOME OFFICE WHO DOES NOT SOLICIT OUTSIDE OF THE OFFICE

D

AN EMPLOYEE WHO NEGOTIATES INSURANCE CONTRACTS FOR HIS/HER EMPLOYER - ANSWER B

A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN INSURED

THE INSURANCE CONTRACT IS SAID TO BE A CONTRACT OF UTMOST GOOD FAITH, BECAUSE:

A

CONCEALMENT OF KNOWN FACTS ON THE PART OF THE INSURED WILL VOID THE CONTRACT

B

THE INSURER HAS DRAWN UP THE CONTRACT AND, THEREFORE, THERE IS NO INTENT TO DECEIVE

C

EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE OTHER THAT THERE IS

NOTHING CONCEALED OR DISHONEST

D

THE INSURED MUST WARRANT THAT HIS/HER REPRESENTATIONS ARE TRUE - ANSWER C

EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE OTHER THAT THERE IS

NOTHING CONCEALED OR DISHONEST

WHICH OF THE FOLLOWING BEST DESCRIBES A CONTRACT OF INDEMNITY UNDER INSURANCE?

A

Practice 353 questions and detailed

Solutions 100%

SPECULATIVE RISK

C

PURE RISK

D

INVOLUNTARY RISK - ANSWER C

PURE RISK

A GOOD EXAMPLE OF RISK REDUCTION MIGHT BE:

A

WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL LOSS

B

THE ELIMINATION OF THE EXPOSURE TO A SPECIFIC RISK

C

THE TRANSFER OF THE RISK TO AN INSURANCE COMPANY

D

INSURING ONLY THOSE RISKS THAT THREATEN THE FINANCIAL STABILITY OF THE INSURED - ANSWER A

WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL LOSS

AN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN A PARTICULAR STATE IS SAID TO BE:

A

NON-ADMITTED

B

ADMITTED

C

DOMESTIC

D

Practice 353 questions and detailed

Solutions 100%

FOREIGN - ANSWER B

ADMITTED

WHICH INSURER'S OWNER RECEIVES TAXABLE CORPORATE DIVIDENDS AS A RETURN OF PROFIT?

A

MUTUAL

B

RECIPROCAL

C

STOCK

D

FRATERNAL - ANSWER C

STOCK

IN INSURANCE, WHEN THE NUMBER OF SIMILAR UNITS INCREASE, THE PREDICTABILITY OF THE LOSS

IMPROVES:

A

BECAUSE OF THE SIMILARITY OF UNITS IN LARGE QUANTITIES

B

ACCORDING TO THE LAW OF LARGE NUMBERS

C

BECAUSE OF ACCUMULATED EXPERIENCE

D

ACCORDING TO THE LAW OF AVERAGES - ANSWER B

ACCORDING TO THE LAW OF LARGE NUMBERS

Practice 353 questions and detailed

Solutions 100%

B

INSURER

C

AGENCY

D

AGENT - ANSWER B

INSURER

IN THE INSURANCE WORLD, A POTENTIAL FOR A LOSS IS SAID TO BE:

A

A RISK

B

A PERIL

C

A HAZARD

D

AN INSURABLE INTEREST - ANSWER A

A RISK

AN INSURANCE PLAN OWNED BY AN EMPLOYER, CREDITOR OR ASSOCIATION, PROVIDING COVERAGE

FOR THE EMPLOYEES, DEBTORS, OR MEMBERS, REFERS TO WHICH OF THE FOLLOWING?

A

ORDINARY LIFE INSURANCE

B

GROUP LIFE INSURANCE

C

Practice 353 questions and detailed

Solutions 100%

INDUSTRIAL LIFE INSURANCE

D

INDIVIDUAL LIFE INSURANCE - ANSWER B

GROUP LIFE INSURANCE

A PERSONALIZED COMPUTER-GENERATED ILLUSTRATION DETAILING PREMIUMS, CASH VALUES,

INTEREST RATES, AND SURRENDER VALUES IS CALLED __________.

A

A POLICY SUMMARY

B

SALES LITERATURE

C

AN ADVERTISEMENT

D

A HYPOTHETICAL - ANSWER A

A POLICY SUMMARY

A PRODUCER SUBMITS A COMPLETED APPLICATION TO THE INSURER ALONG WITH THE PREMIUM

CHECK AFTER GIVING THE APPLICANT A CONDITIONAL RECEIPT. IF THE APPLICANT COMPLETES THE

REQUIRED MEDICAL EXAM, BUT DIES PRIOR TO THE INSURER ISSUING A POLICY AS APPLIED FOR, WHAT

IS THE INSURER'S RESPONSIBILITY?

A

TO PAY THE CLAIM IN FULL SINCE THE CONDITIONS OF THE RECEIPT WERE FULLY SATISFIED

B

TO REFUND PREMIUMS PAID LESS COSTS ASSOCIATED WITH ANY MEDICAL EXAMS

C

TO KEEP THE PREMIUM AND REJECT THE CLAIM

Practice 353 questions and detailed

Solutions 100%

WHICH OF THE FOLLOWING IS INCLUDED IN PART I OF A LIFE INSURANCE APPLICATION?

A

FAMILY HEALTH HISTORY

B

HOSPITALIZATIONS AND SURGERIES

C

PRESENT HEALTH

D

NAME AND OCCUPATION - ANSWER D

NAME AND OCCUPATION

BUYING LIFE INSURANCE SO THAT THE DEATH BENEFIT WILL BE AVAILABLE FOR PAYING ESTATE TAXES

DUE UPON THE DEATH OF THE INSURED IS KNOWN AS:

A

SURVIVOR PROTECTION

B

ESTATE CREATION

C

ESTATE CONSERVATION

D

PRENEED PLANNING - ANSWER C

ESTATE CONSERVATION

MONEY ACCUMULATED IN A PERMANENT POLICY THAT THE POLICYOWNER MAY BORROW VIA A POLICY

LOAN OR RECEIVE IF THE POLICY IS SURRENDERED, REFERS TO:

A

Practice 353 questions and detailed

Solutions 100%

SAVINGS ACCOUNT

B

ACCUMULATED AT INTEREST ACCOUNT

C

DEFERRED SAVINGS ACCOUNT

D

THE CASH VALUE - ANSWER D

THE CASH VALUE

SEAN HAS A HOME WITH A MORTGAGE. HE NEEDS LIFE INSURANCE TO PROTECT HIS FAMILY BUT ALSO

WANTS TO LEAVE THEM WITHOUT A MORTGAGE PAYMENT IF HE DIES. IDEALLY WHICH OF THE

FOLLOWING RIDERS SHOULD HE ACQUIRE?

A

FAMILY RIDER

B

INCREASING TERM RIDER

C

DECREASING TERM RIDER

D

LEVEL TERM RIDER - ANSWER C

DECREASING TERM RIDER

AN INSURED OWNS A $50,000 PERMANENT LIFE POLICY THAT SHE PURCHASED 4 YEARS AGO THAT HAS

A DISABILITY WAIVER OF PREMIUM. THE INSURED BECOMES DISABLED AND PAYS PREMIUMS DURING

THE WAITING PERIOD UNTIL THE WAIVER BEGINS. ONCE THE WAIVER BEGINS, WHAT HAPPENS TO THE

PREMIUMS SHE PAID DURING THE WAITING PERIOD?

A

THE INSURER REFUNDS IT

Practice 353 questions and detailed

Solutions 100%

D

JUVENILE LIFE - ANSWER A

JOINT SURVIVORSHIP

A MARRIED COUPLE PURCHASES A $250,000 JOINT LIFE POLICY. WHEN THE OLDER OF THE TWO DIES,

WHAT IS THE AMOUNT PAYABLE TO THE SURVIVOR?

A

B

ZERO

C

D

$125,000 - ANSWER A

THE OWNER OF A VARIABLE LIFE POLICY MAY ALLOCATE THE PREMIUM INTO A SUB-ACCOUNT WHICH IS

OWNED BY THE INSURER, THIS SUB-ACCOUNT IS A PART OF WHAT IS ALSO KNOWN AS THE:

A

SIDE FUND

B

ACCUMULATION ACCOUNT

C

ALLOCATION ACCOUNT

D

SEPARATE ACCOUNT - ANSWER D

SEPARATE ACCOUNT

Practice 353 questions and detailed

Solutions 100%

WHICH TYPE OF TERM PROTECTION HAS AN INCREASING FACE VALUE AS THE INSURED GETS OLDER?

A

LEVEL TERM

B

RENEWABLE TERM

C

INCREASING TERM

D

CONVERTIBLE TERM - ANSWER C

INCREASING TERM

LEVEL, DECREASING AND INCREASING TERM REFER TO WHICH POLICY FEATURE?

A

CASH VALUE

B

DEATH BENEFIT

C

PREMIUM

D

RENEWABLE AND CONVERTIBLE - ANSWER B

DEATH BENEFIT

BERT IS THE OWNER AND INSURED OF A TRADITIONAL WHOLE LIFE INSURANCE POLICY HE PURCHASED

20 YEARS AGO. HE HAS NEVER MISSED A PREMIUM PAYMENT. HE WOULD LIKE TO BUY A NEW CAR BUT

HIS BANK ACCOUNT IS RUNNING LOW. HOW CAN HE OBTAIN THE NECESSARY FUNDS WHILE STILL

MAINTAINING COVERAGE?

Practice 353 questions and detailed

Solutions 100%

ACCIDENTAL DEATH

B

RETURN OF PREMIUM

C

DISABILITY BENEFIT

D

ACCIDENTAL DEATH AND DISMEMBERMENT - ANSWER D

ACCIDENTAL DEATH AND DISMEMBERMENT

IF A POLICYOWNER HAS A WHOLE LIFE INSURANCE POLICY WITH A DISABILITY WAIVER OF PREMIUM

RIDER, WHEN DOES THE RIDER BENEFIT START IF A QUALIFYING DISABILITY SHOULD OCCUR?

A

TYPICALLY 6 MONTHS AFTER THE DISABILITY OCCURS

B

IMMEDIATELY

C

AFTER THE DOCTOR CERTIFIES THE DISABILITY

D

ONE YEAR AFTER THE CLAIM FORMS ARE RECEIVED BY THE INSURER - ANSWER A

TYPICALLY 6 MONTHS AFTER THE DISABILITY OCCURS

TERM LIFE INSURANCE IS DESIGNED TO PROVIDE COVERAGE FOR ___________.

A

FOR ONE YEAR

B

TO AGE 65

Practice 353 questions and detailed

Solutions 100%

C

AN ENTIRE LIFETIME

D

A SPECIFIED PERIOD OF TIME - ANSWER D

A SPECIFIED PERIOD OF TIME

WHICH OF THE FOLLOWING IS A TRUE CHARACTERISTIC OF A VARIABLE UNIVERSAL LIFE POLICY?

A

THE POLICY REQUIRES ONLY A LIFE LICENSE TO SELL

B

THE INSURER BEARS ALL RISKS IN ACCUMULATING CASH VALUE

C

AS LONG AS THERE IS SUFFICIENT CASH VALUE TO COVER POLICY EXPENSES WHEN DUE, THE INSURED IS

NOT REQUIRED TO PAY THE PLANNED PREMIUM

D

THE POLICY HAS A FIXED PREMIUM SCHEDULE - ANSWER C

AS LONG AS THERE IS SUFFICIENT CASH VALUE TO COVER POLICY EXPENSES WHEN DUE, THE INSURED IS

NOT REQUIRED TO PAY THE PLANNED PREMIUM

FOR WHICH OF THE FOLLOWING REASONS MAY AN INSURED RETURN THE POLICY FOR A FULL REFUND

WITHIN THE FREE LOOK PERIOD?

A

DEATH OF THE AGENT

B

INCREASE IN PREMIUM

C

ANY REASON

Practice 353 questions and detailed

Solutions 100%

WHICH OF THE FOLLOWING STATES THE OBLIGATION OF THE INSURER AND THE RISK THAT IS

CONSIDERED IN A LIFE INSURANCE POLICY?

A

CONSIDERATION CLAUSE

B

INSURING CLAUSE

C

ENTIRE CONTRACT CLAUSE

D

EXCLUSIONS PROVISION - ANSWER B

INSURING CLAUSE

AFTER A LIFE INSURANCE POLICY HAS BEEN IN FORCE FOR MORE THAN _____ YEARS THE POLICY IS

CONSIDERED INCONTESTABLE.

A 1 B 3 C 4 D

2 - ANSWER D

IN ORDER TO MAKE SURE THAT A CREDITOR OF THE INSURED IS NOT PAID MORE THAN THE

OUTSTANDING LOAN AT TIME OF CLAIM, THE POLICYOWNER SHOULD:

Practice 353 questions and detailed

Solutions 100%

A

INDICATE THE PERCENTAGE OF THE FACE AMOUNT THE CREDITOR WILL RECEIVE

B

SPECIFY A DOLLAR AMOUNT THE CREDITOR SHOULD RECEIVE AT TIME OF CLAIM

C

PURCHASE A DECREASING BENEFIT POLICY THAT MATCHES THE LOAN REPAYMENT SCHEDULE

D

NAME THE CREDITOR AS A PRIMARY BENEFICIARY - ANSWER C

PURCHASE A DECREASING BENEFIT POLICY THAT MATCHES THE LOAN REPAYMENT SCHEDULE

AN INSURED FORGETS TO PAY HIS INSURANCE PREMIUM. INSTEAD OF THE POLICY LAPSING, THE

PREMIUM IS PAID BY THE COMPANY. THIS WOULD SUGGEST THAT A __________ POLICY WAS

PURCHASED.

A

WHOLE LIFE

B

DECREASING TERM

C

RENEWABLE TERM

D

LEVEL TERM - ANSWER A

WHOLE LIFE

THE ___________ DECIDES WHICH DIVIDEND OPTION IS IN EFFECT AND CAN CHANGE THEIR ELECTION

AT ANY TIME.

A

BENEFICIARY