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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
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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
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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
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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
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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
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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
