Exam (elaborations)
Final Exam - California Life Only 2024/2025 already graded A+
- Course
- Institution
Final Exam - California Life Only 2024/2025 already graded A+
[Show more]
Content preview
Final Exam - California Life OnlyAccording to the California Insurance Code, what is "insurance"? - ANSA contract
Which of these statements correctly describes risk? - ANSPure risk is the only insurable risk
Only pure risks are insurable
Which of the following does NOT have to be included on life insurance policy illustrations? -
ANSStatement that all values and benefits are guaranteed
An agent's attempt to stop the replacement of an existing life insurance policy is known as -
ANSconservation
If a material warranty violation on the part of the insured is found, what recourse does an insurer
have? - ANSRescind the policy
Which of the following pieces of information is NOT gathered during the personal financial
planning process? - ANSAn individual's civic organization memberships
Which of the following does the California Insurance Code NOT require an insurance policy to
specify? - ANSInsurer's financial rating
What is an "insurance broker" according to California Insurance Code? - ANSA person
compensated for transacting insurance on behalf of another person with an insurer
The objective of underwriting is to - ANSavoid selecting a disproportionate number of bad risks
An annuitant would like to determine the amount of an annuity distribution that is exempt from
taxation. What is used to calculate this? - ANSExclusion ratio
A worker is entitled to Social Security disability benefits if all of the following are true, EXCEPT
for: - ANSworker cannot perform his or her current job, but is actively seeking other employment
How are death benefits that are received by a beneficiary normally treated for tax purposes? -
ANSExempt from federal income taxes
Which of the following statements correctly describes a contract of indemnity? - ANSOne party
is restored to the same financial position the party was in before the loss occurred
How is a life insurance policy dividend legally defined? - ANSA return of excess premium and
not taxable
,When handling premiums for an insured, an agent is acting in which capacity? - ANSFiduciary
What does the term "illustration" mean when used in the phrase "life insurance policy
illustration", according to the California Insurance Code? - ANSPresentation of policy features
that includes non-guaranteed elements
John and Mary have a handicapped child that is financially dependent upon them. The death of
one of the parents would not be financially disastrous, however the death of both likely would
be. Which policy would be best suited for them? - ANSSecond-to-die policy
Jim is applying to become an insurance agent and has a past misdemeanor conviction that was
later expunged due to California Penal Code 1203.4. Which of the following statements is
correct? - ANSJim must still disclose the conviction on his insurance license application
Which of the following best describes the statement "The more times an event is repeated, the
more predictable the outcome becomes"? - ANSLaw of large numbers
Bob and Tom are partners in a business. If one of them were to die, which of the following would
guarantee a market for each of their share of the business? - ANSBuy-Sell agreement
What is the price of insurance for each exposure unit? - ANSRate
Any changes in background information that occur after a producer application has been
submitted or a license has been issued MUST be reported to the Insurance Commissioner
within - ANS30 days
Section 1729.2 of the California Insurance Code requires insurances producer application and
licensees to notify the insurance commissioner in writing, within 30 days of changes in
background information after an application has been submitted or a license has been issued.
"Life insurance creates an immediate estate". This phrase means: - ANSwhen the insured dies,
a death benefit is paid
According to the California Insurance Code, what term is used to describe a fact so important it
could affect the policy premium? - ANSMateriality
Materiality is relevant information that would probably influence an insurer's assessment of a
proposed contract.
An individual who transacts life, disability, or life and accident and health insurance on behalf of
an insurer is called a(n): - ANSlife agent
, One important function of an insurance company is to identify and sell to potential customers.
Which of these BEST describes this function? - ANSMarketing
In a modified endowment contract, the penalty tax imposed on premature withdrawals is -
ANS10%
The "blackout period" affects whose benefits? - ANSsurviving spouse
An annuity which is backed by a life insurer's separate account is called a(n) - ANSvariable
annuity
Which of the following acts is NOT a Federal offense committed by an insurance agent? -
ANSMisrepresentation on an insurance application
Who is eligible for retirement benefits under Social Security? - ANSFully insured workers
When an insurance company requests an attending physician's report, the request must be
accompanied by a - ANScopy of the signed authorization
What determines the Social Security normal retirement age? - ANSYear in which worker was
born
The Social Security normal retirement age depends upon the worker's year of birth.
An insurer owned by its policyholders is called a - ANSmutual insurer
A mutual insurer is owned by its policyholders.
When calculating life insurance premium rates, which component is affected by an insured's age
and gender? - ANSMortality
Mortality is the component of a life insurance premium that age and gender affects.
Which of the following contracts is defined as "one that restores an injured party to the condition
that was present before the loss"? - ANSIndemnity contract
Which of the following is a situation where there is a possibility of either a loss or a gain? -
ANSSpeculative risk
A situation in which there is a possibility of a loss or a gain is a speculative risk.
All of these are common personal uses of life insurance EXCEPT - ANSFund a Buy-Sell
agreement
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Ashley96. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now