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CA LIFE INSURANCE PRACTICE EXAM 2024 WITH 100% ACCURATE SOLUTIONS CA$20.82   Add to cart
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CA LIFE INSURANCE PRACTICE EXAM 2024 WITH 100% ACCURATE SOLUTIONS
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CA LIFE INSURANCE PRACTICE EXAM 2024 WITH 100% CORRECT ANSWERS A key person is typically all of the following, except: - correct answer -Not directly involved in sales, production, or service Key persons are employees whose contributions have a significant impact on the revenue and profitab...

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  • May 16, 2024
  • 22
  • 2023/2024
  • Exam (elaborations)
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  • ca life insurance practice exam 2024 with 100 cor

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CA LIFE INSURANCE PRACTICE EXAM 2024 WITH 100% CORRECT ANSWERS
A key person is typically all of the following, except: - correct answer ✔✔ -Not directly involved in sales, production, or service
Key persons are employees whose contributions have a significant impact on the revenue and profitability of the company, especially in small businesses. They are typically: part of the management team, more highly paid, respected by customers, creditors, suppliers, and vendors, and have direct responsibilities for sales, production, or service.
Which one of the following is not a reason why premium for the individual policy issued to an insured exercising a group conversion right is higher than the group life rate previously charged? - correct answer✔✔ -The conversion policy has a higher death benefit
The premium of an individual policy issued due to a group life insurance plan conversion will be at a higher than normal rate to include the insurer's guaranteed convertible surcharge because the majority of all conversions involve persons that would otherwise be uninsurable, because the conversion policy will be issued at the attained (current) age of the insured, and the policy will build cash values.
The type of life insurance used to provide funds for a Buy-Sell Agreement is: - correct answer ✔✔ -Any type of life insurance
Any type of life insurance may be used to provide funds for a Buy-Sell Agreement.
Lorraine's position has been terminated, and she is interested in converting her group life coverage to an individual policy. In the process, she will find all of the following to be TRUE, except: - correct answer✔✔ -She will be converting her group term benefit to an individual term benefit She will be converting her group term life to an individual permanent policy.
To help protect against experiencing immediate claims, group plans have a(n) _______ period set up by the group sponsor. - correct answer ✔✔ -Probationary
A probationary period is set up to help reduce the chance of facing immediate claims.
How is the funding for Social Security provided? - correct answer ✔✔ -Through FICA taxes that are paid by both employers and employees
Both the employer and employee fund Social Security through paying FICA taxes. Self-employed persons
pay the entire amount.
The premium for optional dependent group insurance can be payable by: - correct answer ✔✔ The employer, the employee or both
Optional dependent coverage may be paid for by the employer, the employee, or both.
When an insurer wishes to implement changes to a group life policy, whom must it notify? - correct answer✔✔ The group sponsor
Just as in individual contracts, the owner controls the policy. In this case, only the plan sponsor has a policy (i.e. the Master Policy). As such, the insurer must notify the group sponsor of the changes.
There is a conversion period of how many days in which the employee may, upon termination of eligibility and without evidence of insurability, convert his/her group life insurance benefit to an individual permanent policy? - correct answer ✔✔ 31 There is a conversion period of 31 days in which the employee may, upon termination of eligibility and without evidence of insurability, convert his/her group life insurance benefit to an individual permanent policy.
The proceeds from a _________ plan provide the necessary funds to recruit, hire, and train a replacement employee. - correct answer ✔✔ Key employee
Key employee life insurance plans provide the funds to recruit, hire, and train a replacement employee.
Which of the following is a disadvantage of being covered under a group insurance plan? - correct answer✔✔ The group sponsor can elect to discontinue the plan, and the insurance company can increase the rates it charges
The advantage of an insurance funded buy-sell agreement is: - correct answer ✔✔ It is a legally enforceable agreement, which pre-establishes the value of the business, and provides the funds for an efficient method of transferring the deceased's business interest
Some of the advantages of having such an agreement: it is legally enforceable, the value of the business is previously agreed upon, it is an immediate and automatic method of transferring the deceased's interest due to readily available funds.
An agreement by an employer to continue a key employee's salary upon retirement, death or disability as long as the employee continues employment during the term of the agreement is called a: - correct answer✔✔ Salary continuation plan
An agreement by an employer to continue a key employee's salary upon retirement, death or disability as long as the employee continues employment during the term of the agreement is called a salary continuation plan.

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