Exam (elaborations)
LIFE INSURANCE ONLY CALIFORNIA
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- PSI Practice
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- PSI Practice
LIFE INSURANCE ONLY CALIFORNIA
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LIFE INSURANCE ONLY CALIFORNIALIFE INSURANCE - CORRECT ANSWER-Insurance that pays out a sum of
money either on the death of the insured person or after a set period.
TERM LIFE INSURANCE - CORRECT ANSWER-Life insurance that pays a
benefit in the event of the death of the insured during a specified term.
*PURE
*ONLY DEATH BENEFIT NO CASH VALUE
WHOLE LIFE INSURANCE - CORRECT ANSWER-Life insurance that pays a
benefit on the death of the insured and also accumulates a
*PERMANENT
*DEATH BENEFIT & CASH VALUE.
UNIVERSAL LIFE INSURANCE - CORRECT ANSWER-Flexible permanent life
insurance offering the low-cost protection of term life insurance as well as a
savings element (like whole life insurance), which is invested to provide a cash
value buildup.
LOW PREMIUM & CASH VALUE
VARIABLE LIFE INSURANCE - CORRECT ANSWER-Permanent life insurance
policy with an investment component.
LEVEL TERM LIFE INSURANCE - CORRECT ANSWER-Provides the same
amount of coverage for a specific length of time, over which you pay the same
premium.
DECREASING TERM LIFE INSURANCE - CORRECT ANSWER-Annual
renewable term life insurance that provides a death benefit that decreases at a
predetermined rate over the life of the policy.
ANNUITY - CORRECT ANSWER-*Insurance product that pays out income, and
can be used as part of a retirement strategy.
,*Fixed sum of money paid to someone each year, typically for the rest of their
life.
DEFFERED ANNUITY - CORRECT ANSWER-Annuity that commences only
after a lapse of some specified time after the final purchase premium has been
paid.
SINGLE PREMIUM DEFERED ANNUITY (S.P.D.A) - CORRECT
ANSWER-Annuity contract that is established with a single lump-sum payment
by the owner.
*ANNUTIY GROWS ON A TAX DEFERRED BASIS UNTIL ANNUITIZATION.
PRINCIPLE OF INDEMNIFICATION - CORRECT ANSWER-LIFE INSURANCE
IS DESIGNED TO MAKE SOMEONE WHOLE AGAIN (INDEMNIFY) NOT TO
ENRICH.
BENEFICIARY - CORRECT ANSWER-PERSON, ORGANIZATION, BUSINESS,
OR THE ESTATE OF THE INSURED TO RECEIVE TO BENEFITS.
-PRIMARY BENEFICIARY - 1ST
-CONTINGENT/SECONDARY BENEFICIARY - 2ND
-TERTIARY BENEFICIARY - 3RD
LIFE INSURANCE PURPOSE - CORRECT ANSWER-PROTECTION AGAINST
LOSS OF INCOME.
PRODUCER - CORRECT ANSWER-AGENT, BROKER, OR SOLICITOR
AGENT - CORRECT ANSWER-REPRESENTS COMPANIES TO CLIENTS
BROKER - CORRECT ANSWER-REPRESENTS CLIENTS TO COMPANIES
ADMITTED INSURER - CORRECT ANSWER-INSURANCE COMPANY
LICENSED TO TRANSACT INSURANCE IN CALIFORNIA
, DOMESTIC INSURER - CORRECT ANSWER-INSURER (INSURANCE
COMPANY) THAT IS WITHIN THE STATE
FOREIGN INSURER - CORRECT ANSWER-INSURER (INSURANCE
COMPANY) THAT IS FROM ANOTHER STATE
ALIEN INSURER - CORRECT ANSWER-INSURER (INSURANCE COMPANY)
FROM ANOTHER COUNTRY
UNDERWRITER - CORRECT ANSWER-A person who evaluates and classifies
risks to accept or reject them on behalf of the insurer.
LIFE INSURANCE CONTRACT - CORRECT ANSWER-GUARANTEES THAT A
SPECIFIC AMOUNT OF MONEY WILL BE PAID TO A DESIGNATED
BENEFICIARY WHEN THE INSURED INDIVIDUAL DIES.
FIDUCIARY CAPACITY - CORRECT ANSWER-HAVING THE RESPONSIBILITY
OF SOMEONE ELSES ASSETS AND MONEY.
EXPRESSED AUTHORITY - CORRECT ANSWER-GRANTED TO THE AGENT
UNDER A WRITTEN CONTRACT
IMPLIED AUTHORITY - CORRECT ANSWER-NOT SPECIFICALLY STATED,
BUT INCLUDED BASED ON OTHER STATEMENTS IN THE CONTRACT
APPARENT AUTHORITY - CORRECT ANSWER-APPEARS TO EXIST TO THE
PUBLIC EVEN IF IT DOES NOT IN REALITY
FREE INSURANCE - CORRECT ANSWER-ILLEGAL
COMMISIONER REQUEST RECORDS - CORRECT ANSWER-MUST BE
SUBMITTED WITHIN 30 DAYS.
AGENT LICENCE RENEWAL - CORRECT ANSWER-2 YEARS
UTMOST GOOD FAITH - CORRECT ANSWER-The fair and equal bargaining by
both parties in forming the contract, where the applicant must make full
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