Exam (elaborations)
CA LIFE AND HEALTH INSURANCE EXAM KEY FACTS QUESTIONS AND ANSWERS
- Course
- Institution
CA LIFE AND HEALTH INSURANCE EXAM KEY FACTS QUESTIONS AND ANSWERS
[Show more]
Content preview
CA LIFE AND HEALTH INSURANCE EXAM KEY FACTS QUESTIONS AND ANSWERSThe insurance applicant is - Answer- the individual who is applying to purchase insurance
Before making a sale, the first thing an agent should do is - Answer- identify the applicant's overall
financial objectives.
Key person life insurance - Answer- used by a business to protect itself in case a valued
employee
dies. The death benefit would be paid to the company to hire and train a replacement. Premiums paid for key person life insurance are not tax deductible, but benefits are not
taxable. If an organization terminates a key employee, the organization will still be eligible to hold a
license as their organization will be unaffected.
Preferred risks - Answer- receive the lowest premium charges as they pose the lowest risk to the insurer.
who selects which risks the insurer will
take on. - Answer- underwriting division within the insurance company
Medical Information Bureau (MIB) - Answer- Life insurance companies are members of the Medical Information Bureau. Members of the Medical Information Bureau (MIB) are required to report medical
impairments found during the underwriting process.
The HIPAA Privacy Rules - Answer- establish national standards for the use and disclosure of protected
health information.
physician's report. - Answer- When an applicant reveals medical conditions that require more information, the insurer will
usually require an attending physician's report. - The request for an attending physician's report must be accompanied by a copy of the signed authorization. To authorize the release of an attending physician's report, the applicant must sign a consent
form.
nonparticipating policyowner - Answer- will not receive dividends. Nonparticipating policies are
issued by stock insurers. Stock insurers pay dividends to stockholders, not policyholders. Employees that are covered under a group policy receive certificates of insurance as their
proof of coverage.
three types of ordinary life insurance: - Answer- whole life, endowment, term. Use the
acronym "WET" to remember them. Group insurance is not a type of ordinary life insurance. Whole life insurance is also known as continuous premium whole life insurance.
what does insurer subtract from premium on universal life - Answer- -the insurer will subtract from it the
mortality and general expenses, then add the current interest and deposit it into the cash value. The rate of return paid on the cash value of an indexed whole life policy will keep up with
the rate of inflation.
variable life - Answer- -life insurance policy that allows the policyowner to self-direct cash values into different
subaccounts -Variable insurance products are regulated by the state department of insurance and the
Securities and Exchange Commission (SEC) since they are considered to meet the definition
of a securities product. A variable/universal life policy has no fixed, guaranteed rate of return.
family policy - Answer- -provides life insurance for an entire family and allows the children to convert
from term to whole life coverage without a physical exam. A family life insurance policy consists of whole life on one spouse and level, convertible
term on the other spouse and children. If a payor benefit rider is added to a juvenile life policy, it will waive the premium for the
policy until the child reaches a certain age (often 21) if the parent dies.
joint life policy - Answer- -covers multiple lives and pays out when the first insured dies.
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 millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now