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What does insurance do? - ANSWERStransfers the risk of loss from an individual/ business entity to an insurance company, which then spreads the costs of unexpected losses to many individuals What is insurance? - ANSWERSthe legal agreement/ contract whereby the 2 parties involved agree to the limits of the indemnification, the circumstances under which it will occur and what things of value (consideration) will be exchanged Risk - ANSWERSthe uncertainty/ chance of a loss occuring What ty...

Which of the following are common personal uses for life insurance Estate planning, Cash accumulation, Protection of survivors Which of the following is a characteristic of an interest sensitive whole life policy Flexible premiums, Guaranteed minimum death benefit, Guaranteed minimum rate of return. What type of policy provides coverage for life, but the premiums are not due beyond age 65, has guaranteed premium, accumulates cash value and the coverage will never decrease A limited...

CALIFORNIA LIFE PRACTICE EXAM A ACTUAL SOLUTION

CALIFORNIA LIFE PRACTICE EXAM A 2024 an annuity that is purchased with a lump sum premium and whose benefits begin after 12 months is called a - correct answer single premium deferred annuity a technique used to determine the amount of life insurance needed by focusing on the projected earning potential of an insured is called the - correct answer human life value approach when replacing a policy the producer must present the applicant with a notice regarding replacement of life insu...

CALIFORNIA LIFE PRACTICE EXAM A An annuity that is purchased with a lump sum premium and whose benefits begin after 12 months is called a - answer- single premium deferred annuity A technique used to determine the amount of life insurance needed by focusing on the projected earning potential of an insured is called the - answer- human life value approach When replacing a policy the producer must present the applicant with a notice regarding replacement of life insurance - answer- at the t...

CALIFORNIA LIFE PRACTICE EXAM A

CALIFORNIA LIFE PRACTICE EXAM A QUESTIONS AND ANSWERS ALREADY PASSED AN ANNUITY THAT IS PURCHASED WITH A LUMP SUM PREMIUM AND WHOSE BENEFITS BEGIN AFTER 12 MONTHS IS CALLED A SINGLE PREMIUM DEFERRED ANNUITY A TECHNIQUE USED TO DETERMINE THE AMOUNT OF LIFE INSURANCE NEEDED BY FOCUSING ON THE PROJECTED EARNING POTENTIAL OF AN INSURED IS CALLED THE HUMAN LIFE VALUE APPROACH WHEN REPLACING A POLICY THE PRODUCER MUST PRESENT THE APPLICANT WITH A NOTICE REGARDING REPLACEMENT OF LIFE INSURANC...

AN ANNUITY THAT IS PURCHASED WITH A LUMP SUM PREMIUM AND WHOSE BENEFITS BEGIN AFTER 12 MONTHS IS CALLED A - Answer-SINGLE PREMIUM DEFERRED ANNUITY A TECHNIQUE USED TO DETERMINE THE AMOUNT OF LIFE INSURANCE NEEDED BY FOCUSING ON THE PROJECTED EARNING POTENTIAL OF AN INSURED IS CALLED THE - Answer-HUMAN LIFE VALUE APPROACH WHEN REPLACING A POLICY THE PRODUCER MUST PRESENT THE APPLICANT WITH A NOTICE REGARDING REPLACEMENT OF LIFE INSURANCE - Answer-AT THE TIME OF TAKING THE APPLICATION THE P...

CALIFORNIA LIFE PRACTICE EXAM A Questions and Answers (Latest Update 2023) Verified Answers