Final Exam - California Life Only Questions and Answers Already Passed

Final Exam - California Life Only Questions and Answers Already Passed According to the California Insurance Code, what is "insurance"? - Answer ️️ -A contract Which of these statements correctly describes risk? - Answer ️️ -Pure 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? - Answer ️️ -Statement that all values and benefits are guaranteed An agent's attempt to stop the replacement of an existing life insurance policy is known as - Answer ️️ -conservation If a material warranty violation on the part of the insured is found, what recourse does an insurer have? - Answer ️️ -Rescind the policy Which of the following pieces of information is NOT gathered during the personal financial planning process? - Answer ️️ -An individual's civic organization memberships Which of the following does the California Insurance Code NOT require an insurance policy to specify? - Answer ️️ -Insurer's financial rating What is an "insurance broker" according to California Insurance Code? - Answer ️️ -A person compensated for transacting insurance on behalf of another person with an insurer The objective of underwriting is to - Answer ️️ -avoid 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? - Answer ️️ -Exclusion ratio A worker is entitled to Social Security disability benefits if all of the following are true, EXCEPT for: - Answer ️️ -worker 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? - Answer ️️ -Exempt from federal income taxes Which of the following statements correctly describes a contract of indemnity? - Answer ️️ - One 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? - Answer ️️ -A return of excess premium and not taxable When handling premiums for an insured, an agent is acting in which capacity? - Answer ️️ - Fiduciary What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code? - Answer ️️ -Presentation 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? - Answer ️️ -Second-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? - Answer ️️ -Jim 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"? - Answer ️️ -Law 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? - Answer ️️ -Buy-Sell agreement What is the price of insurance for each exposure unit? - Answer ️️ -Rate 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 - Answer ️️ -30 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: - Answer ️️ -w