CALIFORNIA LIFE PRACTICE EXAM RATED A

CALIFORNIA LIFE PRACTICE EXAM RATED A 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 INSURANCE AT THE TIME OF TAKING THE APPLICATION THE POSSIBILITY OF A FINANCIAL LOSS INCURRED BY A LIFE INSURANCE COMPANY FOR THE PREMATURE DEATH OF AN INSURED IS KNOW AS A RISK THE MEDICAL INFORMATION BUREAU (MIB) IS A NONPROFIT TRADE ASSOCIATION THAT MAINTAINS MEDICAL INFORMATION ON APPLICANTS FOR LIFE AND HEALTH INSURANCE A PERSON WHO SIGNS A FRAUDULENT CLAIM FORM MAY BE FOUND GUILTY OF PERJURY WHICH POLICY IS A COMBINATION OF ANNUAL RENEWABLE TERM INSURANCE AND INTEREST SENSITIVE CASH VALUE UNIVERSAL LIFE THE RIGHT TO A FULL REFUND OF PREMIUMS FOR INSUREDS AGE 60 OR OLDER IS 30 DAYS THE PREMIUM MODES CAN BE BEST DESCRIBED AS THE FREQUENCY OF PREMIUM PAYMENT INTENTIONALLY OMITTING A HISTORY OF HEART PROBLEMS ON AN APPLICATION IS CONCEALMENT A TAX-SHELTERED ANNUITY (TSA) IS A QUALIFIED PLAN AVAILABLE FOR NONPROFIT ORGANIZATIONS THE INTENT OF REPLACEMENT REGULATIONS IS TO PROTECT THE POLICYOWNER WHICH PROVISION ALLOWS A LAPSED POLICY TO BE PUT BACK IN FORCE? REINSTATEMENT ACCORDING TO THE CALIFORNIA DEPARTMENT OF INSURANCE, AN INSURER WHOSE ARTICLES OF INCORPORATION ARE REGISTERED IN OSLO, NORWAY IS CONSIDERED A/AN ALIEN INSURER MORTALITY IS DEFINED AS THE RATE OF DEATH WHICH OF THE FOLLOWING IS NOT A CHARACTERISTIC OF GROUP LIFE INSURANCE? A GROUP MAY EXIST FOR THE PURPOSE OF PURCHASING INSURANCE. WHEN A PRODUCER COLLECTS THE INITIAL PREMIUM AND ISSUES A CONDITIONAL RECEIPT, THE RECEIPT MAY ALLOW LIFE INSURANCE COMPANIES TO START COVERAGE BEFORE POLICY DELIVERY THE LAW OF LARGE NUMBERS ALLOWS AN INSURANCE COMPANY TO PREDICT THE EXPECTED LOSSES AMONG MEMBERS OF A GROUP OF INDIVIDUALS WITH SIMILAR RISKS IF AN INSURER'S LEGAL RESERVE FUNDS ARE FOUND TO BE LESS THAN THE MINIMUM REQUIRED BY LAW THE INSURER IS CONSIDERED INSOLVENT WHICH TYPE OF POLICY WOULD BE SUITABLE TO PROTECT THE BALANCE OF A HOME MORTGAGE? DECREASING TERM WHEN MUST INSURABLE INTEREST EXIST? AT THE TIME OF APPLICATION THE RIDER THAT PROVIDES FOR PARTIAL PAYMENT OF THE DEATH BENEFIT IN ADVANCE TO HELP WITH NURSING OR COALESCENT HOME EXPENSES IS THE LONG-TERM CARE WHICH ANNUITY PAYOUT OPTIONS GUARANTEES THE RETURN OF ALL THE PRINCIPAL INVESTED IN THE CONTRACT? REFUND LIFE ANNUITY WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE ABOUT PARTICIPATION POLICIES? THEY PAY DIVIDENDS TO STOCKHOLDERS INSURANCE CONTRACTS ARE BASED UPON A DOCTRINE WHICH REQUIRES ALL PARTIES TO THE CONTRACT TO BE HONEST. THIS IS KNOWN AS THE DOCTRINE OF UTMOST GOOD FAITH ACCORDING TO THE CALIFORNIA INSURANCE CODE, LIFE-ONLY PRODUCERS MUST KEEP RECORDS OF THEIR TRANSACTIONS FOR AT LEAST 5 YEARS WHICH OF THESE IS NOT AN ELEMENT OF A LEGAL CONTRACT? UNILATERAL WHICH STATEMENT IS INCORRECT ABOUT A FIXED ANNUITY? INCOME PAYMENTS VARY FROM MONTH TO MONTH IN A GROUP POLICY, THE EMPLOYER RECEIVES MASTER CONTRACT THE RISK OF A LOSS TO AN INSURANCE COMPANY IS ALSO REFERRED TO AS A/AN EXPOSURE WITH A MODIFIED PREMIUM WHOLE LIFE CONTRACT, PREMIUM PAYMENTS ARE LOWER IN THE EARLY YEARS OF THE CONTRACT IF A MISSTATEMENT OF AGE IS DISCOVERED DURING THE PROCESSING OF A LIFE INSURANCE CLAIM, THE INSURER WILL ADJUST THE DEATH BENEFIT THE PAY-IN TIME FOR DEFERRED ANNUITIES IS KNOWN AS THE ACCUMULATION PERIOD STATEMENTS MADE BY AN APPLICANT ON AN APPLICATION FOR INSURANCE ARE CONSIDERED TO BE REPRESENTATIONS THE CAUSE OF A LOSS IS KNOWN AS A/AN PERIL WHEN A PRODUCER, BROKER, OR SOLICITOR HANDLES PREMIUMS FOR AN INSURER, THEY ARE ACTING IN WHICH OF THE FOLLOWING CAPACITIES? LEGAL REPRESENTATIVE WITH POWER OF ATTORNEY WHAT IS THE RISK CLASSIFICATION FOR THOSE WHO ARE INSURABLE BUT HAVE A HIGHER THAN AVERAGE RISK? SUBSTANDARD THE OPTION THAT PAYS A SPECIFIED AMOUNT TO THE ANNUITANT WITH NO REMAINING VALUE PAYABLE TO A BENEFICIARY IS LIFE ONLY MONEY BORROWED FROM A LIFE INSURANCE POLICY'S CASH VALUE IS NOT TAXABLE AN INSURED WHO SUBMITS A FRAUDULENT CLAIM TO AN INSURER IS AN EXAMPLE OF A /AN MORAL HAZARD SELLING WHICH OF THE FOLLOWING POLICES WOULD REQUIRE A LICENSE ISSUED BY FINRA? VARIABLE UNIVERSAL LIFE THE TRANSFER OF A POSSIBLE FINANCIAL LOSS TO ANOTHER PARTY REFERS TO INSURANCE THE TYPE OF WHOLE LIFE INSURANCE WHERE PREMIUMS ARE PAYABLE OVER THE WHOLE LIFE OF THE INSURED TO AGE 100 IS CALLED ORDINARY (STRAIGHT) LIFE WHICH OF THE FOLLOWING IS NOT A RISK MANAGEMENT TECHNIQUE? EXPOSURE SOCIAL SECURITY BENEFITS DO NOT INCLUDE WORKERS COMPENSATION TO BE INSURABLE, A RISK MUST NOT BE CATASTROPHIC A LIFE INSURANCE DEATH BENEFIT PAID IN A LUMP SUM TO A BENEFICIARY IS NOT SUBJECT TO ANY TAXES TWO BUSINESS PARTNERS OWN LIFE INSURANCE ON EACH OTHER. IF ONE PARTNER DIES WHICH CONTRACT WILL ALLOW THE SURVIVING PARTNER TO USE THE DEATH BENEFIT TO PURCHASE THE DECEASED'S BUSINESS INTERESTS? BUY-SELL AGREEMENT THE TYPE OF POLICY THAT CAN BE CHANGED FROM ONE THAT DOES NOT HAVE CASH VALUE TO ONE