CA LIFE AND HEALTH INSURANCE EXAM-with 100% verified solutions-

CA LIFE AND HEALTH INSURANCE EXAM -with 100% verified solut ions-2023 -2024 The insurance applicant is the individual who is applying to purchase insurance Before making a sale, the first thing an agent sho uld do is identify the applicant's overall financial objectives . Key person life insurance 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 stil l be eligible to hold a license as their organization will be unaffected. Preferred risks receive the lowest premium charges as they pose the lowest risk to the insurer. who selects which risks the insurer will take on. underwriting division within the insurance company Medical Information Bureau (MIB) 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 establish national standards for the use and disclosure of protected health information. physician's report. 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 au thorize the release of an attending physician's report, the applicant must sign a consent form. nonparticipating policyowner 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: 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 -the insurer will subtract from it the mortality and general expenses, the n 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 -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 conside red to meet the definition of a securities product. A variable/universal life policy has no fixed, guaranteed rate of return. family policy -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