CA LIFE AND HEALTH INSURANCE EXAM KEY FACTS QUESTIONS WITH CORRECT SOLUTIONS

The 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.The 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.