California Insurance Exam Questions with highest ratings

Two methods of determining insurance need: - ANSWER-- Human Life Approach - Needs Approach Human Life Value Approach~ - ANSWER-- One of two ways of calculating insurance need. - By discounting estimated future income - Calculating the amount of life insurance a family will need based on the financial loss that they will suffer if the insured person were to pass away today - 10X salary - Based on age, gender, planned retirement age, occupation, annual wage, employment benefits, as well as the personal and financial information of the spouse and/or dependent children. *Needs Approach - ANSWER-Ask yourself: 1. How much will be needed at death to meet obligations. 2. How much future income is needed to sustain the household. - Focuses on the financial needs of the family - Considers final expenses - Considers disability income - Consideres monthly income Main list of private insurance companies - ANSWER-- Stock insurers - Mutual insurers - Lloyd's of London - Reinsurers - Risk retention groups - Fraternal benefit societies - Home service insurers