EXCEL Final Exam Questions with Accurate solutions

Why is a life insurance policy's delivery date important? - ANSWER-The California Insurance Code gives an individual between 10 and 30 days to return a life policy for cancellation. This free-look period begins on the policy delivery date. Which of the following is a type of insurance where an insurer transfers loss exposures from policies written for its insureds? - ANSWER-Reinsurance is an arrangement by which an insurance company transfers a portion of a risk it has assumed to another insurer. Retirement plans cannot favor highly compensated employs. The government regulation that prevents this from happening is called - ANSWER-Retirement plans cannot favor highly compensated employees. The government regulation that prevents this from happening is called nondiscrimination.a The Consolidated Omnibus Budget Reconciliation Act (COBRA) applies to employers who employ at least 20 employees. - ANSWER-Group health plans obligated by the Consolidated Omnibus Budget Reconciliation Act (COBRA) cover groups of at least 20 employees. Which of these is NOT a valid policy dividend option? - ANSWER-"Monthly income payments" is not a valid policy dividend option. Which type of risk is gambling? - ANSWER-Gambling is considered to be speculative risk. The probability of death, listed by year, is demonstrated in mortality tables. - ANSWER-Mortality tables give a measure of the number of deaths in a given population over a certain period of time. Which of the following types of life insurance combines a savings element along with a flexible premium option? - ANSWER-Universal life combines a savings element along with a flexible premium option.