Exam Fx Ca life and Health Exam Questions
and Answers (Exam Fx Key Facts)
Insurance - -Contract whereby one undertakes to indemnify another against
loss, damage, or liabilty arising from a unknown event.
- Insurer - -Any person capable of making a contract; subject to restrictions
imposed by the CA insurance code.
- Speculative risk - -Chance of loss and potential for gain. This risk is not
insurable.
- Hazard - -Increase the risk.
- Law of Large numbers - -The more similar risks the better they can guess
approx. how many losses they have in a given time period.
- Loss exposure - -Situation the presents the possibility of a loss
- Doctrine of upmost good faith states - -That all parities to the contract can
rely upon statements of other parties.
- Policy - -Written instrument in witch a contract is set forth
- Premium - -Amount insured paid to the insurer for coverage.
- Rate - -Price of insurance for each exposure unit
- Rate - -Cost per exposure unit
- How to determine the amount the insured will pay - -Multiply the rate by
the number of exposure units purchased.
- express warranty - -Statement of fact in a policy of a matter relating to the
person/thing insured
- Warranty - -May be expressed or applied
- Implied warranty - -Representation in an insurance contract
- Representation pt1 - -May be oral /written may be made @ time of/before
the insurance policy
- Representation is false when - -Facts fail to correspond with its stipulations
, - False representation on a signed claim - -May subject the insured to
perjury
- Concealment - -Party fails to communicate that witch a party knows and
ought to communicate so the other party can make a sound decision
- Concealment intentional / unintentional - -Entitles the injured party to
rescind the contract.
- Rescind a policy - -Void or cancel policy flat by returning all premiums to
the insured. It is as if the policy never existed no coverage applies.
- Insurance applicant - -Individual who is applying to purchase insurance
- Life insurance creates a - -Immediate estate upon death of insured in that
the death benefit will be paid to the beneficiary
- Insurable Interest - -Must exist @ time if application
- Key person life insurance - -Is used by a business to protect itself on case
a valued employee dies. Death Benefit is paid to the company to hire and
train replacement.
- Key person life insurance is tax - -Deductible but benefits are not taxable
- Purchasing life insurance to fund a buy/sell agreement - -Is a business use
not personal use
- Under CIC all ads, policies for certificates of term life sold to those 55 yrs +
must include a - -Term life insurance monetary value index
- In event of an adverse underwriting decision the insurer or agent must - -
Provide a individual with the specific reason for the decision and a summary
of his/her rights.
- Preferred Risk - -Exceptional body no health issues. Lowest risk
- Preferred risk provides the lowest premium - -As they pose the least risk
to insurer
- MIB (medical info bureau) - -Is a source that gives past medical history of
clients as reference to agent/underwriter
- Medical info bureau required to report - -Medical impairments found
during underwriting process
, - HIPPA rules establish - -National standards for the use and disclosure of
protected health information
- Life insurance policies do not contain a probationary period for - -Pre
existing conditions
- Applicant reveals medical conditions that require more info insurer will
require - -attending physician report
- Must have signed authorization to - -Request attending physician report
- Agents commission - -Comes from the insurer expenses portion of
premium charges
- Employees covered by group policy - -Receive certificates of insurance as
their proff of coverage
- WET - -Whole , endowment , term insurance
- Whole Life Insurance aka - -Continuous premium whole life insurance
- Variable life - -A life insurance policy that allows the policy owner to self
direct cash values into different sub accounts
- Variable life - -Regulated by the state department of insurance and ( SEC)
securities and exchange commission since they meet the definition of a
securities product
- Variable / universal life - -No fixed guaranteed rate of return
- Family life policy - -Provides life insurance for an entire family and allows
the children to convert from term to whole life w/out a physical
- Family life insurance - -Consists of whole life coverage on one spouse and
level convertible term on other spouse and children
- Payor benefit rider - -Is added to a juvenile life policy it will waive the
premium if guardian dies until a certain age ( usually 21)
- Joint life policy - -Covers multiple lives and pays out when the first insured
dies
- Survivorship life insurance - -Offers premiums that are quite low compared
to separate policies; well situated to meet the need for cash to cover estate
taxes; face amounts are usually more then 1 million
and Answers (Exam Fx Key Facts)
Insurance - -Contract whereby one undertakes to indemnify another against
loss, damage, or liabilty arising from a unknown event.
- Insurer - -Any person capable of making a contract; subject to restrictions
imposed by the CA insurance code.
- Speculative risk - -Chance of loss and potential for gain. This risk is not
insurable.
- Hazard - -Increase the risk.
- Law of Large numbers - -The more similar risks the better they can guess
approx. how many losses they have in a given time period.
- Loss exposure - -Situation the presents the possibility of a loss
- Doctrine of upmost good faith states - -That all parities to the contract can
rely upon statements of other parties.
- Policy - -Written instrument in witch a contract is set forth
- Premium - -Amount insured paid to the insurer for coverage.
- Rate - -Price of insurance for each exposure unit
- Rate - -Cost per exposure unit
- How to determine the amount the insured will pay - -Multiply the rate by
the number of exposure units purchased.
- express warranty - -Statement of fact in a policy of a matter relating to the
person/thing insured
- Warranty - -May be expressed or applied
- Implied warranty - -Representation in an insurance contract
- Representation pt1 - -May be oral /written may be made @ time of/before
the insurance policy
- Representation is false when - -Facts fail to correspond with its stipulations
, - False representation on a signed claim - -May subject the insured to
perjury
- Concealment - -Party fails to communicate that witch a party knows and
ought to communicate so the other party can make a sound decision
- Concealment intentional / unintentional - -Entitles the injured party to
rescind the contract.
- Rescind a policy - -Void or cancel policy flat by returning all premiums to
the insured. It is as if the policy never existed no coverage applies.
- Insurance applicant - -Individual who is applying to purchase insurance
- Life insurance creates a - -Immediate estate upon death of insured in that
the death benefit will be paid to the beneficiary
- Insurable Interest - -Must exist @ time if application
- Key person life insurance - -Is used by a business to protect itself on case
a valued employee dies. Death Benefit is paid to the company to hire and
train replacement.
- Key person life insurance is tax - -Deductible but benefits are not taxable
- Purchasing life insurance to fund a buy/sell agreement - -Is a business use
not personal use
- Under CIC all ads, policies for certificates of term life sold to those 55 yrs +
must include a - -Term life insurance monetary value index
- In event of an adverse underwriting decision the insurer or agent must - -
Provide a individual with the specific reason for the decision and a summary
of his/her rights.
- Preferred Risk - -Exceptional body no health issues. Lowest risk
- Preferred risk provides the lowest premium - -As they pose the least risk
to insurer
- MIB (medical info bureau) - -Is a source that gives past medical history of
clients as reference to agent/underwriter
- Medical info bureau required to report - -Medical impairments found
during underwriting process
, - HIPPA rules establish - -National standards for the use and disclosure of
protected health information
- Life insurance policies do not contain a probationary period for - -Pre
existing conditions
- Applicant reveals medical conditions that require more info insurer will
require - -attending physician report
- Must have signed authorization to - -Request attending physician report
- Agents commission - -Comes from the insurer expenses portion of
premium charges
- Employees covered by group policy - -Receive certificates of insurance as
their proff of coverage
- WET - -Whole , endowment , term insurance
- Whole Life Insurance aka - -Continuous premium whole life insurance
- Variable life - -A life insurance policy that allows the policy owner to self
direct cash values into different sub accounts
- Variable life - -Regulated by the state department of insurance and ( SEC)
securities and exchange commission since they meet the definition of a
securities product
- Variable / universal life - -No fixed guaranteed rate of return
- Family life policy - -Provides life insurance for an entire family and allows
the children to convert from term to whole life w/out a physical
- Family life insurance - -Consists of whole life coverage on one spouse and
level convertible term on other spouse and children
- Payor benefit rider - -Is added to a juvenile life policy it will waive the
premium if guardian dies until a certain age ( usually 21)
- Joint life policy - -Covers multiple lives and pays out when the first insured
dies
- Survivorship life insurance - -Offers premiums that are quite low compared
to separate policies; well situated to meet the need for cash to cover estate
taxes; face amounts are usually more then 1 million
