California Life Insurance Study guides, Class notes & Summaries

AN ANNUITY THAT IS PURCHASED WITH A LUMP SUM PREMIUM AND WHOSE BENEFITS BEGIN AFTER 12 MONTHS IS CALLED A - Answer SINGLE PREMIUM DEFERRED ANNUITY A TECHNIQUE USED TO DETERMINE THE AMOUNT OF LIFE INSURANCE NEEDED BY FOCUSING ON THE PROJECTED EARNING POTENTIAL OF AN INSURED IS CALLED THE - Answer HUMAN LIFE VALUE APPROACH WHEN REPLACING A POLICY THE PRODUCER MUST PRESENT THE APPLICANT WITH A NOTICE REGARDING REPLACEMENT OF LIFE INSURANCE - Answer AT THE TIME OF TAKING THE APPLICATION ...

Co-insurance - Answer The policy provision which requires the insurer and the insured to share in the cost of services rendered Exclusion ratio - Answer The formula which is used by the IRS to determine how much is taxable to an annuitant during the pay out period. Occupational policy - Answer When a disability income policy provides coverage for injuries which occur on and off the job Most disability income policies are non occupational, meaning - Answer They only cover the ins...

A moral hazard - Answer is a dishonest person (lacking in morals) A morale hazard - Answer a careless person. A peril - Answer is a cause of loss Pure risk - Answer is insurable & includes only a chance of loss. The highest premium - Answer would be found with a substandard risk classification. Agent commissions - Answer are an insurer expense "Insurance" - Answer is a contract that transfers risk from one party to another. An "insurance policy" - Answer ...

The systematic liquidation of a sum of money is provided by a(n) - Answer annuity An annuitant would like to determine the current value of her annuity. To do this, she multiplies the number of "accumulation units" she owns times the unit value of the "separate account". What kind of annuity BEST matches this description? - Answer Variable annuity What kind of annuity pays income to two annuitants until their deaths? - Answer Joint and survivor annuity What distinguishes a def...

What is considered the most common type of specified disease insurance policy? - Answer Cancer Minimum participation standards exist for a group health insurance plans in order to - Answer Prevent Adverse Selection How does underwriting differ between group life and individual life insurance? - Answer Medical questions must be answered on individual life insurance when handling premiums for an insured an agent is acting in which capacity? - Answer Fiduciary what is the term u...

What distinguishes a deferred annuity from an immediate annuity? - Answer The time at which benefit payments start Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary? - Answer 60 payments What is a common reason people purchase an annuity? - Answer To protect against the risk of outliving their financial resources What kind of annuity pays in...

Basic Medical Expense policies - Answer Provide coverage for Hospital, Surgical and Physicians Medical Expense. -Purchased as a individual or group policy. -provide first dollar coverage (no deductibles). -limited benefit periods and low coverage limits. Major Medical Expense Policy - Answer -A supplement (in addition) to Basic Medical or as a stand-alone policy. -individual or group policy. -Take over when the Basic Policy runs out Hospital Expenses - Answer -Pay for covered ...

The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT - Answer insurance sales calls Charities, political organizations, and surveys are all offered exemptions from The Do Not Call Registry The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called - Answer cancelable The renewability provision in a cancelable policy allows the insurer to cancel or terminate the polic...

FInal Exam: California Life, Accident, and Health Insurance Questions and Answers 100% Pass What distinguishes a deferred annuity from an immediate annuity? - Correct Answer ️️ -The time at which benefit payments start Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary? - Correct Answer ️️ -60 payments What is a common reason people purchase ...

CA Life and Health Exam Questions and Answers 100% Pass What is insurance? - Correct Answer ️️ -Insurance is the legal contract where two parties agree that if something will happen, a value will be exchanged. What's the difference between pure risk and speculative risk? - Correct Answer ️️ - Pure risk is when you'll lose it all or there will be no change. Speculative risk you can either win or lose. What is peril? - Correct Answer ️️ -peril is the causes of loss insured aga...