EXAM CRAM - Bonus Exam Questions (p. 5- 8) Flashcards
(41 cards)
How often MUST an insurer file the National Association of
Insurance Commissioners (NAIC) financial statement?
Annually.
EC - Page 5, #43
A person authorized by and on behalf of an insurer who transacts life, disability or life, and accident and health insurance is defined as a:
life agent.
An insurer entitled to transact business by complying with the California Insurance Code is
known as an:
admitted carrier.
Who are the members of the Medical Information Bureau?
Life and Health insurers.
If you have been convicted of a misdemeanor and that misdemeanor conviction is later expunged pursuant to California Penal Code Section 1203.4, which of the following is true?
Even though your misdemeanor conviction was expunged, you must still disclose your misdemeanor conviction on your individual application for an insurance license.
The DIRECT RESPONSE DISTRIBUTION of Insurance utilizes all of the following to promote the sales of insurance EXCEPT:
Telephone call from the agent.
The increase in the probability of a loss resulting from an insured’s dishonest tendencies is known as:
Moral hazard.
Name an agreement in which an insurer contacts with a third party to insure itself against losses from insurance policies it issues?
Reinsurance.
Which if the following would an agent be guilty of for misrepresenting the amount of dividends a policy will pay?
A misdemeanor.
What rule is used to determine the importance of a representation?
The materiality of concealment.
Which of the following is a hazard?
A condition that may increase the likelihood of a loss occurring.
When are parties to a contract REQUIRED to communicate information solely based on personal judgment for a matter in
question?
Never.
According to the California Insurance Code, if an insurer’s certificate of authority is revoked, the Commissioner can proceed with any of the following actions EXCEPT:
Using Guarantee Funds to pay salaries.
Section 1729.2 of the California Insurance Code requires insurance producer applications and licensees to notify the Insurance Commissioner in writing, within ___days of charges in background information after an application has been submitted or a license has been issued.
Thirty (30) days.
The insurer’s department with PRIMARY responsibility for the risk selection process is called:
Underwriting
A person owns a life annuity. He elects to receive his annuity payments monthly for the remainder of his life with “ten years certain”.
The annuity will make payments:
For a minimum of 120 months and a maximum of the remainder of his life.
All of the following information is gathered during the personal financial planning process EXCEPT:
a listing of a person’s civic and professional organization memberships.
Which policy provision allows an insured to continue coverage under a previously lapsed policy?
The REINSTATEMENT provision
According to the California Insurance Code, governing the use of Life Insurance policy illustrations, the term illustration means:
a presentation of policy features that includes non-guaranteed elements.
The life insurance grace period allows the insured to:
pay the premium after the due date without loss of coverage.
When a family policy covers children, all of the following are true, EXCEPT:
Evidence of insurability is required to convert coverage for children to permanent insurance.
An attempt by an agent to deter an insured from replacing an existing life insurance policy is called:
Conservation.
Which of the following would an agent be guilty of for
misrepresenting the amount of dividends a policy will pay?
A misdemeanor.
The additional premium charged by an insurer for adding the accidental death benefit to a whole life policy
Does not affect the policy’s cash value.
