51-100
Insurance Knowledge Quiz
Test your understanding of insurance concepts and regulations with our comprehensive quiz designed for aspiring professionals and enthusiasts alike!
Whether you're studying for a certification or simply looking to refresh your knowledge, this quiz covers a range of topics:
- Life Insurance Policies
- State Regulations
- Underwriting Principles
- Financial Planning
Which of the following would an agent be guilty of for misrepresenting the amount of dividends a policy will policy will pay?
A felony
Penalty
Minor
Misdemeanor
What rule is used to determine the importance of representation?
The materiality of concealment
Concealment
Rule of concealment
Which of the following is a hazard?
A risk
A condition that may increase the likelihood of a loss occurring
A condition that causes risk
When are parties to a contract Required to communicate information solely based on personal judgement for a matter in question?
Only once
The very day contract is signed
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
Use Guarantee Funds to pay salaries
Notify the insured
The insurer's department with PRIMARY responsibility for the risk selection process is called:
Insurance Corporation of California
Guarantee association of Insurance Corporations
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 maximum of 120 months a minimum of remainder of life
For a minimum of 120 months and a maximum of the remainder of his life
For a maximum of 120 months
All of the following information is gathered during the personal financial planning process Except
Social Security
Income
A listing of a person's civic and professional organization memberships
Expenses
Which policy provision allows an insured to continue coverage under a previously lapsed policy
Continuation policy
Written consent
The reinstatement provision
According to the California Insurance Code, governing the use of life insurance policy illustrations, the term illustration means
The presentation of policy features that includes non-guaranteed elements
The presentation of a policy features that include guaranteed elements
Projects facts in a near future
The life insurance grace period allows the insured to
Pay the premium before the due date
Pay the premium after the due date without loss of coverage
Cancel the policy
When a family policy covers the children, all of the following are true EXCEPT
Evidence of insurability is required to convert coverage for children to permanent insurance
Children can be insured
Children can be insured all their lifetime
An attempt by an agent to deter an insured from replacing an existing life insurance policy is called
Replacement conversation
A statement
Conversation
Which of the following would an agent be guilty of for misrepresenting the amount of dividends a policy will pay
A felony
A misdemeanor
A penalty
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
Does affect the policy's cash value
Only affect the policy's cash value once
How much employer-provided group term life insurance is exempt from income taxation?
$55,000
$50,000
$25,000
How long is the free cancellation period for the life insurance offered to individuals who are 60 or older?
60 days
10 days
30 days
What does the statement "life insurance created an immediate estate" mean
The total death benefit is paid whenever the insured die
A plot of land what created
The home of the deceased was passed on to the beneficiary
Which report of an insurance applicant's creditworthiness and personal characteristics may influence eligibility for life and health insurance?
Insurance report
Consumer report
Insured report
In a group life insurance, who is issued a certificate of insurance?
The beneficiary
The employer
The participant
The employee
Which type of insurance guarantees the right to renew the policy each year, regardless of health, but at an increased premium?
Renewable term
Term
Whole life
If a life agent sells a whole life policy to a prospect on behalf of an insurer without an appointment, the
Must submit contract
Insurer must submit a notice of appointment to the Commissioner
Must submit written consent
Which component of a life insurance premium is based on the insured's age and gender?
Mortality
Death benefit
Cash Value
Which benefits are provided by key employee insurance?
Payment to business when employee die
Payment to a business when an important employee dies
Payment to employee when boss dies
How can partners guarantee a market for their share of the business in the event of death?
Sell and buy agreements
Key note employee agreement
Buy-sell agreements
Which policy provision protects the insurer against possible adverse selection?
Suicide clause
Death clause
Beneficiary clause
Which type of insurance coverage has both a savings element and a flexible premium option?
Whole life
Universal life
Term insurance
What type of insurance policy provides a death benefit that matches the projected outstanding debt on an individual's home?
Mortgage pay-out
Home owners association insurance
Mortgage redemption
An agent who violates the laws governing life insurance policy illustration is subject to all of the following EXCEPT
Mandatory termination of all insurer appointments
Lawsuits
Which policy is a saving instrument designed to first accumulate funds and then systematically to liquidate the funds?
Annuity
Deferred annuity
Whole life
A life insurance policy written after 1988 that fails to meet the seven -pay test is known as
A modified endowment contract
Whole life contract
Universal life
Which policy is a saving instrument designed to first accumulate funds and then systematically to liquidate the funds
Deferred annuity
Annuity
Universal life
Individual life insurance policies sold to seniors in the State of California must include a prominently placed statement that divulges all of the following information EXCEPT
Persons name
Proof of surrender must be notarized at the agent's principal office
Person's address
People commonly purchase an annuity to protect against the risk of
Losing their home
Losing their insurance
Outliving their financial resources
What is one difference between group life and individual underwriting?
Group life requires members to equally contribute
Individual life insurance requires the applicant to answer medical questions
Individual life requires only two participants
A $50,000 whole life policy with a cash value of $10,000 has been in force for eleven years. The policy-owner is unable to continue the premium payments. Which of the following describes the reduced paid-up non-forfeiture option?
The cash value is used to select a $20,000 paid-up policy
The cash value is used to select a 30k paid up policy
Which of the following is a characteristics of non-qualified annuities
Tax Now earnings
Tax never strategies
Tax deferred earnings
A 10-year certain annuity with an installment refund is purchased. The annuitant dies after receiving monthly payments for 5 year. How many remaining payments will the insurer make
50 payments
60 payments
12 payments
The payor rider on juvenile life policy provides that if the payor dies or becomes disabled before the insured juvenile reaches the age specified on the policy that the
Insurer will make the payment till 20
Insurer will make payment until 18
Insurer will make the payments until the insured juvenile reaches a specified age-usually twenty-one or twenty-five
Which of the following contracts provides the benefits that fluctuate automatically with investment results?
Variable life insurance
Universal life
Whole life
The theory of probability is applied to life insurance through the use of
Law of large number
Rule of numbers
Mortality tables
What is the difference between deferred annuities and immediate annuities ?
Immediate annuities pay out later
Deferred annuities have longer accumulation periods
Immediate annuities are for the elderly
Which of the following is NOT an option for the use of the policy dividends?
Funds the distribution of monthly income payments
Helps the insured
The insured is totally and permanently disabled. The insured's policy continues in the force without payment of further premiums because the policy contains aa
Pardon of insurance premiums
Waiver of premium provisions
Grace period
Your client has just bought a new home which he has financed with a $150,000, 7.5% interest, 30 year bank loan. He would like to be sure that if he dies that the unpaid balance of the mortgage balance -no more, no less-anytime during the life of the mortgage. Which policy is designed to meet this need?
Decreasing term policy
Renewable term
Increasing term
Variable term
Death benefit that are received by a beneficiary are generally
Exempt from federal income tax starting second yearr
Exempt from federal income tax
Exempt from paying fees
An insured replaces an existing annuity with a new one and must pay a surrender charge for cancelling the existing annuity. The new policy holds no greater financial benefits to the insured than the existing contract. This is an example of
Extra replacement
Standard procedure for insurance
An unnecessary replacement
What do we call the process whereby insurers decide which customers to insure and what coverage to offer?
Standard procedure of insurance policies
Background check
Underwriting
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