What will the insured be able to receive the full face amount from a whole life policy?
If the insured lives to age 100
What type of insurance would be used for a Return of Premium rider?
Increasing Term
An agent has how many days in which to receive an appointment after the issurnace of the insurance contact?
14 days
What is the purpose of coinsurance provisions?
To help the insurance company to prevent overutilization of the policy
A contract which one party undertakes to indemnify another against loss is called:
Insurance
To sign up for a Medicare prescription drug plan, individuals must first be enrolled in:
Medicare Part A
What is franchise insurance?
It is health coverage for small groups whose numbers are too small to qualify for true group insurance
Which of the following is the largest branch within the California Department of Insurance?
Enforcement Branch
In a group healthy policy, a probationary period is intended for people who:
Join the group after the effective date
If a firm has 80 employees that are actively engaged in business on at least 50% of its working days during the preceding calendar year, what is its classification?
Small employer
Based on Human Life Value Approach, which of the following is NOT used to calculate an individuals life value?
Prediced needs of the family after insured’s death
What is the contract provision that allows the insurer to nonrenew health coverage if certain events occur?
Conditionally renewable
Company employs 500 people. It offers group life insurance to its employees after 90 days of service. Who is considered the policyholder of the life insurance policies?
The company
The main difference between immediate adn deferred annuities is:
When the income payments begin
What are part of the policy structure between an insurer and insured, conforming to the state laws governing contracts?
Conditions
What is the max amount that can be contributed to an MSA of the high deductible plan for individuals?
65%
Qualified medical expenses paid for participants in a Medical Savings Account (MSA) are:
Not Taxable
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount loss?
Indemnity
Which renewability provision allows an insurer to terminate a policy for any reason, and increase the premiums for any class of insureds?
Optionally renewable
Disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured’s loss of earnings after recovery from a disabiltiy?
Residual disability
A policy available to business owners that provides payment for normal business expenses in the event that the owner is disabled is called:
Business Overhead Expense
The classification Small Employer means any person actively engaged in a business that on at least 50% of its working days during the preceding year employed:
No more than 100 employees
Life income joint and survivor settlement option guarantees:
Income for 2 or more recipients until the die
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
