Chpt 4 Life Agent

14 Questions | Total Attempts: 134

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Life Quizzes & Trivia

Life insurance practice test


Questions and Answers
  • 1. 
    Every licensee must indicate on which of the following documents his or her license number?
    • A. 

      Private Advertisement

    • B. 

      Business card

    • C. 

      Written Practice quotation

    • D. 

      All of the above

  • 2. 
    When any change in residence address occurs, every licensee and every applicant must notify the comissioner________ ?
    • A. 

      Within 6 months after the move has taken place

    • B. 

      Within 6 months before the license is to expire

    • C. 

      30 days before submitting a continuing education certficate

    • D. 

      Immediately

  • 3. 
    An agent makes a misleading comparison of a policy he is selling in order to convince a prospect to lapse an old insurance policy. What is that called?
    • A. 

      Intimidation

    • B. 

      Rebating

    • C. 

      Boycotting

    • D. 

      Twisting

  • 4. 
    Which of the following cannot legally be used when determining premium rates for life insurance?
    • A. 

      Gender

    • B. 

      Age

    • C. 

      Nationality

    • D. 

      All of the above

  • 5. 
    Generally, it is unfair to discriminate against any one class of individuals in the business of insurance. However, the code does permit the charging of a higher premium if such premiums can be supported by mortality tables segregated by sex (gender).
    • A. 

      True

    • B. 

      False

  • 6. 
    Which of the following is not a legal activity in this state?
    • A. 

      Participating in a plan to offer free insurance if a person buys some form of service.

    • B. 

      Disregarding age in determination of insurance rates.

    • C. 

      Refusing to apply the practice of twisting in sales.

    • D. 

      All of the above are legal in the state of California.

  • 7. 
    Employees that have group life policies covering them are required to be issued a/an_____?
    • A. 

      Estimate of employers premiums.

    • B. 

      Certificate of insurance

    • C. 

      Master policy

    • D. 

      Monthly notification on a non-participating plan.

  • 8. 
    Jerry is using a new time management technique in his insurance sales presentation. In order to cut the amount of time he spends ar each appointment he no longer answers questions when they are first asked. instead he answers them only if they are asked twice. he feels this will allow him to get to his next meeting quicker. Most insurance professionals consider this:
    • A. 

      An unethical practice

    • B. 

      A clever and ethical practice

  • 9. 
    In the life insurance planning process, the "blackout period" is considered:
    • A. 

      The period of time after a life insurance application is written and the date the coverage takes effect.

    • B. 

      The period of time when there is not enough income available as required by the insured's beneficiaries.

    • C. 

      The period of time when a surviving spouse does not receive any social security benefits.

    • D. 

      All of the above

  • 10. 
    All of the following are reasons for an individual to purchase personal life insurance, except:
    • A. 

      To have funds that can supplement Social Security at retirement

    • B. 

      To cover a buy/sell agreement

    • C. 

      For the creation of an immediate estate.

    • D. 

      To have cash available for emergencies

  • 11. 
    Why would a business use a key person life insurance policy?
    • A. 

      To provide the key employee's surviving family members with funds to live on after the death of the employee.

    • B. 

      To help the employee's spouse supplement her Social Security benefits

    • C. 

      To better allow the employee qualify for a bank loan.

    • D. 

      To protect the company from the financial consequences of the death of a vice president.

  • 12. 
    Identify the statement that is true about contributory group life insurance.
    • A. 

      The employer will make a cash contribution to the estate of a deceased employee

    • B. 

      The employer will contribute the full amount of the premium

    • C. 

      The employee will contribute to the premium payments

    • D. 

      None of the above

  • 13. 
    Select the correct statement about the social Security system:
    • A. 

      It is for the most part, a voluntary program.

    • B. 

      It is only meant to be a supplement to an individual's major income: it only supplies a minimum floor of income

    • C. 

      The system is completely and fully funded

    • D. 

      The amount each person gets out is nearly exactly what they put in.

  • 14. 
    Which of the following is true regarding the government's social insurance program known as Social Security?
    • A. 

      The majority of workers in the U.S.. must pay into the program.

    • B. 

      The contributions paid in closely match the benefits received

    • C. 

      Participants sign a contractual agreement with the insurer.

    • D. 

      Both A and B above are true.

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