Practice Exam 8 - Life Insurance

42 Questions | By Nailsexam123 | Updated: Mar 21, 2022 | Attempts: 171

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1.

The rules regarding life insurance policy illustraitions are intended to ensure all of the following , except:
- A.
  
  Ensure that illustrations are understandable by prescribing standard formats to be followed when illustrations are used
- B.
  
  Ensure that illustration do not mislead purchasers of life insurance and annuities
- C.
  
  Ensure that the disclosures that are required in connection to illustrations are specified
- D.
  
  Ensure that the illustration specifies that both guaranteed and non-guaranteed elements will continues unchanged for all years shown
2.

If an insurer inadvertently is found guilty of unfair trade practices while issuing renewing, and servicing a policy, the issurer could be prosecuted for how many violations?
- A.
  
  4
- B.
  
  3
- C.
  
  1
- D.
  
  0
3.

An insurer owned by a parent company that provides insurance to voer the parent company's loss exposures is a:
- A.
  
  Reciprocal insurer
- B.
  
  Captive insurer
- C.
  
  Mutual insurer
- D.
  
  Stock insurer
4.

Which of the following is not excluded by group life?
- A.
  
  War
- B.
  
  Military service
- C.
  
  Aviation
- D.
  
  Accidental injury
5.

The MINIMUM number of employees for group life insurance in California is:
- A.
  
  10
- B.
  
  50
- C.
  
  2
- D.
  
  100
6.

Which of the following could be used to pay off the mortgage on a home, providing a death benefit that equals the amount of outstanding debt on the home, no more and no less?
- A.
  
  Home service insurance
- B.
  
  Decreasing insurance
- C.
  
  Home warranty
7.

What does the phrase "life insurance creates an immediate estate" mean?
- A.
  
  The total death benefit will be paid to a beneficiary on the death of the insured
- B.
  
  The death benefit will always be paid to the estate of the insured
- C.
  
  The total premium must be paid to the insurer
- D.
  
  The policy creates cash value
8.

Every insurer offering individual life insurance policies or annuities to senior citizens that use none-guaranteed elements in illustrations must provide a statement to that effect. Which of the following is correct regarding this statement?
- A.
  
  Non-guaranteed elements must be in bold print
- B.
  
  Guaranteed and non-guaranteed elements must be in bold print, at the discretion of the agent.
- C.
  
  Guaranteed elements must be in bold print and non-guaranteed elements must be in plain type
- D.
  
  All statements must be in plain type
9.

The usual amount of death benefit in an industrial life insurance policy is
- A.
  
  $10,000 to $25,000
- B.
  
  $50,000-$100,000
- C.
  
  Less than $2,000
- D.
  
  $100,000
10.

Which of the following allows employees to share in the financial success of the company?
- A.
  
  Tax-sheltered account
- B.
  
  Simplified employee pension plan
- C.
  
  Keogh plan
- D.
  
  Profit-sharing plan
11.

In which of the following qualified pension plans are benefits linked tot he employee's years of service and / or amound of compensation?
- A.
  
  Defined benefit plan
- B.
  
  Keogh plan
- C.
  
  Defined contribution plan
- D.
  
  Tax-sheltered account
12.

The Social security age of retirement is dependent upon:
- A.
  
  The individual's date of birth
- B.
  
  The amount of compensation earned prior to retirement
- C.
  
  The number of quarters earned
13.

Life insurance illustrations showing premiums, values, credits or charges that are not determined at issue demonstrate:
- A.
  
  Non-Guaranteed elements
- B.
  
  Guaranteed elements
- C.
  
  Minimum assumed expenses
- D.
  
  Supplemental illustrations
14.

An ESOP invests in:
- A.
  
  Employer stock
- B.
  
  Mutual funds
- C.
  
  Corporate bonds
- D.
  
  Employer's investments
15.

When an insurer presents an illustration for life insurance, all of the following are prohibited, except:
- A.
  
  Stating that the amount of non-guaranteed elements is guaranteed
- B.
  
  Using the insurer's "disciplined current scale" in the illustration
- C.
  
  Including a description of a "vanishing premium"
- D.
  
  Providing the applicant with an incomplete illustration
16.

In a group lofe plan, unmarried children may be covered as dependents until age:
- A.
  
  19
- B.
  
  20
- C.
  
  21
- D.
  
  22
17.

An insurance company which is owned by individuals who purchase shares of stock, in the company, share in profits in proportion to shares owned, and vote for a board of directors is known as what type of insurer?
- A.
  
  Lioyd's of London
- B.
  
  Fraternal insurer
- C.
  
  Mutual insurer
- D.
  
  Stock insurer
18.

Eligibility for Social Security retirement benefits is based on:
- A.
  
  The worker's age at retirement
- B.
  
  The number of quarters earned
- C.
  
  The worker's date birth
19.

All of the following apply to an insurance broker (not an insurance agent), Except:
- A.
  
  A broker represents the insured
- B.
  
  A broker can charge a fee to the insured
- C.
  
  A broker is appointed by an insurer to transact insurance
- D.
  
  A broker acts on behalf of an insurer
20.

In order ot qualify for social security retirement benefits the worket must be:
- A.
  
  Fully insured
- B.
  
  Disability insured
- C.
  
  Currently insured
- D.
  
  Partially insured
21.

All of the following are covered by the CLHIGA, except:
- A.
  
  Individual annuities
- B.
  
  Employer self-funded plans
- C.
  
  Group term insurance
- D.
  
  Disability income
22.

Which of the following is NOT covered by the CLHIGA?
- A.
  
  Direct group life insurance
- B.
  
  Individual (non group) health insurance
- C.
  
  Group stop loss plans
- D.
  
  Individual term life
23.

In a group life policy with a death benefit of more than $50,000:
- A.
  
  Premium cost is not taxable
- B.
  
  Premium cost for insurance above $50,000 is taxable as income tot he insured
24.

When a corporation ceases to exsit entirely, their insurance license:
- A.
  
  Is suspended temporarily
- B.
  
  Becomes inactive
- C.
  
  Terminates unless the corporation files an application to continue to transact within 30 days
- D.
  
  Terminates
25.

If a insurer knowingly allows one of its agents to misled a member of public in order to induce the person to change thier existing insurance, the Commissioner may:
- A.
  
  Suspend the insurer's certificate of authority for the class of business involved
- B.
  
  Impose a $1,500 fine