term1 Definition1term2 Definition2term3 Definition3
Please sign in to your Google account to access your documents:
What is required when an applicant reveals conditions that require more information
a. Physical examination
b. Attending physician's statement
c. Investigative consumer report
d. Agent's report
(A) The question assumes medical conditions are revealed.
Which risk classification carries the lowest premium?
a. Endowed
b. Substandard
c. Standard
d. Preferred
(D) This is best from insurer's perspective.
During the disability elimination period
a. Occupational claims are payable
b. Small claims are payable
c. No benefits are payable
d. Residual benefits are payable
(C) The elimination period is a waiting period similar to a "time deductible".
Which of the following statements defines partial disability?
a. A disabled employee while he is working part-time and receiving lost income under their long-term disability benefit
b. An employee who loses sight in one eye because of an accident on the job
c. An employer contributing half of the disability benefit to an employee out on long-term disabilityd. The prorated income an employer pays an injured employee out on short-term disability
(A) As defined by the policy.
Which statement best describes a life insurance policy dividend?
a. It is somewhat larger in a non-participating whole life policy than in a comparable participating policy
b. It is the interest paid to the policy owner on the cash value of a permanent insurance policy
c. It is the distribution of excess funds accumulated by the insurer on participating policies
d. It is a stockholders return on his investments in the company
(C) Definition of a life insurance policy dividend.
If a person was in violation of Section 770 of the CA Insurance Code, what action would the insurance Commissioner most likely take if the violation dealt with loans on the security of real or personal property?
a. Require the violator to complete an approved ethics course before soliciting in the state of California again
b. Issue a cease and desist order for a violation of more than one transaction
c. Charge the violator with a felony with a six month maximum jail sentence per violation
d Issue a fine of $205,000 per violation
(B) This is the usual minimum for violations.
If no other method of payment is selected, which of the following is the automatic mode of settlement for life insurance policy proceeds?
a. Extended term insurance
b. Lump-sum settlement in cash
c. Life income
d. Paid-up policy
(B) The beneficiary will receive the death benefit in a single lump sum payment instead of installments.
The process whereby a mutual insurer becomes a stock company is called
a. Reorganization
b. Stock split
c. Stock buyout
d. Demutualization
(D) Is often done in order to raise new sources of capital income to compete in the financial services arena.
A supplemental insurance policy that pays a set amount for each day that an individual is hospitalized is known as
a. Long term care supplement
b. Temporary major medical
c. Hospital confinement indemnity
d. Hospital surgical expense
(C) Hospital confinement indemnity
Any situation that presents the possibility of a loss is known as
a. A covered loss
b. A loss exposure
c. Risk potential
d. Consideration
(B) A loss exposure
Need help typing ? See our FAQ (opens in new window)
Please sign in to create this set. We'll bring you back here when you are done.
Discard Changes Sign in
Please sign in to add to folders.
Sign in
Don't have an account? Sign Up »
You have created 2 folders. Please upgrade to Cram Premium to create hundreds of folders!