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Primerica > Extra Questions > Flashcards

Extra Questions Flashcards

1
Q

What rider allows the policyowner to purchase specific amounts of additional insurance at specific dates or events, without proving continued insurability?

A

Guaranteed Insurability rider

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2
Q

As part of the continuing education requirement, what is the minimum number of hours of continuing education specific to long-term care insurance to be completed prior to each license renewal?

A

8

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3
Q

The interest earned on policy dividends is ________

A

taxable

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4
Q

a return of unused premiums on which the insured has already paid taxes

A

dividends

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5
Q

Which policy component decreases in decreasing term insurance?

A

face amount

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6
Q

What happens when a policy is surrendered for its cash value?

A

Coverage ends and the policy cannot be reinstated.

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7
Q

An agent who violates the replacement provision of the Code will be fined a $____ for the first offense

A

$1,000

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8
Q

An insurance company that violates the replacement provision of the Code will be fined $_____ for the first offense

A

$10,000

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9
Q

considered refund of unearned premium

A

dividends

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10
Q

Department that is responsible for developing mortality and morbidity tables, calculating premiums and dividends, and preparing annual reports

A

actuarial

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11
Q

an increasing term insurance policy that pays an additional death benefit to the beneficiary equal to the amount of the premiums paid.

A

Return of premium (ROP) life insurance

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12
Q

court actions which increase the likelihood or size of a loss

A

Legal hazard

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13
Q

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

A

3 days

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14
Q

What component increases in the increasing term insurance?

A

death benefit

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15
Q

availability of cash to the insured

A

liquidity

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16
Q

Who’s general duty or power is it to develop laws?

A

State Legislature

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17
Q

Who’s general duty or power is it to enforce laws?

A

Commissioner

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18
Q

What 3 things are funded by annuities?

A

A person’s retirement, estate liquidation, cash accumulation for any reason

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19
Q

What results from three basic desires of the insured: to reduce expenses and improve cash flow, to increase control of claim reserving and claims settlements, and to fund losses that cannot be insured.

A

retention

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20
Q

What determines whether an insurance policy is “over-funded” or if it’s a Modified Endowment Contract

A

Seven-pay Test

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21
Q

How often must every insurer doing business in California report its financial condition to the Commissioner?

A

Each year, on or before March 1

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22
Q

The period of time during which a binding receipt covers a policyholder

A

temporary term period

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23
Q

Units with the same or similar exposure to loss

A

homogeneous

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24
Q

“by the head”

A

per capita

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25
Q

Who is protected by a Temporary Insuring Agreement?

A

The applicant and the insurer

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26
Q

What insurance option would be considered a risk-sharing arrangement?

A

Reciprocal

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27
Q

Upon policy delivery, the producer may be required to obtain what 3 things?

A

Delivery receipt, statement of good health, payment of premium

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28
Q

In a group life insurance policy, the employer may select three things?

A

The premium payor, the type of insurance, the amount of insurance

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29
Q

Examples of risk retention

A

Deductibles, copayments, self-insurance.

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30
Q

What kind of annuity is it when the owner is guaranteed a fixed interest rate for a specific period of time?

A

modified guaranteed annuity

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31
Q

Why is an equity indexed annuity considered to be a fixed annuity?

A

It has a guaranteed minimum interest rate.

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32
Q

The Waiver of Cost of Insurance rider is found in what type of insurance?

A

Universal Life

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33
Q

In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?

A

Executive is the owner, and the executive pays the premium.

34
Q

According to CIC 783, after a hearing, the Commissioner may suspend the license of any such person for violating provision relating to misrepresentation for a period of ______

A

3 years

35
Q

Unassigned funds that are required to be reported on the insurer’s annual statement.

A

Earned Surplus

36
Q

Any insurance agent who commits a repeated violation of the Insurance Code with respect to insurance replacement will be liable for _________.

A

An administrative penalty of no less than $5,000 and no more than $50,000 per violation.

37
Q

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

A

5 days

38
Q

only one of the parties to the contract is legally bound to do anything

A

unilateral insurance contract

39
Q

Another term for the cash payment settlement option

A

Lump sum

40
Q

intentional withholding of information by the insured that is material to the insurer

A

concealment

41
Q

The owner of an adjustable life policy has four privileges:

A

increasing or decreasing the premium, changing the premium-paying period, increasing or decreasing the face amount of coverage, or changing the period of protection

42
Q

collects any charges the insured owes, processes and settles claims, and acts as a fiduciary for the insured and the insurer

A

administrator

43
Q

The agent’s role to act in the insured’s best interest is called?

A

The fiduciary duty

44
Q

When can the frequency of premium payments be changed?

A

on the policy’s anniversary date

45
Q

This rider annually adjusts the policy’s face value in accordance with the national rate of inflation or deflation

A

Cost of Living

46
Q

Retention usually results from three basic desires of the insured:

A

to reduce expenses and improve cash flow, to increase control of claim reserving and claims settlements, and to fund losses that cannot be insured

47
Q

A tax-sheltered annuity is a special tax-favored retirement plan available only to _____________

A

certain groups of employees

48
Q

The Human Life Value Approach to determining the value of an individual’s life requires the calculation of _____________

A

probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money

49
Q

What type of risk will result in the highest premium

A

Substandard

50
Q

insures the life of a homeowner for an amount equal to his mortgage

A

Mortgage Redemption

51
Q

not securities, but these annuities invest on a relatively aggressive basis to aim for higher returns

A

Equity Indexed Annuities

52
Q

All records relating to insurance application must be maintained for _____

A

5 years after policy delivery or initial application

53
Q

The Medical Information Bureau (MIB) was created to protect

A

Insurance companies from adverse selection by high risk persons

54
Q

What rider pays 2 or 3 times the face amount if death is the result of an accident as defined in the policy and occurs within 90 days of such an accident.

A

Accidental Death rider

55
Q

What kind of policy issues certificates of insurance to insureds?

A

Group insurance

56
Q

According to CIC 16, the word “shall” describes ______ actions, and the word “may” describes _______ actions unless otherwise apparent from the context.

A

mandatory, permissive

57
Q

Beneficiary designations

A

primary or contingent, secondary and tertiary

58
Q

the agent may continue to operate under the expired license for a period of ______ as long as the application for renewal has been filed and renewal fee paid.

A

60 days

59
Q

In terms of Social Security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse turns age 60 called?

A

Blackout Period

60
Q

closest term to an authorized insurer

A

admitted

61
Q

Any agent violating the misrepresentation provisions is guilty of a misdemeanor and punishable by a fine not to exceed

A

$25,000 (for losses less than $10,000), and/or by imprisonment not to exceed 1 year

62
Q

What is the purpose of a suicide provision within a life insurance policy?

A

To protect the insurer from persons who purchase life insurance with the intention of committing suicide

63
Q

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

A

Waiver of premium

64
Q

Which provision of a life insurance policy states the insurer’s duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

A

Insuring clause

65
Q

a short-term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated

A

Annuity certain

66
Q

What law states that a deferred annuity must have a guaranteed surrender value that is available if the owner decides to surrender the annuity prior to annuitization

A

nonforfeiture law

67
Q

determined not by the event, but solely by the influence of the facts upon the party to whom the communication is due, in forming his/her estimate of the disadvantages of the contract.

A

Materiality

68
Q

Any domestic insurer issuing variable contracts must establish one or more ________ accounts

A

separate

69
Q

Which component increases in the increasing term insurance?

A

Death benefit

70
Q

The law will assume that the primary beneficiary dies first as long as the beneficiary dies within this specified period of time following the death of the insured (usually 30 days).

A

Common Disaster

71
Q

This settlement option provides a single beneficiary with income for the rest of his/her life.

A

Single Life

72
Q

When coverage is effective immediately

A

Written binder

73
Q

What two terms are associated directly with the premium?

A

level or flexible

74
Q

What individual must have insurable interest in the insured?

A

policyowner

75
Q

What is the waiting period on a Waiver of Premium rider in life insurance policies?

A

6 months

76
Q

For a retirement plan to be qualified, it must be designed for the benefit of

A

employees

77
Q

protection period offered by binding receipts

A

temporary term

78
Q

The dividend option in which the policyowner uses dividends to purchase a term policy for one year

A

One-year term option

79
Q

Section 10128.2 of the CIC uses the word _________ to refer to the length of such an extension.

A

“reasonable”

80
Q

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured

A

Spendthrift clause

81
Q

This department is responsible for developing mortality and morbidity tables, calculating premiums and dividends, and preparing annual reports.

A

Actuarial

Primerica (5 decks)

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