LIFE INSURANCE ONLY CALIFORNIA 130 Questions with Answers
LIFE INSURANCE - CORRECT ANSWER Insurance that pays out a sum of money either on the death
... [Show More] of the insured person or after a set period.
TERM LIFE INSURANCE - CORRECT ANSWER Life insurance that pays a benefit in the event of the death of the insured during a specified term.
*PURE
*ONLY DEATH BENEFIT NO CASH VALUE
WHOLE LIFE INSURANCE - CORRECT ANSWER Life insurance that pays a benefit on the death of the insured and also accumulates a
*PERMANENT
*DEATH BENEFIT & CASH VALUE.
UNIVERSAL LIFE INSURANCE - CORRECT ANSWER Flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance), which is invested to provide a cash value buildup.
LOW PREMIUM & CASH VALUE
VARIABLE LIFE INSURANCE - CORRECT ANSWER Permanent life insurance policy with an investment component.
LEVEL TERM LIFE INSURANCE - CORRECT ANSWER Provides the same amount of coverage for a specific length of time, over which you pay the same premium.
DECREASING TERM LIFE INSURANCE - CORRECT ANSWER Annual renewable term life insurance that provides a death benefit that decreases at a predetermined rate over the life of the policy.
ANNUITY - CORRECT ANSWER *Insurance product that pays out income, and can be used as part of a retirement strategy.
*Fixed sum of money paid to someone each year, typically for the rest of their life.
DEFFERED ANNUITY - CORRECT ANSWER Annuity that commences only after a lapse of some specified time after the final purchase premium has been paid.
SINGLE PREMIUM DEFERED ANNUITY (S.P.D.A) - CORRECT ANSWER Annuity contract that is established with a single lump-sum payment by the owner.
*ANNUTIY GROWS ON A TAX DEFERRED BASIS UNTIL ANNUITIZATION.
PRINCIPLE OF INDEMNIFICATION - CORRECT ANSWER LIFE INSURANCE IS DESIGNED TO MAKE SOMEONE WHOLE AGAIN (INDEMNIFY) NOT TO ENRICH.
BENEFICIARY - CORRECT ANSWER PERSON, ORGANIZATION, BUSINESS, OR THE ESTATE OF THE INSURED TO RECEIVE TO BENEFITS.
-PRIMARY BENEFICIARY - 1ST
-CONTINGENT/SECONDARY BENEFICIARY - 2ND
-TERTIARY BENEFICIARY - 3RD
LIFE INSURANCE PURPOSE - CORRECT ANSWER PROTECTION AGAINST LOSS OF INCOME.
PRODUCER - CORRECT ANSWER AGENT, BROKER, OR SOLICITOR
AGENT - CORRECT ANSWER REPRESENTS COMPANIES TO CLIENTS
BROKER - CORRECT ANSWER REPRESENTS CLIENTS TO COMPANIES
ADMITTED INSURER - CORRECT ANSWER INSURANCE COMPANY LICENSED TO TRANSACT INSURANCE IN CALIFORNIA
DOMESTIC INSURER - CORRECT ANSWER INSURER (INSURANCE COMPANY) THAT IS WITHIN THE STATE
FOREIGN INSURER - CORRECT ANSWER INSURER (INSURANCE COMPANY) THAT IS FROM ANOTHER STATE
ALIEN INSURER - CORRECT ANSWER INSURER (INSURANCE COMPANY) FROM ANOTHER COUNTRY
UNDERWRITER - CORRECT ANSWER A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
LIFE INSURANCE CONTRACT - CORRECT ANSWER GUARANTEES THAT A SPECIFIC AMOUNT OF MONEY WILL BE PAID TO A DESIGNATED BENEFICIARY WHEN THE INSURED INDIVIDUAL DIES.
FIDUCIARY CAPACITY - CORRECT ANSWER HAVING THE RESPONSIBILITY OF SOMEONE ELSES ASSETS AND MONEY.
EXPRESSED AUTHORITY - CORRECT ANSWER GRANTED TO THE AGENT UNDER A WRITTEN CONTRACT
IMPLIED AUTHORITY - CORRECT ANSWER NOT SPECIFICALLY STATED, BUT INCLUDED BASED ON OTHER STATEMENTS IN THE CONTRACT
APPARENT AUTHORITY - CORRECT ANSWER APPEARS TO EXIST TO THE PUBLIC EVEN IF IT DOES NOT IN REALITY
FREE INSURANCE - CORRECT ANSWER ILLEGAL
COMMISIONER REQUEST RECORDS - CORRECT ANSWER MUST BE SUBMITTED WITHIN 30 DAYS.
AGENT LICENCE RENEWAL - CORRECT ANSWER 2 YEARS
UTMOST GOOD FAITH - CORRECT ANSWER The fair and equal bargaining by both parties in forming the contract, where the applicant must make full disclosure of risk to the company, and the insurance company must be fair in underwriting the risk.
TWISTING - CORRECT ANSWER A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage.
RIDER - CORRECT ANSWER Any supplemental agreement attached to and made a part of the policy indicating the policy expansion by additional coverage, or a waiver of a coverage or condition.
REPRESENTATION - CORRECT ANSWER WRITTEN OR ORAL STATEMENTS MADE TO THE BEST OF ONE'S KNOWLEDGE AND BELIEF.
MORTALITY TABLE - CORRECT ANSWER A table showing the probability of death at specified ages.
MORBIDITY TABLE - CORRECT ANSWER A table showing the incidence of sickness at specified ages.
MORBIDITY RATE - CORRECT ANSWER The ratio of the incidence of sickness to the number of well persons in a given group of people over a given period of time.
NON PARTICIPATING POLICY - CORRECT ANSWER A POLICY THAT DOES NOT PAY DIVIDENDS.
DOES NOT PARTICIPATE IN THE STOCK MARKET
RESCISSION - CORRECT ANSWER The termination of an insurance contract due either to material misrepresentation by the insured or by fraud, misrepresentation, or duress on the part of the agent/insurer
GRACE PERIOD - CORRECT ANSWER A 30 DAY PERIOD IN WHICH THE INSURED CAN MAKE A PAYMENT WITHOUT THE POLICY LAPSING.
*GRACE PERIOD GOES IN EFFECT AFTER 3 MONTH PREMIUMS HAVE BEEN PAYED IN FULL ON TIME.
EXPOSURE - CORRECT ANSWER A unit of measure used to determine rates charged for insurance coverage.
FRIVOLOUS - CORRECT ANSWER NOT HAVING ANY SERIOUS PURPOSE OR VALUE.
VIATICAL SETTLEMENT - CORRECT ANSWER An arrangement that allows someone living with a life threatening condition to sell their existing life insurance policy and use the proceeds when and where they are most needed, before death.
RISK TRANSFER - CORRECT ANSWER BASIC INSURANCE PRINCIPLE ON WHICH THE RISK OF LOSS IS TRANSFERRED FROM ONE PARTY TO ANOTHER.
EXAMPLE: PURCHASE OF INSURANCE TRANSFERS THE RISK OF LOSS FROM THE POLICYHOLDER TO THE INSURANCE COMPANY.
SUBROGATION - CORRECT ANSWER The legal process by which an insurance company seeks recovery of the amount paid to the insured from a third party who may have caused the loss.
SPENDTHRIFT CLAUSE - CORRECT ANSWER A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
SINGLE PREMIUM WHOLE LIFE - CORRECT ANSWER A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time, lump sum payment.
RISK - CORRECT ANSWER Uncertainty as to the outcome of an event when two or more possibilities exist.
PURE RISK - CORRECT ANSWER The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
SPECULATIVE RISK - CORRECT ANSWER The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
RECIPROCAL EXCHANGE - CORRECT ANSWER An unincorporated group of individuals who mutually insure one another, each separately assuming a share of each risk.
CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT ( C.O.B.R.A 1985 ) - CORRECT ANSWER EMPLOYERS WITH 20 (FULL/PART - TIIME) OR MORE EMPLOYEES ON MORE THAN 50% OF THE PREVIOUS CALENDAR YEAR.
GIVES EMPLOYEES CONTINUED PROTECTION AFTER A QUALIFYING EVENT FOR 18 MONTHS EMPLOYEE AND 36 MONTH SPOUSE AND CHILDREN.
CASH SURRENDER VALUE - CORRECT ANSWER A PORTION OF THE EXCESS PREMIUMS PAID ABOVE THE MORTALITY COSTS OF A POLICY.
WAR EXCLUSIONS - CORRECT ANSWER IF THE INSURED IS KILLED WHILE AT WAR OR IN THE MILITARY. THE INSURER WILL BE LIANLE FOR EITHER THE PREMIUMS OR THE CASH VALUE OF THE POLICY, WHICHEVER IS GREATER.
PER CAPITA - CORRECT ANSWER BENEFITS ARE PAID EQUALLY TO ALL SURVIVING INDIVIDUALS.
"BY HEADS"
PER STIPES - CORRECT ANSWER BENEFITS ARE PAID IN LINE.
EXAMPLE: IF THE FIRST PERSON WHO WAS TO RECEIVE BENEFITS HAS DIED, A CHILD, GRANDCHILD, OR GREAT GRANDCHILD MOVES UP TO TAKE HIS PLACE.
ASSIGNMENT OF POLICY - CORRECT ANSWER POLICY OWNERS MAY USUALLY TRANSFER OR "ASSIGN" ALL OR PART OF A POLICY TO ANOTHER PARTY.
ASSIGNING ANOTHER PARTY GIVES THE NEW PARTY ALL THE RIGHTS OF OWNERSHIP WHICH INCLUDES CHANGING BENEFICIARY.
AUTOMATIC PREMIUM LOAN ( APL ) - CORRECT ANSWER PROVISION USUALLY INCLUDED IN CASH VALUE POLICIES.
IF THE PREMIUM HASNT BEEN PAID BY THE END OF THE GRACE PERIOD AND THERE IS SUFFICIENT CASH VALUE TO COVER THE PREMIUM THE INSURER WILL TAKE FROM THE CASH VALUE AND PAY THE PREMIUM.
ANNUITY - CORRECT ANSWER TAX DEFERRED SAVINGS CONTRACT ISSUED BY LIFE INSURANCE COMPANIES THAT PROVIDES PAYMENTS TO AN ANNUITY HOLDER (ANNUITANT) THAT BEGIN AT A SPECIFIC DATE OR AGE.
SINGLE PREMIUM DEFERRED ANNUITY (SPDA) - CORRECT ANSWER ONLE LUMP SUM PAYMENT WITH PAYOUT DEFERRED, TAX-FREE, UNTIL A FUTURE DATE.
FLEXIBLE(INSTALLMENT) PREMIUM DEFERRED ANNUITY(FPDA) - CORRECT ANSWER INITIAL DEPOSIT, FOLLOWED BY NUMEROUS FELXIBLE PREMIUM PAYMENTS WITH DEFERRED PAYOUT. ACCUMULATED CASH GROWS ON TAX DEFERRED BASIS.
SINGLE PREMIUM IMMEDIATE ANNUITY (SPIA) - CORRECT ANSWER ONE LUMP SUM PAYMENT AND PERIODIC PAYCHECKS BEGIN FOR A CERTAIN NUMBER OF YEARS OR UNTIL THE OCCURRENCE OF A SPECIFIC EVENT, SUCH AS THE ANNUITANTS DEATH.
LEVEL PREMIUM DEFERRED ANNUITY - CORRECT ANSWER EQUAL PREMIUM AMOUNTS AT REGULAR INTERVALS, UNTIL THE DATE SCHEDULED FOR BENEFIT PAYOUTS. THE CASH ACCUMULATED IS TAX FREE.
TEMPORARY LIFE ANNUITIES - CORRECT ANSWER PAYMENTS ARE MADE ONLY FOR A SPECIFIED TIME OR UNTIL THE DEATH OF THE ANNUITANT.
PURPOSE IS USUALLY TO PROVIDE AN INCOME FOR A SHORT TIME UNTIL ANOTHER SOURCE OF INCOME (RETIREMENT, SOCIAL SECURITY) BECOMES AVAILABLE.
RETIREMENT ANNUTITIES - CORRECT ANSWER DEFERRED CONTRACTS THAT COMBINE AN ANNUITY WITH A DECREASING TERM LIFE INSURANCE RIDER TO PROVIDE A DOUBLE BENEFIT.
BOTH BENEFITS ARE PAYED IF THE ANNUITANT DIES BEFORE RETIREMENT AGE.
IF ANNUITANT REACHES RETIREMENT AGE THE TERM LIFE INSURANCE IS TERMINATED.
MARKET VALUE ADJUSTMENT ANNUITY (MVA) - CORRECT ANSWER INCREASE OR DECREASES THE ACCUMULATION VALUE OF THE ANNUITY IF MORE THAN THE PENALTY FREE AMOUNT IS WITHDRAWN OR THE CONTRACT IS SURRENDERED IN THE SURRENDER CHARGE PERIOD. AT WITHDRAWAL, IF THE INTEREST RATE IS HIGHER, THE ACCUMULATED VALUE WILL BE ADJUSTED UPWARD.
PURE/STRAIGHT LIFE ANNUITY - CORRECT ANSWER GUARANTEES INCOME FOR LIFE, NO MATTER HOW LONG OR SHORT A TIME HE OR SHE LIVES.
NO REFUND PROVISION. IF THE ANNUITANT DIES THE REMAINING MONEY WILL BE RETAINED BY THE INSURANCE COMPANY.
REFUND LIFE ANNUITY - CORRECT ANSWER ENTITLE ANNUITANT TO RECEIVE INCOME FOR THE REST OF HIS/HER LIFE. IT ALSO GUARANTEES THAT, IF THE ANNUITANT DIES BEFORE RECEIVING PAYMENTS EQUIVALENT TO THE PREMIUMS PAYED INTO THE ACOUNT, THE ANNUITANTS BENEFICIARY WILL WILL RECEIVE A REFUND THAT US AT LEAST EQUAL TO THE PURCHASE PRICE OF THE ANNUITY.
JOINT LIFE ANNUITY - CORRECT ANSWER PROVIDES BENEFIT FOR TWO PEOPLE UNTIL THE DEATH OF THE FIRST.
JOINT SURVIVOR LIFE ANNUITY - CORRECT ANSWER PROVIDES BENEFITS UNTIL THE DEATH OF THE SECOND PERSON. HOWEVER UPON THE DEATH OF THE FIRST THE PAYMENTS/ BENEFIT MAY DECREASE.
FIXED ANNUITY PAYMENT - CORRECT ANSWER ADVANTAGE: KNOWS HOW MUCH WILL BE RECEIVED
DISADVANTAGE: IF ANNUITANT LIVES A LONG TIME, THE PAYMENT MAY NOT ENABLE HIM/HER TO KEEP UP WITH INFLATION.
VARIABLE ANNUITY PAYMENT - CORRECT ANSWER BASED ON EQUITY INVESTMENTS AND IS TIED TO THE PERFORMANCE OF THE STOCK MARKET.
ADVANTAGE: MOVES IN PARALLEL WITH INFLATION
DISADVANTAGE: DOES NOT GUARANTEE AN AMOUNT OF MONEY.
VARIABLE ANNUITIES - CORRECT ANSWER DESIGNED TO HELP PROTECT ANNUITANT AGAINST INFLATION BY INVESTING DEPOSIT FUNDS INTO EQUITY BASED SECURITIES.
FLUCTUATES IN ACCUMULATION PERIOD AND
ANNUITY PERIOD.
ACCUMULATION PERIOD - CORRECT ANSWER TIME IN WHICH ANNUITANT PAYS INTO THE ANNUITY
ANNUITY PERIOD - CORRECT ANSWER TIME IN WHICH THE ANNUITANT GETS HIS MONEY
CONCEALMENT - CORRECT ANSWER HIDING OR NOT REPORTING SOMETHING THAT CAN AFFECT THE TERMS.
2 WAYS TO DETERMINE LIFE INSURANCE - CORRECT ANSWER NEEDS APPROACH & HUMAN LIFE VALUE APPROACH
NEEDS APPROACH - CORRECT ANSWER DETERMINES FINANCIAL NEEDS AND OBJECTIVES AND WEIGHS THESE AGAINST THEIR EXISTING RESOURCES. (INCOME & ASSETS)
THE HUMAN VALUE APPROACH - CORRECT ANSWER CLIENTS EARNING POTENTIAL BASED ON AGE, PRESENT SALARY, PRESENT ANNUAL EXPENSES, AND MULTIPLYING THE RESULTS BY THE NUMBER OF YEARS THE CLIENT EXPECTS TO WORK BEFORE RETIREMENT.
(DOES NOT ADJUST FOR INCREASE IN WAGES OR STANDARD OF LIVING)
POLICY REPLACEMENT - CORRECT ANSWER TRANSACTION IN WHICH AN INSURER PROPOSES A NEW LIFE INSURANCE POLICY OR ANNUITY.
RIGHT TO RETURN - CORRECT ANSWER 60 YEARS OLD OR OLDER 30 DAYS
60 YEARS OLD OR YOUNGER 10 DAYS
NOTICE OF REPLACEMENT - CORRECT ANSWER MUST BE GIVEN TO ALL EXISTING INSURERS WITHIN: 60 BUSINESS DAYS AFTER RECEIVING THE LIST FROM THE APPLICANT
CROSS PURCHASE PLAN - CORRECT ANSWER AGREEMENT USUALLY USED BY A BUSINESS WITH ONLY TWO PARTNERS.
EACH PARTNER PURCHASES, OWNS, NAMES HIMSELF/HERSELF AS THE BENEFICIARY AND THE OTHER PARTNER AS THE INSURED.
KEY PERSON - CORRECT ANSWER AN OWNER, EXECUTIVE OR HIGHLY SKILLED EMPLOYEE WHO CONTRIBUTES SIGNIFICANTLY TO THE OPERATION, GROWTH OR SUCCESS OF THE CORPORATION.
IF THIS PERSON DIES THE CORPORATION FACES HARDSHIP AND ECONOMIC LOSS.
FREE LOOK (RETURN OF POLICY) - CORRECT ANSWER 30 DAYS
TORT - CORRECT ANSWER A LEGAL WRONG OTHER THAN A BREACH OF CONTRACT.
(I.E. INTENTIONAL OMMISSION, NEGLIGENCE)
MATERIAL INFORMATION - CORRECT ANSWER INFORMATION THAT WOULD PROBABLY INFLUENCE A PARTYS ASSESSMENT OF A PROPOSED CONTRACT.
TRANSACTING INSURANCE WITHOUT A LICENSE - CORRECT ANSWER GUILTY OF MISDEMEANOR
SUBJECT TO $50,000 FINE AND OR IMPRISONMENT FOR UP TO ONE YEAR IN COUNTY JAIL.
PRETEXT INTERVIEWS - CORRECT ANSWER INTERVIEWS TO GAIN CONFIDENTIAL INFORMATION ABOUT PROSPECTS OF CLIENTS.
THESE ARE ILLEGAL EXCEPT WHEN AN INSURER IS CONDUCTING A CLAIM INVESTIGATION FOR SUSPECTED CRIMINAL ACTIVITY.
CALIFORNIA INSURANCE CODE (CIC) - CORRECT ANSWER A COLLECTION OF LAWS ESTABLISHED BY STATE AND LEGISLATURE THAT SHAPE, GOVERN AND REGULATE THE BUSINESS OF TRANSACTING INSURANCE IN THE STATE OF CALIFORNIA.
THE CALIFORNIA STATE LEGISLATURE - CORRECT ANSWER WRITES AND AMENDS THE CALIFORNIA INSURANCE CODE BY PROPOSING NEW LEGISLATURE AND ENACTING AND PASSING NEW LAWS.
TO MODIFY CODE LEGISLATURE MUST PASS BILL TO THE GOVERNOR IF THE GOVERNOR DOES NOT RETURN THE BILL WITHIN 12-30 DAYS IT BECOMES A LAW.
COMMISSIONER OF INSURANCE - CORRECT ANSWER ELECTED BY THE CITIZENS OF CALIFORNIA.
COMMISSIONER IMPLEMENTS, MONITORS, AND ENFORCES THE CIC.
CALIFORNIA CODE OF REGULATIONS (CCR) - CORRECT ANSWER POLICIES ISSUED BY THE COMMISSIONER THAT DETAIL HOW THE CODE IS TO BE ADMINISTERED.
ILLEGAL INDUCEMENT - CORRECT ANSWER GIVING A GIFT OF MORE THAN $25 TO INDUCE A PROSPECT TO BUY A POLICY.
ESTATE PLANNING - CORRECT ANSWER PROCESS OF PLANNING, BEFORE SOMEONE DIES, HOW HIS/HER ESTATE WILL BE PRESERVED.
THE LAW OF DIMINISHING RESPONSIBILITY - CORRECT ANSWER HELPS DETERMINE THE TYPE OF LIFE INSURANCE.
(I.E. PERSON WITH YOUNG CHILDREN HAVE A BREADWINNER RESPONSIBILITY IF THEY PASS.
AN OLDER PERSON HAS A VERY LOW FINANCIAL RESPONSIBILITY LOOKING MORE FOR A RETIREMENT PLAN)
EXPRESSED WARRANTY - CORRECT ANSWER MUST BE SPECIFICALLY STATED IN THE POLICY OR IF ANOTHER INSTRUMENT CONTAINS THE INFORMATION IT MUST REFERENCE THE POLICY.
IMPLIED WARRANTY - CORRECT ANSWER REPRESENTATION IN AN INSURANCE CONTRACT.
LOSS EXPOSURE - CORRECT ANSWER THE POTENTIAL FOR INCURRING A LOSS
UNDERWRITER - CORRECT ANSWER TECHNICIAN TRAINED IN THE PROCESS OF EVALUATING RISKS TO DETERMINING IF THEY WILL FALL WITHIN THE INSURERS UNDERWRITING GUIDELINES.
ADVERSE SELECTION - CORRECT ANSWER TENDENCY OF THOSE WHO ARE MOST IN NEED OF INSURANCE TO APPLY
SPREAD OF RISK - CORRECT ANSWER A WAY INSURANCE COMPANIES MANAGE AND ATTEMPT TO DISTRIBUTE RISKS IN A PROFITABLE WAY.
AVOIDANCE - CORRECT ANSWER SOME RISK CARRY TOO MUCH LOSS EXPOSURE FOR INSURERS, SO THEY AVOID THEM.
FIELD UNDERWRITING - CORRECT ANSWER SCREENING PROCESS (PROSPECTING) EVALUATING AND QUALIFYING PROSPECTS.
VALUABLE CONSIDERATION - CORRECT ANSWER EXCHANGE BETWEEN THE INSURED AND THE INSURER. FROM THE INSURED ITS THE PREMIUM AND FROM THE INSURER IS THE PROMISE TO PAY.
COMPETENT PARTIES - CORRECT ANSWER THE PARTIES TO THE CONTRACT MUST BE COMPETENT (I.E. SLUND MIND, FREE FROM INFLUENCES OF DRUGS/ALCOHOL LEGAL OR OTHER WISE, 16 YEARS OF AGE OR OLDER.)
ALEATORY - CORRECT ANSWER AN EQUAL VALUE IS NOT EXCHANGED
MORTGAGE REDEMTION INSURANCE - CORRECT ANSWER POLICY WRITTEN TO PROTECT THE OUTSTANDING BALANCE OF THE LOAN.
CREDIT DISABILITY COVERAGE - CORRECT ANSWER NO DEATH BENEFIT. USED TO PROTECT THE INSURED IF HE/SHE BECOMES DISABLED AND CAN NO LONGER PAY THE PREMIUMS THIS WILL PAY THE PREMIUMS.
FAMILY MAINTENANCE - CORRECT ANSWER PROVIDES INCOME BENEFIT AND DEATH BENEFIT
FAMILY PROTECTION POLICY - CORRECT ANSWER POLICY THAT OFERS PROTECTION FOR THE ENTIRE FAMILY
INCONTESTABLILITY CLAUSE - CORRECT ANSWER A COMPANY CANNOT CONTEST THE VALIDITY OF A POLICY AFTER IT HAS BEEN IN FORCE FOR A PERIOD OF TWO YEARS IN CALIFORNIA, EXCEPT FOR NON PAYMENT OF PREMIUM, SUICIDE, CONDITIONS RELATING TO MILITARY OR NAVAL SERVICE IN TIME OF WAR.
PREMIUM - CORRECT ANSWER MONEY PAID TO AN INSURER FOR INSURANCE COVERAGE.
LAPSE - CORRECT ANSWER WHEN PREMIUM IS NOT PAID BY THE END OF THE GRACE PERIOD IT WILL LAPSE.
REISTATMENT - CORRECT ANSWER RE ACTIVATE THE POLICY AFTER IT LAPSES WITHIN A SPECIFIC PERIOD OF TIME. USUALLY THREE YEARS.
RESTRICTIONS OR EXCLUSIONS - CORRECT ANSWER CERTAIN THINGS THAT HAVE A HIGH RISH THAT ARE NOT COVERED BY THE INSURANCE POLICY.
WAR EXCLUSION - CORRECT ANSWER IF THE INSURED IS KILLED WHILE AT WAR OR IN THE MILITARY, THE INSURER WILL BE LIABLE FOR EITHER THE PAID PREMIUMS OR THE CASH VALUE OF THE POLICY, WHICHEVER IS GREATER.
NON FORFEITURE PROVISIONS - CORRECT ANSWER PROTECT INSURED FROM HAVING TO FORFEIT(LOSE) THE CASH VALUE OF A POLICY FOR NONPAYMENT OF PREMIUMS WHEN THE POLICY HAS BEEN IN FORCE AND PAID FOR A CERTAIN PERIOD OF TIME.
CREDITORS RIGHTS - CORRECT ANSWER GIVES BENEFICIARY THE RIGHT TO SUE THE INSURER IF THE DEATH BENEFITS ARE NOT PAID UPON THE PRESENTATION OF THE DEATH CERTIFICATE. POLICY OWNERS CREDITORS HAVE NO RIGHTS TO THE FUNDS.
COMMON DISASTER CLAUSE - CORRECT ANSWER PROTECTS THE CONTINGENT BENEFICIARIES BY PRESUMING THAT THE INSURED WAS THE LAST PERSON TO DIE WHEN BOTH THE INSURED AND PRIMARY BENEFICIARIES DIE IN A COMMON DISASTER, AND DEATH CANNOT BE DETERMINED.
LUMP SUM - CORRECT ANSWER SINGLE CASH PAYMENT TO THE BENEFICIARY(S)
DISABILITY INCOME - CORRECT ANSWER INSURANCE THAT PROVIDES PAYMENTS TO REPLACE INCOME WHEN AN INSURED IS UNABLE TO WORK BECAUSE OF SICKNESS OR INJURY.
CUSTODIAL CARE - CORRECT ANSWER CARE GIVEN TO MEET DAILY PERSONAL NEEDS, SUCH AS BATHING, DRESSING OR EATING.
INTERMEDIATE CARE - CORRECT ANSWER REHABILITATIVE TREATMENT. NO 24 HOUR SUPERVISION
SKILLED NURSING HOME CARE - CORRECT ANSWER NURSING HOME CARE. 24 HOURS A DAY
DEDUCTIBLE - CORRECT ANSWER PORTION PAYED BY INSURED BEFORE BENEFITS BEGIN
PRE EXISTING CONDITION - CORRECT ANSWER A CONDITION WHICH THE INSURED RECEIVE ADVICE, DIAGNOSIS, OR TREATMENT IN THE SIX MONTH PERIOD PRIOR TO THE ISSUANCE OF THE POLICY.
GENERAL ACCOUNT - CORRECT ANSWER NON PARTICIPATING IN THE STOCK MARKET. (I.E MONEY MARKET)
SEPARATE ACCOUNT - CORRECT ANSWER PARTICIPATING IN THE STOCK MARKET.
CALIFORNIA LIFE AND HEALTH GUARANTEE ASSOCIATION - CORRECT ANSWER TO PROTECT LIFE AND HEALTH POLICY HOLDERS AND/OR INSURERS WHEN A MEMBER INSURERS BECOME INSOLVENT.
SURETY INSURANCE - CORRECT ANSWER SPECIAL NEEDS INSURANCE FOR HIGH PROFILE CASES. (I.E. A MOVIE COMPANY PURCHASES IT FOR FINANCIAL LOSES IN CASES OF ILLNESS OF ONE OF THEIR ACTORS) [Show Less]