Study guides, Class notes & Summaries

Life License Practice Test 2 - Questions and Answers An insurance contract must contain all of the following to be considered legally binding EXCEPT Beneficiary's consent. The four essential elements of all legal contracts are offer and acceptance; consideration; competent parties; and legal purpose. Equity indexed annuities Seek higher returns. Equity Indexed Annuities are not securities, but they invest on a relatively aggressive basis to aim for higher returns. Like a fixed annuity the Equ...

Life License Practice Test 1 - Questions and Answers Nonforfeiture values guarantee which of the following for the policyowner? That the cash value will not be lost. Because permanent life insurance policies have cash values, there are certain guarantees built into the policy that cannot be forfeited by the policyowner. Nonforfeiture values give the insured the right to the cash value even if the policy lapses or is surrendered. When Y applied for insurance and paid the initial premium on Augu...

Any transaction that involves purchasing a life insurance policy and terminating in existing policy is known as - Answer- Replacement According to the California insurance coat in which of the following classes of insurance can a binder not be issued - Answer- Life insurance An organization will seize to exist to an answer the eligible to hold a license for all of the following reasons except - Answer- Termineation of a key employee What does it mean if an agent's license is an active ...

Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe? A.) Unilateral B.) Conditional C.) Personal D.) Adhesion - Answer- Adhesion Which of the following is true regarding taxation of dividends in participating policies? A.) Dividends are not taxable B.) Dividends are taxable only after a certain amount is accumulated annually C) Dividends are taxable in some life insurance polici...