CALIFORNIA LIFE AGENT

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ilyngirl52
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229756
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CALIFORNIA LIFE AGENT
Updated:
2013-08-14 12:47:02
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California life agent insurance key facts
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Study guide for Health & Life insurance
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  1. On a replacing long term care policy, the commission will be calculated based on the difference between the ______ _______ of the replacement policy and the _________ ______.
    • annual premium
    • original policy
  2. An agent, broker, or other person who contacts a consumer as a result of receiving information generated by a cold lead device, shall immediately
    disclose that fact to the consumer.
  3. Under Part A of Medicare, it is the ________ who submits the claim.
    Provider
  4. Adult day care coverage in a ____ ____ ____ policy will cover part-time care in a facility for a person who lives at home.
    Long Term Care
  5. A group contract is between the _______ and the ________.
    • insurer
    • employer
  6. A Keogh plan is a __________ plan for those who are self employed.
    retirement
  7. An "Illustration" is a presentation or depiction that includes ___-__________ ________ of a policy of the life insurance over a period of years.
    non-guaranteed elements
  8. In a life insurance policy illustration, "non-guaranteed elements" means the p_______, b_______, v_____, c______, or c______ under a policy of life insurance that are not guaranteed or not determined at issue.
    premiums, benefits, values, credits, or charges
  9. A _____ __________ buy/sell agreement facilitates the purchase of a deceased shareholder's shares from the shareholder's heirs by a corporation.
    A stock redemption
  10. A widow or widower without children would be eligible for Social Security survivors benefits at age
    60
  11. If a senior has purchased an annuity which is invested in a mutual fund and they cancel during the free look, the CIC requires they be
    refunded the value of the account.
  12. Medicare will send out a Medicare Summary Notice (previously known as the Explanation of Medicare Benefits) each quarter which details the services that were provided under Part A and B if they were covered, and how much they were covered for. The Medicare Summary Notice is not a bill. Money due will be
    billed directly by the provider who performed the services.
  13. Every Qualified Long Term Care policy sold in California must state the following on the first page of the policy. "This contract for long-term care insurance is intended to be a federally qualified long-term care insurance contract and
    may qualify you for federal and state tax benefits."
  14. The free look notice for seniors must be printed in no less than 10-point uppercase type, on the
    cover page of the policy or certificate and the outline of coverage.
  15. A collateral assignment can be utilized to obtain
    a loan.
  16. If a policy loan is outstanding when the insured dies and the beneficiary selects the fixed period settlement option, the outstanding loan will effect the
    amount of the payments received, NOT the length they are received for.
  17. An ______ _______ _______ has a fixed minimum interest rate, and the chance to get a higher rate of return like that of the stock market.
    equity indexed annuity
  18. A ________ _________ ________ has a 10% IRS early withdrawal penalty.
    Modified Endowment Contract
  19. The agent's commission comes from the insurer expenses portion of the premium charged.
  20. Life Life Insurance policy illustration regulations were NOT created to eliminate disclosure.
  21. The CIC defines Insurance as a contract whereby one undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event.
  22. An outline of coverage shall be delivered to a prospective applicant for long-term care insurance at the time of initial solicitation.
  23. A joint life policy covers multiple lives and pays out when the first insured dies.
  24. In addition to completing the pre-licensing requirement Life Agent, Fire & Casualty broker-agents and Personal Lines agents must also complete a 12-hour Ethics and Code course.
  25. In a non-contributory group disability income policy any policy benefits paid would be included in the employee's gross income (be taxable).
  26. If an insurance agent hires a website designer to create a website, it is the insurance agent who is responsible for the content of the website.
  27. The "_________ _____" is the formula used to determine the amount of annuity distribution which is taxable.
    "exclusion ratio"
  28. The _______ can change the beneficiary anytime if they are revocable.
    insured
  29. Coordination of benefits is a provision which would prevent a family from collecting for the same loss twice in a group plan.
  30. A representation may be altered or withdrawn before the insurance is effected, but not afterwards.
  31. With regard to long-term care insurance, all insurers, brokers, agents, and others engaged in the business of insurance owe a policyholder or a prospective policyholder a duty of honesty, and a duty of good faith and fair dealing.
  32. If the premium for a group disability income policy is fully paid by the employee benefits would be excluded from the employee's gross income (not taxable).
  33. In life insurance insurable interest must exist when a policy is first issued.
  34. In life insurance, the measure of liability is the sum or sums payable as provided in the policy to the person entitled thereto.
  35. The Insurance Commissioner shall be elected by the people in the same time, place, and manner as the Governor.
  36. Under the CIC all advertisements, policies, and certificates of term life insurance sold to those age 55 and older must include a term life insurance monetary value index, which is similar to the Life Insurance Surrender Cost Index. In developing a term life insurance monetary value index, the commissioner shall consider actual premiums and policy and certificate benefits and the manner in which they are affected with the passage of time. Any term life insurance monetary value index developed pursuant to this section shall assume an insured's desire to retain coverage for at least 10 years.
  37. Term life insurance directed to individuals 55 years of age or older must prominently disclose any change in premium resulting from the aging of the insured, policy duration, or any other factor. If the insurer retains any right to modify premiums in the future, that fact shall also be disclosed.
  38. The Social Security Blackout period is a period of time when surviving family members are NOT eligible for Social Security survivors benefits (survivors benefits stop during this period).
  39. The Social Security Blackout period begins when the youngest child reaches age 16.
  40. The Social Security Blackout period ends when the surviving spouse reaches 60.
  41. Social Security full retirement age is based upon the year in which you were born.
  42. Retirement benefits under Social Security are only available to workers who are fully insured.
  43. An Employee Stock Ownership Program (ESOP) is a qualified, defined contribution, employee benefit plan designed to invest primarily in the stock of the sponsoring employer.
  44. a profit sharing plan is a plan that gives employees a share in the profits of the company. Each employee  receives a percentage of those profits based on the company's earnings.
  45. A speculative risk is a risk situation that includes a chance of loss and a potential for gain. Speculative risks are not insurable.
  46. The premium is the amount the insured pays the insurer for the coverage provided. 
  47. The Law of Large Numbers states the more similar risks the insurance company combines together the better they can guess approximately how many losses they will have in a given time period. 
  48. The Doctrine of Utmost Good Faith allows each party to rely on the representations made by the other party.
  49. Life insurance companies are required to give the policyholder a minimum 10 day free look, unless the policyholder is age 60 or older in which case they are considered a senior citizen and must receive a 30 day minimum free look.
  50. In order to transact insurance (sell insurance) agents must hold at least one insurer appointment. 
  51. A Tax Sheltered Annuity (TSA or 403-B) is a qualified plan created for public school employees and non-profits.
  52. Roth IRAs have non-deductible contributions.
  53. Annuity death benefits are NOT tax deductible or tax free. Life insurance death benefits are tax free however annuities are not life insurance. The beneficiary of an annuity death benefit would have to pay ordinary income tax on any amount they receive over and above the cost basis (amount invested) of the annuity owner.
  54. Divorce is a qualifying event under COBRA which will allow the employee to apply to continue their coverage under the group plan.
  55. The Consolidated Omnibus Reconciliation Act (COBRA) requires employers with  20 or more employees offer health insurance continuation to employees and employees dependents who become ineligible for coverage due to a qualifying event. If the employee elects continuation they are responsible for paying the full premium for coverage and can only continue their coverage under the group plan for a limited period of time.
  56. If a daughter needs a break from caring for her father her father may have coverage in his Long Term Care policy that would pay for a caregiver to come in to give her a break. The coverage is called respite care. 
  57. An individual who needs terminal ill care would find this coverage provided in their Long Term Care policy as hospice care.
  58. Long Term Care policies are underwritten on the applicant's ability to care for themselves (Activities of Daily Living), such as eating, bathing, and transferring (moving around). 
  59. There are three types of ordinary life insurance that you can remember using the acronym W-E-T (Whole Life, Endowment, Term) Group insurance is not a type of ordinary life insurance. 
  60. The insurance applicant is the individual who is applying to purchase insurance.
  61. Each authorized insurer is required to establish a division within the insurer to investigate fraudulent claims.
  62. Claims forms are required to include the following statement related to fraudulent claims. "Any person who knowingly presents a false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison"
  63. The waiting period included in disability income policies is also known as the elimination period.
  64. The period of time (30 days, 60 days, 90 days, or 180 days) the insured is not eligible for benefits once they become disabled is known as the waiting period.
  65. An individual that has contributed to Social Security 6 of the last 13 quarters who becomes disabled is currently insured under the system.
  66. Bob works for Alpha insurance company and does things necessary to transact insurance that are not specified in his contract. This is referred to as implied authority.
  67. If an annuitant selects the 10 year period certain annuity payout option it guarantees if they die within the first 120 payments the remaining payments will be made to the beneficiary. However, the annuitant will be paid as long as they live. Which could be substantially longer than 10 years. 
  68. When an annuitant enters the payout period and annuitizes the contract the insurance company will spread their cost basis (amount invested) over their lifespan. For example, if an annuitant had invested $50,000 into the annuity (their cost basis) and the annuity account balance was now $100,000 then the annuitant annuitized and was to receive payments of $4,000 per year they would NOT have to pay tax on the first $2,000 they receive each year.
    How is this figured? First, divide the total amount ($100,0000) by $4,000 (the annual payments the annuitant will receive) to find out the annuitants projected lifespan (25 years). Then divide their cost basis ($50,000) by 25 years ($2,000). The first $2,000 of payments the annuitant receives each year for the first 25 years is a return of their cost basis and is not taxable. Any amount over the $2,000 they receive each year is taxable as ordinary income. What happens if they live longer than 25 years? The $4,000 per year will continue to be paid but will now be fully taxable since all of their cost basis has been returned to them.
  69. If you no longer hold any insurer appointments your license is considered to be inactive. 
  70. If an employer holds your license and wants to cancel it they are required to send written notice to the commissioner. 
  71. The Employees Retirement Income Security Act (ERISA) states that fiduciary pension plans were created for the benefit of plan participants and beneficiaries. 
  72. If a retirement plan includes a 7 year vesting schedule each employee must be vested 100% by the end of the 7th year. Vesting means ownership of employer contributions.
  73. An insurance company based in Utah that is selling California is a Foreign insurer in California.
  74. An insurance company that has enough reserves to pay for all its liabilities is referred to as a solvent insurer. 
  75. The state insurance guarantee fund provides protection to policyholders whose insurer becomes insolvent (financially impaired). This fund only covers member insurers (licensed insurance companies).
  76. If an applicant has had a professional license revoked in the past 5 years the insurance commissioner can deny their licensing application without a prior hearing. 
  77. The insurance company that purchases reinsurance is referred to as the primary insurer (aka ceding insurer).
  78. The waiver of premium rider will waive the insured's premium if the insured becomes disabled.
  79. A disability income rider that is added to a life insurance policy will pay a replacement of the insured's lost income if they become disabled.
  80. The Accidental Death Benefit rider will pay double the face amount if the insured dies in an accident, and is also known as double indemnity.
  81. An insured would name a contingent beneficiary to ensure where the policy proceeds will go if the primary beneficiary dies prior to the insured. 
  82. Extended term is a non-forfeiture option that provides a new term life insurance policy with the same face amount of coverage as the original policy. Extended term is not a settlement option.
  83. A Settlement Options can be pre-determined by the owner of the policy prior to their death, but is usually selected by the beneficiary upon the insured's death.
  84. Policies issued by Mutual insurers pay dividends to policyholders. The dividend option is selected by the policyholder on the insurance application.
  85. A non-participating policy owner will not receive dividends. Non-participating policies are issued by stock insurers. Stock insurers pay dividends to stockholders, not policyholders.
  86. Dividends are declared by the board of directors and cannot be gauranteed.
  87. The conversion feature allows an employee to go from group coverage to an individual policy.
  88. A family policy provides life insurance for an entire family and allows the children to convert from term to whole life coverage without a physical exam.
  89. A hospital confinement policy will pay a set amount per day if the insured is confined in the hospital.
  90. A corridor deductible applies in a major medical policy between the basic and excess coverage.
  91. Major Medical policies include a deductible, coinsurance, and a stop loss. First dollar coverage is NOT a feature of Major Medical.
  92. A capitation fee is a per head (capitation) fee that is paid to doctors that treat subscribers of HMO's. A capitation fee is NOT a feature of Major Medical.
  93. A stop loss is the maximum the insured would have to pay of the coinsurance.
  94. Coinsurance is a feature of mejor medical insurance and is defined as a sharing of the loss after the deductible has been satisfied. Coinsurance is usually expressed as a percentage sharing of the loss between the insurer and the insured, with the insurer paying the larger percentage, such as 90/10
  95. Co-payments are included in HMO and PPO plans and are a fixed amount the subscriber must pay when they go to the doctor.
  96. A gatekeeper (Primary Care Physician) cannot be a specialist, they must be a general practice doctor.
  97. If an employee wants to enroll without any restrictions they would enroll during the eligibility period (open enrollment period). 
  98. A group contract where the employer pays 100% of the premium is referred to as a non-contributory group plan.
  99. a Multiple Employer Trust is a trust that small employers join to purchase health insurance.
  100. If an individual increases their insurance policy limits they are NOT eliminating their risk, they are transferring more of their risk.
  101. Social Security has the hardest definition of total disability to meet.
  102. Medicare Part C does NOT cover prescription drugs. Medicare Part D covers prescription drugs.
  103. Medicare Part A provides coverage for the hospital services and is free to those eligible once they reach age 65.
  104. Medicare Part B is optional and if an eligible individual enrolls they must pay a monthly premium for the coverage. Part B of Medicare provides coverage for doctors services.
  105. Medicare supplement companies can offer whatever plans they wish as long as they offer at least Plan A. They are not required to offer all 12 plans (A-L).
  106. A specified disease policy is a policy that covers only certain dread diseases such as cancer insurance.
  107. Preferred risks receive the lowest premium charges as they pose the lowest risk to the insurer.
  108. An insurance binder always creates immediate coverage which is the main difference between a binder and a conditional receipt.
  109. The incontestability clause states that after a life insurance policy has been in effect for 2 years it becomes totally incontestable. This is very restrictive for the insurer and prevents them from contesting a claim for any reason after 2 years.
  110. Replacement is when you replace your customer's current policy with a new one and is NOT illegal. However, you would NOT replace your customer's policy if the new policy is worse and the premium is higher. This would be considered twisting and its illegal.
  111. A captive insurer is an insurer created by a corporation to insure its own risks.
  112. If a company decides to self insure this decision would not have any impact on claims severity.
  113. An occupational disability income policy provides coverage on and off the job.
  114. Workers Compensation laws require the employer to be responsible for employee injury on the job regardless of fault.
  115. The entire contract clause states the application is part of the contract if attached when issued.
  116. Under Social Security in order to receive total disability benefits the disability must be expected to last at least 12 months or end in death.
  117. Under Coordination of Benefits the coverage you have where you work is considered to be primary.
  118. HMO's stress preventative medicine.
  119. Some health insurance policies include deductibles. Deductibles are paid by the insured. The higher the deductible the lower the premium.
  120. A guaranteed renewable health insurance policies cannot be changed except by class.
  121. If an insured wants to sell their life insurance policy to an investor (viatical/life settlement) they can do so by requesting an absolute assignment.
  122. An absolute assignment is a permanent transfer of ownership rights.
  123. In CA Life only, Health only, Property only, and/or Casualty only insurance licensees must complete 24 hours of continuing education each license renewal period (2 years). The 24 hour per licensing period requirement is the same regardless of the number of licenses held.
  124. Agents who sell Long Term Care are required to complete Long Term Care specific continuing education within the core requirement, not in addition.
  125. Agents who sell Long Term Care are NOT required to take an exam on the topic every 10 years.
  126. an insurance company that is based in Canada and doing business in CA is a alien insurer.
  127. The doctrine of utmost good faith states that all parties to the contract can rely upon the statement of the other party.
  128. Concealment is when a party fails to communicate that which a party knows, and ought to communicate, so that the other party may make a sound decision.
  129. Employees that are covered under a group policy receive certificates of insurance as their proof of coverage.
  130. Purchasing life insurance to fund a buy/sell agreement is a business use of life insurance
    NOT a personal use.
  131. Key person life insurance is used by a business to protect themselves in case a
    valued employee dies. The death benefit would be paid to the company to hire
    and train a replacement.
  132. In a contributory group policy the premium is shared between the employer and employee. the employee contributes toward the premium.
  133. The disability income coverage under Social Security was created to provide a minimum floor of income in case of total disability. It was NOT created to provide a full replacement of lost income.
  134. Most workers contribute to Social Security through taxes levied
    on their earnings. Benefits are based on contributions, but are NOT equal to
    contributions.
  135. The underwriting division within the insurance company selects
    which risks the insurer will take on.
  136. Decreasing term life insurance (aka-mortgage redemption insurance) is often used to pay off an outstanding mortgage upon death of the
    borrower.
  137. If a payor benefit rider is added to a juvenile life policy it will waive the premium for the policy until the child reaches a certain age
    (often 21) if the parent dies.
  138. Variable insurance products are regulated by the state department of insurance and the Securities and Exchange Commission (SEC) since they are considered to meet the definition of a securities product.
  139. If a rider is added to a cash value life insurance policy the extra premium paid for the rider will NOT toward the cash value.
  140. If an insured purchases a cost of living rider this rider will automatically increase their policy limits tied to the consumer price index.
    However, if the policy limit increases, so will the underlying premium.
  141. The misstatement of age clause allows the insurance company to adjust the face amount at the time of death to what the premium the insured paid would have purchased them had they told the truth about their age when they purchased the policy.
  142. In California senior citizens are those age 60 and older. Senior citizens who buy life insurance are required to receive a 30 day minimum free look. People under age 60 who buy life insurance are required to receive a
    minimum 10 day free look.
  143. The common disaster clause applies when both the insured and primary beneficiary always dies first and protects the interest of the contingent beneficiary.
  144. The reduced paid-up non-forfeiture option will provide a new whole life policy with a reduced face amount of protection.
  145. A subscriber of an HMO could receive emergency medical attention without prior authorization of their primary care physician
    (gatekeeper).
  146. Health Maintenance Organizations are NOT required to provide coverage for prescriptions drugs.
  147. A morbidity table contains statistical data relating to the probability of a sickness or disability occurring. A mortality table contains
    statistical date relating to the probability of death.
  148. A period of time that excludes coverage for prior medical conditions that begins when a health insurance policy is brand new is known as a probationary period or pre-existing condition exclusion.
  149. Disability insurers have to eliminate applications that seem likely to have losses much more frequently or much more severely than what the insurer's rates anticipate. This is the underwriter's responsibility.
  150. The location of the group would NOT be a factor in determining premiums charged for group disability income.
  151. The any occupation definition in disability income states the insured must be unable to perform any job they are suited to do by prior
    training, experience or education.
  152. Intentional injuries are NOT covered by health insurance.
  153. The return of premium rider that can be added to a disability income policy will provide a return of a percentage of premiums paid at
    periodic intervals, provided the insured remains disabled.
  154. Under the California Insurance Code (CIC) life insurance agents CANNOT issue binders.
  155. If an organization terminates a key employee the organization will still be eligible to hold a license as their organization will be
    unaffected.
  156. If the insurance Commissioner issues a Notice of Seizure for documents and the agent fails to produce the documents they would be subject to up to 1 year in jail and/or a $1,000 fine.
  157. Agents who receive commission related to premium financing must keep their records for three years.
  158. Financial loss exposure is NOT one of the three major types of loss exposures.
  159. Hospice care is care for the terminally ill and is covered by most Long term Care policies. Hospice care would NOT cover costs associated
    with rehabilitation.
  160. There are six main Activities of Daily Living that trigger coverage on Long Term Care policies.
  161. If an agent issues a binder for a company they are not appointed by the commissioner can suspend or revoke the agent's license.
  162. Money invested in variable annuities is held in the insurance companies separate account.
  163. Upon the death of a licensed agent their license will terminate.
  164. Convalescence is NOT a level of care for which benefits are paid on a LTC policy.
  165. Under the CIC if an applicant enters a plea of "nolo contendere" they will be convicted. Nolo contendere is Latin for no contest.
  166. The spendthrift clause protects the policy proceeds from the creditors of the beneficiary. However, the spendthrift clause will not apply if the proceeds are paid out in a lump sum.
  167. An insurer organized in CA and selling in CA is considered to be a domestic insurer in CA.
  168. Mutual insurers are owned by ____________.
    policyholders
  169. When replacing a policy the agent is NOT required to send a copy of the replacement notice to the existing insurer. The new insurance company will provide notice to the existing insurer.
  170. ERISA is the Federal law that is designed to protect group plan participants, establish pension equality and mandate strict reporting and disclosure requirements.
  171. If an employee is injured while driving their own car while working their injuries would be covered by Workers Compensation.
  172. A person who is transacting insurance without a license is guilty of a misdemeanor.
  173. In order to remain financially solvent under the CIC an insurer must have enough assets to provide for its liabilities and for reinsurance for all outstanding risks and must also meet minimum requirements equal to their paid-in capital (value of company if liquidated).
  174. HMOs and PPOs are referred to as service providers since the doctors and hospitals get paid directly for those services provided.
  175. A movie company that is concerned about the financial loss they would incur in case of the illness of one of their starring actors would purchase miscellaneous insurance.
  176. In insurance terms a representation can be considered an implied warranty.
  177. If an agent is engaging in unfair methods of competition they are subject to penalties of no more than $5,000 for each act, not to exceed $10,000 if the act is judged to be willful.
  178. If the insurer discovers the insured has violated a material warranty they can rescind the contract (void the policy).
  179. An intentional concealment entitles the injured party the option to rescind the contract.
  180. Neither party to a contract of insurance is bound to communicate, even upon inquiry, information of his own judgment upon the matters in question.
  181. The Health Insurance Counseling and Advocacy Program (HICAP) does NOT sell insurance, nor endorse any particular carrier or product. HICAP provides free counseling to seniors on health insurance related issues.
  182. Providing free insurance coverage in connection with the sale of services saw an inducement for completing the transaction is NOT legal.
  183. When a premium is paid on a universal life policy the insurance company will subtract from it the mortality and general expenses then add the current interest and deposit it into the cash value.
  184. The very poor do NOT need Long Term Care as they would be eligible for similar coverage provided under Medi-Cal and the very rich would NOT need Long Term Care as if they needed the services they could afford to pay for it themselves.
  185. Part 1 of a Workers Compensation policy provides Workers Compensation coverages as required by state law (statutory coverage).
  186. Life insurance agents must keep records regarding policies sold in this state for a minimum of 5 years.
  187. The transplant donor benefit in a disability income policy considers the insured to be disabled if donating a body organ.
  188. The purpose of the rehabilitation provision in a disability income policy is to encourage a disabled insured to return to their original occupation.
  189. In order to determine the amount of premium an insured will pay, the insurer multiplies the rate by the number of exposure units purchased.
  190. Insurance agents are acting in a fiduciary capacity when they are handling their customer's premiums.
  191. Growth accumulating in a qualified plan is NOT currently taxable to the employee. It is taxable upon withdrawal.
  192. Employee benefit plans CANNOT self fund for life insurance benefits.
  193. The insurance policy is the written instrument in which the insurance contract is set forth.
  194. Life insurance agents are NOT required to keep records of printed material in general use which has been distributed by the insurer.
  195. The interest settlement option will allow only the death benefit earnings to be paid to the beneficiary.
  196. A defined contribution plan is a plan in which employers make specific contributions to an employee's retirement account.
  197. When an applicant reveals medical conditions that require more information the insurer will usually require an attending physicians report.
  198. An employee would be considered to be partially disabled when they are working part-time an receiving lost income under their long-term disability benefit.
  199. Under Section 770 of the CIC the insurance commissioner will usually issue a cease and desist order for a violation of more than one transaction if the violation dealt with loans on the security of real or personal property.
  200. The process whereby a mutual insurer becomes a stock company is called demutualization.
  201. Any situation that presents that possibility of a loss is known as a loss exposure.
  202. The beneficiary is NOT required to sign the application for insurance.
  203. The rate is the cost per exposure unit.
  204. The authorize the release of an attending physician's report, the applicant must sign a consent form.
  205. Members of the Medical Information Bureau are required to report medical impairments found during the underwriting process.
  206. The request for an attending physician's report must be accompanied by a copy of the signed authorization.
  207. Life insurance companies are members of the Medical Information Bureau.
  208. Agent records must be made available to the commissioner at any time.
  209. If an insured is found guilty of turning in a fraudulent claim they can face imprisonment and/or a $150,000 fine or twice the dollar amount of the fraudulent claim, whichever is greater. For example, if an insured turned in a fraudulent claim totaling $85,000 they would be fined $170,000.
  210. To meet the chronically ill trigger of a long term care policy, an individual must be unable to perform a minimum of 2 activities of daily living.
  211. The rules regarding life insurance policy illustrations are NOT intended to ensure that the illustration specify that non-guaranteed elements will continue unchanged for all years shown.
  212. If an insurer is inadvertently found guilty of unfair trade practices while issuing, renewing, and servicing a policy, the insurer could be prosecuted for 3 violations, one for each act.
  213. Group life insurance does NOT exclude accidental death.
  214. CA requires a minimum of 2 employees be covered in a group life contract.
  215. Life insurance creates an immediate estate upon the death of the insured in the death benefit will be paid to the beneficiary upon their death.
  216. Every insurer offering individual life insurance policies or annuities to senior citizens that use non-guaranteed elements in illustrations must provide a statement to that effect which must appear in bold print.
  217. Industrial life insurance is generally written with a death benefit of $2,000 or less.

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