California Life Practice Exam A Flashcards

Flashcards based on California Life Practice Exam A covering concepts such as single premium deferred annuities, the human life value approach, policy replacement notices, risk definitions, and the Medical Information Bureau.

What is an annuity called that is purchased with a lump sum premium and whose benefits begin after 12 months?

Single premium deferred annuity

What technique is used to determine the amount of life insurance needed by focusing on the projected earning potential of an insured?

Human life value approach

When replacing a policy, when must the producer present the applicant with a Notice Regarding Replacement of Life Insurance?

At the time of taking the application

The possibility of a financial loss incurred by a life insurance company for the premature death of an insured is known as what?

Risk

What does the Medical Information Bureau (MIB) maintain?

Medical information on applicants for life and health insurance