Life Insurance Exam Preparation by Sarah Smith

Jul 25, 2024

Life Insurance Exam Preparation by Sarah Smith

Introduction and Background

  • Presenter: Sarah Smith, licensed life insurance agent in California
  • Purpose: Teach how to pass the Life Insurance exam
  • Audience: General with a few California-specific points
  • Teaching Method: Series of YouTube videos with 25 questions each
  • Total Videos: 8 videos
  • Personal Background: Took the insurance exam and real estate exam, passed on first try with 94%
  • Resources: Vocabulary Quizlet link provided
  • Test-Taking Tip: Secret tip to alleviate test anxiety shared in the last video

Vocabulary

  • Importance: Knowing vocab is key to answer questions effectively
  • Resource: Link to Quizlet with all vocab words

Key Points from Questions

  1. Decreasing Term Insurance: Designed to pay off mortgage loan balance if the insured dies within the mortgage period
  2. Loss Exposure: Situations that have the potential for loss (e.g., car accidents)
  3. Currently Insured (Social Security): Requires 6 quarters of coverage during the last 13 quarters
  4. Insurance Company Authorized in California: Admitted
  5. Insurance Solicitor: Helps an agent or broker sell insurance
  6. Risk Definition: Potential for loss, exposure to danger; not the cause of a loss
  7. Variable Life Insurance: Policy where insured can choose where cash value is invested
  8. Legal Contract Requirements:
    • Legal Purpose
    • Competent Parties
    • Consideration
    • Offer and Acceptance
    • Note: Equal consideration is NOT required
  9. Representation Alteration: Can be altered or withdrawn before the insurance is in effect
  10. Unwillfully Committing Unfair Competition in California: Maximum penalty is $5,000
  11. Conversion of Group Term Life Insurance: Called conversion privilege
  12. Contributory Group Insurance Plan: Part of the premium is paid by the employee
  13. Federal Offense for Insurance Agents: Misrepresentation on an insurance application is NOT a federal offense
  14. Extended Term Insurance Option Expires: Protection ends
  15. Insurance Policy (California): Defined as a written contract
  16. Grace Period: Prevents unintentional lapse of the contract
  17. Endowment Policy: Pays face amount if insured is still alive at the end of the specified period
  18. Irrevocable Beneficiary Designation: Requires beneficiary’s signature to change the beneficiary
  19. Guaranteed Lifetime Withdrawal Benefit: Guarantees annuitant will not outlive benefits
  20. Life Settlement Broker: Represents an individual wanting to sell their life policy to a third party
  21. ERISA (1974): Regulates disclosure and reporting in group health insurance
  22. Guaranteed Issue Insurance Policy: Does not require medical underwriting
  23. Living Benefit Option in Life Insurance: Accelerated death benefit
  24. State-Eligible Insurer in California: Admitted carrier

Conclusion

  • Seek additional parts: Videos 2-8 cover more questions
  • Encouragement: Aim to pass on the first try just like Sarah