1 .

A joint examination by the SEC, FINRA, and NASAA (the North American Securities Administrators Association investigated 'free lunch' seminars sponsored by 110 firms in states with large populations of retirees - including California. Their findings included that ___________ of these supposedly educational presentations were in fact sales pitches for various products. 100%

2 . Methods that an insurer may use to detect unsuitable recommendations include all the following except: Asking agents to report all unsuitable recommendations

3 . To ensure proper supervision and oversight of annuity sales by its producers, an insurer must maintain procedures for review of each recommendation _______________ issuance of an annuity that are designed to ensure there is a reasonable basis for the suitability of the recommendation. Prior to

4 . Under California Welfare and Institutions Code, at the time of the individual's application or redetermination for Medi-Cal, the department must inform the individual and his or her spouse that, by virtue of its provision of medical assistance for home and facility care to the individual, the state will, by operation of law, become a/an ____________________ of certain annuities. Remainder Beneficiary

5 . Which of the following is not a required suitability consideration when evaluating whether to recommend an annuity? Whether the customer has a diversified investment portfolio

6 . California Insurance Code Section 10509.914(a) requires an insurance producer to have __________________ to believe that a recommendation to purchase or exchange of an annuity product is suitable for the consumer based on certain information about the consumer. A reasonable basis

7 . __________________ means any attempt by the existing insurer or its agent to dissuade a policy owner from the replacement of existing life insurance or annuity. Conservation

8 . If an agent advertises an event as a seminar, workshop, class, informational meeting or similar terms, the words _________________ must immediately follow those terms in the same type size and style. And insurance sales presentation

9 . An insurer's supervision program must: All of these

10 . You and another agent meet with a senior in her home to attempt to sell her an annuity. After 30 minutes she asks you to leave. Which of the following is the correct action to take at that time? End the discussion and leave immediately

11 . Insurers whose business is being replaced normally attempt to conserve it. In such cases the existing insurer is required to give the contract owner a policy summary or ledger statement concerning the coverage being replaced within ____ days following notification of replacement. 20 Days

12 . All persons in the state of California who are younger than 60 are entitled to a free look period of between ___and ___ days. 10 and 30

13 . According to California regulations, the Free-Look notice must be typed in ____point, bold print with one inch of space on all sides. 12 point

14 . In order to share commissions or other compensation with an attorney, the agent must:

Be a member of the state bar

15 . When sales activities involving senior consumers take place, insurance producers must perform specific duties with respect to ________________. All of these responses

16 . California resident agents who sell annuities must complete _____ hours of training prior to soliciting individual customers and an additional ____ hours of training prior to each license renewal. 8, 4

17 . Advertising of annuities in California is also subject to Section 790 of the CIC which states that no person shall engage in any trade practice which is defined as, or determined to be, an unfair method of competition or an _____________________ act or practice in the business of insurance. Unfair or deceptive

18 . Agents who draft, deliver or interpret legal documents may be found to have engaged in: The unauthorized practice of law

19 . A person who meets with a senior in the senior's home to sell an annuity or life insurance is required to deliver a notice in writing to the senior no less than ___________and no more than ____________ prior to that individual's initial meeting in the senior's home. 24 hours, 14 days

20 . If Betty is subject to a period of ineligibility for medical assistance, it would cause her to be evicted from her nursing home and probably also endanger her life. The state would likely consider this situation to present a/an ________________ for Betty. Undue hardship

21 . The sale of life insurance or annuity where the insurer does not utilize an agent in the sale or delivery of the policy is known as: Direct response sales

22 . Terrence buys an annuity that will charge him if he cancels it or withdraws money in the first 10 years. Those fees are called: Surrender charges

23 . Timothy has violated California replacement statutes twice. His employing insurer can be subject to an administrative penalty for this second offense of between $30,000 and: $300,000

24 . Angela, a licensed insurance agent, calls Irving, age 81, to discuss annuities. She must tell him if she got his name through: A leads list

25 . On any advertisement, card, or illustration, California regulations require that the word insurance must appear in a type size that is at least as large as the largest telephone number shown. An agent violating this requirement may be liable for a fine of ____ for the first offense. $250

26 . An agent, Timothy, violates CIC Section 10509 on Replacements for a second time. The agent can be subject to an administrative penalty of between $5,000 and _________________. $50,000

27 . All items considered advertisements for insurance in CA must include the term ________________ in type no smaller than the largest indicated telephone number. Insurance

28 . Joe, Shelly, Dante and Miguel are all clients of Amy, a licensed insurance agent. They have all bought annuities and later and replaced those annuities though Amy. In each case, they marked on the application that the purchase was NOT a replacement. Which of the following statements is true? This pattern will show that Amy knew or should have known that they were replacements 29 . For purposes of Medi-Cal, with certain exceptions, an individual is not eligible for medical assistance for home and facility care if his or her equity interest in the principal residence exceeds what amount? $750,000

30 . If an agent is found to have engaged in the unauthorized practice of law, he may be required to All of the above

31 . Examples of an unnecessary replacement would include All of the above

32 . When an annuity producer makes an annuity recommendation he or she must meet the requirements of the annuity 'checklist' which may include any of the three following items EXCEPT:
A customer-signed statement that the customer will hold the agent and insurer harmless for any unsuitable recommendation

33 . Any advertisement or other device designed to produce leads based on a response from a potential insured which is directed towards persons age 65 or older shall prominently disclose that _________________ if that is the fact. An agent may contact the applicant

34 . Ben is a California licensed insurance agent. Under CIC Section 1726, any website advertising Ben uses must include All of the above

35 . An annuity sale to a senior that is supposed to help the senior qualify for MediCal assistance is prohibited, if the senior's purpose in purchasing the annuity is to affect Medi-Cal eligibility and: Any of these

36 . An agent sets up a meeting with a consumer under the guise of discussing longterm care needs. Halfway through, it becomes clear that his intent is to sell an annuity. This is an example of a/an: Bait and switch tactic

37 . In California, the free-look period for consumers over 60 years of age is: 30 days

38 . Under California insurance statutes, an elder is anyone residing in the state that is: 65 or older

39 . When a consumer is receiving long term care services under Medi-Cal, he or she is allowed to keep $35 per month in income under the state's designated 'maintenance need standard.' Grace receives $200 from a pension, $500 from Social Security, and $700 from an annuity each month. Her care costs $3,000 per month. What is she allowed to keep? The $35 allowance only

40 . The sale of an annuity to replace an existing annuity that requires payment of a surrender charge for the annuity that is being replaced, and that does not confer a substantial financial benefit over the life of the policy, is considered by California law to be a/an: Unnecessary replacement

41 . All advertisements used by agents, producers, brokers, solicitors, or other persons for a policy of an insurer must have written approval of _______________ before they may be used. The insurer

42 . Insurers and agents are not allowed to use marketing or tactics that falsely claim or imply a relationship with Any of these

43 . Anne is an agent for A. Beecee Insurance Co. She has heard she can make a lot of money selling equity indexed annuities, but customers are not interested in hearing her sales presentation. After reading about a technique on the internet, she starts telling seniors she calls that she is the 'California State Retirement Counselor' and is calling from the 'State Retiree Assistance Department.' She says she is calling because State records show unless the person acts right away, they will lose their Social Security benefits. This tactic of misleading sales practices is known as a/an: Pretext calling

44 . Illustrations and product-specific training materials alone are not sufficient to prepare an agent to fully understand an annuity contract. It is very important for the producer to obtain and thoroughly review ___________________ from different issuers with whom he or she is appointed in order to really understand the intricacies of different annuity contracts, their features, benefits, costs and limitations. Sample contracts and coverage outlines

45 . In the event of an annuity replacement, the replacing insurer must provide in the policy or in a separate written notice delivered with the policy that the applicant has a right to an unconditional refund of all premiums paid which right may be exercised within a period of _________ commencing from the date of delivery of the policy. 30 days

46 . Ted is an insurance agent. His business card must include which of the following in the same size type as any telephone number, address or fax number: His insurance license number

47 . In the event of an annuity replacement, the notice regarding replacement, the policy summary, the contract summary, ledger statements, and a replacement register must be maintained by: The replacing insurer

48 . A California resident may be eligible to receive nursing home benefits from Medi Cal if they: Fall below certain asset lines

49 . ______________means any transaction in which new life insurance or a new annuity is to be purchased, and it is known or should be known to the proposing agent, or to the proposing insurer if there is no agent, that by reason of that transaction, the existing life insurance or annuity has been or is to be lapsed, forfeited, surrendered, or otherwise terminated. Replacement

50 . Items such as business cards, letterhead and envelopes are considered: Advertising