1. Insurance agent licenses expire:
a. Annually on March 31st
b. Every two years on December 31st
c. Every two years on June 30th
d. Every two years on the agent’s birthday

2. Which of the following statements regarding licenses is correct?:
a. An application for a nonresident license MUST pass the NY licensing exam.
b. A temporary license may be issued to a deceased agent’s executor for a renewable term of 90 days.
c. A nonresident can automatically transfer her resident license to New York providing the Superintendent with a Certificate of Appointment.
d. An agent’s license is also called a Certificate of Authority.

3. The Superintendant of insurance has the power to do all of the following EXCEPT:
a. Exam insurance company books & records.
b. Update the insurance code.
c. Issue cease and desist orders.
d. Examine individuals under oath at hearings.

4. Which of the following would be considered unfair discrimination?
a. Charging a higher health insurance premium based on an applicant’s age.
b. Charging men more than women for an identical life insurance policy if they are the same age.
c. Charging different premiums to two individuals in the same risk class.
d. Charging the same premium regardless of one’s country of origin.

5. Controlled business refers to:
a. Policies that are underwritten by the writing agent or broker.
b. Insurance business written by an agent in himself or a family member.
c. Policies that are controlled by the insurer.
d. Insurance business which generates both commissions and renewable for an agent.

6. Rebating may best describe the act of:
a. Providing an illegal financial inducement to purchase insurance.
b. Providing an experience discount for groups purchasing insurance.
c. Good customer service to help prevent replacements.
d. Charging a premium greater than the standard rate.

7. Which of the following statements is true regarding the Fair Credit Reporting Act?:
a. It prohibits insurance companies from obtaining credit reports.
b. It gives consumers the right to question reports made about them by investigative agencies.
c. It protects credit companies from unfair competition.
d. It requires insurers to provide a detailed credit report at the customer’s request.

8. With regard to insurance, risk can be defined as:
a. Certainty regarding loss.
b. Uncertainty regarding loss.
c. Uncertainty regarding financial gain
d. Certainty regarding financial gain

9. Aaron owns a single-family home. In the middle of a thunderstorm, the house is struck by lightning. The lightning ignites a fire, which burns the house to the ground, resulting in a $300,000 loss.
a. In this scenario the lighting is considered a peril.
b. In this scenario, the fire is considered a risk.
c. In this scenario, the fire is considered a loss.
d. In this scenario, the lighting is considered a hazard.

10. By definition, a certificate of authority is necessary in order to consider a/an __________
a. Admitted insurance company
b. Excess insurance company
c. Domestic insurance company
d. Reciprocal insurance company

11. When agents act on behalf of insurers, they are acting under which legal principle?
a. Reasonable expectations
b. Agency
c. Estoppels
d. Utmost good faith

12. A(n) _________ is a contract in which both parties enter the agreement with the realization that one or the other of them may obtain benefits of greater value than the other party under the terms of the agreement:
a. Aleatory Contract
b. Bilateral Contract
c. Unilateral Contract
d. Contract of Adhesion

13. The giving up of a known legal right is called
a. Risk transfer
b. Estoppels
c. Waiver
d. A unilateral contract

14. A _____________ is a publicly owned company:
a. Stock insurer
b. Mutual insurer
c. Fraternal insurer
d. Risk retention group

15. __________ describes the authority granted to an agent under the terms of his appointment contract:
a. Implied authority
b. Express authority
c. Apparent authority
d. Contractual authority

16. Insurable interest must exist between the:
a. Insurer and the beneficiary at the time of application
b. Policy owner and the insured at the time of loss
c. Policy owner and the beneficiary at the time of loss
d. Policy owner and the insured at the time of application
17. Which of the following statements best describes the concept of insurable interest?
a. The economic loss one experiences at the death of another individual
b. The financial interest evidenced by one’s investment in a viatical settlement
c. The emotional pain and suffering one feels at the death of someone else with whom one has had a long relationship
d. The ability to meet the criteria of insurability when interested in applying for insurance

18. What type of policy would best be used to cover a 30-yr. mortgage?:
a. 30-year decreasing term
b. 30-year level term
c. 30-year life
d. 30-year endowment

19. At age 39, Erin has just purchased a continuous premium whole life policy. Which of the following statements is true?
a. Erin can use the cash value as collateral for her current outstanding loans
b. Erin can borrow against the cash value for a down payment on a car she plans to buy next tear.
c. Erin can tale a partial withdrawal of cash values to pay for unexpected emergencies.
d. Erin can use the cash value to help fund her retirement at the age of 65

20. All of the following are usually included in a final expense fund when determining life insurance needs of a family EXCEPT:
a. Last illness and funeral costs
b. Outstanding debts
c. Funds to pay off marriage
d. Unpaid federal and state taxes

21. The method for determining the amount of life insurance an individual or family should have based on the present value on the future earnings of the breadwinner is known as the:
a. Needs approach
b. Capital retention approach
c. Human life approach
d. Present value approach

22. Eloise and Abeland jointly own an internet matching service. Each of them owns 50% of the business. In the interest of the partnership, they desire to set up a buy-sell agreement. The easiest method would be to use a(n):
a. An entity plan
b. A cross purchase plan
c. A common disaster plan
d. A key executive life plan

23. Which of the following is a factor in determining the amount of key person life insurance purchased?:
a. The amount the employer would need to pay in order to find and train a replacement.
b. The amount the employer already pays toward the employee’s retirement plan.
c. The amount of employer-paid group life insurance that already is provided to the employee.
d. None of the above

24. Which of the following policies would provide the greatest amount of protection during a time in which an insured will have limited resources?:
a. Term
b. Whole life
c. Annuity
d. Endowment

25. Which of the following statements regarding annuities is correct?:
a. The owner of a variable annuity directs premiums into the separate account(s) of his choice.
b. Fixed annuity premiums are held in one or more separate accounts
c. Variable annuities are invested in the general account of the insurer
d. The SEC, NASD and state insurance department jointly regulate general account annuities

26. The formula “mortality minus interest” best describes
a. The annual premium mode
b. An annual gross premium
c. A single net premium
d. The monthly modal charge

27. The _____________ mode is considered to be the least expensive mode of premium payment:
a. Annual
b. Semi-annual
c. Quarterly
d. Monthly

28. Cherise filled an application for life insurance on February 22nd. At the time of the application, Cherise paid the initial premium and was issued a conditional receipt. She had her physical exam on February 26th and passed. Her application was approved on March 12th, and delivered on March 23rd. what is the effective date of her policy?
a. February 22nd
b. February 26th
c. March 12th
d. March 23rd

29. Replacement life insurance policies require a free look period of:
a. 10 days
b. 20 days
c. 30 days
d. 60 days

30. A buyer’s guide must be given to an applicant for life insurance:
a. No later than the date of delivery
b. Prior to the end of the free look period
c. Prior to or at the time the application is taken
d. Only if the client is replacing another policy

31. Which of the following individuals has the best chance of obtaining life insurance coverage at standard premium rates?:
a. A librarian who is overweight
b. A skin diver working in shark infested waters
c. A heavy equipment salesperson
d. An undercover narcotics officer

32. All of the following statements regarding the Medical Information Bureau are true EXCEPT:
a. The MIB information is accessible to consumers upon request
b. The MIB maintains a copy of all physical records related to the applicant
c. The MIB is an inter-company database used to detect fraud
d. Insurers cannot decline coverage solely on the basis of an MIB report

33. Which of the following statements regarding decreasing insurance is true?
a. The face amount decreases and the premium stable over time.
b. The face amount and the premium decrease over time
c. The face amount is stable, and the premium decreases over time
d. The face amount and the term of the coverage decrease over time
34. Basil, age 30, purchases a 35- Pay Life insurance policy. At what age will the cash value equal the face amount?
a. 100
b. 65
c. 35
d. 30
35. All of the elements of an adjustable life policy are adjustable EXCEPT:
a. Face amount
b. Premium
c. Cash value
d. Policy loan rate

Lighting is your Friend!

I don’t know if architecture school did this to me or not, but I love adding light to a space. Most of my clients on the other hand are seemingly more interested in over abundant natural light. I don’t know if this is a product of living in cities, where there are buildings that block out natural light, or a product of reading too many better home and garden type magazines and seeing pictures of unnaturally lit spaces, but I find it interesting people’s fascination with a space with overwhelming amounts of natural light. It sort of feels to me like they’re kicking the apartment’s tires, trying desperately to find some yardstick by which to measure apartments.

Don’t misunderstand me, I’m in no way faulting people for their quest for a well lit space.

I know how wonderful natural light is, I just find it funny that people are seemingly SO opposed to a space needing artificial light. Maybe it’s because it’s so hard for most people to envision how to design a space, or because they don’t want to have to spend the time, or money or any number of other potential reasons. Like I said, it just seems a weird sticking point for something that most people don’t see during the day… and only come to at night, when it’s dark outside.

I wanted to write this because of a client I had recently who surprised when she described the lighting she had in her apartment. I have been telling everyone who would listen to use up lights in a space. http://www.wisegeek.com/what-are-up-lights.htm if you want a space to feel bigger or have higher ceilings, this is your one stop shop!

While she uses murano directional lights to wash the ceiling, http://www.muranoimports.com/ and that’s probably not the cheapest solution, but I think she’s on the track everyone else should be, pardon the pun… So, if you take nothing else from this blog, remember this: artificial lights are you’re friend! And don’t forget, these lights shouldn’t be over used… you can have too much of a good thing!

An Open Letter To My Readers:

I started this blog to try and make real estate (re) more interesting. It’s my hope I can show people why they should want to involve themselves more in a world that has brought me and others so much anguish and joy.

Now, I’m not delusional, re is most often a topic that people HATE thinking about, let alone talking about. It’s expensive, confusing, and most people in this business are annoying and always in your face. I don’t want to post ads for apartments and I don’t want my face on a bus stop reminding you “Joseph Cizmar sells property”. These days it seems like traditional advertising is less and less effective, so I’ll save my breath.

It’s my opinion that people don’t know enough about the reality that is the business of re and that disjunction is the root of many misunderstandings and bad experiences. Re is always in a state of flux and most people, even professionals, realize what’s going on long enough to figure out that they have to do something new. There are a lot of emotions wrapped up in any re transaction. There is usually quite a bit of money involved, and FYI, if your deal goes smoothly, you’re probably getting ripped off!

So, in the spirit of discovery… Let’s see where this goes!

Many of the things I post may not seem directly related to re, but I hope to convey the reality that the RE world and your life, or your job, or pretty much everything may have more similarities than one might think… Please feel free to let me know what you think! So read, tell me when I’m wrong, when I’m right, or just think, and hopefully, if I’ve done my job, re won’t seem like such a foreign or scary thing when I’m done!