CA Life Insurance Exam CA Life

CA Life Insurance Exam CA Life Insurance Actual Latest Update Questions and Correct Answers Rated A+

What type of insurer uses a formal sharing agreement?

a) Stock insurers

b) Mutual insurers

c) Fraternal Benefit Societies

d) Reciprocal insurers -ANSWER-D

In the Social Security blackout period, the surviving spouse will not receive benefits until the age of

• 59 1/2.
• 60.
• 65.
• 70 1/2 -ANSWER-B

Which of the following is NOT a component of an insurance policy premium?

a) Insurer expenses

b) Investment return

c) Number of beneficiaries

d) Mortality cost -ANSWER-C

An insured intentionally did not disclose a material fact on an application for insurance. This would be considered

a) Misrepresentation.

b) Concealment.

c) Coercion.

d) Avoidance. -ANSWER-B

As an insurer's field underwriter, a producer has all of the following responsibilities EXCEPT

a) Issuing policies on behalf of the insurer.

b) Completing applications.

c) Soliciting insurance contracts.

d) Collecting premiums. -ANSWER-A

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

a) A term policy expires, and the insured buys another term life policy.

b) Term insurance is changed to a Whole Life policy.

c) A lapsed policy is reinstated within a specific timeframe.

d) A policy is reissued with a reduction in cash value. -ANSWER-D

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

a) Misrepresentation.

b) Twisting.

c) False financial statements.

d) Rebating. -ANSWER-A

At what point would an automatic premium loan be generated?

a) Upon the surrender of the policy

b) Following the grace period

c) Upon the insured's death

d) Once the policy is delivered -ANSWER-B

All of the following are true regarding the waiver of cost of insurance rider EXCEPT

a) The rider waives insurance costs in the event the insured becomes

disabled.

b) The rider is only applicable to universal life policies.

c) The rider cannot waive the cost of premiums that accumulate cash

value.

d) The rider expires when the insured reaches age 60. -ANSWER-D

All of the following are true of the Survivorship Life policy EXCEPT

a) It can insure more than 2 lives.

b) The premium is based on the age of each insured.

c) The death benefit is not paid until the last death.

d) The premium would be lower than in a joint life policy. -ANSWER-B

What are the continuing education requirements for agents who market long-term care insurance policies?

• 8 hours of long-term care specific education included in the regular

CE requirements

• 4 hours of long-term care education every year
• 4 hours of long-term care education every 4 years
• 8 hours of long-term care specific education in addition to the

regular CE requirements -ANSWER-A

If an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?

a) Within 3 months of issuing the policy

b) Within 30 days of issuing the policy

c) At any time within the incontestable period

d) Never; the insurer has waived its right to those answers by issuing

the policy -ANSWER-D

Which of the following is true regarding pure life annuity settlement option?

a) It guarantees income for a specified period of time.

b) It provides the highest monthly benefit.

c) It guarantees that all the proceeds will be paid out.

d) The beneficiary will receive a refund of the principal. -ANSWER-B

Which of the following is a correct statement about annuities?

a) Variable annuities provide minimum guaranteed rate of interest.

b) Variable annuities place the funds into the company's general

account.

c) Fixed annuities have the annuitant assume the risks of investment.

d) Fixed annuities do not provide protection against inflation. -

ANSWER-D

Which of the following is NOT a characteristic of variable insurance and annuities?

a) Cash value is adjusted for inflation.

b) Benefits are determined solely based on the policy premium.

c) Cash value accumulates based on the performance of stocks.

d) Benefits are not guaranteed. -ANSWER-B

Where are premiums from fixed annuities invested?

a) A hedge fund

b) A separate account

c) A general account

d) A variable annuity -ANSWER-C

A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount of premium paid exceeds the amount that would have provided paid-up insurance in how many years?

• 3 years
• 5 years
• 7 years

d) The life of the policy -ANSWER-C