CALIFORNIA LIFE PRACTICE EXAM A EXAM QUESTIONS

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CALIFORNIA LIFE PRACTICE EXAM A EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -74 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: WHEN REPLACING A POLICY THE PRODUCER MUST PRESENT THE

APPLICANT WITH A NOTICE REGARDING REPLACEMENT OF LIFE INSURANCE

Answer:

AT THE TIME OF TAKING THE APPLICATION

Question 2: LIFE-ONLY AGENTS MAY TRANSACT ALL OF THE FOLLOWING TYPES OF

INSURANCE EXCEPT

Answer:

24-HOUR CARE COVERAGE

Question 3: WHICH DOCUMENT DESCRIBES THE SPECIFIC FEATURES AND ELEMENTS OF A

POLICY?

Answer:

POLICY SUMMARY

Question 4: MONEY BORROWED FROM A LIFE INSURANCE POLICY'S CASH VALUE IS

Answer:

NOT TAXABLE

Question 5: THE CAUSE OF A LOSS IS KNOWN AS A/AN

Answer:

PERIL

Question 6: A PRIVATE AND CIVIL WRONG FOR WHICH A REMEDY MAY BE SOUGHT

THROUGH LEGAL ACTION IS KNOWN AS A

Answer:

TORT

Question 7: AN ARRANGEMENT WHERE THE EMPLOYER AND EMPLOYEE AGREE TO

PURCHASE AND FUND LIFE INSURANCE ON AN EMPLOYEE IS KNOWN AS A

Answer:

SPLIT DOLLAR PLANS

Question 8: WHEN A PRODUCER, BROKER, OR SOLICITOR HANDLES PREMIUMS FOR AN

INSURER, THEY ARE ACTING IN WHICH OF THE FOLLOWING CAPACITIES?

Answer:

LEGAL REPRESENTATIVE WITH POWER OF ATTORNEY

Question 9: INTENTIONALLY OMITTING A HISTORY OF HEART PROBLEMS ON AN

APPLICATION IS

Answer:

CONCEALMENT

Question 10: TWO BUSINESS PARTNERS OWN LIFE INSURANCE ON EACH OTHER. IF ONE

PARTNER DIES WHICH CONTRACT WILL ALLOW THE SURVIVING PARTNER TO USE THE

DEATH BENEFIT TO PURCHASE THE DECEASED'S BUSINESS INTERESTS?

Answer:

BUY-SELL AGREEMENT

Question 11: THE OPTION THAT PAYS A SPECIFIED AMOUNT TO THE ANNUITANT WITH NO

REMAINING VALUE PAYABLE TO A BENEFICIARY IS

Answer:

LIFE ONLY

Question 12: A CONTRACT'S AGREEMENT FOR LIFE INSURANCE IS COMPOSED OF A(N)

Answer:

OFFER AND ACCEPTANCE

Question 13: WHICH OF THE FOLLOWING IS NOT A RISK MANAGEMENT TECHNIQUE?

Answer:

EXPOSURE

Question 14: A PERSON WHO SIGNS A FRAUDULENT CLAIM FORM MAY BE FOUND GUILTY

OF

Answer:

PERJURY

Question 15: IF AN ANNUITANT DIES BEFORE THE ANNUITIZATION PERIOD, WHAT

PROCEEDS WILL THE BENEFICIARY RECEIVE?

Answer:

ACCUMULATION VALUE OR THE PREMIUMS PAID, WHICHEVER IS GREATER

Question 16: WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE ABOUT PARTICIPATION

POLICIES?

Answer:

THEY PAY DIVIDENDS TO STOCKHOLDERS

Question 17: IF THE CASH VALUE EXCEEDS THE PREMIUMS PAID IN A WHOLE LIFE POLICY,

WHAT ARE THE TAX CONSEQUENCES IF THE POLICY IS SURRENDERED?

Answer:

THE PORTION THAT EXCEEDS THE PREMIUMS PAID IS TAXABLE

Question 18: THE LAW OF LARGE NUMBERS ALLOWS AN INSURANCE COMPANY TO

PREDICT THE EXPECTED LOSSES AMONG

Answer:

MEMBERS OF A GROUP OF INDIVIDUALS WITH SIMILAR RISKS

Question 19: THE MEDICAL INFORMATION BUREAU (MIB) IS A NONPROFIT TRADE

ASSOCIATION THAT MAINTAINS

Answer:

MEDICAL INFORMATION ON APPLICANTS FOR LIFE AND HEALTH INSURANCE

Question 20: WHEN ONE PARTY PREPARES THE CONTRACT AND THE OTHER PARTY EITHER

ACCEPTS OR REJECTS THE CONTRACT, IT IS A(N)

Answer:

CONTRACT OF ADHESION

Question 21: WHICH TYPE OF POLICY WOULD BE SUITABLE TO PROTECT THE BALANCE OF

A HOME MORTGAGE?

Answer:

DECREASING TERM

Question 22: THE RISK OF A LOSS TO AN INSURANCE COMPANY IS ALSO REFERRED TO AS

A/AN

Answer:

EXPOSURE

Question 23: WHICH POLICY PROVISION INCLUDES THE APPLICATION AND THE FIRST

PREMIUM FROM THE INSURED AND THE PROMISE TO PAY FROM THE INSURER?

Answer:

CONSIDERATION

Question 24: WHOSE SIGNATURE IS REQUIRED TO MAKE CHANGES TO A WRITTEN

APPLICATION FOR A LIFE INSURANCE POLICY?

Answer:

APPLICANT

Question 25: SOCIAL SECURITY BENEFITS DO NOT INCLUDE

Answer:

WORKERS COMPENSATION