LIFE ONLY AGENT UPDATED STUDYS EXAM QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔What is one difference between group life and individual life underwriting? -
✔✔Individual life insurance requires the applicant to answer medical questions
✔✔Which component of a life insurance premium is based on the insured's age and
gender? - ✔✔Mortality
✔✔Individual life insurance policies sold to seniors in the State of California must
include a prominently placed statement that divulges all of the following information
EXCEPT - ✔✔proof of surrender must be notarized at the agent's principal office
✔✔Which policy covering two or more individuals pays the face amount only when the
first person dies? - ✔✔Joint life policy
✔✔An insured replaces an existing annuity with a new one and must pay a surrender
charge for cancelling the existing annuity. The new policy holds no greater financial
benefits to the insured than the existing contract. This is an example of - ✔✔an
unnecessary replacement
✔✔Which two insurance products are commonly used to fund buy-sell agreements? -
✔✔Life insurance and disability insurance
✔✔Life insurance policies written without a physical examination are called - ✔✔non-
medical
✔✔Which policy provision allows an insured to continue coverage under a previously
lapsed policy? - ✔✔The reinstatement provision
✔✔Which type of life insurance policy gives an owner the right to share in the insurer's
surplus - ✔✔Participating
✔✔Which type of insurance coverage has both a savings element and a flexible
premium option? - ✔✔universal life
✔✔Which benefits are provided by key employee insurance? - ✔✔Payment to a
business when an important employee dies
✔✔All of the following statements about contingent beneficiaries are true EXCEPT -
✔✔the contingent beneficiary shares death proceeds equally with the primary
beneficiary
, ✔✔All of the following are true about term life insurance policies EXCEPT the - ✔✔face
amounts paid is the insured survives to the end of the policy period
✔✔What do we call the process whereby insurer decide which customers to insure and
what coverage to offer? - ✔✔underwriting
✔✔The payor rider on a juvenile life policy provides that if the payor dies or becomes
disabled before the insured juvenile reaches the age specified in the policy that the -
✔✔insurer will make the payments until the insured juvenile reaches a specified age-
usually twenty-one or twenty-five
✔✔Death benefits that are received by a beneficiary are generall - ✔✔exempt from
federal income tax
✔✔An agent who violate s the laws governing life insurance policy illustrations is
subject to all of the following EXCEPT - ✔✔mandatory termination of all insurer
appointments
✔✔Which of the following is a characteristic of non-qualified annuities? - ✔✔Tax-
deferred earnings
✔✔An attempt by an agent to deter an insured from replacing an existing life insurance
policy is called - ✔✔conservation
✔✔A $50,000 whole life policy with a cash value of $10,000 has been in force for
eleven years. The policy owner is unable to continue the premium payments which of
the following describes the reduced paid-up non-forfeiture option? - ✔✔The cash value
is used to select a $20,000 paid-up policy.
✔✔Which of the following contracts provides benefits that fluctuate automatically with
investment results? - ✔✔Variable life insurance
✔✔Which type of insurance policy provides a death benefit that matches the projected
outstanding debt on an individual's home? - ✔✔mortgage redemption
✔✔How much employer-provided group term life insurance is exempt from income
taxation? - ✔✔$50,000
✔✔According to the California Insurance Code, governing the use of life insurance
policy illustrations, the term illustration means - ✔✔a presentation of policy features that
includes non-guaranteed elements
AND SOLUTIONS GUARANTEE A+
✔✔What is one difference between group life and individual life underwriting? -
✔✔Individual life insurance requires the applicant to answer medical questions
✔✔Which component of a life insurance premium is based on the insured's age and
gender? - ✔✔Mortality
✔✔Individual life insurance policies sold to seniors in the State of California must
include a prominently placed statement that divulges all of the following information
EXCEPT - ✔✔proof of surrender must be notarized at the agent's principal office
✔✔Which policy covering two or more individuals pays the face amount only when the
first person dies? - ✔✔Joint life policy
✔✔An insured replaces an existing annuity with a new one and must pay a surrender
charge for cancelling the existing annuity. The new policy holds no greater financial
benefits to the insured than the existing contract. This is an example of - ✔✔an
unnecessary replacement
✔✔Which two insurance products are commonly used to fund buy-sell agreements? -
✔✔Life insurance and disability insurance
✔✔Life insurance policies written without a physical examination are called - ✔✔non-
medical
✔✔Which policy provision allows an insured to continue coverage under a previously
lapsed policy? - ✔✔The reinstatement provision
✔✔Which type of life insurance policy gives an owner the right to share in the insurer's
surplus - ✔✔Participating
✔✔Which type of insurance coverage has both a savings element and a flexible
premium option? - ✔✔universal life
✔✔Which benefits are provided by key employee insurance? - ✔✔Payment to a
business when an important employee dies
✔✔All of the following statements about contingent beneficiaries are true EXCEPT -
✔✔the contingent beneficiary shares death proceeds equally with the primary
beneficiary
, ✔✔All of the following are true about term life insurance policies EXCEPT the - ✔✔face
amounts paid is the insured survives to the end of the policy period
✔✔What do we call the process whereby insurer decide which customers to insure and
what coverage to offer? - ✔✔underwriting
✔✔The payor rider on a juvenile life policy provides that if the payor dies or becomes
disabled before the insured juvenile reaches the age specified in the policy that the -
✔✔insurer will make the payments until the insured juvenile reaches a specified age-
usually twenty-one or twenty-five
✔✔Death benefits that are received by a beneficiary are generall - ✔✔exempt from
federal income tax
✔✔An agent who violate s the laws governing life insurance policy illustrations is
subject to all of the following EXCEPT - ✔✔mandatory termination of all insurer
appointments
✔✔Which of the following is a characteristic of non-qualified annuities? - ✔✔Tax-
deferred earnings
✔✔An attempt by an agent to deter an insured from replacing an existing life insurance
policy is called - ✔✔conservation
✔✔A $50,000 whole life policy with a cash value of $10,000 has been in force for
eleven years. The policy owner is unable to continue the premium payments which of
the following describes the reduced paid-up non-forfeiture option? - ✔✔The cash value
is used to select a $20,000 paid-up policy.
✔✔Which of the following contracts provides benefits that fluctuate automatically with
investment results? - ✔✔Variable life insurance
✔✔Which type of insurance policy provides a death benefit that matches the projected
outstanding debt on an individual's home? - ✔✔mortgage redemption
✔✔How much employer-provided group term life insurance is exempt from income
taxation? - ✔✔$50,000
✔✔According to the California Insurance Code, governing the use of life insurance
policy illustrations, the term illustration means - ✔✔a presentation of policy features that
includes non-guaranteed elements
