CA Life Insurance Exam Questions
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A $50,000 whole life policy with a cash value of $10,000 has been in
force for eleven years. The policyowner is unable to continue the
premium payments. Which of the following describes the reduced
paid-up nonfordeiture option? - ANSWER-The cash value is used to
select a $20,000 paid-up policy.
A 10-year certain annuity with an installment refund is purchased. The
annuitant dies after receiving monthly payments for 5 years. How
many remaining payments MUST the insurer make? - ANSWER-60
payments.
A 10-year certain annuity with an installment refund is purchased. The
annuitant dies after receiving monthly payments for 5 years. How
many remaining payments will the insurer make? - ANSWER-60
payments.
,A beneficiary wants to let the death benefit accumulate and receive
only the monthly investment proceeds. Which settlement option
should be chosen? - ANSWER-Interest option.
A contract in which one party promises to indemnify another against
loss that arises from an unknown event is - ANSWER-an insurance
policy.
A contract of indemnity is one in which - ANSWER-one party is
restored to the same financial position the party was in before the
loss occurred.
A group life policy is issued on a contributory basis. This means that
the - ANSWER-insured employees will pay part of the premium.
A husband and wife have a disabled child who is financially dependent
upon them. The death of one parent would not result in financial
disaster for the disabled child, but the death of both parents would.
Which policy should they purchase? - ANSWER-Second-to-die policy.
A life insurance policy dividend is - ANSWER-legally defined as a return
of excess premium and not taxable.
A life insurance policy written after 1988 that fails to meet the seven-
pay test is known as - ANSWER-a modified endowment contract.
A life insurance policy's waiver of premium takes effect if an insured -
ANSWER-becomes totally disabled.
A participating life insurance policy is defined as a contract that -
ANSWER-allows the policyowner to receive a share of surplus in the
form of policy dividends.
, A person authorized by and on behalf of an insurer who transacts life,
disability or life and accident and health insurance is defined as a -
ANSWER-life agent.
A person owns a life annuity. He elects to receive his annuity
payments monthly for the remainder of his life with "ten years
certain". The annuity will make payments - ANSWER-for a minimum of
120 months and a maximum of the remainder of his life.
A situation in which there is a possibility of loss or a gain is a -
ANSWER-speculative risk.
According to the California Insurance Code, an insurance policy must
specify all of the following EXCEPT the - ANSWER-financial rating of
the insurer.
According to the California Insurance Code, governing the use of life
insurance policy illustrations, the term illustration means - ANSWER-a
presentation of policy features that includes non-guaranteed
elements.
According to the California Insurance Code, if an insurer's certificate of
authority is revoked, the Commissioner can proceed with any of the
following actions EXCEPT - ANSWER-using Guarantee Funds to pay
salaries.
According to the California Insurance Code, the Commissioner can
disapprove a licensee's request to use a fictitious name for any of the
following reasons EXCEPT that the - ANSWER-name is the licensee's
actual name.
All of the following are benefits of insurance EXCEPT it - ANSWER-
eliminates fraudulent losses.
Merged With Correct Complete
Solutions || Already Graded A+ || 2026-
2027 Latest Update!!
A $50,000 whole life policy with a cash value of $10,000 has been in
force for eleven years. The policyowner is unable to continue the
premium payments. Which of the following describes the reduced
paid-up nonfordeiture option? - ANSWER-The cash value is used to
select a $20,000 paid-up policy.
A 10-year certain annuity with an installment refund is purchased. The
annuitant dies after receiving monthly payments for 5 years. How
many remaining payments MUST the insurer make? - ANSWER-60
payments.
A 10-year certain annuity with an installment refund is purchased. The
annuitant dies after receiving monthly payments for 5 years. How
many remaining payments will the insurer make? - ANSWER-60
payments.
,A beneficiary wants to let the death benefit accumulate and receive
only the monthly investment proceeds. Which settlement option
should be chosen? - ANSWER-Interest option.
A contract in which one party promises to indemnify another against
loss that arises from an unknown event is - ANSWER-an insurance
policy.
A contract of indemnity is one in which - ANSWER-one party is
restored to the same financial position the party was in before the
loss occurred.
A group life policy is issued on a contributory basis. This means that
the - ANSWER-insured employees will pay part of the premium.
A husband and wife have a disabled child who is financially dependent
upon them. The death of one parent would not result in financial
disaster for the disabled child, but the death of both parents would.
Which policy should they purchase? - ANSWER-Second-to-die policy.
A life insurance policy dividend is - ANSWER-legally defined as a return
of excess premium and not taxable.
A life insurance policy written after 1988 that fails to meet the seven-
pay test is known as - ANSWER-a modified endowment contract.
A life insurance policy's waiver of premium takes effect if an insured -
ANSWER-becomes totally disabled.
A participating life insurance policy is defined as a contract that -
ANSWER-allows the policyowner to receive a share of surplus in the
form of policy dividends.
, A person authorized by and on behalf of an insurer who transacts life,
disability or life and accident and health insurance is defined as a -
ANSWER-life agent.
A person owns a life annuity. He elects to receive his annuity
payments monthly for the remainder of his life with "ten years
certain". The annuity will make payments - ANSWER-for a minimum of
120 months and a maximum of the remainder of his life.
A situation in which there is a possibility of loss or a gain is a -
ANSWER-speculative risk.
According to the California Insurance Code, an insurance policy must
specify all of the following EXCEPT the - ANSWER-financial rating of
the insurer.
According to the California Insurance Code, governing the use of life
insurance policy illustrations, the term illustration means - ANSWER-a
presentation of policy features that includes non-guaranteed
elements.
According to the California Insurance Code, if an insurer's certificate of
authority is revoked, the Commissioner can proceed with any of the
following actions EXCEPT - ANSWER-using Guarantee Funds to pay
salaries.
According to the California Insurance Code, the Commissioner can
disapprove a licensee's request to use a fictitious name for any of the
following reasons EXCEPT that the - ANSWER-name is the licensee's
actual name.
All of the following are benefits of insurance EXCEPT it - ANSWER-
eliminates fraudulent losses.
