CA Life Insurance License Exam
Which of the following applies to the social insurance program known as social security? -
correct answer-Contributions are compulsory for most workers
From the choices below select the one which is false about Social Security (OASDHI): -correct
answer-The benefits received are closely related to the contributions made, actuarially
speaking.
By definition, the United States Government is not an insurer. -correct answer-FALSE
A worker dies while he is credited with six quarters of the last 13 quarter period. What
status does the worker have under social security? -correct answer-Currently insured
Retirement benefits under social security are available only for workers who are: -correct
answer-Fully insured
Three of the four types of benefits given by the Social Security system are listed below. What
is the fourth?
1) Disability
2) Medicare
3) Survivors -correct answer-Retirement
Which of the following is true regarding the government's social insurance program known
as Social Security? -correct answer-The majority of workers in the U.S. must pay into the
program.
The social security normal retirement age depends upon: -correct answer-The worker's year
of birth
Lawrence is a 'fully insured' worker. If he were to die leaving his 40 year old spouse and 12
year old son, would his surviving spouse be entitled to receive monthly benefits for the
remainder of her life? -correct answer-No
The period of time in which a housewife, who has survived the death of her husband, will
not receive income benefits from Social Security is called the: -correct answer-"Blackout
period"
Which is NOT a way one can become entitled to Social Security Disability benefits?
1) Be totally and permanently disabled for 1 month.
2) Be disabled for 12 months or longer, plus other qualifications. -correct answer-1 only
Which of the following is not correct regarding the disability benefits provided by Social
Security? -correct answer-The payments received from this program are meant to entirely
replace worker's lost earnings.
,Which definition of disability is the most difficult for an injured worker to satisfy? -correct
answer-The total disability definition used by the Social Security Administration
Under social security, the definition of disability is the inability to engage in: -correct answer-
Any substantial gainful activity
Social Security provides protection against the financial consequences of allof the following,
except: -correct answer-Poor investments
The social security blackout period ends when the surviving spouse reaches the age of: -
correct answer-60
Social Security disability benefits are paid to persons expected to die or be disabled at least:
-correct answer-12 months
From the choices below select the one which is false about Social Security (OASDHI): -correct
answer-The program is considered "fully funded."
The taxes that fund Social Security are paid by: -correct answer-Employers and employees
equally
Determination of a worker's insured status for Social Security uses: -correct answer-The
number of quarters worked
When an eligible worker dies, all of the following may be entitled to survivors benefits
through social security, EXCEPT: -correct answer-The worker's 41-year old widow
hich of the following would an agent be guilty of for misrepresenting the amount of
dividends a policy will pay? -correct answer-A misdemeanor.
A life insurance policy dividend is -correct 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 -
correct answer-A modified endowment contract
Which report of an insurance applicant's creditworthiness and personal characteristics may
influence eligibility for life and health insurance? -correct answer-Consumer report
The life insurance grace period allows the insured to -correct answer-pay the premium after
the due date without loss of coverage
What does the statement "Life insurance creates an immediate estate" mean? -correct
answer-The total death benefit is paid whenever the insured dies.
What is used to determine the amount of an annuity distribution that is exempt from
taxation? -correct answer-The exclusion ratio
, Which type of insurance guarantees the right to renew the policy each year regardless of
health, but at an increased premium? -correct answer-Renewable Term
policyowner has the right to change all of the following EXCEPT the -correct answer-Dividend
schedule
What is the difference between deferred annuities and immediate annuities? -correct
answer-Deferred annuities have longer accumlation periods
Which policy is a savings instrument designed to first accumulate funds and then
systematically to liquidate the funds? -correct answer-Deferred annuity
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 -correct
answer-for a minimum of 120 months and a maximum of the remainder of his life.
Which policy provision protects the insurer against possible adverse selection? -correct
answer-Suicide Clause
How can partners guarantee a market for their share of the business in the event of death? -
correct answer-Buy-sell Agreements
If a life agent sellsa whole life policy to a prospect on behalf of an insurer without an
appointment, the -correct answer-insurer must sumbit a notice of appointment to the
commissioner
When a family policy covers children, all of the following are true EXCEРТ -correct answer-
evidence of insuranability is required to convert children to permemant insurance coverage
All of the following information is gathered during the personal financial planning process
EХСЕРТ -correct answer-a listing of a person's civic and professional organization
memberships.
How long is the free cancellation period for life insurance policies offered to individuals who
are 60 or older? -correct answer-30 Days
The insured is totally and permanently disabled. The insured's policy continues in force
without payment of further premiums because the policy contains a -correct answer-A
waiver of premium provision
In group life insurance, who is issueda certificate of insurance? -correct answer-The
Participant
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? -correct answer-60 Payments
Which of the following applies to the social insurance program known as social security? -
correct answer-Contributions are compulsory for most workers
From the choices below select the one which is false about Social Security (OASDHI): -correct
answer-The benefits received are closely related to the contributions made, actuarially
speaking.
By definition, the United States Government is not an insurer. -correct answer-FALSE
A worker dies while he is credited with six quarters of the last 13 quarter period. What
status does the worker have under social security? -correct answer-Currently insured
Retirement benefits under social security are available only for workers who are: -correct
answer-Fully insured
Three of the four types of benefits given by the Social Security system are listed below. What
is the fourth?
1) Disability
2) Medicare
3) Survivors -correct answer-Retirement
Which of the following is true regarding the government's social insurance program known
as Social Security? -correct answer-The majority of workers in the U.S. must pay into the
program.
The social security normal retirement age depends upon: -correct answer-The worker's year
of birth
Lawrence is a 'fully insured' worker. If he were to die leaving his 40 year old spouse and 12
year old son, would his surviving spouse be entitled to receive monthly benefits for the
remainder of her life? -correct answer-No
The period of time in which a housewife, who has survived the death of her husband, will
not receive income benefits from Social Security is called the: -correct answer-"Blackout
period"
Which is NOT a way one can become entitled to Social Security Disability benefits?
1) Be totally and permanently disabled for 1 month.
2) Be disabled for 12 months or longer, plus other qualifications. -correct answer-1 only
Which of the following is not correct regarding the disability benefits provided by Social
Security? -correct answer-The payments received from this program are meant to entirely
replace worker's lost earnings.
,Which definition of disability is the most difficult for an injured worker to satisfy? -correct
answer-The total disability definition used by the Social Security Administration
Under social security, the definition of disability is the inability to engage in: -correct answer-
Any substantial gainful activity
Social Security provides protection against the financial consequences of allof the following,
except: -correct answer-Poor investments
The social security blackout period ends when the surviving spouse reaches the age of: -
correct answer-60
Social Security disability benefits are paid to persons expected to die or be disabled at least:
-correct answer-12 months
From the choices below select the one which is false about Social Security (OASDHI): -correct
answer-The program is considered "fully funded."
The taxes that fund Social Security are paid by: -correct answer-Employers and employees
equally
Determination of a worker's insured status for Social Security uses: -correct answer-The
number of quarters worked
When an eligible worker dies, all of the following may be entitled to survivors benefits
through social security, EXCEPT: -correct answer-The worker's 41-year old widow
hich of the following would an agent be guilty of for misrepresenting the amount of
dividends a policy will pay? -correct answer-A misdemeanor.
A life insurance policy dividend is -correct 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 -
correct answer-A modified endowment contract
Which report of an insurance applicant's creditworthiness and personal characteristics may
influence eligibility for life and health insurance? -correct answer-Consumer report
The life insurance grace period allows the insured to -correct answer-pay the premium after
the due date without loss of coverage
What does the statement "Life insurance creates an immediate estate" mean? -correct
answer-The total death benefit is paid whenever the insured dies.
What is used to determine the amount of an annuity distribution that is exempt from
taxation? -correct answer-The exclusion ratio
, Which type of insurance guarantees the right to renew the policy each year regardless of
health, but at an increased premium? -correct answer-Renewable Term
policyowner has the right to change all of the following EXCEPT the -correct answer-Dividend
schedule
What is the difference between deferred annuities and immediate annuities? -correct
answer-Deferred annuities have longer accumlation periods
Which policy is a savings instrument designed to first accumulate funds and then
systematically to liquidate the funds? -correct answer-Deferred annuity
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 -correct
answer-for a minimum of 120 months and a maximum of the remainder of his life.
Which policy provision protects the insurer against possible adverse selection? -correct
answer-Suicide Clause
How can partners guarantee a market for their share of the business in the event of death? -
correct answer-Buy-sell Agreements
If a life agent sellsa whole life policy to a prospect on behalf of an insurer without an
appointment, the -correct answer-insurer must sumbit a notice of appointment to the
commissioner
When a family policy covers children, all of the following are true EXCEРТ -correct answer-
evidence of insuranability is required to convert children to permemant insurance coverage
All of the following information is gathered during the personal financial planning process
EХСЕРТ -correct answer-a listing of a person's civic and professional organization
memberships.
How long is the free cancellation period for life insurance policies offered to individuals who
are 60 or older? -correct answer-30 Days
The insured is totally and permanently disabled. The insured's policy continues in force
without payment of further premiums because the policy contains a -correct answer-A
waiver of premium provision
In group life insurance, who is issueda certificate of insurance? -correct answer-The
Participant
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? -correct answer-60 Payments
