CALIFORNIA LIFE PRACTICE EXAM A QUESTIONS WITH COMPLETE SOLUTIONS.

AN ANNUITY THAT IS PURCHASED WITH A LUMP SUM PREMIUM AND WHOSE BENEFITS BEGIN AFTER 12 MONTHS IS CALLED A - SINGLE PREMIUM DEFERRED ANNUITY A TECHNIQUE USED TO DETERMINE THE AMOUNT OF LIFE INSURANCE NEEDED BY FOCUSING ON THE PROJECTED EARNING POTENTIAL OF AN INSURED IS CALLED THE - HUMAN LIFE VALUE APPROACH WHEN REPLACING A POLICY THE PRODUCER MUST PRESENT THE APPLICANT WITH A NOTICE REGARDING REPLACEMENT OF LIFE INSURANCE - AT THE TIME OF TAKING THE APPLICATION THE POSSIBILITY OF A FINANCIAL LOSS INCURRED BY A LIFE INSURANCE COMPANY FOR THE PREMATURE DEATH OF AN INSURED IS KNOW AS A - RISK THE MEDICAL INFORMATION BUREAU (MIB) IS A NONPROFIT TRADE ASSOCIATION THAT MAINTAINS - MEDICAL INFORMATION ON APPLICANTS FOR LIFE AND HEALTH INSURANCE A PERSON WHO SIGNS A FRAUDULENT CLAIM FORM MAY BE FOUND GUILTY OF - PERJURY WHICH POLICY IS A COMBINATION OF ANNUAL RENEWABLE TERM INSURANCE AND INTERESTSENSITIVE CASH VALUE - UNIVERSAL LIFE THE RIGHT TO A FULL REFUND OF PREMIUMS FOR INSUREDS AGE 60 OR OLDER IS - 30 DAYS THE PREMIUM MODES CAN BE BEST DESCRIBED AS THE - FREQUENCY OF PREMIUM PAYMENT INTENTIONALLY OMITTING A HISTORY OF HEART PROBLEMS ON AN APPLICATION IS - CONCEALMENT A TAX-SHELTERED ANNUITY (TSA) IS A QUALIFIED PLAN AVAILABLE FOR - NONPROFIT ORGANIZATIONSTHE INTENT OF REPLACEMENT REGULATIONS IS TO PROTECT THE - POLICYOWNER WHICH PROVISION ALLOWS A LAPSED POLICY TO BE PUT BACK IN FORCE? - REINSTATEMENT ACCORDING TO THE CALIFORNIA DEPARTMENT OF INSURANCE, AN INSURER WHOSE ARTICLES OF INCORPORATION ARE REGISTERED IN OSLO, NORWAY IS CONSIDERED A/AN - ALIEN INSURER MORTALITY IS DEFINED AS THE - RATE OF DEATH WHICH OF THE FOLLOWING IS NOT A CHARACTERISTIC OF GROUP LIFE INSURANCE? - A GROUP MAY EXIST FOR THE PURPOSE OF PURCHASING INSURANCE. WHEN A PRODUCER COLLECTS THE INITIAL PREMIUM AND ISSUES A CONDITIONAL RECEIPT, THE RECEIPT - MAY ALLOW LIFE INSURANCE COMPANIES TO START COVERAGE BEFORE POLICY DELIVERY THE LAW OF LARGE NUMBERS ALLOWS AN INSURANCE COMPANY TO PREDICT THE EXPECTED LOSSES AMONG - MEMBERS OF A GROUP OF INDIVIDUALS WITH SIMILAR RISKS IF AN INSURER'S LEGAL RESERVE FUNDS ARE FOUND TO BE LESS THAN THE MINIMUM REQUIRED BY LAW THE INSURER IS CONSIDERED - INSOLVENT