California Life Insurance Exam Questions and Answers 100% Correct

A special characteristic of the insurance contract where equal value is not exchanged between parties is known as - Aleatory Life insurance contracts are these agreements - Unilateral What is the proper definition of a take it or leave it contract, written by an insurer: - Adhesion The premium paid by the insured for an insurance policy is: - Consideration The best example of a Peril is: - Cause of loss An admitted insurer is: - Approved to transact An Actuary: - Works with statistics to establish premiums and is responsible for the company's financial soundness. A new Life-Only licensee will need to take continuing educations courses. The requirements are: - 24 hours during each 24-month licensing interval. Which of these would be a substandard risk? - A person who may have less chance of surviving than the average. A person whose occupation would cause an increase in mortality hazard. A person whose hobby would cause an increase in mortality hazard. All of the Above. Rob, a licensed agent, is working under the authority of a Life Only Agent licensee. He may write which type of policies? - Life. The best type of life insurance a person can own is: - Term. Insurance is a contract whereby the: - Insurer indemnifies the insured against loss. Using the human value approach, the best way to figure out the amount of the death benefit is based on: - Proposed insured's potential earnings. An agent is meeting with a retired U.S. Army Major to sell him insurance. What should be the primary objective of the agent? - Meeting his financial objectives. Term insurance: - Is only in force for a specific period of time. A contingent beneficiary: - Receives the policy proceeds if there is no living primary beneficiary. The death benefit of a life insurance policy is received by the (best answer): - Beneficiary. An insurer pays a refund from the surplus of profits to the holder of a participating policy. What is the payment? - A policy dividend. The Non-Forfeiture provision that would give the insured the most amount of coverage would be: - Extended Term Insurance. If you choose the settlement option of receiving fixed monthly installments or fixed amounts, you may receive an amount that is: - More than the face amount. An individual, who wishes to provide a retirement income for himself that will also provide a retirement income for his wife in the event he dies, should purchase which of