CALIFORNIA LIFE ONLY
K
C
FINAL EXAM QUESTIONS AND
LO
CORRECT VERIFIED
ANSWERS 100% GUARANTEED
YC
PASS A+ GRADED
D
U
ST
,According to the California Insurance Code, what is "insurance"? - ANS A contract
Which of these statements correctly describes risk? - ANS Pure risk is the only insurable risk
Only pure risks are insurable
Which of the following does NOT have to be included on life insurance policy illustrations? -
ANS Statement that all values and benefits are guaranteed
K
An agent's attempt to stop the replacement of an existing life insurance policy is known as -
ANS conservation
C
If a material warranty violation on the part of the insured is found, what recourse does an insurer
have? - ANS Rescind the policy
LO
Which of the following pieces of information is NOT gathered during the personal financial
planning process? - ANS An individual's civic organization memberships
Which of the following does the California Insurance Code NOT require an insurance policy to
YC
specify? - ANS Insurer's financial rating
What is an "insurance broker" according to California Insurance Code? - ANS A person
compensated for transacting insurance on behalf of another person with an insurer
The objective of underwriting is to - ANS avoid selecting a disproportionate number of bad
D
risks
An annuitant would like to determine the amount of an annuity distribution that is exempt from
U
taxation. What is used to calculate this? - ANS Exclusion ratio
A worker is entitled to Social Security disability benefits if all of the following are true, EXCEPT
ST
for: - ANS worker cannot perform his or her current job, but is actively seeking other
employment
How are death benefits that are received by a beneficiary normally treated for tax purposes? -
ANS Exempt from federal income taxes
Which of the following statements correctly describes a contract of indemnity? - ANS One party
is restored to the same financial position the party was in before the loss occurred
How is a life insurance policy dividend legally defined? - ANS A return of excess premium and
not taxable
, When handling premiums for an insured, an agent is acting in which capacity? - ANS Fiduciary
What does the term "illustration" mean when used in the phrase "life insurance policy
illustration", according to the California Insurance Code? - ANS Presentation of policy features
that includes non-guaranteed elements
John and Mary have a handicapped child that is financially dependent upon them. The death of
one of the parents would not be financially disastrous, however the death of both likely would
be. Which policy would be best suited for them? - ANS Second-to-die policy
K
Jim is applying to become an insurance agent and has a past misdemeanor conviction that was
later expunged due to California Penal Code 1203.4. Which of the following statements is
C
correct? - ANS Jim must still disclose the conviction on his insurance license application
Which of the following best describes the statement "The more times an event is repeated, the
LO
more predictable the outcome becomes"? - ANS Law of large numbers
Bob and Tom are partners in a business. If one of them were to die, which of the following would
guarantee a market for each of their share of the business? - ANS Buy-Sell agreement
YC
What is the price of insurance for each exposure unit? - ANS Rate
Any changes in background information that occur after a producer application has been
submitted or a license has been issued MUST be reported to the Insurance Commissioner
within - ANS 30 days
D
Section 1729.2 of the California Insurance Code requires insurances producer application and
licensees to notify the insurance commissioner in writing, within 30 days of changes in
background information after an application has been submitted or a license has been issued.
U
"Life insurance creates an immediate estate". This phrase means: - ANS when the insured
dies, a death benefit is paid
ST
According to the California Insurance Code, what term is used to describe a fact so important it
could affect the policy premium? - ANS Materiality
Materiality is relevant information that would probably influence an insurer's assessment of a
proposed contract.
An individual who transacts life, disability, or life and accident and health insurance on behalf of
an insurer is called a(n): - ANS life agent
K
C
FINAL EXAM QUESTIONS AND
LO
CORRECT VERIFIED
ANSWERS 100% GUARANTEED
YC
PASS A+ GRADED
D
U
ST
,According to the California Insurance Code, what is "insurance"? - ANS A contract
Which of these statements correctly describes risk? - ANS Pure risk is the only insurable risk
Only pure risks are insurable
Which of the following does NOT have to be included on life insurance policy illustrations? -
ANS Statement that all values and benefits are guaranteed
K
An agent's attempt to stop the replacement of an existing life insurance policy is known as -
ANS conservation
C
If a material warranty violation on the part of the insured is found, what recourse does an insurer
have? - ANS Rescind the policy
LO
Which of the following pieces of information is NOT gathered during the personal financial
planning process? - ANS An individual's civic organization memberships
Which of the following does the California Insurance Code NOT require an insurance policy to
YC
specify? - ANS Insurer's financial rating
What is an "insurance broker" according to California Insurance Code? - ANS A person
compensated for transacting insurance on behalf of another person with an insurer
The objective of underwriting is to - ANS avoid selecting a disproportionate number of bad
D
risks
An annuitant would like to determine the amount of an annuity distribution that is exempt from
U
taxation. What is used to calculate this? - ANS Exclusion ratio
A worker is entitled to Social Security disability benefits if all of the following are true, EXCEPT
ST
for: - ANS worker cannot perform his or her current job, but is actively seeking other
employment
How are death benefits that are received by a beneficiary normally treated for tax purposes? -
ANS Exempt from federal income taxes
Which of the following statements correctly describes a contract of indemnity? - ANS One party
is restored to the same financial position the party was in before the loss occurred
How is a life insurance policy dividend legally defined? - ANS A return of excess premium and
not taxable
, When handling premiums for an insured, an agent is acting in which capacity? - ANS Fiduciary
What does the term "illustration" mean when used in the phrase "life insurance policy
illustration", according to the California Insurance Code? - ANS Presentation of policy features
that includes non-guaranteed elements
John and Mary have a handicapped child that is financially dependent upon them. The death of
one of the parents would not be financially disastrous, however the death of both likely would
be. Which policy would be best suited for them? - ANS Second-to-die policy
K
Jim is applying to become an insurance agent and has a past misdemeanor conviction that was
later expunged due to California Penal Code 1203.4. Which of the following statements is
C
correct? - ANS Jim must still disclose the conviction on his insurance license application
Which of the following best describes the statement "The more times an event is repeated, the
LO
more predictable the outcome becomes"? - ANS Law of large numbers
Bob and Tom are partners in a business. If one of them were to die, which of the following would
guarantee a market for each of their share of the business? - ANS Buy-Sell agreement
YC
What is the price of insurance for each exposure unit? - ANS Rate
Any changes in background information that occur after a producer application has been
submitted or a license has been issued MUST be reported to the Insurance Commissioner
within - ANS 30 days
D
Section 1729.2 of the California Insurance Code requires insurances producer application and
licensees to notify the insurance commissioner in writing, within 30 days of changes in
background information after an application has been submitted or a license has been issued.
U
"Life insurance creates an immediate estate". This phrase means: - ANS when the insured
dies, a death benefit is paid
ST
According to the California Insurance Code, what term is used to describe a fact so important it
could affect the policy premium? - ANS Materiality
Materiality is relevant information that would probably influence an insurer's assessment of a
proposed contract.
An individual who transacts life, disability, or life and accident and health insurance on behalf of
an insurer is called a(n): - ANS life agent
