CA LIFE INSURANCE EXAM 3 QUESTIONS WITH
COMPLETE SOLUTION
the insured bought an annuity ten years ago. He will retire in 5 years.
To determine the value of his annuity, he must multiply the value of
the "accumulation units" he owns, times the value of the "separate
account". This type of annuity is known as a
a.fixed annuity
b.flexible annuity
c. variable annuity
d. accumulation annuity
c. variable annuity
why is the delivery of a life insurance policy important?
a.the policy is not in effect until it is delivered b.the grace period
begins on the policy delivery date
c. commissions are not paid unitil the policy is delivered
d.the free-look period begins on the policy delivery date
d.the free-look period begins on the policy delivery date
life insurance policies written without a physical examination are
called
a.non-medical
b.preferred
c.standard
d.substandar
da.non-medical
a policy owner has the right to change all of the following EXCEPT the
a.beneficiary
b.payment mode
c.dividend option
d.dividend schedule
d.dividend schedule
a life insurance policy written after 1988 that fails to meet the seve-
pay test is known as
a.an endowment policy
b.a modified life policy
c.a single premium contract
d.a modified endowment contract
, d.a modified endowment contract
which of the following information is a characteristic of non qualified
annuities?
a.tax-deductible contribution
b.limits on contributions
c.mandatory participation
d.tax-deferred earnings
d.tax-deferred earnings
individual life insurance policies sold to seniors in the state of
california must include a prominently placed statement that divulges
all of the following information EXCEPT
a.the policy should be returned to the agent or insurer if rot wanted
b.proof of surrender must be notarized at eh agent's principal office
c. a charge might apply if declined after the time allowed for surrender
d. the policy can be returned during a free look period for a full refund
b.proof of surrender must be notarized at eh agent's principal office
which policy provision protects the insurer against possible adverse
selection?
a.nonforfeiture
b.reinstatement
c.suicide clause
d. entire contract
c.suicide clause
people commonly purchase an annuity to protect against the risk of
a.dying too soon
b.becoming insurable
c. outliving their financial resources
d.dying before their home mortgage is paid off
c. outliving their financial resources
what is used to determine the amount of an annuity distribution that
is exempt from taxation?a.the seven-pay test
b.the exclusion ratio
c. the economic benefit
d. the incidental limitation
b.the exclusion ratio
when a family policy covers children, all of the following are true
EXCEPT
a.the coverage is term insurance for a fixed amount
b.there is no additional charge for covering new additions to the new
family
COMPLETE SOLUTION
the insured bought an annuity ten years ago. He will retire in 5 years.
To determine the value of his annuity, he must multiply the value of
the "accumulation units" he owns, times the value of the "separate
account". This type of annuity is known as a
a.fixed annuity
b.flexible annuity
c. variable annuity
d. accumulation annuity
c. variable annuity
why is the delivery of a life insurance policy important?
a.the policy is not in effect until it is delivered b.the grace period
begins on the policy delivery date
c. commissions are not paid unitil the policy is delivered
d.the free-look period begins on the policy delivery date
d.the free-look period begins on the policy delivery date
life insurance policies written without a physical examination are
called
a.non-medical
b.preferred
c.standard
d.substandar
da.non-medical
a policy owner has the right to change all of the following EXCEPT the
a.beneficiary
b.payment mode
c.dividend option
d.dividend schedule
d.dividend schedule
a life insurance policy written after 1988 that fails to meet the seve-
pay test is known as
a.an endowment policy
b.a modified life policy
c.a single premium contract
d.a modified endowment contract
, d.a modified endowment contract
which of the following information is a characteristic of non qualified
annuities?
a.tax-deductible contribution
b.limits on contributions
c.mandatory participation
d.tax-deferred earnings
d.tax-deferred earnings
individual life insurance policies sold to seniors in the state of
california must include a prominently placed statement that divulges
all of the following information EXCEPT
a.the policy should be returned to the agent or insurer if rot wanted
b.proof of surrender must be notarized at eh agent's principal office
c. a charge might apply if declined after the time allowed for surrender
d. the policy can be returned during a free look period for a full refund
b.proof of surrender must be notarized at eh agent's principal office
which policy provision protects the insurer against possible adverse
selection?
a.nonforfeiture
b.reinstatement
c.suicide clause
d. entire contract
c.suicide clause
people commonly purchase an annuity to protect against the risk of
a.dying too soon
b.becoming insurable
c. outliving their financial resources
d.dying before their home mortgage is paid off
c. outliving their financial resources
what is used to determine the amount of an annuity distribution that
is exempt from taxation?a.the seven-pay test
b.the exclusion ratio
c. the economic benefit
d. the incidental limitation
b.the exclusion ratio
when a family policy covers children, all of the following are true
EXCEPT
a.the coverage is term insurance for a fixed amount
b.there is no additional charge for covering new additions to the new
family
