CA LIFE INSURANCE PRACTICE EXAM QUESTIONS WITH CORRECT ANSWERS RATED A+

CA LIFE INSURANCE PRACTICE EXAM
QUESTIONS WITH CORRECT ANSWERS RATED
A+
AWkeyWpersonWisWtypicallyWallWofWtheWfollowing,Wexcept:W-WCORRECTWANSWERS-
NotWdirectlyWinvolvedWinWsales,Wproduction,WorWservice



KeyWpersonsWareWemployeesWwhoseWcontributionsWhaveWaWsignificantWimpactWonWtheWrevenueWandWprof
itabilityWofWtheWcompany,WespeciallyWinWsmallWbusinesses.WTheyWareWtypically:WpartWofWtheWmanagement
Wteam,WmoreWhighlyWpaid,WrespectedWbyWcustomers,Wcreditors,Wsuppliers,WandWvendors,WandWhaveWdirec


tWresponsibilitiesWforWsales,Wproduction,WorWservice.



WhichWoneWofWtheWfollowingWisWnotWaWreasonWwhyWpremiumWforWtheWindividualWpolicyWissuedWtoWanWins
uredWexercisingWaWgroupWconversionWrightWisWhigherWthanWtheWgroupWlifeWrateWpreviouslyWcharged?W-
WCORRECTWANSWERS-TheWconversionWpolicyWhasWaWhigherWdeathWbenefit




TheWpremiumWofWanWindividualWpolicyWissuedWdueWtoWaWgroupWlifeWinsuranceWplanWconversionWwillWbeWa
tWaWhigherWthanWnormalWrateWtoWincludeWtheWinsurer'sWguaranteedWconvertibleWsurchargeWbecauseWtheW
majorityWofWallWconversionsWinvolveWpersonsWthatWwouldWotherwiseWbeWuninsurable,WbecauseWtheWconv
ersionWpolicyWwillWbeWissuedWatWtheWattainedW(current)WageWofWtheWinsured,WandWtheWpolicyWwillWbuildWc
ashWvalues.



TheWtypeWofWlifeWinsuranceWusedWtoWprovideWfundsWforWaWBuy-SellWAgreementWis:W-
WCORRECTWANSWERS-AnyWtypeWofWlifeWinsurance




AnyWtypeWofWlifeWinsuranceWmayWbeWusedWtoWprovideWfundsWforWaWBuy-SellWAgreement.

,Lorraine'sWpositionWhasWbeenWterminated,WandWsheWisWinterestedWinWconvertingWherWgroupWlifeWcoverag
eWtoWanWindividualWpolicy.WInWtheWprocess,WsheWwillWfindWallWofWtheWfollowingWtoWbeWTRUE,Wexcept:W-
WCORRECTWANSWERS-SheWwillWbeWconvertingWherWgroupWtermWbenefitWtoWanWindividualWtermWbenefit




SheWwillWbeWconvertingWherWgroupWtermWlifeWtoWanWindividualWpermanentWpolicy.



ToWhelpWprotectWagainstWexperiencingWimmediateWclaims,WgroupWplansWhaveWa(n)W_______WperiodWsetW
upWbyWtheWgroupWsponsor.W-WCORRECTWANSWERS-Probationary




AWprobationaryWperiodWisWsetWupWtoWhelpWreduceWtheWchanceWofWfacingWimmediateWclaims.



HowWisWtheWfundingWforWSocialWSecurityWprovided?W-WCORRECTWANSWERS-
ThroughWFICAWtaxesWthatWareWpaidWbyWbothWemployersWandWemployees




BothWtheWemployerWandWemployeeWfundWSocialWSecurityWthroughWpayingWFICAWtaxes.WSelf-
employedWpersonsWpayWtheWentireWamount.



TheWpremiumWforWoptionalWdependentWgroupWinsuranceWcanWbeWpayableWby:W-
WCORRECTWANSWERSTheWemployer,WtheWemployeeWorWboth




OptionalWdependentWcoverageWmayWbeWpaidWforWbyWtheWemployer,WtheWemployee,WorWboth.



WhenWanWinsurerWwishesWtoWimplementWchangesWtoWaWgroupWlifeWpolicy,WwhomWmustWitWnotify?W-
WCORRECTWANSWERSTheWgroupWsponsor

, JustWasWinWindividualWcontracts,WtheWownerWcontrolsWtheWpolicy.WInWthisWcase,WonlyWtheWplanWsponsorWh
asWaWpolicyW(i.e.WtheWMasterWPolicy).WAsWsuch,WtheWinsurerWmustWnotifyWtheWgroupWsponsorWofWtheWcha
nges.



ThereWisWaWconversionWperiodWofWhowWmanyWdaysWinWwhichWtheWemployeeWmay,WuponWterminationWofW
eligibilityWandWwithoutWevidenceWofWinsurability,WconvertWhis/herWgroupWlifeWinsuranceWbenefitWtoWanWin
dividualWpermanentWpolicy?W-WCORRECTWANSWERS31




ThereWisWaWconversionWperiodWofW31WdaysWinWwhichWtheWemployeeWmay,WuponWterminationWofWeligibilit
yWandWwithoutWevidenceWofWinsurability,WconvertWhis/herWgroupWlifeWinsuranceWbenefitWtoWanWindividual
WpermanentWpolicy.




TheWproceedsWfromWaW_________WplanWprovideWtheWnecessaryWfundsWtoWrecruit,Whire,WandWtrainWaWrepl
acementWemployee.W-WCORRECTWANSWERSKeyWemployee




KeyWemployeeWlifeWinsuranceWplansWprovideWtheWfundsWtoWrecruit,Whire,WandWtrainWaWreplacementWempl
oyee.



WhichWofWtheWfollowingWisWaWdisadvantageWofWbeingWcoveredWunderWaWgroupWinsuranceWplan?W-
WCORRECTWANSWERSTheWgroupWsponsorWcanWelectWtoWdiscontinueWtheWplan,WandWtheWinsuranceWcomp


anyWcanWincreaseWtheWratesWitWcharges



TheWadvantageWofWanWinsuranceWfundedWbuy-sellWagreementWis:W-
WCORRECTWANSWERSItWisWaWlegallyWenforceableWagreement,WwhichWpre-


establishesWtheWvalueWofWtheWbusiness,WandWprovidesWtheWfundsWforWanWefficientWmethodWofWtransferri
ngWtheWdeceased'sWbusinessWinterest