CALIFORNIA LIFE PRACTICE EXAM A
QUESTIONS WITH CORRECT ANSWERS
AN |ANNUITY |THAT |IS |PURCHASED |WITH |A |LUMP |SUM |PREMIUM |AND |WHOSE |BENEFITS |
BEGIN |AFTER |12 |MONTHS |IS |CALLED |A |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |
ANSWER✔✔-HUMAN |LIFE |VALUE |APPROACH
WHEN |REPLACING |A |POLICY |THE |PRODUCER |MUST |PRESENT |THE |APPLICANT |WITH |A |NOTICE |
REGARDING |REPLACEMENT |OF |LIFE |INSURANCE |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-RISK
THE |MEDICAL |INFORMATION |BUREAU |(MIB) |IS |A |NONPROFIT |TRADE |ASSOCIATION |THAT |
MAINTAINS |- |CORRECT |ANSWER✔✔-MEDICAL |INFORMATION |ON |APPLICANTS |FOR |LIFE |AND |
HEALTH |INSURANCE
A |PERSON |WHO |SIGNS |A |FRAUDULENT |CLAIM |FORM |MAY |BE |FOUND |GUILTY |OF |- |CORRECT |
ANSWER✔✔-PERJURY
WHICH |POLICY |IS |A |COMBINATION |OF |ANNUAL |RENEWABLE |TERM |INSURANCE |AND |INTEREST-
SENSITIVE |CASH |VALUE |- |CORRECT |ANSWER✔✔-UNIVERSAL |LIFE
, THE |RIGHT |TO |A |FULL |REFUND |OF |PREMIUMS |FOR |INSUREDS |AGE |60 |OR |OLDER |IS |- |CORRECT |
ANSWER✔✔-30 |DAYS
THE |PREMIUM |MODES |CAN |BE |BEST |DESCRIBED |AS |THE |- |CORRECT |ANSWER✔✔-FREQUENCY |
OF |PREMIUM |PAYMENT
INTENTIONALLY |OMITTING |A |HISTORY |OF |HEART |PROBLEMS |ON |AN |APPLICATION |IS |- |
CORRECT |ANSWER✔✔-CONCEALMENT
A |TAX-SHELTERED |ANNUITY |(TSA) |IS |A |QUALIFIED |PLAN |AVAILABLE |FOR |- |CORRECT |
ANSWER✔✔-NONPROFIT |ORGANIZATIONS
THE |INTENT |OF |REPLACEMENT |REGULATIONS |IS |TO |PROTECT |THE |- |CORRECT |ANSWER✔✔-
POLICYOWNER
WHICH |PROVISION |ALLOWS |A |LAPSED |POLICY |TO |BE |PUT |BACK |IN |FORCE? |- |CORRECT |
ANSWER✔✔-REINSTATEMENT
ACCORDING |TO |THE |CALIFORNIA |DEPARTMENT |OF |INSURANCE, |AN |INSURER |WHOSE |ARTICLES
|OF |INCORPORATION |ARE |REGISTERED |IN |OSLO, |NORWAY |IS |CONSIDERED |A/AN |- |CORRECT |
ANSWER✔✔-ALIEN |INSURER
MORTALITY |IS |DEFINED |AS |THE |- |CORRECT |ANSWER✔✔-RATE |OF |DEATH
WHICH |OF |THE |FOLLOWING |IS |NOT |A |CHARACTERISTIC |OF |GROUP |LIFE |INSURANCE? |- |
CORRECT |ANSWER✔✔-A |GROUP |MAY |EXIST |FOR |THE |PURPOSE |OF |PURCHASING |INSURANCE.
WHEN |A |PRODUCER |COLLECTS |THE |INITIAL |PREMIUM |AND |ISSUES |A |CONDITIONAL |RECEIPT, |
THE |RECEIPT |- |CORRECT |ANSWER✔✔-MAY |ALLOW |LIFE |INSURANCE |COMPANIES |TO |START |
COVERAGE |BEFORE |POLICY |DELIVERY
QUESTIONS WITH CORRECT ANSWERS
AN |ANNUITY |THAT |IS |PURCHASED |WITH |A |LUMP |SUM |PREMIUM |AND |WHOSE |BENEFITS |
BEGIN |AFTER |12 |MONTHS |IS |CALLED |A |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |
ANSWER✔✔-HUMAN |LIFE |VALUE |APPROACH
WHEN |REPLACING |A |POLICY |THE |PRODUCER |MUST |PRESENT |THE |APPLICANT |WITH |A |NOTICE |
REGARDING |REPLACEMENT |OF |LIFE |INSURANCE |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-RISK
THE |MEDICAL |INFORMATION |BUREAU |(MIB) |IS |A |NONPROFIT |TRADE |ASSOCIATION |THAT |
MAINTAINS |- |CORRECT |ANSWER✔✔-MEDICAL |INFORMATION |ON |APPLICANTS |FOR |LIFE |AND |
HEALTH |INSURANCE
A |PERSON |WHO |SIGNS |A |FRAUDULENT |CLAIM |FORM |MAY |BE |FOUND |GUILTY |OF |- |CORRECT |
ANSWER✔✔-PERJURY
WHICH |POLICY |IS |A |COMBINATION |OF |ANNUAL |RENEWABLE |TERM |INSURANCE |AND |INTEREST-
SENSITIVE |CASH |VALUE |- |CORRECT |ANSWER✔✔-UNIVERSAL |LIFE
, THE |RIGHT |TO |A |FULL |REFUND |OF |PREMIUMS |FOR |INSUREDS |AGE |60 |OR |OLDER |IS |- |CORRECT |
ANSWER✔✔-30 |DAYS
THE |PREMIUM |MODES |CAN |BE |BEST |DESCRIBED |AS |THE |- |CORRECT |ANSWER✔✔-FREQUENCY |
OF |PREMIUM |PAYMENT
INTENTIONALLY |OMITTING |A |HISTORY |OF |HEART |PROBLEMS |ON |AN |APPLICATION |IS |- |
CORRECT |ANSWER✔✔-CONCEALMENT
A |TAX-SHELTERED |ANNUITY |(TSA) |IS |A |QUALIFIED |PLAN |AVAILABLE |FOR |- |CORRECT |
ANSWER✔✔-NONPROFIT |ORGANIZATIONS
THE |INTENT |OF |REPLACEMENT |REGULATIONS |IS |TO |PROTECT |THE |- |CORRECT |ANSWER✔✔-
POLICYOWNER
WHICH |PROVISION |ALLOWS |A |LAPSED |POLICY |TO |BE |PUT |BACK |IN |FORCE? |- |CORRECT |
ANSWER✔✔-REINSTATEMENT
ACCORDING |TO |THE |CALIFORNIA |DEPARTMENT |OF |INSURANCE, |AN |INSURER |WHOSE |ARTICLES
|OF |INCORPORATION |ARE |REGISTERED |IN |OSLO, |NORWAY |IS |CONSIDERED |A/AN |- |CORRECT |
ANSWER✔✔-ALIEN |INSURER
MORTALITY |IS |DEFINED |AS |THE |- |CORRECT |ANSWER✔✔-RATE |OF |DEATH
WHICH |OF |THE |FOLLOWING |IS |NOT |A |CHARACTERISTIC |OF |GROUP |LIFE |INSURANCE? |- |
CORRECT |ANSWER✔✔-A |GROUP |MAY |EXIST |FOR |THE |PURPOSE |OF |PURCHASING |INSURANCE.
WHEN |A |PRODUCER |COLLECTS |THE |INITIAL |PREMIUM |AND |ISSUES |A |CONDITIONAL |RECEIPT, |
THE |RECEIPT |- |CORRECT |ANSWER✔✔-MAY |ALLOW |LIFE |INSURANCE |COMPANIES |TO |START |
COVERAGE |BEFORE |POLICY |DELIVERY
