CA Life Insurance Practice Exam questions and answers latest top score.

CA Life Insurance Practice Exam questions and answers latest top score. A ekey eperson eis etypically eall eof ethe efollowing, eexcept: e- e ecorrect eanswer. e e e-Not edirectly einvolved ein esales, eproduction, eor eservice Key epersons eare eemployees ewhose econtributions ehave ea esignificant eimpact eon ethe erevenue eand eprofitability eof ethe ecompany, eespecially ein esmall ebusinesses. eThey eare etypically: epart eof ethe emanagement eteam, emore ehighly epaid, erespected eby ecustomers, ecreditors, esuppliers, eand evendors, eand ehave edirect eresponsibilities efor esales, eproduction, eor eservice. Which eone eof ethe efollowing eis enot ea ereason ewhy epremium efor ethe eindividual epolicy eissued eto ean einsured eexercising ea egroup econversion eright eis ehigher ethan ethe egroup elife erate epreviously echarged? e- e ecorrect eanswer. e e e-The econversion epolicy ehas ea ehigher edeath ebenefit The epremium eof ean eindividual epolicy eissued edue eto ea egroup elife einsurance eplan econversion ewill ebe eat ea ehigher ethan enormal erate eto einclude ethe einsurer's eguaranteed econvertible esurcharge ebecause ethe emajority eof eall econversions einvolve epersons ethat ewould eotherwise ebe euninsurable, ebecause ethe econversion epolicy ewill ebe eissued eat ethe eattained e(current) eage eof ethe einsured, eand ethe epolicy ewill ebuild ecash evalues. The etype eof elife einsurance eused eto eprovide efunds efor ea eBuy-Sell eAgreement eis: e- e ecorrect eanswer. e e e-Any etype eof elife einsurance Any etype eof elife einsurance emay ebe eused eto eprovide efunds efor ea eBuy-Sell eAgreement. Lorraine's eposition ehas ebeen eterminated, eand eshe eis einterested ein econverting eher egroup elife ecoverage eto ean eindividual epolicy. eIn ethe eprocess, eshe ewill efind eall eof ethe efollowing eto ebe eTRUE, eexcept: e- e ecorrect eanswer. e e e-She ewill ebe econverting eher egroup eterm ebenefit eto ean eindividual eterm ebenefit She ewill ebe econverting eher egroup eterm elife eto ean eindividual epermanent epolicy. To ehelp eprotect eagainst eexperiencing eimmediate eclaims, egroup eplans ehave ea(n) e_______ eperiod eset eup eby ethe egroup esponsor. e- e ecorrect eanswer. e e e-Probationary A eprobationary eperiod eis eset eup eto ehelp ereduce ethe echance eof efacing eimmediate eclaims. How eis ethe efunding efor eSocial eSecurity eprovided? e- e ecorrect eanswer. e e e-Through eFICA etaxes ethat eare epaid eby eboth eemployers eand eemployees Both ethe eemployer eand eemployee efund eSocial eSecurity ethrough epaying eFICA etaxes. eSelf-employed epersons epay ethe eentire eamount. The epremium efor eoptional edependent egroup einsurance ecan ebe epayable eby: e- e ecorrect eanswer. e e eThe eemployer, ethe eemployee eor eboth Optional edependent ecoverage emay ebe epaid efor eby ethe eemployer, ethe eemployee, eor eboth. When ean einsurer ewishes eto eimplement echanges eto ea egroup elife epolicy, ewhom emust eit enotify? e- e ecorrect eanswer. e e eThe egroup esponsor Just eas ein eindividual econtracts, ethe eowner econtrols ethe epolicy. eIn ethis ecase, eonly ethe eplan esponsor ehas ea epolicy e(i.e. ethe eMaster ePolicy). eAs esuch, ethe einsurer emust enotify ethe egroup esponsor eof ethe echanges. There eis ea econversion eperiod eof ehow emany edays ein ewhich ethe eemployee emay, eupon etermination eof eeligibility eand ewithout eevidence eof einsurability, econvert ehis/her egroup elife einsurance ebenefit eto ean eindividual epermanent epolicy? e- e ecorrect eanswer. e e e31 There eis ea econversion eperiod eof e31 edays ein ewhich ethe eemployee emay, eupon etermination eof eeligibility eand ewithout eevidence eof einsurability, econvert ehis/her egroup elife einsurance ebenefit eto ean eindividual epermanent epolicy. The eproceeds efrom ea e_________ eplan eprovide ethe enecessary efunds eto erecruit, ehire, eand etrain ea ereplacement eemployee. e- e ecorrect eanswer. e e eKey eemployee Key eemployee elife einsurance eplans eprovide ethe efunds eto erecruit, ehire, eand etrain ea ereplacement eemployee. Which eof ethe efollowing eis ea edisadvantage eof ebeing ecovered eunder ea egroup einsurance eplan? e- e ecorrect eanswer. e e eThe egroup esponsor ecan eelect eto ediscontinue ethe eplan, eand ethe einsurance ecompany ecan eincrease ethe erates eit echarges The eadvantage eof ean einsurance efunded ebuy-sell eagreement eis: e- e ecorrect eanswer. e e eIt eis ea elegally eenforceable eagreement, ewhich epre-establishes ethe evalue eof ethe ebusiness, eand eprovides ethe efunds efor ean eefficient emethod eof etransferring ethe edeceased's ebusiness einterest Some eof ethe eadvantages eof ehaving esuch ean eagreement: eit eis elegally eenforceable, ethe evalue eof ethe ebusiness eis epreviously eagreed eupon, eit eis ean eimmediate eand eautomatic emethod eof etransferring ethe edeceased's einterest edue eto ereadily eavailable efunds. An eagreement eby ean eemployer eto econtinue ea ekey eemployee's esalary eupon eretirement, edeath eor edisability eas elong eas ethe eemployee econtinues eemployment eduring ethe eterm eof ethe eagreement eis ecalled ea: e- e ecorrect eanswer. e e eSalary econtinuation eplan An eagreement eby ean eemployer eto econtinue ea ekey eemployee's esalary eupon eretirement, edeath eor edisability eas elong eas ethe eemployee econtinues eemployment eduring ethe eterm eof ethe eagreement eis ecalled ea esalary econtinuation eplan. Which eof ethe efollowing eis enot eone eof ethe emost ecommon emethods eof edetermining egroup einsurance ebenefits? e- e ecorrect eanswer. e e eTax ebracket The emost ecommon emethods eof edetermining egroup einsurance ebenefits eare eflat ebenefit e(all eemployees ereceive ethe esame einsurance eamounts), epercentage eof eincome e(employees ereceive e100%, e150%, eor e200% eof etheir eannual ebase ewage, esubject eto eimputed eincome), eand eposition ein ethe ecompany e(the eemployer emay eestablish edifferent ebenefits efor especific eclasses eof eemployees, ebut emay enot ediscriminate ebetween eemployees ein ethe esame eclass). To ebe efully einsured efor eSocial eSecurity, egenerally ea eperson emust ehave eworked eand epaid einto ethe eSocial eSecurity esystem efor ea eminimum eof e______ eyears. e- e ecorrect eanswer. e e e10 To ebe efully einsured efor eSocial eSecurity, ethe erequirement eis eto eaccumulate e40 ecredits eor e10 eyears eof ework epaying esocial esecurity etaxes. eA emaximum eof efour ecredits emay ebe eearned ein eone ecalendar eyear eof eemployment. Every egroup epolicy econtaining ea elife einsurance ebenefit emust econtain ea ereasonable eextension eof ebenefits eupon ediscontinuance eof ethe epolicy efor eemployees ewho, ewhile einsured eunder ethe epolicy, ebecome: e- e ecorrect eanswer. e e eTotally edisabled Every egroup epolicy econtaining ea elife einsurance ebenefit emust econtain ea ereasonable eextension eof ebenefits eupon ediscontinuance eof ethe epolicy ewith erespect eto eemployees ewho ebecome etotally edisabled ewhile einsured eunder ethe epolicy eand ewho econtinue eto ebe etotally edisabled eat ethe edate eof ediscontinuance eof ethe epolicy. L eis eno elonger eeligible efor ethe eemployer's e$50,000 egroup elife einsurance eplan. eL edies e28 edays elater ewithout esending ein ethe erequired econversion epaperwork. eWhat ewill etheir ebeneficiaries ereceive? e- e ecorrect eanswer. e e e50,000, eless eany epremium edue The econversion eperiod eis ealso ea egrace eperiod. eIn ethe eevent ea eterminated eor eineligible eemployee edies eduring ethe econversion eperiod, ewhether ethey ewere egoing eto eelect eindividual ecoverage eor enot, ea edeath eclaim ewill ebe epaid eby ethe egroup epolicy, eless ethe epremium edue efor ethe ebenefit. Which eof ethe efollowing emeets ethe ecriterion efor ebeing ea enatural egroup efor egroup elife einsurance epurposes? e- e ecorrect eanswer. e e eThe egroup ewas eformed efor ea epurpose eother ethan efor eprocuring eor ereducing ethe ecost eof einsurance To ebe eeligible efor ea egroup eplan, ethe egroup emust ebe ea enatural egroup, emeaning eit ewas eformed efor ea epurpose eother ethan efor eprocuring eor ereducing ethe ecost eof einsurance. All eof ethe efollowing eregarding ecredit elife eare etrue, eexcept: e- e ecorrect eanswer. e e eUsually ethe ecreditor epays ethe epremium Usually ethe eindividual edebtor epays ethe epremium. The e__________ eallows ean einsurer eto epay edeath ebenefits eto eanyone eit edeems eto ebe eentitled ein ethe eabsence eof ea edesignated ebeneficiary. e- e ecorrect eanswer. e e eFacility eof ePayment eClause A eFacility eof ePayment eClause eallows ethe einsurer eto epay ethe edeath ebenefit eto ea erelative eor eanyone eit edeems eis eentitled ein ethe eabsence eof ea edesignated ebeneficiary. An eemployee ewho ebecomes eentitled eunder ethe eterms eof ethe egroup epolicy eto ehave ean eindividual epolicy eissued ewithout eevidence eof einsurability emust: e- e ecorrect eanswer. e e eSubmit ean eapplication ealong ewith ethe einitial epremium If ean eemployee eunder ea egroup epolicy ebecomes eentitled eunder ethe eterms eof ethe epolicy eto ehave ean eindividual epolicy eissued ewithout eevidence eof einsurability, ehe/she emust esubmit ean eapplication ewith ethe einitial epremium. Open eenrollment eperiods eare eoffered eon ea(n) e______ ebasis ethat eallows eindividuals eto eenroll ewithout eevidence eof einsurability eor eto emake echanges. e- e ecorrect eanswer. e e eAnnual Open eenrollment eperiods eare eoffered eon ean eannual ebasis ethat eallows eindividuals eto eenroll ewithout eevidence eof einsurability eor eto emake echanges. For ethose eindividuals ewho ehave ehealth eissues, ewhich eof ethe efollowing ewould ebe ean einsurance eplan eto econsider? e- e ecorrect eanswer. e e eGroup If ean eindividual ehas ehealth eissues, ethen ea egroup einsurance eplan ecould ebe ea evaluable econsideration. eIt eoffers ethe eopportunity eto eobtain ecoverage ewithout eproviding eevidence eof einsurability. A(n)__________ eplan eis ewhen ebusiness epartners ebuy elife einsurance epolicies eon eone eanother. e- e ecorrect eanswer. e e eCross ePurchase A ecross epurchase eplan ecalls efor ethe epartners eto ebuy elife einsurance epolicies eon eone eanother. eAn eentity eplan ehas ethe ebusiness eentity ebuy elife einsurance eplans eon ethe ebusiness eowners. In ethe eevent ea eterminated eor eineligible eemployee edies eduring ethe econversion eperiod efrom ea egroup elife eplan, ewhether ethey ewere egoing eto eelect eindividual ecoverage eor enot, ea edeath eclaim ewill ebe epaid eby ethe egroup epolicy, eless ethe epremium edue efor ethe ebenefit, ewhich emeans ethat ethe econversion eperiod eis ereally: e- e ecorrect eanswer. e e eGrace eperiod In ethe eevent ea eterminated eor eineligible eemployee edies eduring ethe econversion eperiod efrom ea egroup elife eplan, ewhether ethey ewere egoing eto eelect eindividual ecoverage eor enot, ea edeath eclaim ewill ebe epaid eby ethe egroup epolicy, eless ethe epremium edue efor ethe ebenefit, ewhich emeans ethat ethe econversion eperiod eis ereally ea egrace eperiod. In ethe eevent ea eterminated eor eineligible eemployee edies eduring ethe econversion eperiod efrom ea egroup elife eplan, ewhether ethey ewere egoing eto eelect eindividual ecoverage eor enot, ea