CA LIFE AND HEALTH INSURANCE EXAM 2024/2025/ 2
NEWEST VERSIONS (VERSION A AND B) WITH ACTUAL
COMPLETE 250 REAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES (VERIFIED
ANSWERS) |ALREADY GRADED A
An insurer must notify the consumer in writing that an
investigative consumer report has been requested, within
how many days of the initial request? a) 3 days
b) 5 days
c) 10 days
d) 30 days - ANSWER -A
What is the purpose of the surrender charge in a
deferred annuity? a) To punish the annuitant for
breach of contract
b) To prevent the over funding of the annuity
c) To provide additional revenue for the insurance company
d) To compensate the company for loss of investment value -
ANSWER -D
Which of the following is the primary source of information that
an insurer uses to evaluate an insured's risk for life insurance?
a) Insurance application
,b) Risk analysis
c) The law of large numbers
d) Agent's Report - ANSWER -A
Your client wants both protection and savings from the
insurance, and is willing to pay premiums until retirement at age
65. What would be the right policy for this client?
a) Interest-sensitive whole life
b) Life annuity with period certain
c) Increasing term
d) Limited pay whole life - ANSWER -D
All of the following are true regarding a qualified
annuity EXCEPT a) Funds accumulate on a tax-
deferred basis.
b) Employer contributions are not counted as income to the
employee while the plan is in force.
c) At distribution, all amounts received by the employee are tax
free.
d) Employer contributions are tax deductible as ordinary
business expense. -
ANSWER -C
,Life income joint and survivor settlement option
guarantees a) Payment of interest on death
proceeds.
b) Payout of the entire death benefit.
c) Equal payments to all recipients.
d) Income for 2 or more recipients until they die. - ANSWER -D
All of the following are true regarding the guaranteed insurability
rider EXCEPT a) The insured may purchase additional coverage
at the attained age.
b) The insured may purchase additional insurance up to the
amount specified in the base policy.
c) It allows the insured to purchase additional amounts of
insurance without proving insurability only at specified dates or
events.
d) This rider is available to all insureds with no additional
premium. - ANSWER D
All of the following statements are true regarding installments
for a fixed period annuity settlement option EXCEPT
a) The payments are not guaranteed for life.
b) The insurer determines the amount for each payment.
c) It is a life contingency option.
d) It will pay the benefit only for a designated period of time. -
ANSWER -C
, When an insured receives a written binder,
a) The insured will not have to submit an application to the
insurer.
b) The insured's coverage will be effective immediately.
c) The insured will be locked into a contract for at least 2 years.
d) The insured will be guaranteed premium rates for a specific
amount of time. -
ANSWER -B
An insurance policy that only requires a payment of premium at
its inception, provides insurance protection for the life of the
insured, and matures at the insured's age 100 is called
a) Single premium whole life.
b) Modified Endowment Contract (MEC).
c) Level term life.
d) Graded premium whole life. - ANSWER -A
If $100,000 of life insurance proceeds were used in a
settlement option, which paid $13,000 per year for ten years,
which of the following would be taxable annually? a) $7,000
b) $3,000
c) $13,000
d) $10,000 - ANSWER -B
NEWEST VERSIONS (VERSION A AND B) WITH ACTUAL
COMPLETE 250 REAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES (VERIFIED
ANSWERS) |ALREADY GRADED A
An insurer must notify the consumer in writing that an
investigative consumer report has been requested, within
how many days of the initial request? a) 3 days
b) 5 days
c) 10 days
d) 30 days - ANSWER -A
What is the purpose of the surrender charge in a
deferred annuity? a) To punish the annuitant for
breach of contract
b) To prevent the over funding of the annuity
c) To provide additional revenue for the insurance company
d) To compensate the company for loss of investment value -
ANSWER -D
Which of the following is the primary source of information that
an insurer uses to evaluate an insured's risk for life insurance?
a) Insurance application
,b) Risk analysis
c) The law of large numbers
d) Agent's Report - ANSWER -A
Your client wants both protection and savings from the
insurance, and is willing to pay premiums until retirement at age
65. What would be the right policy for this client?
a) Interest-sensitive whole life
b) Life annuity with period certain
c) Increasing term
d) Limited pay whole life - ANSWER -D
All of the following are true regarding a qualified
annuity EXCEPT a) Funds accumulate on a tax-
deferred basis.
b) Employer contributions are not counted as income to the
employee while the plan is in force.
c) At distribution, all amounts received by the employee are tax
free.
d) Employer contributions are tax deductible as ordinary
business expense. -
ANSWER -C
,Life income joint and survivor settlement option
guarantees a) Payment of interest on death
proceeds.
b) Payout of the entire death benefit.
c) Equal payments to all recipients.
d) Income for 2 or more recipients until they die. - ANSWER -D
All of the following are true regarding the guaranteed insurability
rider EXCEPT a) The insured may purchase additional coverage
at the attained age.
b) The insured may purchase additional insurance up to the
amount specified in the base policy.
c) It allows the insured to purchase additional amounts of
insurance without proving insurability only at specified dates or
events.
d) This rider is available to all insureds with no additional
premium. - ANSWER D
All of the following statements are true regarding installments
for a fixed period annuity settlement option EXCEPT
a) The payments are not guaranteed for life.
b) The insurer determines the amount for each payment.
c) It is a life contingency option.
d) It will pay the benefit only for a designated period of time. -
ANSWER -C
, When an insured receives a written binder,
a) The insured will not have to submit an application to the
insurer.
b) The insured's coverage will be effective immediately.
c) The insured will be locked into a contract for at least 2 years.
d) The insured will be guaranteed premium rates for a specific
amount of time. -
ANSWER -B
An insurance policy that only requires a payment of premium at
its inception, provides insurance protection for the life of the
insured, and matures at the insured's age 100 is called
a) Single premium whole life.
b) Modified Endowment Contract (MEC).
c) Level term life.
d) Graded premium whole life. - ANSWER -A
If $100,000 of life insurance proceeds were used in a
settlement option, which paid $13,000 per year for ten years,
which of the following would be taxable annually? a) $7,000
b) $3,000
c) $13,000
d) $10,000 - ANSWER -B
