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CALIFORNIA LIFE PRACTICE EXAM A
Questions and Correct Answers/ Latest
Update / Already Graded
AN ANNUITY THAT IS PURCHASED WITH A LUMP SUM PREMIUM AND
WHOSE BENEFITS BEGIN AFTER 12 MONTHS IS CALLED A
Ans: 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
Ans: HUMAN LIFE VALUE APPROACH
WHEN REPLACING A POLICY THE PRODUCER MUST PRESENT THE
APPLICANT WITH A NOTICE REGARDING REPLACEMENT OF LIFE
INSURANCE
Ans: AT THE TIME OF TAKING THE APPLICATION
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THE POSSIBILITY OF A FINANCIAL LOSS INCURRED BY A LIFE INSURANCE
COMPANY FOR THE PREMATURE DEATH OF AN INSURED IS KNOW AS A
Ans: RISK
THE MEDICAL INFORMATION BUREAU (MIB) IS A NONPROFIT TRADE
ASSOCIATION THAT MAINTAINS
Ans: MEDICAL INFORMATION ON APPLICANTS FOR LIFE AND HEALTH
INSURANCE
A PERSON WHO SIGNS A FRAUDULENT CLAIM FORM MAY BE FOUND
GUILTY OF
Ans: PERJURY
WHICH POLICY IS A COMBINATION OF ANNUAL RENEWABLE TERM
INSURANCE AND INTEREST-SENSITIVE CASH VALUE
Ans: UNIVERSAL LIFE
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THE RIGHT TO A FULL REFUND OF PREMIUMS FOR INSUREDS AGE 60 OR
OLDER IS
Ans: 30 DAYS
THE PREMIUM MODES CAN BE BEST DESCRIBED AS THE
Ans: FREQUENCY OF PREMIUM PAYMENT
INTENTIONALLY OMITTING A HISTORY OF HEART PROBLEMS ON AN
APPLICATION IS
Ans: CONCEALMENT
A TAX-SHELTERED ANNUITY (TSA) IS A QUALIFIED PLAN AVAILABLE FOR
Ans: NONPROFIT ORGANIZATIONS
THE INTENT OF REPLACEMENT REGULATIONS IS TO PROTECT THE
Ans: POLICYOWNER
CALIFORNIA LIFE PRACTICE EXAM A
Questions and Correct Answers/ Latest
Update / Already Graded
AN ANNUITY THAT IS PURCHASED WITH A LUMP SUM PREMIUM AND
WHOSE BENEFITS BEGIN AFTER 12 MONTHS IS CALLED A
Ans: 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
Ans: HUMAN LIFE VALUE APPROACH
WHEN REPLACING A POLICY THE PRODUCER MUST PRESENT THE
APPLICANT WITH A NOTICE REGARDING REPLACEMENT OF LIFE
INSURANCE
Ans: AT THE TIME OF TAKING THE APPLICATION
,2 | Page
THE POSSIBILITY OF A FINANCIAL LOSS INCURRED BY A LIFE INSURANCE
COMPANY FOR THE PREMATURE DEATH OF AN INSURED IS KNOW AS A
Ans: RISK
THE MEDICAL INFORMATION BUREAU (MIB) IS A NONPROFIT TRADE
ASSOCIATION THAT MAINTAINS
Ans: MEDICAL INFORMATION ON APPLICANTS FOR LIFE AND HEALTH
INSURANCE
A PERSON WHO SIGNS A FRAUDULENT CLAIM FORM MAY BE FOUND
GUILTY OF
Ans: PERJURY
WHICH POLICY IS A COMBINATION OF ANNUAL RENEWABLE TERM
INSURANCE AND INTEREST-SENSITIVE CASH VALUE
Ans: UNIVERSAL LIFE
, 3 | Page
THE RIGHT TO A FULL REFUND OF PREMIUMS FOR INSUREDS AGE 60 OR
OLDER IS
Ans: 30 DAYS
THE PREMIUM MODES CAN BE BEST DESCRIBED AS THE
Ans: FREQUENCY OF PREMIUM PAYMENT
INTENTIONALLY OMITTING A HISTORY OF HEART PROBLEMS ON AN
APPLICATION IS
Ans: CONCEALMENT
A TAX-SHELTERED ANNUITY (TSA) IS A QUALIFIED PLAN AVAILABLE FOR
Ans: NONPROFIT ORGANIZATIONS
THE INTENT OF REPLACEMENT REGULATIONS IS TO PROTECT THE
Ans: POLICYOWNER
