LIFE INSURANCE PRACTICE- EXAM GUIDE 2025
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Life insurance terminology indemnify means - -make whole
The principle of indemnify is a basic principle of the insurance that says the goal of insurance is
to reassure one back to his previous condition that existed before a loss that's making him
whole again
A written contract atteWe've a corny boymps to indemnify another party against loss damage or
liability rising from a contingent or unknown event. this describes - -Insurance
CIC 22. Insurance is a contract where we are by one other takes to indemnify another against
loss damage liability arising from a contingent or unknown event
According to the California insurance code a binder is a valid insurance policy for the purpose of
providing their insured as insurance covered specified in the binder for all of the following
classes of insurance except - -Life insurance
A binder using property in Casuelas the insurance is a legal agreement issued by either an agent
or an insured to provide temporary evidence of insurance until a policy can be insured
The person whose life is the object of a life insurance policy is the - -Insured
It is the insured who is the object or subject of a life policy. It's the death of the insured that
triggers the life policies death benefit to be paid out to the beneficiar
Chuck Harris has earned a chartered life underwriter designation. From the selections below
choose the one that the California insurance code would find acceptable when publishing his
name - -Harris insurance services.
Per 10 mL ccr 2052.4, in the order for a licensees business need to be approved for use by the
commissioner it must clearly indicate that the licensee will be an insurance provider by
including it in its name the word insurance followed by one of the following that sensitive
words: Agency, services, marketing, sales, solutions, center or associates
,How can partners guarantee a market for their share of business in an event of death - -
Buy-sell agreements.
A Byselle agreement can be designed to require that upon the death or and disability of a co-
owner in a business that has ownership interest are sold according to A predetermined formula
to the company or the remaining co-owners of the business this helps prevent his share of
business anything up in the hands of the outside parties
According to the California insurance code an insurance policy must be - -In writing
Per CIC 380, Insurance policies must be in writing. That means they cannot be based on an oral
agreement
When applying for health insurance which of the following on the application is not an
acceptable question to ask - -How do you think your health is these days
CIC 339. Neither party to a contract of insurance is bound to communicate even upon entry
information of his own judgment upon the matters in question
A person owns a family annuity. He elects to receive his annuity payments monthly for the
remainder of his life with 10 years certain then we will make payments - For a minimum
of 120 months and a maximum of the remainder of his life
Yrs*12months or the remainder of his life
After receiving your insurance license if you change your address you are to notify the
commissioner - Immediately
Equally sharing the death benefit among children can be done most effectively by - -A
class beneficiary designation
Ex: instead of writing out each child's name simply list children of insured
The period of time in which a housewife who has survive the death of her husband, will not
receive income benefits from Social Security is called the - -Black out period
The back out period Refers to the time when the deceased worker's child turns 16 and the
widower caring for the child turns 60
What type of life insurance policy gives the owner the right to share in the insurer's profits in
the form of a dividend - -Participating policy
Participating (par) - A participating life policy is eligible for dividends
Non-participating(non-par)-A non-participating life policy is not eligible for dividends
, A life insurance policy written after 1988 that fails to meet the seven Pay test is known as -
A modified endowment contract.
The 7Pay testExamines the cumulative premiums paid under a life policy during the first seven
years after issue. If at any time during the policies for seven years this cumulative premium
amount exceeds the sum of the next level premiums that would have been paid on the
guaranteed seven year pay whole life policy providing the same death benefit then the policy
will be classified as a modified endowment contract. When classified as a MEC any distributions
from it will be taxed accordingly.
Which of the following is a correct statement about life insurance policy types - The initial
premium for the term insurance is lower than the initial premium for the whole life insurance.
An example of a moral hazard in relation to a life insurance application would be -
Misstating your health and history to an insurance company1404
The term consideration applies to the issuance of an insurance policy. Choose the best
description of this term from the choices below - None of the above
Consideration is the premium or the future premiums that the insured pays to the insurance
company. This term is used when talking about the initial premium that an applicant pays to an
insurance company for a new insurance policy, they can also refer to feature premium payment
outside of the initial premium payment.1866
At what age does a jumping juvenile policy increase the benefit from 1000 to 5000 - 21
A jumping juvenile life insurance policy is a whole life policy that ensures a juvenile with the
policies face amount increasing by five times automatically when the juvenile insured turns 21
without additional premium or evidence of insurability(1500)
The additional premium charge by an insurer for adding the accidental death benefit to a whole
life policy - -Does not affect the policies cash value
In the case of a whole life policy that has cash value and your riders at it when I **** the cash
value of the Policy to which they are attached(1961)
From the following so like the type of life insurance which could be best used to protect your
customers heirs from a mortgage obligation shut your customer die - Decreasing term
Decreasing term life insurance can be designed to measure approximately equal outstanding
balance of the mortgage. Typically the premiums will also decrease as it covers your face
amount decreases. Decreasing term life policy specifically designed to cover a mortgage go by
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Life insurance terminology indemnify means - -make whole
The principle of indemnify is a basic principle of the insurance that says the goal of insurance is
to reassure one back to his previous condition that existed before a loss that's making him
whole again
A written contract atteWe've a corny boymps to indemnify another party against loss damage or
liability rising from a contingent or unknown event. this describes - -Insurance
CIC 22. Insurance is a contract where we are by one other takes to indemnify another against
loss damage liability arising from a contingent or unknown event
According to the California insurance code a binder is a valid insurance policy for the purpose of
providing their insured as insurance covered specified in the binder for all of the following
classes of insurance except - -Life insurance
A binder using property in Casuelas the insurance is a legal agreement issued by either an agent
or an insured to provide temporary evidence of insurance until a policy can be insured
The person whose life is the object of a life insurance policy is the - -Insured
It is the insured who is the object or subject of a life policy. It's the death of the insured that
triggers the life policies death benefit to be paid out to the beneficiar
Chuck Harris has earned a chartered life underwriter designation. From the selections below
choose the one that the California insurance code would find acceptable when publishing his
name - -Harris insurance services.
Per 10 mL ccr 2052.4, in the order for a licensees business need to be approved for use by the
commissioner it must clearly indicate that the licensee will be an insurance provider by
including it in its name the word insurance followed by one of the following that sensitive
words: Agency, services, marketing, sales, solutions, center or associates
,How can partners guarantee a market for their share of business in an event of death - -
Buy-sell agreements.
A Byselle agreement can be designed to require that upon the death or and disability of a co-
owner in a business that has ownership interest are sold according to A predetermined formula
to the company or the remaining co-owners of the business this helps prevent his share of
business anything up in the hands of the outside parties
According to the California insurance code an insurance policy must be - -In writing
Per CIC 380, Insurance policies must be in writing. That means they cannot be based on an oral
agreement
When applying for health insurance which of the following on the application is not an
acceptable question to ask - -How do you think your health is these days
CIC 339. Neither party to a contract of insurance is bound to communicate even upon entry
information of his own judgment upon the matters in question
A person owns a family annuity. He elects to receive his annuity payments monthly for the
remainder of his life with 10 years certain then we will make payments - For a minimum
of 120 months and a maximum of the remainder of his life
Yrs*12months or the remainder of his life
After receiving your insurance license if you change your address you are to notify the
commissioner - Immediately
Equally sharing the death benefit among children can be done most effectively by - -A
class beneficiary designation
Ex: instead of writing out each child's name simply list children of insured
The period of time in which a housewife who has survive the death of her husband, will not
receive income benefits from Social Security is called the - -Black out period
The back out period Refers to the time when the deceased worker's child turns 16 and the
widower caring for the child turns 60
What type of life insurance policy gives the owner the right to share in the insurer's profits in
the form of a dividend - -Participating policy
Participating (par) - A participating life policy is eligible for dividends
Non-participating(non-par)-A non-participating life policy is not eligible for dividends
, A life insurance policy written after 1988 that fails to meet the seven Pay test is known as -
A modified endowment contract.
The 7Pay testExamines the cumulative premiums paid under a life policy during the first seven
years after issue. If at any time during the policies for seven years this cumulative premium
amount exceeds the sum of the next level premiums that would have been paid on the
guaranteed seven year pay whole life policy providing the same death benefit then the policy
will be classified as a modified endowment contract. When classified as a MEC any distributions
from it will be taxed accordingly.
Which of the following is a correct statement about life insurance policy types - The initial
premium for the term insurance is lower than the initial premium for the whole life insurance.
An example of a moral hazard in relation to a life insurance application would be -
Misstating your health and history to an insurance company1404
The term consideration applies to the issuance of an insurance policy. Choose the best
description of this term from the choices below - None of the above
Consideration is the premium or the future premiums that the insured pays to the insurance
company. This term is used when talking about the initial premium that an applicant pays to an
insurance company for a new insurance policy, they can also refer to feature premium payment
outside of the initial premium payment.1866
At what age does a jumping juvenile policy increase the benefit from 1000 to 5000 - 21
A jumping juvenile life insurance policy is a whole life policy that ensures a juvenile with the
policies face amount increasing by five times automatically when the juvenile insured turns 21
without additional premium or evidence of insurability(1500)
The additional premium charge by an insurer for adding the accidental death benefit to a whole
life policy - -Does not affect the policies cash value
In the case of a whole life policy that has cash value and your riders at it when I **** the cash
value of the Policy to which they are attached(1961)
From the following so like the type of life insurance which could be best used to protect your
customers heirs from a mortgage obligation shut your customer die - Decreasing term
Decreasing term life insurance can be designed to measure approximately equal outstanding
balance of the mortgage. Typically the premiums will also decrease as it covers your face
amount decreases. Decreasing term life policy specifically designed to cover a mortgage go by
