LIFE INSURANCE PRACTICE- EXAM GUIDE 2025
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Chapter: Life Insurance
A life agent's records must include which of the following?
A All correspondence between the agent and the policy holder
B A copy of the outline of coverage
C All policies sold by the agent
D All of these - D All of these
Correct! Agents must keep all correspondence between the agent and policy holder, a copy of
the outline of coverage, and all policies sold by the agent.
Chapter: Life Insurance
Where must agents keep records associated with insurance transactions?
A All records must be transferred to the DOI within 90 days.
B At their principal place of business
C There is no specified location, provided that agents can give the Commissioner easy access to
records.
D In any of their offices, as long as the office is located in this state. - B At their principal
place of business
Correct! Agents must keep records associated with insurance transactions for at least 5 years.
The Commissioner can audit these records at any time.
Chapter: Life Insurance
,When employees are covered by group insurance, they receive
A A certificate of insurance.
B The original policy.
C A copy of the policy.
D The dividends, if any, in cash. - A A certificate of insurance.
Correct! The employer receives the original contract, but employees need only be given a
certificate of insurance showing their coverage and privileges. (CIC 10209)
Chapter: Life Insurance
Where replacement of existing coverage is involved, in addition to providing the proper notices
to the applicant, the agent must
A Send a copy of the policy illustration used in making the sale to the current insurer for review.
B Notify the Department of Insurance that a replacement of existing coverage is being made
and that all replacement guidelines have been met.
C List any existing life insurance or annuities to be replaced on the application.
D Contact the current insurer and give notice that replacement of coverage is being made. -
C List any existing life insurance or annuities to be replaced on the application.
Correct! The agent must list any existing life insurance or annuities to be replaced on the
application so that the INSURER can properly notify the Department of Insurance and current
insurer regarding the replacement that is being made.
Review ContentNext Question
Chapter: Life Insurance
All insurance policies and annuity contracts delivered to senior citizens in the State of California
are subject to a cancellation period of at least
A 20 days.
B 30 days.
C 45 days.
,D 60 days. - B 30 days.
Correct! All insurance policies and annuity contracts, other than variable contracts and modified
guaranteed contracts, marketed to senior citizens in the State of California are subject to a
cancellation period of no fewer than 30 days.
Chapter: Life Insurance
Which of the following best describes the insurer's liability for losses arising from military
service?
A The insurer is liable for all losses.
B The insurer's liability is always excluded.
C The insurer's liability is always reduced.
D The insurer's liability may be reduced or excluded. - D The insurer's liability may be
reduced or excluded.
correct! The provision on war, military and aviation risk allows the insurer to reduce or exclude
liability for losses resulting from war, military or naval service, and aviation.
Chapter: Life Insurance
What is the maximum amount of coverage that may be extended to the insured's dependents
under a group life insurance policy?
A 100% of the insurance on the life of the insured employee
B 75% of the insurance on the life of the insured employee.
C 50% of the insurance on the life of the insured employee
D 30% of the insurance on the life of the insured employee - A 100% of the insurance on
the life of the insured employee
Correct! In group policies, insurance coverage can be extended to the dependents of the
insured employee. The coverage, however, cannot exceed 100% of the insurance on the life of
the insured employee.
Chapter: Life Insurance
The youngest possible age for an "elder" is
, A 55.
B 60.
C 65.
D 70. - C 65.
The right of the applicant to rescind the policy for a full refund of all premiums
A Must be exercised within 3 days of the policy issue.
B Is not a valid right.
C Must be clearly stated in the policy's text.
D Is implied during the application process. - C Must be clearly stated in the policy's text.
correct! The right of the applicant to rescind the policy for a full refund of all premiums paid, if
the policy is returned within the specified timeframe, must be clearly stated in the policy's text
(outlined on title page and described in text).
A life insurance policy can be delivered by all of the following means, EXCEPT
A First class mail with a delivery receipt.
B Personal delivery by a trained employee of the insurer, with a delivery receipt.
C Certified mail.
D Priority mail. - Correct! Acceptable methods of delivery include Registered or Certified
Mail, Personal Delivery with a signed, written delivery receipt, 1st Class Mail with a signed,
written Del. Receipt, or any reasonable means determined by the Commissioner. Priority mail
does not establish an exact date of delivery or to whom it was delivered, and personally
delivering the policy needs to be done by a properly licensed representative who can answer
questions.
Which of the following best describes the insurer's liability for losses arising from military
service?
A The insurer's liability may be reduced or excluded.
B The insurer is liable for all losses.
C The insurer's liability is always excluded.
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Chapter: Life Insurance
A life agent's records must include which of the following?
A All correspondence between the agent and the policy holder
B A copy of the outline of coverage
C All policies sold by the agent
D All of these - D All of these
Correct! Agents must keep all correspondence between the agent and policy holder, a copy of
the outline of coverage, and all policies sold by the agent.
Chapter: Life Insurance
Where must agents keep records associated with insurance transactions?
A All records must be transferred to the DOI within 90 days.
B At their principal place of business
C There is no specified location, provided that agents can give the Commissioner easy access to
records.
D In any of their offices, as long as the office is located in this state. - B At their principal
place of business
Correct! Agents must keep records associated with insurance transactions for at least 5 years.
The Commissioner can audit these records at any time.
Chapter: Life Insurance
,When employees are covered by group insurance, they receive
A A certificate of insurance.
B The original policy.
C A copy of the policy.
D The dividends, if any, in cash. - A A certificate of insurance.
Correct! The employer receives the original contract, but employees need only be given a
certificate of insurance showing their coverage and privileges. (CIC 10209)
Chapter: Life Insurance
Where replacement of existing coverage is involved, in addition to providing the proper notices
to the applicant, the agent must
A Send a copy of the policy illustration used in making the sale to the current insurer for review.
B Notify the Department of Insurance that a replacement of existing coverage is being made
and that all replacement guidelines have been met.
C List any existing life insurance or annuities to be replaced on the application.
D Contact the current insurer and give notice that replacement of coverage is being made. -
C List any existing life insurance or annuities to be replaced on the application.
Correct! The agent must list any existing life insurance or annuities to be replaced on the
application so that the INSURER can properly notify the Department of Insurance and current
insurer regarding the replacement that is being made.
Review ContentNext Question
Chapter: Life Insurance
All insurance policies and annuity contracts delivered to senior citizens in the State of California
are subject to a cancellation period of at least
A 20 days.
B 30 days.
C 45 days.
,D 60 days. - B 30 days.
Correct! All insurance policies and annuity contracts, other than variable contracts and modified
guaranteed contracts, marketed to senior citizens in the State of California are subject to a
cancellation period of no fewer than 30 days.
Chapter: Life Insurance
Which of the following best describes the insurer's liability for losses arising from military
service?
A The insurer is liable for all losses.
B The insurer's liability is always excluded.
C The insurer's liability is always reduced.
D The insurer's liability may be reduced or excluded. - D The insurer's liability may be
reduced or excluded.
correct! The provision on war, military and aviation risk allows the insurer to reduce or exclude
liability for losses resulting from war, military or naval service, and aviation.
Chapter: Life Insurance
What is the maximum amount of coverage that may be extended to the insured's dependents
under a group life insurance policy?
A 100% of the insurance on the life of the insured employee
B 75% of the insurance on the life of the insured employee.
C 50% of the insurance on the life of the insured employee
D 30% of the insurance on the life of the insured employee - A 100% of the insurance on
the life of the insured employee
Correct! In group policies, insurance coverage can be extended to the dependents of the
insured employee. The coverage, however, cannot exceed 100% of the insurance on the life of
the insured employee.
Chapter: Life Insurance
The youngest possible age for an "elder" is
, A 55.
B 60.
C 65.
D 70. - C 65.
The right of the applicant to rescind the policy for a full refund of all premiums
A Must be exercised within 3 days of the policy issue.
B Is not a valid right.
C Must be clearly stated in the policy's text.
D Is implied during the application process. - C Must be clearly stated in the policy's text.
correct! The right of the applicant to rescind the policy for a full refund of all premiums paid, if
the policy is returned within the specified timeframe, must be clearly stated in the policy's text
(outlined on title page and described in text).
A life insurance policy can be delivered by all of the following means, EXCEPT
A First class mail with a delivery receipt.
B Personal delivery by a trained employee of the insurer, with a delivery receipt.
C Certified mail.
D Priority mail. - Correct! Acceptable methods of delivery include Registered or Certified
Mail, Personal Delivery with a signed, written delivery receipt, 1st Class Mail with a signed,
written Del. Receipt, or any reasonable means determined by the Commissioner. Priority mail
does not establish an exact date of delivery or to whom it was delivered, and personally
delivering the policy needs to be done by a properly licensed representative who can answer
questions.
Which of the following best describes the insurer's liability for losses arising from military
service?
A The insurer's liability may be reduced or excluded.
B The insurer is liable for all losses.
C The insurer's liability is always excluded.
