LIFE INSURANCE PRACTICE- EXAM GUIDE 2025
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
An insurance company and its agents must notify all applicants and policyholders of
information-gathering processes utilized for written application transactions - At the time
of delivery of the policy when personal information is only collected from the applicant, an
insured under the policy, or public records.
&
At the time of application for the policy when information is collected from sources other than
the applicant, persons under the policy, or public records.
Your client wants to buy a par policy to supplement his retirement savings program. Which of
the following does your client need to understand about insurance policy dividends? -
Dividends are considered a refund of unused premiums.
The insured provides a proof of claim to the - Insurer
An insured can submit a proof of claim to the insurer after a loss has occurred.
This helps to notify the insurer of the loss and provide information on how large or severe the
loss was.
Al tells a client that she is guaranteed to be approved for LTC insurance if she pays the full year's
premium at the time of application. The client applies for LTC insurance and writes a check for
the annual premium to Al's agency. Al issues a Binder of Insurance but does not send the
application to the insurer, and intentionally uses the premium for personal expenses instead. Al
is guilty of - Fraud
,When an agent intends to secure an unlawful gain at the expense of a client, he has committed
fraud.
Additionally, special regulations apply to LTC insurance transactions. (CIC 790 and CIC 10234.8)
What is the term for a sales campaign conducted through the mail? - Direct-response
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse,
or switch policies from one to another? - Twisting
A person applying for an insurance license in California was previously found guilty in a trial in
which he entered a plea of "nolo contedere." What does "nolo contendere" mean? - No
contest
In California, even if a person pleads no contest, or "nolo contedere," to charges, if the person is
found guilty, they will be considered convicted.
Applications for insurance may contain information about a person's race, religion, ancestry, or
color - Never
It is prohibited by law for any application for insurance to identify race, color, religion, national
origin, or ancestry as a basis for underwriting insurance risks. (CIC 10141)
Which of the following entities or individuals evaluates requests for payment by insureds after a
loss has occurred? - Claims department
In order to become an admitted, authorized insurer, what is the primary body of law about
which an applicant company must be concerned? - California Insurance Code
What is the main difference between a life agent and a life analyst? - The way each is
compensated
A primary difference between a life agent and a life analyst is how each receives payment: a life
analyst is not paid a commission by a life insurer either directly or indirectly for any insurance
transacted by an analyst. An agent, on the other hand, acts on behalf of an insurer and received
commission for insurance transactions.
, An agent has how many days in which to receive an appointment after the issuance of an
insurance contract? - 14 days
According to CIC 1704-1705, the insurer must forward to the Commissioner a notice of
appointment no more than 14 days after the life agent submits an application for insurance to
the insurer.
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check
from the insurance company that was not taxable. This year, she did not receive a check from
the insurer. From what type of insurer did the insured purchase the policy? - Mutual
The term "administrator" under California Insurance Codes refers to any person who -
Collects any charge or premium from, or who adjusts or settles claims on, life and health
insurance policies or annuities.
An insurer that holds a Certificate of Authority in the state in which it transacts business is
considered a/an - Authorized insurer.
Which of the following must an insurer obtain in order to transact insurance within a given
state? - Certificate of authority
An insurance agent explains to his client the difference between two disability income insurance
policies and then offers to fill out an application with the client's personal information and
history. Upon completion of the application, the agent informs his client that he will "shop
around" to find the company with the most favorable rates. If the agent presents the client's
application to an insurer, he will be acting in which of the following capacities? - An
insurance broker
By definition, a broker represents the client's interest in a contract of insurance. A broker may
not be, at the same time, appointed as an agent with the same company.
An exclusive agent - Has a contract with one company.
The exclusive agent, also known as the captive or career agent, chooses to have a contract with
one company.
During a sales presentation a producer intentionally makes a statement which may mislead the
insurance applicant. This describes - Misrepresentation.
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
An insurance company and its agents must notify all applicants and policyholders of
information-gathering processes utilized for written application transactions - At the time
of delivery of the policy when personal information is only collected from the applicant, an
insured under the policy, or public records.
&
At the time of application for the policy when information is collected from sources other than
the applicant, persons under the policy, or public records.
Your client wants to buy a par policy to supplement his retirement savings program. Which of
the following does your client need to understand about insurance policy dividends? -
Dividends are considered a refund of unused premiums.
The insured provides a proof of claim to the - Insurer
An insured can submit a proof of claim to the insurer after a loss has occurred.
This helps to notify the insurer of the loss and provide information on how large or severe the
loss was.
Al tells a client that she is guaranteed to be approved for LTC insurance if she pays the full year's
premium at the time of application. The client applies for LTC insurance and writes a check for
the annual premium to Al's agency. Al issues a Binder of Insurance but does not send the
application to the insurer, and intentionally uses the premium for personal expenses instead. Al
is guilty of - Fraud
,When an agent intends to secure an unlawful gain at the expense of a client, he has committed
fraud.
Additionally, special regulations apply to LTC insurance transactions. (CIC 790 and CIC 10234.8)
What is the term for a sales campaign conducted through the mail? - Direct-response
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse,
or switch policies from one to another? - Twisting
A person applying for an insurance license in California was previously found guilty in a trial in
which he entered a plea of "nolo contedere." What does "nolo contendere" mean? - No
contest
In California, even if a person pleads no contest, or "nolo contedere," to charges, if the person is
found guilty, they will be considered convicted.
Applications for insurance may contain information about a person's race, religion, ancestry, or
color - Never
It is prohibited by law for any application for insurance to identify race, color, religion, national
origin, or ancestry as a basis for underwriting insurance risks. (CIC 10141)
Which of the following entities or individuals evaluates requests for payment by insureds after a
loss has occurred? - Claims department
In order to become an admitted, authorized insurer, what is the primary body of law about
which an applicant company must be concerned? - California Insurance Code
What is the main difference between a life agent and a life analyst? - The way each is
compensated
A primary difference between a life agent and a life analyst is how each receives payment: a life
analyst is not paid a commission by a life insurer either directly or indirectly for any insurance
transacted by an analyst. An agent, on the other hand, acts on behalf of an insurer and received
commission for insurance transactions.
, An agent has how many days in which to receive an appointment after the issuance of an
insurance contract? - 14 days
According to CIC 1704-1705, the insurer must forward to the Commissioner a notice of
appointment no more than 14 days after the life agent submits an application for insurance to
the insurer.
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check
from the insurance company that was not taxable. This year, she did not receive a check from
the insurer. From what type of insurer did the insured purchase the policy? - Mutual
The term "administrator" under California Insurance Codes refers to any person who -
Collects any charge or premium from, or who adjusts or settles claims on, life and health
insurance policies or annuities.
An insurer that holds a Certificate of Authority in the state in which it transacts business is
considered a/an - Authorized insurer.
Which of the following must an insurer obtain in order to transact insurance within a given
state? - Certificate of authority
An insurance agent explains to his client the difference between two disability income insurance
policies and then offers to fill out an application with the client's personal information and
history. Upon completion of the application, the agent informs his client that he will "shop
around" to find the company with the most favorable rates. If the agent presents the client's
application to an insurer, he will be acting in which of the following capacities? - An
insurance broker
By definition, a broker represents the client's interest in a contract of insurance. A broker may
not be, at the same time, appointed as an agent with the same company.
An exclusive agent - Has a contract with one company.
The exclusive agent, also known as the captive or career agent, chooses to have a contract with
one company.
During a sales presentation a producer intentionally makes a statement which may mislead the
insurance applicant. This describes - Misrepresentation.
