CA Life Insurance Exam 2025|Actual
Exam Set Questions And Verified
Answers (Correct solutions)
An insurer that operates for one or more social, educational, charitable, benevolent, or religious
purposes for the benefit of its members is known as a
a) Reciprocal insurer.
b) Stock insurer.
c) Fraternal insurer.
d) Mutual insurer. - Answer--C
Life insurance creates an immediate estate. Which of the following best explains this statement?
The policy has cash values and nonforfeiture values.
b) The policy generates immediate cash value.
c) The death benefit will always be paid to the estate of the insured.
d) The face value of the policy is payable to the beneficiary upon the death of the insured. - Answer--D
Which of the following is guaranteed under a variable whole life insurance policy?
a) Minimum death benefit
,b) Interest rates
c) Cash value
d) Stock performance - Answer--A
Which of the following is NOT true regarding a deferred annuity?
a) The annuity grows tax deferred.
b) Income payments begin within 1 year from the date of purchase.
c) It is used to accumulate funds for retirement.
d) It can be purchased with a single lump sum. - Answer--B
Joe, age 63, was disabled and can no longer work. He meets the Social Security definition of total
disability. How many work credits must Joe have accumulated to have the status of fully insured?
a) 20
b) 40
c) 10
d) 6 - Answer--B
All of the following are advantages of a qualified retirement plan EXCEPT
a) The contribution is not taxable to the employee when made.
b) The funds grow tax deferred.
c) The income at retirement is tax free.
d) The contribution is deductible to the employer. - Answer--C
If an insured purchases an insurance policy with a large deductible, what risk management technique is
the insured exercising?
a) Avoidance
,b) Sharing
c) Retention
d) Transfer only - Answer--C
Key person insurance can provide protection for all of the following economic losses to a business
EXCEPT
a) Fund the cost of training a current employee to perform the duties of a deceased employee.
b) Pay the death benefit to the estate of the insured.
c) Provide deferred compensation retirement benefit if the insured key person survives to retirement.
d) Fund the expense of finding a suitable replacement following the death of an employee. - Answer--B
According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same
accident and it cannot be determined who died first, which of the following will be assumed?
a) The estate of the primary beneficiary and the contingent beneficiary split benefits equally.
b) The insured died before the primary beneficiary.
c) The primary beneficiary died before the insured.
d) The deaths occurred at the same time. - Answer--C
Any person to whom the Commissioner has issued a seizure order and who refuses to deliver any books,
records, or assets of an insurer faces the following penalties:
a) A misdemeanor punishable by a fine up to $1,000, a year in jail, or both.
b) A misdemeanor punishable by a $5,000 fine, if unintentional, or $10,000, if intentional.
c) Administrative fines only.
d) A felony punishable by a fine up to $1,000, a year in prison, or both. - Answer--A
If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil
penalty?
, a) $1,000
b) $2,500
c) $5,000
d) $10,000 - Answer--B
What type of insurer uses a formal sharing agreement?
a) Stock insurers
b) Mutual insurers
c) Fraternal Benefit Societies
d) Reciprocal insurers - Answer--D
In the Social Security blackout period, the surviving spouse will not receive benefits until the age of
a) 59 1/2.
b) 60.
c) 65.
d) 70 1/2 - Answer--B
Which of the following is NOT a component of an insurance policy premium?
a) Insurer expenses
b) Investment return
c) Number of beneficiaries
d) Mortality cost - Answer--C
What are the continuing education requirements for agents who market long-term care insurance
policies?
a) 8 hours of long-term care specific education included in the regular CE requirements
Exam Set Questions And Verified
Answers (Correct solutions)
An insurer that operates for one or more social, educational, charitable, benevolent, or religious
purposes for the benefit of its members is known as a
a) Reciprocal insurer.
b) Stock insurer.
c) Fraternal insurer.
d) Mutual insurer. - Answer--C
Life insurance creates an immediate estate. Which of the following best explains this statement?
The policy has cash values and nonforfeiture values.
b) The policy generates immediate cash value.
c) The death benefit will always be paid to the estate of the insured.
d) The face value of the policy is payable to the beneficiary upon the death of the insured. - Answer--D
Which of the following is guaranteed under a variable whole life insurance policy?
a) Minimum death benefit
,b) Interest rates
c) Cash value
d) Stock performance - Answer--A
Which of the following is NOT true regarding a deferred annuity?
a) The annuity grows tax deferred.
b) Income payments begin within 1 year from the date of purchase.
c) It is used to accumulate funds for retirement.
d) It can be purchased with a single lump sum. - Answer--B
Joe, age 63, was disabled and can no longer work. He meets the Social Security definition of total
disability. How many work credits must Joe have accumulated to have the status of fully insured?
a) 20
b) 40
c) 10
d) 6 - Answer--B
All of the following are advantages of a qualified retirement plan EXCEPT
a) The contribution is not taxable to the employee when made.
b) The funds grow tax deferred.
c) The income at retirement is tax free.
d) The contribution is deductible to the employer. - Answer--C
If an insured purchases an insurance policy with a large deductible, what risk management technique is
the insured exercising?
a) Avoidance
,b) Sharing
c) Retention
d) Transfer only - Answer--C
Key person insurance can provide protection for all of the following economic losses to a business
EXCEPT
a) Fund the cost of training a current employee to perform the duties of a deceased employee.
b) Pay the death benefit to the estate of the insured.
c) Provide deferred compensation retirement benefit if the insured key person survives to retirement.
d) Fund the expense of finding a suitable replacement following the death of an employee. - Answer--B
According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same
accident and it cannot be determined who died first, which of the following will be assumed?
a) The estate of the primary beneficiary and the contingent beneficiary split benefits equally.
b) The insured died before the primary beneficiary.
c) The primary beneficiary died before the insured.
d) The deaths occurred at the same time. - Answer--C
Any person to whom the Commissioner has issued a seizure order and who refuses to deliver any books,
records, or assets of an insurer faces the following penalties:
a) A misdemeanor punishable by a fine up to $1,000, a year in jail, or both.
b) A misdemeanor punishable by a $5,000 fine, if unintentional, or $10,000, if intentional.
c) Administrative fines only.
d) A felony punishable by a fine up to $1,000, a year in prison, or both. - Answer--A
If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil
penalty?
, a) $1,000
b) $2,500
c) $5,000
d) $10,000 - Answer--B
What type of insurer uses a formal sharing agreement?
a) Stock insurers
b) Mutual insurers
c) Fraternal Benefit Societies
d) Reciprocal insurers - Answer--D
In the Social Security blackout period, the surviving spouse will not receive benefits until the age of
a) 59 1/2.
b) 60.
c) 65.
d) 70 1/2 - Answer--B
Which of the following is NOT a component of an insurance policy premium?
a) Insurer expenses
b) Investment return
c) Number of beneficiaries
d) Mortality cost - Answer--C
What are the continuing education requirements for agents who market long-term care insurance
policies?
a) 8 hours of long-term care specific education included in the regular CE requirements
