CALIFORNIA LIFE PRACTICE EXAM A Questions with Detailed Verified Answers

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CALIFORNIA LIFE PRACTICE EXAM
A Questions with Detailed Verified
Answers

Question: 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


Question: 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


Question: 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


Question: THE POSSIBILITY OF A FINANCIAL LOSS INCURRED BY A LIFE
INSURANCE COMPANY FOR THE PREMATURE DEATH OF AN INSURED IS
KNOW AS A

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Ans: RISK


Question: THE MEDICAL INFORMATION BUREAU (MIB) IS A NONPROFIT
TRADE ASSOCIATION THAT MAINTAINS


Ans: MEDICAL INFORMATION ON APPLICANTS FOR LIFE AND HEALTH
INSURANCE


Question: A PERSON WHO SIGNS A FRAUDULENT CLAIM FORM MAY BE
FOUND GUILTY OF


Ans: PERJURY


Question: WHICH POLICY IS A COMBINATION OF ANNUAL RENEWABLE
TERM INSURANCE AND INTEREST-SENSITIVE CASH VALUE


Ans: UNIVERSAL LIFE


Question: THE RIGHT TO A FULL REFUND OF PREMIUMS FOR INSUREDS
AGE 60 OR OLDER IS


Ans: 30 DAYS


Question: THE PREMIUM MODES CAN BE BEST DESCRIBED AS THE


Ans: FREQUENCY OF PREMIUM PAYMENT


Question: INTENTIONALLY OMITTING A HISTORY OF HEART PROBLEMS
ON AN APPLICATION IS