CA Life Insurance Practice Exam 2026
Questions and Answers
A key person is typically all of the following, except: - Correct Answer --Not
directly involved in sales, production, or service
Key persons are employees whose contributions have a significant impact on the
revenue and profitability of the company, especially in small businesses. They are
typically: part of the management team, more highly paid, respected by customers,
creditors, suppliers, and vendors, and have direct responsibilities for sales,
production, or service.
Which one of the following is not a reason why premium for the individual policy
issued to an insured exercising a group conversion right is higher than the group
life rate previously charged? - Correct Answer --The conversion policy has a
higher death benefit
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,The premium of an individual policy issued due to a group life insurance plan
conversion will be at a higher than normal rate to include the insurer's guaranteed
convertible surcharge because the majority of all conversions involve persons that
would otherwise be uninsurable, because the conversion policy will be issued at
the attained (current) age of the insured, and the policy will build cash values.
The type of life insurance used to provide funds for a Buy-Sell Agreement is: -
Correct Answer --Any type of life insurance
Any type of life insurance may be used to provide funds for a Buy-Sell Agreement.
Lorraine's position has been terminated, and she is interested in converting her
group life coverage to an individual policy. In the process, she will find all of the
following to be TRUE, except: - Correct Answer --She will be converting her
group term benefit to an individual term benefit
She will be converting her group term life to an individual permanent policy.
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,To help protect against experiencing immediate claims, group plans have a(n)
_______ period set up by the group sponsor. - Correct Answer --Probationary
A probationary period is set up to help reduce the chance of facing immediate
claims.
How is the funding for Social Security provided? - Correct Answer --Through
FICA taxes that are paid by both employers and employees
Both the employer and employee fund Social Security through paying FICA taxes.
Self-employed persons pay the entire amount.
The premium for optional dependent group insurance can be payable by: - Correct
Answer -The employer, the employee or both
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, Optional dependent coverage may be paid for by the employer, the employee, or
both.
When an insurer wishes to implement changes to a group life policy, whom must it
notify? - Correct Answer -The group sponsor
Just as in individual contracts, the owner controls the policy. In this case, only the
plan sponsor has a policy (i.e. the Master Policy). As such, the insurer must notify
the group sponsor of the changes.
There is a conversion period of how many days in which the employee may, upon
termination of eligibility and without evidence of insurability, convert his/her
group life insurance benefit to an individual permanent policy? - Correct Answer -
31
There is a conversion period of 31 days in which the employee may, upon
termination of eligibility and without evidence of insurability, convert his/her
group life insurance benefit to an individual permanent policy.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 4
Questions and Answers
A key person is typically all of the following, except: - Correct Answer --Not
directly involved in sales, production, or service
Key persons are employees whose contributions have a significant impact on the
revenue and profitability of the company, especially in small businesses. They are
typically: part of the management team, more highly paid, respected by customers,
creditors, suppliers, and vendors, and have direct responsibilities for sales,
production, or service.
Which one of the following is not a reason why premium for the individual policy
issued to an insured exercising a group conversion right is higher than the group
life rate previously charged? - Correct Answer --The conversion policy has a
higher death benefit
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
,The premium of an individual policy issued due to a group life insurance plan
conversion will be at a higher than normal rate to include the insurer's guaranteed
convertible surcharge because the majority of all conversions involve persons that
would otherwise be uninsurable, because the conversion policy will be issued at
the attained (current) age of the insured, and the policy will build cash values.
The type of life insurance used to provide funds for a Buy-Sell Agreement is: -
Correct Answer --Any type of life insurance
Any type of life insurance may be used to provide funds for a Buy-Sell Agreement.
Lorraine's position has been terminated, and she is interested in converting her
group life coverage to an individual policy. In the process, she will find all of the
following to be TRUE, except: - Correct Answer --She will be converting her
group term benefit to an individual term benefit
She will be converting her group term life to an individual permanent policy.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
,To help protect against experiencing immediate claims, group plans have a(n)
_______ period set up by the group sponsor. - Correct Answer --Probationary
A probationary period is set up to help reduce the chance of facing immediate
claims.
How is the funding for Social Security provided? - Correct Answer --Through
FICA taxes that are paid by both employers and employees
Both the employer and employee fund Social Security through paying FICA taxes.
Self-employed persons pay the entire amount.
The premium for optional dependent group insurance can be payable by: - Correct
Answer -The employer, the employee or both
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
, Optional dependent coverage may be paid for by the employer, the employee, or
both.
When an insurer wishes to implement changes to a group life policy, whom must it
notify? - Correct Answer -The group sponsor
Just as in individual contracts, the owner controls the policy. In this case, only the
plan sponsor has a policy (i.e. the Master Policy). As such, the insurer must notify
the group sponsor of the changes.
There is a conversion period of how many days in which the employee may, upon
termination of eligibility and without evidence of insurability, convert his/her
group life insurance benefit to an individual permanent policy? - Correct Answer -
31
There is a conversion period of 31 days in which the employee may, upon
termination of eligibility and without evidence of insurability, convert his/her
group life insurance benefit to an individual permanent policy.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 4
