CPA Study Exam Questions And Answers
2025/26 With 100% Solutions
Q: Peter has a policy where 80% to 90% of the premium is invested in
traditional fixed income securities and the remainder of the premium is
invested in contracts tied to a stipulated stock index. What kind of policy is
this?
A:"Equity index whole life
Q: legal purpose is a term used in contract law meaning?
A: there must be legal reasons for entering into a contract.
Q: which of the following is an example of the insurance consideration?
A: A paid premium
Q: according to the principle of utmost good faith, the insured will answer
questions on the application to the best of their knowledge and pay the
required premium, while the insurer will deal fairly with the insured and it's?
A: promises made
Q: when the principal gives the agent authority in writing, it is referred to as?
A: Express authority
Q:all of the following are elements of an insurance policy except?
A: claim forms
Q: in an insurance contract, the insurer is the only party legally obligated to
perform. Because of this, and insurance contract is considered?
A:unilateral
Q:The power given to an individual producer that is not specifically address
in his/her contract is considered what type of authority?
A: implied authority
, Q:The deeds and actions of a producer indicate what kind of authority?
A:Apparent
Q:What are an applicant's statements concerning occupation, hobbies, and
personal health history regarded as?
A:representations (Statements by an applicant concerning personal health history,
family health history, occupation, and hobbies are referred)
Q:What is implied authority defined as?
A:Authority that is not specifically given to an agent in the agency contract, but
that an agent can reasonably assume to carry out his/her duties
Q:Bob and Tom start a business. Since each partner contributes an important
element to the success of the business, they decide to take life insurance
policies out on each other, and name each other as beneficiaries. Eventually,
they retire and dissolve the business. Bob dies 12 months later. The policies
continue in force with no change. Both partners are still married at the time of
Bob's death. In this situation, who will receive Bob's policy proceeds?
A:Tom". Insurable interest only has to exist at the time of the application, not at the
time of the claim. Being there was no change in beneficiary prior to Bob's death,
Tom will still receive the policy proceeds.
Q:According to life insurance contract law, insurable interest exists
A:at the time of application". According to life insurance in contract law, a person
most likely will have an insurable interest in insuring a person's life if at the time
of application
Q:Which of the following BEST describes a conditional insurance contract?
A:A contract that requires certain conditions or acts by the insured individual
Q:Which type of clause describes the following statement: "We have issued
the policy in consideration of the representations in your applications and
payment of the first-term premium".
2025/26 With 100% Solutions
Q: Peter has a policy where 80% to 90% of the premium is invested in
traditional fixed income securities and the remainder of the premium is
invested in contracts tied to a stipulated stock index. What kind of policy is
this?
A:"Equity index whole life
Q: legal purpose is a term used in contract law meaning?
A: there must be legal reasons for entering into a contract.
Q: which of the following is an example of the insurance consideration?
A: A paid premium
Q: according to the principle of utmost good faith, the insured will answer
questions on the application to the best of their knowledge and pay the
required premium, while the insurer will deal fairly with the insured and it's?
A: promises made
Q: when the principal gives the agent authority in writing, it is referred to as?
A: Express authority
Q:all of the following are elements of an insurance policy except?
A: claim forms
Q: in an insurance contract, the insurer is the only party legally obligated to
perform. Because of this, and insurance contract is considered?
A:unilateral
Q:The power given to an individual producer that is not specifically address
in his/her contract is considered what type of authority?
A: implied authority
, Q:The deeds and actions of a producer indicate what kind of authority?
A:Apparent
Q:What are an applicant's statements concerning occupation, hobbies, and
personal health history regarded as?
A:representations (Statements by an applicant concerning personal health history,
family health history, occupation, and hobbies are referred)
Q:What is implied authority defined as?
A:Authority that is not specifically given to an agent in the agency contract, but
that an agent can reasonably assume to carry out his/her duties
Q:Bob and Tom start a business. Since each partner contributes an important
element to the success of the business, they decide to take life insurance
policies out on each other, and name each other as beneficiaries. Eventually,
they retire and dissolve the business. Bob dies 12 months later. The policies
continue in force with no change. Both partners are still married at the time of
Bob's death. In this situation, who will receive Bob's policy proceeds?
A:Tom". Insurable interest only has to exist at the time of the application, not at the
time of the claim. Being there was no change in beneficiary prior to Bob's death,
Tom will still receive the policy proceeds.
Q:According to life insurance contract law, insurable interest exists
A:at the time of application". According to life insurance in contract law, a person
most likely will have an insurable interest in insuring a person's life if at the time
of application
Q:Which of the following BEST describes a conditional insurance contract?
A:A contract that requires certain conditions or acts by the insured individual
Q:Which type of clause describes the following statement: "We have issued
the policy in consideration of the representations in your applications and
payment of the first-term premium".
