CA Life Insurance Exam Questions And
Answers 2025|2026 Verified Graded A+
Already Passed!
What writing? - CORRECT ANSWER answer-Individual life insurance
requires the applicant to answer medical questions.
A $50,000 whole life policy with a cash value of $10,000 has been in
force for eleven years. The policyowner is unable to continue the
premium payments. Which of the following describes the reduced paid-
up nonfordeiture option? - CORRECT ANSWER answer-The cash value is
used to select a $20,000 paid-up policy.
Which of the following is a characteristic of nonqualified annuities? -
CORRECT ANSWER answer-Tax-deferred earnings.
A 10-year certain annuity with an installment refund is purchased. The
annuitant dies after receiving monthly payments for 5 years. How many
remaining payments will the insurer make? - CORRECT ANSWER
answer-60 payments.
,The payor rider on a juvenile life policy provides that if the payor dies or
becomes disabled before the insured juvenile reaches the age specified
in the policy that the - CORRECT ANSWER answer-insurer will make the
payments until the insured juvenile reaches a specified age-usually
twenty-one or twenty-five.
Which of the following contracts provides benefits that fluctuate
automatically with investment results? - CORRECT ANSWER answer-
Variable life insurance.
The theory of probability is applied to life insurance through the use of -
CORRECT ANSWER answer-mortality tables.
What is the difference between deferred annuities and immediate
annuities? - CORRECT ANSWER answer-Deferred annuities have longer
accumulation periods.
,which of the following is NOT an option for the use of the policy
dividends? - CORRECT ANSWER answer-Fund the distribution of
monthly income payments.
The insured is totally and permanently disabled. The insured's policy
continues in force without payment of further premiums because the
policy contains a - CORRECT ANSWER answer-waiver of premium
provision.
Your client has just bought a new home which he has financed with a
$150,000, 7.5% interest, 30 -year bank loan. He would like to be sure
that if he dies that the unpaid balance of the mortgage would be paid.
He wants a policy that will cover the mortgage balance-no more, no
less-anytime during the life of the mortgage. Which policy is designed
to meet this need? - CORRECT ANSWER answer-Decreasing term policy.
Death benefits that are received by a beneficiary are generally -
CORRECT ANSWER answer-exempt from federal income tax.
, An insured replaces an existing annuity with a new one and must pay a
surrender charge for cancelling the existing annuity. The new policy
holds no greater financial benefits to the insured than the existing
contract. This is an example of - CORRECT ANSWER answer-an
unnecessary replacement.
What do we call the process whereby insurers decide which customers
to insure and what coverage to offer? - CORRECT ANSWER answer-
Underwriting.
what is used to determine the amount of an annuity distribution that is
exempt from taxation? - CORRECT ANSWER answer-The exclusion ratio.
The number of deaths during a year compared with the total number of
persons exposed in the class is known as the - CORRECT ANSWER
answer-mortality rate
The insured bought an annuity ten years ago. He will retire in five years.
To determine the value of his annuity, he must multiply the value of the
"accumulation units" he owns, times the value of the "separate
Answers 2025|2026 Verified Graded A+
Already Passed!
What writing? - CORRECT ANSWER answer-Individual life insurance
requires the applicant to answer medical questions.
A $50,000 whole life policy with a cash value of $10,000 has been in
force for eleven years. The policyowner is unable to continue the
premium payments. Which of the following describes the reduced paid-
up nonfordeiture option? - CORRECT ANSWER answer-The cash value is
used to select a $20,000 paid-up policy.
Which of the following is a characteristic of nonqualified annuities? -
CORRECT ANSWER answer-Tax-deferred earnings.
A 10-year certain annuity with an installment refund is purchased. The
annuitant dies after receiving monthly payments for 5 years. How many
remaining payments will the insurer make? - CORRECT ANSWER
answer-60 payments.
,The payor rider on a juvenile life policy provides that if the payor dies or
becomes disabled before the insured juvenile reaches the age specified
in the policy that the - CORRECT ANSWER answer-insurer will make the
payments until the insured juvenile reaches a specified age-usually
twenty-one or twenty-five.
Which of the following contracts provides benefits that fluctuate
automatically with investment results? - CORRECT ANSWER answer-
Variable life insurance.
The theory of probability is applied to life insurance through the use of -
CORRECT ANSWER answer-mortality tables.
What is the difference between deferred annuities and immediate
annuities? - CORRECT ANSWER answer-Deferred annuities have longer
accumulation periods.
,which of the following is NOT an option for the use of the policy
dividends? - CORRECT ANSWER answer-Fund the distribution of
monthly income payments.
The insured is totally and permanently disabled. The insured's policy
continues in force without payment of further premiums because the
policy contains a - CORRECT ANSWER answer-waiver of premium
provision.
Your client has just bought a new home which he has financed with a
$150,000, 7.5% interest, 30 -year bank loan. He would like to be sure
that if he dies that the unpaid balance of the mortgage would be paid.
He wants a policy that will cover the mortgage balance-no more, no
less-anytime during the life of the mortgage. Which policy is designed
to meet this need? - CORRECT ANSWER answer-Decreasing term policy.
Death benefits that are received by a beneficiary are generally -
CORRECT ANSWER answer-exempt from federal income tax.
, An insured replaces an existing annuity with a new one and must pay a
surrender charge for cancelling the existing annuity. The new policy
holds no greater financial benefits to the insured than the existing
contract. This is an example of - CORRECT ANSWER answer-an
unnecessary replacement.
What do we call the process whereby insurers decide which customers
to insure and what coverage to offer? - CORRECT ANSWER answer-
Underwriting.
what is used to determine the amount of an annuity distribution that is
exempt from taxation? - CORRECT ANSWER answer-The exclusion ratio.
The number of deaths during a year compared with the total number of
persons exposed in the class is known as the - CORRECT ANSWER
answer-mortality rate
The insured bought an annuity ten years ago. He will retire in five years.
To determine the value of his annuity, he must multiply the value of the
"accumulation units" he owns, times the value of the "separate
