California Life Insurance State Exam Simulator Final Exam Questions And Answers 2024 Latest Grade A+

California Life Insurance State Exam Simulator Final Exam Questions And Answers 2024 Latest Grade A+ $5,000 - According to the California Insurance Code, what is the maximum penalty per violation for anyone who unwillfully commits an unfair method of competition? $1,000 $5,000 $7,000 $10,000 $50,000 - Employer-provided group term life insurance is exempt from income taxation up to $10,000 $25,000 $40,000 $50,000 10% - In a modified endowment contract, the penalty tax imposed on premature withdrawals is 10% 20% 30% 40% 10% - Mark, age 45, has a Modified Endowment Contract (MEC). What is the tax penalty for taking a loan against his policy prior to age 59 1/2? 5% 10% 15% 20%l 100% - Employee participation in a noncontributory group life plan must be 25% 50% 75% 100% 100% - Under a 10-year vesting schedule, what percentage of employer contributions must be vested after 10 years of service? 25% 50% 75% 100% 12/15th of the policy's face amount - Jerry is an insured who understated his age on his life insurance application, paying $12 per $1,000 of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be calculated? 12/15th of the policy's face amount 1/2 of the policy's face amount 3/4 of the policy's face amount Full face amount 30 days - Any changes in background information that occur after a producer application has been submitted or a license has been issued MUST be reported to the insurance Commissioner within 10 days 20 days 30 days 40 years 30 days - The free-look period for life insurance policyowners age 60 or older is 10 days 15 days 30 days 60 days 5 years - How long must life insurance agents keep their transaction records? 3 years 4 years 5 years 6 years 6 quarters of coverage during the last 13-quarter period - In order to be considered "currently insured" under Social Security, an individual must be credited with: 12 quarters of coverage during the last 26-quarter period 6 quarters of coverage during the last 13-quarter period 15 total quarters of coverage 30 total quarters of coverage 60 - At what age is a surviving spouse without dependents eligible for Social Security survivor benefits? 50 60 62 65 60 payments - Cindy buys a 10-year annuity with an installment refund. After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary? No payments 30 payments 60 payments 120 payments A condition that may increase the likelihood of a loss occurring - A hazard can be best described as The potential for loss The tendency for poorer than average risks to seek out insurance A condition that may increase the likelihood of a loss occurring A risk that has the potential for both loss and gain A contract - According to the California Insurance Code, what is "insurance"? A contract A transfer A hazard An agreement A deceased worker's dependent parents of any age - Who is NOT eligible for Social Security survivor benefits? A widow at any age who is caring for children younger than 16 A widow at full retirement age Full-time students under the age of 19 A deceased worker's dependent parents of any age A dividend option is selected by the insured at the time of policy purchase - Which statement is true regarding policy dividends? Dividends are always guaranteed Nonparticipating policies issue dividends A dividend option is selected by the insured at the time of policy purchase A modified endowment contract - An insurance policy written after 1988 that fails to pass the seven-pay test is known as An endowment policy A modified life policy A single premium contract A modified endowment contract A person compensated for transacting insurance on behalf of another person with an insurer - What is an "insurance broker" according to California Insurance Code? A person who offers or attempts to negotiate life settlement contracts between an owner and providers A person authorized to assist a broker or agent in transacting insurance A person compensated for transacting insurance on behalf of another person with an insurer A person who requires a license and charges a fee to review an insured's existing life or disability policy A return of excess premium and not taxable - How is a life insurance policy dividend legally defined? A return of excess premium and partially taxable A return of excess of premium and fully taxable A return of excess premium and not taxable A return of excess premium subject to capital gain tax Accelerated death benefit - Which provision will pay a portion of the death benefit prior to the insured's death due to a serious illness? Cash surrender Nonforfeiture Return of premium Accelerated death benefit Admitted - What is the insurance term the State of California uses for an insurer that is eligible to transact business in this state? Admitted Eligible Authorized Valid Admitted - When an insurer has met the qualifications necessary to transact business in California, it is said to be Admitted Valid Authorized Qualified