California Life Insurance State Exam Simulator questions and answers 100% guaranteed success.

California Life Insurance State Exam Simulator questions and answers 100% guaranteed success. Exclusion sratio s- s scorrect sanswer. s s sAn sannuitant swould slife sto sdetermine sthe samount sof san sannuity sdistribution sthat sis sexempt sfrom staxation. sWhat sis sused sto scalculate sthis? Mortality srate, Exclusion sratio, Morbidity srate, Debt-to-Equity sration Offers sa smaximum sinterest srate sthat sincreases sannually s- s scorrect sanswer. s s sWhich sof sthe sfollowing sis sNOT sa sfeature sof sequity-indexed sannuities? Offers slong sterm sinflation sprotection, sOffers sa sminimum sguaranteed srate, sOffers sa smaximum sinterest srate sthat sincreases sannually, sOffers sprotection sduring sa sdecline sin sthe sstock smarket Joint sand ssurvivor sannuity s- s scorrect sanswer. s s sWhat skind sof sannuity spays sincome sto stwo sannuitants suntil stheir sdeaths? Period scertain sannuity Joint sand ssurvivor sannuity Straight slife sannuity Installment srefund For sa sminimum sof s120 smonths sand sa smaximum sof sthe sremainder sof shis slife s- s scorrect sanswer. s s sVictoria sowns sa slife sannuity sand selects sto sreceive sannuity spayments smonthly sfor sthe sremainder sof sher slife swith s"ten syears scertain". sHer sannuity swill smake spayments For sa speriod sof stime sdependent son sthe sperformance sof sthe sannuity's sunderlying sassets For sa smaximum sof s120 smonths For sthe sremainder sof sher slife sonly For sa sminimum sof s120 smonths sand sa smaximum sof sthe sremainder sof shis slife Variable sannuity s- s scorrect sanswer. s s sAn sannuitant swould slife sto sdetermine sthe scurrent svalue sof sher sannuity. sTo sdo sthis, sshe smultiplies sthe snumber sof s"accumulation sunits" sshe sowns stimes sthe sunit svalue sof sthe s"separate saccount". sWhat skind sof sannuity sBEST smatches sthis sdescription? Variable sannuity Fixed sannuity Immediate sannuity Life sannuity 60 spayments s- s scorrect sanswer. s s sCindy sbuys sa s10-year sannuity swith san sinstallment srefund. sAfter sreceiving smonthly spayments sfor s5 syears, sCindy sdies. sHow smany sremaining spayments swill sthe sinsurer smake sto sher sbeneficiary? No spayments 30 spayments 60 spayments 120 spayments To sprotect sagainst sthe srisk sof soutliving stheir sfinancial sresources s- s scorrect sanswer. s s sWhat sis sa scommon sreason speople spurchase san sannuity? To screate san simmediate sestate To spay soff sa sdebt sin sthe sevent sof sdeath To sminimize stheir stax sburden To sprotect sagainst sthe srisk sof soutliving stheir sfinancial sresources Variable sannuity s- s scorrect sanswer. s s sAn sannuity swhich sis sbacked sby sa slife sinsurer's sseparate saccount sis scalled sa(n) Equity sindexed sannuity Variable sannuity Immediate sannuity 403(b) splan The stime sat swhich sbenefit spayments sstart s- s scorrect sanswer. s s sWhat sdistinguishes sa sdeferred sannuity sfrom san simmediate sannuity? The stime sat swhich sbenefit spayments sstart The sbenefit spayment samount The staxation sof sbenefit spayments The sage sat swhich sthe sannuity scan sbe spurchased Deferred sannuity s- s scorrect sanswer. s s sA ssavings svehicle sdesigned sto sfirst saccumulate sfunds sand sthen ssystematically sliquidates sthe sfunds sis scalled sa(n) Immediate sannuity Deferred sannuity Endowment Whole slife spolicy Insurance spolicy s- s scorrect sanswer. s s sWhich sof sthe sfollowing sis sa scontract sthat sinvolves sone sparty swhich sindemnifies sanother swhen sa sloss sarises sfrom san sunknown sevent? Insurance spolicy Loss scontract Warranty sarrangement Indemnification sarrangement Mutual sinsurer s- s scorrect sanswer. s s sA sparticipating scompany sis salso sreferred sto sas swhich stype sof sinsurer? Reciprocal sinsurer Re-insurer Mutual sinsurer Domestic sinsurer Reinsurance s- s scorrect sanswer. s s sAn sinsurer senters sinto sa scontract swith sa sthird sparty sto sinsure sitself sagainst slosses sfrom sinsurance spolicies sit sissues. sWhat sis sthis sagreement scalled? Reinsurance Mutual s Multi-line Reserves Primary sinsurer s- s scorrect sanswer. s s sAAA sInsurance sCompany shas stransferred sa sportion sof sits sloss sexposure sto sBBB sInsurance sCompany. sIn sthis sreinsurance stransaction, swhat sis sAAA sInsurance sCompany scalled? Tertiary sinsurer Primary sinsurer Secondary sinsurer Captive sinsurer Contract sthat sallows sthe spolicyowner sto sreceive sa sshare sof ssurplus sin sthe sform sof spolicy sdividends s- s scorrect sanswer. s s sWhat sis sa sparticipating slife sinsurance spolicy? Contract sthat sgives sbeneficiaries sthe sright sto sparticipate sin sany sdividends Agreement sthat sinsures stwo sor smore slives Agreement sthat sallows stwo sor smore sbeneficiaries sto sshare sin sthe sdeath sbenefit Contract sthat sallows sthe spolicyowner sto sreceive sa sshare sof ssurplus sin sthe sform sof spolicy sdividends Participating s- s scorrect sanswer. s s sJohn sowns san sinsurance spolicy sthat sgives shim sthe sright sto sshare sin sthe sinsurer's ssurplus. sWhat skind sof spolicy sis sthis? Contributory Nonparticipating Surplus Participating Increases sthe sunearned spremium sreserve s- s scorrect sanswer. s s sWhich sof sthe sfollowing sis sNOT sa scharacteristic sof sreinsurance? Protects sagainst sa svery slarge sclaim Increases sthe sunearned spremium sreserve A sspecialized sbranch sof sthe sinsurance sindustry Enables sinsurer sto smeet scertain sobjectives Marketing s- s scorrect sanswer. s s sOne simportant sfunction sof san sinsurance scompany sis sto sidentify sand ssell sto spotential scustomers. sWhich sof sthe sBEST sdescribes sthis sfunction? Regulation Marketing Underwriting s Reinsurance It sis sthe sdistribution sof sexcess sof sfunds saccumulated sby sthe sinsurer son sparticipating spolicies s- s scorrect sanswer. s s sWhich sof sthe sfollowing sstatements sregarding sa slife sinsurance spolicy sdividend sis sTRUE? It sis sa sstockholders sreturn son shis sinvestment sin sthe scompany It sis sthe sdistribution sof sexcess sof sfunds saccumulated sby sthe sinsurer son sparticipating spolicies It srepresents sthe sbuilt-up sof scash svalue sin sa spermanent sinsurance spolicy It srepresents sa srefund sof sovercharged spremium sin sa snon-participating swhole slife spolicy Losses sdue sto sfraud sare seliminated s- s scorrect sanswer. s s sWhich sof sthe sfollowing sis sNOT sa sbenefit sof sinsurance? Source sof sinvestment sfunds Makes sa sloss swhole sagain Reduces sthe suncertainty sof sloss sexposures Losses sdue sto sfraud sare seliminated Mutual sinsurer s- s scorrect sanswer. s s sAn sinsurer sowned sby sits spolicyholders sis scalled sa Multi-line sinsurer Mutual sinsurer Reinsurer Stock sinsurer One sparty sis srestored sto sthe ssame sfinancial sposition sthe sparty swas sin sbefore sthe sloss soccurred s- s scorrect sanswer. s s sWhich sof sthe sfollowing sstatements sstatements scorrectly sdescribes sa scontract sof sindemnity? One sparty sis srestored sto sthe ssame sfinancial sposition sthe sparty swas sin sbefore sthe sloss soccurred The sunequal sexchange sof svalue sor sconsideration sfor sboth sparties One sparty s(the sinsurance scompany) sprepares sthe scontract swith sno snegotiation sbetween sthe sapplication sand sinsurer Only sone sparty s(the sinsurer) smakes sany skind sof senforceable spromise Probability sof sloss s- s scorrect sanswer. s s sWhich sof sthe sfollowing sis sNOT srequired sin sthe scontent sof sa spolicy? Parties sinvolved sin sthe scontract Period sto swhich sthe scoverage sexists Probability sof sloss Risk sinsured sagainst Equal sconsideration sis srequired sbetween sthe sinvolved sparties s- s scorrect sanswer. s s sWhich sof sthe sfollowing sis sNOT sa srequirement sof sa scontract? Parties sinvolved smust sbe scompetent Equal sconsideration sis srequired sbetween sthe sinvolved sparties Contract smust shave sa slegal spurpose Offer sand sacceptance smust sbe sinvolved Contract smay sbe saccepted sor srejected sby sthe sinsured s- s scorrect sanswer. s s sWhich sstatement sis sCORRECT swhen sdescribing sa scontract sof sadhesion? Contract smay sbe saccepted sor srejected sby sthe sinsured Contract sinvolves snegotiation sbetween sinsurer sand sinsured Any sconfusing slanguage sin sthe scontract swould sbe sinterpreted sin sfavor sof sthe sinsurer Contract scannot sbe smodified sby sthe sinsurer Implied sauthority s- s scorrect sanswer. s s sReasonably snecessary sacts sthat san sagent smust sperform sfor scarrying sout shis/her sexpressly sauthorized sduties sare scovered sby san sagent's Express sauthority Implied sauthority Apparent sauthority Evident sauthority Indemnity s- s scorrect sanswer. s s sRestoring san sinsured sto sthe ssame scondition sas sbefore sa sloss sis san sexample sof sthe sprinciple sof Utmost sgood sfaith Adhesion Legal spurpose Indemnity Rescinding sthe scontract s- s scorrect sanswer. s s sWhich scourse sof saction sis sthe sinsurer sentitled sto swhen sdeliberate sconcealment sis scommitted sby sthe sinsured? Rescinding sthe scontract Charge sa shigher spremium Charge sa spenalty s Nothing The sinsured sand sthe sinsurer scontribute sequally sto sthe scontract s- s scorrect sanswer. s s sWhich sof sthe sfollowing sstatements sabout saleatory scontracts sis sNOT strue? Insurance scontracts sare sconsidered saleatory The sinsured sand sthe sinsurer shave sthe spotential sfor sunequal scontributions The sinsured sand sthe sinsurer scontribute sequally sto sthe scontract Aleatory scontracts sare sconditioned supon sthe soccurrence sof san sevent Fiduciary s- s scorrect sanswer. s s sWhen shandling spremiums sfor san sinsured, san sagent sis sacting sin swhich scapacity? Adhesion Fiduciary Conditional s Aleatory Indemnity s- s scorrect sanswer. s s sWhich sprinciple sis saccurately sdescribed swith sthe sstatement s"Insureds sare sentitled sto srecover san samount sNOT sgreater sthan sthe samount sof stheir sloss"? Unilateral Indemnity Aleatory Utmost sgood sfaith Only sone sparty s(the sinsurer) smakes sany skind sof slegally senforceable spromise s- s scorrect sanswer. s s sA sunilateral scontract sis sone sin swhich There sis san selement sof schance sand spotential sfor sunequal sexchange sof svalue sor sconsideration sfor sboth sparties Only sone sparty s(the sinsurer) smakes sany skind sof slegally senforceable spromise The scontract shas sbeen sprepared sby sone sparty s(the sinsurance scompany) swith sno snegotiation sbetween sthe sapplicant sand sinsurer Both sthe spolicyowner sand sthe sinsurer smust sknow sall smaterial sfacts sand srelevant sinformation Rescind sthe spolicy s- s scorrect sanswer. s s sIf sa smaterial swarranty sviolation son sthe spart sof sthe sinsured sis sfound, swhat srecourse sdoes san sinsurer shave? Sue sthe sinsured Rescind sthe spolicy Charge smore spremium Terminate sthe sagent Materiality sof sconcealment s- s scorrect sanswer. s s sThe simportance sof sa srepresentation sis sdemonstrated sin swhat srule? Insurable sinterest Law sof sadhesion Materiality sof sconcealment Consideration sclause An soffer sand sacceptance sof sthe scontract sterms s- s scorrect sanswer. s s sA scontract srequires Implied sauthority An soffer sand sacceptance sof sthe scontract sterms Negotiation sbetween sthe sinvolved sparties An soffer sand sacceptance sof sthe scontract sterms Dividends s- s scorrect sanswer. s s sWhich sof sthe sfollowing sis sNOT sa scomponent sof sdetermining spolicy spremiums? Dividends Mortality Interest Expenses Insurer's sexpenses s- s scorrect sanswer. s s sWhen scalculating slife sinsurance spremium srates, swhich scomponent swould san sagent's scommission sfall sunder? Morbidity Mortality Insurer's sexpenses Occupation Mortality stables s- s scorrect sanswer. s s sThe sprobability sof sdeath, slisted sby syear, sis sdemonstrated sin s Risk stables Frequency stables Mortality stables s Morbidity stables Exempt sfrom sfederal sincome staxes s- s scorrect sanswer. s s sHow sare sdeath sbenefits sthat sare sreceived sby sa sbeneficiary snormally streated sfor stax spurposes? Taxable sat sthe sbeneficiary's scurrent stax sbracket Subject sto sstate sand slocal staxes sonly Exempt sfrom sfederal sincome staxes Taxable sas sa scapital sgain Premiums s- s scorrect sanswer. s s sWhich sof sthe sfollowing sis sNOT san sinsurer spolicy sexpense? Rent Salaries Commissions Premiums Rate s- s scorrect sanswer. s s sWhat sis sthe sprice sof sinsurance sfor seach sexposure sunit? Rate Premium Rating Expense Extended sterm soption s- s scorrect sanswer. s s sWhich sof sthe sfollowing sis sNOT sa slife sinsurance ssettlement soption? Lump ssum soption Fixed samount soption Life sincome soption Extended sterm soption Restricts sthe sability sof sthe sbeneficiary sto sassign sbenefits s- s scorrect sanswer. s s sA sspendthrift sclause sin sa slife sinsurance spolicy Permits sthe sbeneficiary sto sborrow sfrom sa spolicy's scash svalue Evenly sdistributes sbenefits samong sall snamed sliving sbeneficiaries Assigns sa spolicy's sface samount sto sthe sinsured's sestate sif sthe sbeneficiary sdies sbefore sthe sinsured Restricts sthe sability sof sthe sbeneficiary sto sassign sbenefits The sinsured's sestate s- s scorrect sanswer. s s sA screditor swould sbe sallowed srights sto slife sinsurance spolicy sproceeds sif swhich sof sthe sfollowing sbeneficiaries sis schosen? The sinsured's smother The sinsured's sestate The sinsured's schildren The sinsured's sspouse The samount san sinsured spays sper sunit sof scoverage s- s scorrect sanswer. s s sPremiums sare sbest sdescribed sas Money spaid sby sthe sinsurer sfor ssettling sa sclaim Money spaid sby sthe sinsured sto sacquire sa spolicy's sbenefits The samount san sinsured spays sper sunit sof scoverage Commissions spayable sto sthe swriting sagent Mortality srate s- s scorrect sanswer. s s sWhich sof sthe sfollowing sdescribes sthe snumber sof sdeaths sin sa syear scompared sto sthe snumber sof speople sin sa sselect sgroup? Law sof slarge snumber sratio Mortality srate Morbidity srate Risk sratio Interest soption s- s scorrect sanswer. s s sA sbeneficiary sreceives sonly sthe sdeath sbenefit searnings sin swhich ssettlement soption? Interest soption Life soption Stock soption Fixed samount soption Lump-sum s- s scorrect sanswer. s s sWhich sof sthese sis sthe sautomatic smode sof ssettlement sfor slife sinsurance spolicy sproceeds? Fixed speriod