CCTC CERTIFICATION BUNDLE FINAL
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
⩥ An example of naming a beneficiary by class would be
To the children born of my union with Ned Jackson: David Jackson,
Jennifer Jackson, and Scott Jackson
To Ned Jackson
To the child born of my union with Ned Jackson: Scott Jackson
To the children born of my union with Ned Jackson. Answer: To the
children born of my union with Ned Jackson
⩥ Naming a contingent beneficiary as "all surviving children" is
described by which term?
Primary designation
Contingent designation
Tertiary designation
Class designation. Answer: Class designation
⩥ What happens to the total amount of premium paid for an insurance
policy when the payment frequency increases?
,Depends on the type of coverage
Increases
No difference in cost
Decreases. Answer: Increases
⩥ A life insurance claim which involves a per capita distribution of
policy proceeds would be payable to the
named contingent beneficiaries only
named living primary beneficiaries
estate of the deceased beneficiaries only
estate of the insured only. Answer: named living primary beneficiaries
⩥ A policyowner is prohibited from making any changes to the policy
without the beneficiary's written consent under which beneficiary
designation?
Tertiary beneficiary
Revocable beneficiary
Contingent beneficiary
Irrevocable beneficiary. Answer: Irrevocable beneficiary
,⩥ Level premium term life insurance policies
have premiums that are averaged over the policy period
automatically renew at predetermined dates
build cash value in a separate account
automatically convert to permanent insurance at a predetermined date.
Answer: have premiums that are averaged over the policy period
⩥ Tonya has replaced her whole life policy with an annuity without
incurring a tax penalty. This transaction is called a(n)
1040 Exchange
1035 Exchange
Modified Exchange
Endowment Exchange. Answer: 1035 Exchange
⩥ Which of these factors help determine an insured's life insurance
premium?
marital status
avocation (hobby)
place of residence
insured's salary. Answer: avocation (hobby)
, ⩥ Over the course of a year, which premium payment mode is most
expensive?
Semi-Annually
Quarterly
Annually
Monthly. Answer: Monthly
⩥ The premium payment mode that results in the highest overall cost
would be
monthly
quarterly
semi-annual
annual. Answer: monthly
⩥ Which of these is considered a major tax advantage of life insurance?
Tax credits are available for life insurance premiums paid
Annual earnings are tax free
Income tax is typically not owed on proceeds paid directly to a
beneficiary
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
⩥ An example of naming a beneficiary by class would be
To the children born of my union with Ned Jackson: David Jackson,
Jennifer Jackson, and Scott Jackson
To Ned Jackson
To the child born of my union with Ned Jackson: Scott Jackson
To the children born of my union with Ned Jackson. Answer: To the
children born of my union with Ned Jackson
⩥ Naming a contingent beneficiary as "all surviving children" is
described by which term?
Primary designation
Contingent designation
Tertiary designation
Class designation. Answer: Class designation
⩥ What happens to the total amount of premium paid for an insurance
policy when the payment frequency increases?
,Depends on the type of coverage
Increases
No difference in cost
Decreases. Answer: Increases
⩥ A life insurance claim which involves a per capita distribution of
policy proceeds would be payable to the
named contingent beneficiaries only
named living primary beneficiaries
estate of the deceased beneficiaries only
estate of the insured only. Answer: named living primary beneficiaries
⩥ A policyowner is prohibited from making any changes to the policy
without the beneficiary's written consent under which beneficiary
designation?
Tertiary beneficiary
Revocable beneficiary
Contingent beneficiary
Irrevocable beneficiary. Answer: Irrevocable beneficiary
,⩥ Level premium term life insurance policies
have premiums that are averaged over the policy period
automatically renew at predetermined dates
build cash value in a separate account
automatically convert to permanent insurance at a predetermined date.
Answer: have premiums that are averaged over the policy period
⩥ Tonya has replaced her whole life policy with an annuity without
incurring a tax penalty. This transaction is called a(n)
1040 Exchange
1035 Exchange
Modified Exchange
Endowment Exchange. Answer: 1035 Exchange
⩥ Which of these factors help determine an insured's life insurance
premium?
marital status
avocation (hobby)
place of residence
insured's salary. Answer: avocation (hobby)
, ⩥ Over the course of a year, which premium payment mode is most
expensive?
Semi-Annually
Quarterly
Annually
Monthly. Answer: Monthly
⩥ The premium payment mode that results in the highest overall cost
would be
monthly
quarterly
semi-annual
annual. Answer: monthly
⩥ Which of these is considered a major tax advantage of life insurance?
Tax credits are available for life insurance premiums paid
Annual earnings are tax free
Income tax is typically not owed on proceeds paid directly to a
beneficiary
