NC LIFE INSURANCE UPDATED QUESTIONS AND ANSWERS
SURE A+
✔✔All of the occurrences listed below are examples of an insurable event as defined by
the CA insurance Code, EXCEPT:
> A guest is injured by a fall from the insured's desk.
> An insured is sued for unintentional slander of another person.
> An insured suffers a financial loss in the state lottery.
> An insured is admitted to the hospital for delivery of a newborn. - ✔✔An insured
suffers a financial loss in the state lottery.
✔✔According to the CA Insurance Code, an insured's policy must specify all of the
following, EXCEPT:
> The policy period
> The financial rating of the insurer
> The property or life being insured
> The risks insured against - ✔✔The financial rating of the insurer
✔✔Which provision will pay a apportion of death benefit prior to the insured's death to a
serious illness? - ✔✔Accelerated death benefit
✔✔Which of the following best describes a term insurance policy? - ✔✔A death benefit
is payable, but there is no cash value.
✔✔Which of these categories of insurance combine insurance protection together with
cash accumulation?
> Convertible term insurance
> Mortgage protection insurance
> Buy-self insurance
> Permanent insurance contracts - ✔✔Permanent insurance
✔✔What is the difference between deferred annuities and immediate annuities? -
✔✔Deferred annuities have longer accumulation periods.
✔✔Select from below the potential costs related with a person's death:
> medical payments
> Paying off a new car
> Both of the above
> None of the above - ✔✔Both of the above
, ✔✔ AN example of a moral hazard in relation to a life insurance application would be: -
✔✔Misstating your health history to an insurance company.
✔✔John applies for a variable annuity and does not request that the premiums be
immediately invested in a stock or bond portfolio. After the annuity is issued, John
returns the annuity contract to the insurer within the free look period. What will John
receive from the insurer? - ✔✔The entire premium
✔✔In life insurance policies, naming beneficiaries is an important part of the application
process. Choose from below the best description of a contingent beneficiary. - ✔✔One
with the first right to receive proceeds if there is no surviving primary beneficiary and the
insured dies.
✔✔Of the following, which best describes an annuity? - ✔✔It has an obligation that is
different to the insurance company for both the accumulation period and the liquidation
period.
✔✔After receiving your insurance license, if you change your address, you are to notify
the Commissioner: - ✔✔immediately
✔✔All of the following are used in determining life insurance rates, EXCEPT:
> Insurance company expenses
> Mortality
> Investment and interest return
> Policy reserves - ✔✔Policy reserves
✔✔The best description of a hazard is a/an: - ✔✔Condition that may increase the
chance that a loss may occur.
✔✔The term "consideration" applies to the issuance of an insurance policy. Choose the
best description of this term from the choices below:
> The amount of death benefit.
> The time the underwriting department gives the application
> The face amount of the policy one year from the date of issue.
> None of the above - ✔✔none of the above
✔✔In group life insurance, who is issued a certificate of insurance? - ✔✔The Participant
✔✔All of the following statements apply to the child coverage in a family policy,
EXCEPT
> Child coverage is convertible to whole life coverage
SURE A+
✔✔All of the occurrences listed below are examples of an insurable event as defined by
the CA insurance Code, EXCEPT:
> A guest is injured by a fall from the insured's desk.
> An insured is sued for unintentional slander of another person.
> An insured suffers a financial loss in the state lottery.
> An insured is admitted to the hospital for delivery of a newborn. - ✔✔An insured
suffers a financial loss in the state lottery.
✔✔According to the CA Insurance Code, an insured's policy must specify all of the
following, EXCEPT:
> The policy period
> The financial rating of the insurer
> The property or life being insured
> The risks insured against - ✔✔The financial rating of the insurer
✔✔Which provision will pay a apportion of death benefit prior to the insured's death to a
serious illness? - ✔✔Accelerated death benefit
✔✔Which of the following best describes a term insurance policy? - ✔✔A death benefit
is payable, but there is no cash value.
✔✔Which of these categories of insurance combine insurance protection together with
cash accumulation?
> Convertible term insurance
> Mortgage protection insurance
> Buy-self insurance
> Permanent insurance contracts - ✔✔Permanent insurance
✔✔What is the difference between deferred annuities and immediate annuities? -
✔✔Deferred annuities have longer accumulation periods.
✔✔Select from below the potential costs related with a person's death:
> medical payments
> Paying off a new car
> Both of the above
> None of the above - ✔✔Both of the above
, ✔✔ AN example of a moral hazard in relation to a life insurance application would be: -
✔✔Misstating your health history to an insurance company.
✔✔John applies for a variable annuity and does not request that the premiums be
immediately invested in a stock or bond portfolio. After the annuity is issued, John
returns the annuity contract to the insurer within the free look period. What will John
receive from the insurer? - ✔✔The entire premium
✔✔In life insurance policies, naming beneficiaries is an important part of the application
process. Choose from below the best description of a contingent beneficiary. - ✔✔One
with the first right to receive proceeds if there is no surviving primary beneficiary and the
insured dies.
✔✔Of the following, which best describes an annuity? - ✔✔It has an obligation that is
different to the insurance company for both the accumulation period and the liquidation
period.
✔✔After receiving your insurance license, if you change your address, you are to notify
the Commissioner: - ✔✔immediately
✔✔All of the following are used in determining life insurance rates, EXCEPT:
> Insurance company expenses
> Mortality
> Investment and interest return
> Policy reserves - ✔✔Policy reserves
✔✔The best description of a hazard is a/an: - ✔✔Condition that may increase the
chance that a loss may occur.
✔✔The term "consideration" applies to the issuance of an insurance policy. Choose the
best description of this term from the choices below:
> The amount of death benefit.
> The time the underwriting department gives the application
> The face amount of the policy one year from the date of issue.
> None of the above - ✔✔none of the above
✔✔In group life insurance, who is issued a certificate of insurance? - ✔✔The Participant
✔✔All of the following statements apply to the child coverage in a family policy,
EXCEPT
> Child coverage is convertible to whole life coverage
