CA State Life Insurance Practice Exam A
Single premium deferred annuity - correct answer-An annuity that is purchased with a slump
sum premium and whose benefits begin after 12 month is called a
Human Life Value Approach - correct answer-A technique used to determine the amount of
life insurance needed by focusing on the projected earning potential of an insured is called
the
At the time of taking the application - correct answer-When replacing a policy the producer
must present the applicant with a Notice Regarding Replacement of Life Insurance
Risk - correct answer-The possibility of a financial loss incurred by a life insurance company
for the premature death of an insured is known as a
Medical information on applicants for life and health insurance - correct answer-The Medical
Information Bureau (MIB) is a nonprofit trade association that maintains
Perjury - correct answer-A person who signs a fraudulent claim form may be found guilty of
Universal life - correct answer-Which policy is a combination of annual renewable term
insurance and interest-sensitive cash value?
30 Days - correct answer-The right to a full refund of premiums for insureds age 60 or older
is
Frequency of premium payment - correct answer-The premium modes can be best
described as the
Concealment - correct answer-Intentionally omitting a history of heart problems on an
application is
Nonprofit organizations - correct answer-A tax-sheltered annuity (TSA) is a qualified plan
available for
Policy owner - correct answer-The intent of replacement regulations is to protect the
Reinstatement - correct answer-Which provision allows a lapsed policy to be put back in
force?
Alien Insurer - correct answer-According to the California Department of Insurance, an
insurer whose articles of incorporation are registered in Oslo, Norway is considered a/an
Rate of Death - correct answer-Mortality is defined as the
, A group may exist for the purpose of purchasing insurance. - correct answer-Which of the
following is NOT a characteristic of group life insurance?
May allow life insurance companies to start coverage before policy delivery - correct
answer-When a producer collects the initial premium and issues a conditional receipt, the
receipt
Members of a group of individuals with similar risks. - correct answer-The law of large
numbers allows an insurance company to predict the expected losses among
Insolvent - correct answer-If an insurer's legal reserve funds are found to be less than the
minimum required by aw, the insurer is considered
Decreasing term - correct answer-Which type of policy would be suitable to protect the
balance of a home mortgage?
At the time of application - correct answer-When must insurable interest exist?
Long-term care - correct answer-The rider that provides for partial payment of the death
benefit in advance to help with nursing or convalescent home expenses is the
Refund life annuity - correct answer-Which annuity payout options guarantees the return of
all the principal invested in the contract?
They pay dividends to stockholders - correct answer-Which of the following statements is
NOT true about participating policies?
Utmost good faith - correct answer-Insurance contracts are based upon a doctrine which
requires all parties to the contract to be honest. This is known as the doctrine of
5 years - correct answer-According to the California Insurance Code, life-only producers
must keep records of their transactions for at least
Unilateral - correct answer-Which of these is NOT an element of a legal contract?
Income payments vary from month to month - correct answer-Which statement is
INCORRECT about a fixed annuity?
Master contract - correct answer-In a group policy, the employer receives
Exposure - correct answer-The risk of a loss to an insurance company is also referred to as
a/an
Lower in the early years of the contract - correct answer-With a modified premium whole life
contract, premium payments are
Adjust the death benefit - correct answer-If a mistreatment of age is discovered during the
processing of a life insurance claim, the insurer will
Single premium deferred annuity - correct answer-An annuity that is purchased with a slump
sum premium and whose benefits begin after 12 month is called a
Human Life Value Approach - correct answer-A technique used to determine the amount of
life insurance needed by focusing on the projected earning potential of an insured is called
the
At the time of taking the application - correct answer-When replacing a policy the producer
must present the applicant with a Notice Regarding Replacement of Life Insurance
Risk - correct answer-The possibility of a financial loss incurred by a life insurance company
for the premature death of an insured is known as a
Medical information on applicants for life and health insurance - correct answer-The Medical
Information Bureau (MIB) is a nonprofit trade association that maintains
Perjury - correct answer-A person who signs a fraudulent claim form may be found guilty of
Universal life - correct answer-Which policy is a combination of annual renewable term
insurance and interest-sensitive cash value?
30 Days - correct answer-The right to a full refund of premiums for insureds age 60 or older
is
Frequency of premium payment - correct answer-The premium modes can be best
described as the
Concealment - correct answer-Intentionally omitting a history of heart problems on an
application is
Nonprofit organizations - correct answer-A tax-sheltered annuity (TSA) is a qualified plan
available for
Policy owner - correct answer-The intent of replacement regulations is to protect the
Reinstatement - correct answer-Which provision allows a lapsed policy to be put back in
force?
Alien Insurer - correct answer-According to the California Department of Insurance, an
insurer whose articles of incorporation are registered in Oslo, Norway is considered a/an
Rate of Death - correct answer-Mortality is defined as the
, A group may exist for the purpose of purchasing insurance. - correct answer-Which of the
following is NOT a characteristic of group life insurance?
May allow life insurance companies to start coverage before policy delivery - correct
answer-When a producer collects the initial premium and issues a conditional receipt, the
receipt
Members of a group of individuals with similar risks. - correct answer-The law of large
numbers allows an insurance company to predict the expected losses among
Insolvent - correct answer-If an insurer's legal reserve funds are found to be less than the
minimum required by aw, the insurer is considered
Decreasing term - correct answer-Which type of policy would be suitable to protect the
balance of a home mortgage?
At the time of application - correct answer-When must insurable interest exist?
Long-term care - correct answer-The rider that provides for partial payment of the death
benefit in advance to help with nursing or convalescent home expenses is the
Refund life annuity - correct answer-Which annuity payout options guarantees the return of
all the principal invested in the contract?
They pay dividends to stockholders - correct answer-Which of the following statements is
NOT true about participating policies?
Utmost good faith - correct answer-Insurance contracts are based upon a doctrine which
requires all parties to the contract to be honest. This is known as the doctrine of
5 years - correct answer-According to the California Insurance Code, life-only producers
must keep records of their transactions for at least
Unilateral - correct answer-Which of these is NOT an element of a legal contract?
Income payments vary from month to month - correct answer-Which statement is
INCORRECT about a fixed annuity?
Master contract - correct answer-In a group policy, the employer receives
Exposure - correct answer-The risk of a loss to an insurance company is also referred to as
a/an
Lower in the early years of the contract - correct answer-With a modified premium whole life
contract, premium payments are
Adjust the death benefit - correct answer-If a mistreatment of age is discovered during the
processing of a life insurance claim, the insurer will
