CALIFORNIA LIFE INSURANCE STATE EXAM 2024-
2025 TEST BANK WITH 200 QUESTIONS AND
CORRECT ANSWERS
According to section 1729.2 of the California Insurance Code, which of these does NOT qualify as "background information"?Misdemeanor charges filed, not resulting in a conviction A breach of fiduciary duty A filing of felony criminal charges in state or federal court An administrative action regarding a professional or occupational license - ANSWER-Misdemeanor charges filed, not resulting in a conviction
Which of the following does the California Insurance Code NOT require an insurance policy to specify?Insurer's financial rating Policy period Premium What or who is being insured - ANSWER-Insurer's financial rating
The California Insurance Code requires that an insurer must have enough assets to cover its liabilities and for reinsurance of all outstanding risks. To remain solvent, it must also possess additional assets equal to what amount?50% of its stock value It's paid-in capital
$10,000,000
Amount determined by the Insurance Guarantee Association - ANSWER-It's paid- in capital 1 / 4
Which of the following acts is NOT a Federal offense committed by an insurance agent?Embezzlement Insurance fraud Misrepresentation on an insurance application Falsify records - ANSWER-Misrepresentation on an insurance application
Which word implies permissiveness according to the California Insurance Code?May Indemnity Admitted Shall - ANSWER-May
According to the California Insurance Code, what is "insurance"?A contract A transfer A hazard An agreement - ANSWER-A contract
An annuitant would life to determine the amount of an annuity distribution that is exempt from taxation. What is used to calculate this?Mortality rate, Exclusion ratio, Morbidity rate, Debt-to-Equity ration - ANSWER-Exclusion ratio 2 / 4
Which of the following is NOT a feature of equity-indexed annuities?
Offers long term inflation protection, Offers a minimum guaranteed rate, Offers a maximum interest rate that increases annually, Offers protection during a decline in the stock market - ANSWER-Offers a maximum interest rate that increases annually
What kind of annuity pays income to two annuitants until their deaths?Period certain annuity Joint and survivor annuity Straight life annuity Installment refund - ANSWER-Joint and survivor annuity
Victoria owns a life annuity and elects to receive annuity payments monthly for the remainder of her life with "ten years certain". Her annuity will make payments For a period of time dependent on the performance of the annuity's underlying assets For a maximum of 120 months For the remainder of her life only For a minimum of 120 months and a maximum of the remainder of his life - ANSWER-For a minimum of 120 months and a maximum of the remainder of his life
An annuitant would life to determine the current value of her annuity. To do this, she multiplies the number of "accumulation units" she owns times the unit value of the "separate account". What kind of annuity BEST matches this description?Variable annuity 3 / 4
Fixed annuity Immediate annuity Life annuity - ANSWER-Variable annuity
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 - ANSWER-60 payments
What is a common reason people purchase an annuity?To create an immediate estate To pay off a debt in the event of death To minimize their tax burden To protect against the risk of outliving their financial resources - ANSWER-To protect against the risk of outliving their financial resources
An annuity which is backed by a life insurer's separate account is called a(n) Equity indexed annuity Variable annuity Immediate annuity 403(b) plan - ANSWER-Variable annuity
What distinguishes a deferred annuity from an immediate annuity?
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