- | Page
CA Life Insurance Exam Questions and Answers 100% Pass
Question 1: An annuity that is purchased with a lump sum
premium and whose benefits begin after 12 months is called a
CORRECT ANSWER : SINGLE PREMIUM DEFERRED
ANNUITY
Question 2: A technique used to determine the amount of life
insurance needed by focusing on the projected earning potential of an insured is called the
CORRECT ANSWER : HUMAN LIFE VALUE APPROACH
Question 3: When replacing a policy the producer must present
the applicant with a notice regarding replacement of life insurance
CORRECT ANSWER : AT THE TIME OF TAKING THE
APPLICATION
Question 4: The possibility of a financial loss incurred by a life
insurance company for the premature death of an insured is known as a
CORRECT ANSWER : RISK
- | Page
Question 5: The Medical Information Bureau (MIB) is a
nonprofit trade association that maintains
CORRECT ANSWER : MEDICAL INFORMATION ON
APPLICANTS FOR LIFE AND HEALTH INSURANCE
Question 6: A person who signs a fraudulent claim form may be
found guilty of
CORRECT ANSWER : PERJURY
Question 7: Which policy is a combination of annual renewable
term insurance and interest-sensitive cash value
CORRECT ANSWER : UNIVERSAL LIFE
Question 8: The right to a full refund of premiums for insureds
age 60 or older is
CORRECT ANSWER : 30 DAYS
Question 9: The premium modes can be best described as the
CORRECT ANSWER : FREQUENCY OF PREMIUM
PAYMENT
- | Page
Question 10: Intentionally omitting a history of heart problems
on an application is
CORRECT ANSWER : CONCEALMENT
Question 11: A tax-sheltered annuity (TSA) is a qualified plan
available for
CORRECT ANSWER : NONPROFIT ORGANIZATIONS
Question 12: The intent of replacement regulations is to protect
the
CORRECT ANSWER : POLICYOWNER
Question 13: Which provision allows a lapsed policy to be put
back in force?
CORRECT ANSWER : REINSTATEMENT
Question 14: According to the California Department of
Insurance, an insurer whose articles of incorporation are registered in Oslo, Norway is considered a/an
CORRECT ANSWER : ALIEN INSURER
- | Page
Question 15: Mortality is defined as the
CORRECT ANSWER : RATE OF DEATH
Question 16: Which of the following is not a characteristic of
group life insurance?
CORRECT ANSWER: A GROUP MAY EXIST FOR THE
PURPOSE OF PURCHASING INSURANCE.
Question 17: When a producer collects the initial premium and
issues a conditional receipt, the receipt
CORRECT ANSWER : MAY ALLOW LIFE INSURANCE
COMPANIES TO START COVERAGE BEFORE POLICY
DELIVERY
Question 18: The law of large numbers allows an insurance
company to predict the expected losses among