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California Life, Accident and Health Exam Practice
Exam 2024/2025 Final Exam Questions And Answers
Graded A+
A
ABC INSURANCE
JOHN IS THE AGENT FOR ABC INSURANCE AND JANE IS THE INSURED. WHO IS
THE PRINCIPAL IN THIS AGENCY RELATIONSHIP?
A
ABC INSURANCE
B
JOHN
C
JANE
D
NONE
D
ADMITTED
A(N) ________ INSURER IS AUTHORIZED TO WRITE INSURANCE POLICIES IN A
PARTICULAR STATE.
A
DOMESTIC
B
NON-ADMITTED
C
FOREIGN
D
ADMITTED
B
A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN
INSURED
WHICH OF THE FOLLOWING IS CLASSIFIED AS AN INSURANCE BROKER?
A
A PERSON WHO PLACES COVERAGE FOR HIS/HER OWN INSURANCE
B
A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN
INSURED
C
A PERSON IN THE HOME OFFICE WHO DOES NOT SOLICIT OUTSIDE OF THE
OFFICE
D
AN EMPLOYEE WHO NEGOTIATES INSURANCE CONTRACTS FOR HIS/HER
EMPLOYER
THE INSURED INDEMNIFIES THE INSURER FOR ANY EXPENSES IN ADJUSTING THE
LOSS
C
THE INSURED SUSTAINS A LOSS AS A RESULT OF THE LOSS
D
SURPLUS
THE INSURED IS RESTORED TO A FINANCIAL CONDITION AS GOOD AS, OR
BETTER THAN, THE INSURED WAS BEFORE THE LOSS
___________ INSURANCE IS USED TO PROVIDE COVERAGE WHEN INSURANCE IS
NOT AVAILABLE FROM AN ADMITTED CARRIER.
A
FACULTATIVE
B
DOMESTIC
C
ALIEN
D
SURPLUS
C
PURE RISK
WHICH OF THE FOLLOWING RISKS IS PROTECTED BY INSURANCE?
A
CERTAIN RISK
B
SPECULATIVE RISK
C
PURE RISK
D
INVOLUNTARY RISK
A
WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL LOSS
A GOOD EXAMPLE OF RISK REDUCTION MIGHT BE:
A
WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL LOSS
B
THE ELIMINATION OF THE EXPOSURE TO A SPECIFIC RISK
C
THE TRANSFER OF THE RISK TO AN INSURANCE COMPANY
D
INSURING ONLY THOSE RISKS THAT THREATEN THE FINANCIAL STABILITY OF
THE INSURED
B
ADMITTED
B
ACCORDING TO THE LAW OF LARGE NUMBERS
IN INSURANCE, WHEN THE NUMBER OF SIMILAR UNITS INCREASE, THE
PREDICTABILITY OF THE LOSS IMPROVES:
A
BECAUSE OF THE SIMILARITY OF UNITS IN LARGE QUANTITIES
B
ACCORDING TO THE LAW OF LARGE NUMBERS
C
BECAUSE OF ACCUMULATED EXPERIENCE
D
ACCORDING TO THE LAW OF AVERAGES
A
A UNILATERAL CONTRACT
A CONTRACT WHEREBY ONLY ONE PARTY IS BOUND TO FUTURE PERFORMANCE,
IS SAID TO BE:
A
A UNILATERAL CONTRACT
B
A BILATERAL CONTRACT
C
A CONDITIONAL CONTRACT
D
AN ALEATORY CONTRACT
A
CAL-GLBA
THE CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT IS SOMETIMES
KNOWN AS:
A
CAL-GLBA
B
CA-FIPA
C
CA-HIPAA
D
CA-FCRA
B
INSURER
IN CALIFORNIA, ANY PERSON THAT MANUFACTURES AND SELLS INSURANCE
COVERAGE BY WAY OF INSURANCE POLICIES OR CONTRACTS MAY BE AN:
A
INSURED
B
INSURER
C
AGENCY
C
INDUSTRIAL LIFE INSURANCE
D
INDIVIDUAL LIFE INSURANCE
A
A POLICY SUMMARY
A PERSONALIZED COMPUTER-GENERATED ILLUSTRATION DETAILING
PREMIUMS, CASH VALUES, INTEREST RATES, AND SURRENDER VALUES IS
CALLED __________.
A
A POLICY SUMMARY
B
SALES LITERATURE
C
AN ADVERTISEMENT
D
A HYPOTHETICAL
A
TO PAY THE CLAIM IN FULL SINCE THE CONDITIONS OF THE RECEIPT WERE
FULLY SATISFIED
A PRODUCER SUBMITS A COMPLETED APPLICATION TO THE INSURER ALONG
WITH THE PREMIUM CHECK AFTER GIVING THE APPLICANT A CONDITIONAL
RECEIPT. IF THE APPLICANT COMPLETES THE REQUIRED MEDICAL EXAM, BUT
DIES PRIOR TO THE INSURER ISSUING A POLICY AS APPLIED FOR, WHAT IS THE
INSURER'S RESPONSIBILITY?
A
TO PAY THE CLAIM IN FULL SINCE THE CONDITIONS OF THE RECEIPT WERE
FULLY SATISFIED
B
TO REFUND PREMIUMS PAID LESS COSTS ASSOCIATED WITH ANY MEDICAL
EXAMS
C
TO KEEP THE PREMIUM AND REJECT THE CLAIM
D
TO REFUND ANY AND ALL PREMIUMS PAID
D
CONTACT THE CLIENT TO ASSURE THAT THEY UNDERSTAND THE TRANSACTION
IN A REPLACEMENT TRANSACTION, ALL OF THE FOLLOWING ARE INSURER
DUTIES AND RESPONSIBILITIES, EXCEPT:
A
MAINTAIN COPIES OF THE INFORMATION PROVIDED BY THE PRODUCER
B
ABIDE BY THE STATE REQUIRED HOLDING PERIOD FOR ALL REPLACEMENT
DOCUMENTATION
C
NOTIFY THE EXISTING INSURER
D
CONTACT THE CLIENT TO ASSURE THAT THEY UNDERSTAND THE TRANSACTION
D
NAME AND OCCUPATION
C
ESTATE CONSERVATION
BUYING LIFE INSURANCE SO THAT THE DEATH BENEFIT WILL BE AVAILABLE
FOR PAYING ESTATE TAXES DUE UPON THE DEATH OF THE INSURED IS KNOWN
AS:
A
SURVIVOR PROTECTION
B
ESTATE CREATION
C
ESTATE CONSERVATION
D
PRENEED PLANNING
D
THE CASH VALUE
MONEY ACCUMULATED IN A PERMANENT POLICY THAT THE POLICYOWNER
MAY BORROW VIA A POLICY LOAN OR RECEIVE IF THE POLICY IS
SURRENDERED, REFERS TO:
A
SAVINGS ACCOUNT
B
ACCUMULATED AT INTEREST ACCOUNT
C
DEFERRED SAVINGS ACCOUNT
D
THE CASH VALUE
C
DECREASING TERM RIDER
SEAN HAS A HOME WITH A MORTGAGE. HE NEEDS LIFE INSURANCE TO PROTECT
HIS FAMILY BUT ALSO WANTS TO LEAVE THEM WITHOUT A MORTGAGE
PAYMENT IF HE DIES. IDEALLY WHICH OF THE FOLLOWING RIDERS SHOULD HE
ACQUIRE?
A
FAMILY RIDER
B
INCREASING TERM RIDER
C
DECREASING TERM RIDER
D
LEVEL TERM RIDER
A
THE INSURER REFUNDS IT
AN INSURED OWNS A $50,000 PERMANENT LIFE POLICY THAT SHE PURCHASED 4
YEARS AGO THAT HAS A DISABILITY WAIVER OF PREMIUM. THE INSURED
A
JOINT SURVIVORSHIP
ALL OF THE FOLLOWING POLICIES END WHEN AN INSURED DIES, EXCEPT:
A
JOINT SURVIVORSHIP
B
JOINT LIFE
C
VARIABLE UNIVERSAL LIFE
D
JUVENILE LIFE
A
A MARRIED COUPLE PURCHASES A $250,000 JOINT LIFE POLICY. WHEN THE
OLDER OF THE TWO DIES, WHAT IS THE AMOUNT PAYABLE TO THE SURVIVOR?
A
B
ZERO
C
D
D
SEPARATE ACCOUNT
THE OWNER OF A VARIABLE LIFE POLICY MAY ALLOCATE THE PREMIUM INTO A
SUB-ACCOUNT WHICH IS OWNED BY THE INSURER, THIS SUB-ACCOUNT IS A
PART OF WHAT IS ALSO KNOWN AS THE:
A
SIDE FUND
B
ACCUMULATION ACCOUNT
C
ALLOCATION ACCOUNT
D
SEPARATE ACCOUNT
C
INCREASING TERM
WHICH TYPE OF TERM PROTECTION HAS AN INCREASING FACE VALUE AS THE
INSURED GETS OLDER?
A
LEVEL TERM
B
RENEWABLE TERM
C
REDUCE THE POLICY'S FACE AMOUNT WHICH WILL REDUCE HIS PREMIUM
PAYMENT
B
SURRENDER PART OF THE POLICY AND FOR THE BALANCE TAKE A POLICY LOAN
C
SURRENDER THE POLICY BACK TO THE INSURER
D
TAKE A POLICY LOAN FROM THE INSURER
B
IT CAN PROVIDE ADDITIONAL TEMPORARY COVERAGE ON THE INSURED OR ON
OTHER MEMBERS OF THE FAMILY
WHICH OF THE FOLLOWING IS TRUE OF A TERM RIDER WHEN ATTACHED TO A
PERMANENT LIFE POLICY?
A
IT ALLOWS THE POLICY TO ACHIEVE PAID UP STATUS AT THE END OF THE TERM
B
IT CAN PROVIDE ADDITIONAL TEMPORARY COVERAGE ON THE INSURED OR ON
OTHER MEMBERS OF THE FAMILY
C
IT ONLY PAYS OUT A DEATH BENEFIT IN CASES OF ACCIDENTAL DEATH
D
IT ALWAYS IS IN THE AMOUNT OF THE BASE POLICY
D
ACCIDENTAL DEATH AND DISMEMBERMENT
WHICH TYPE OF RIDER PAYS OUT A CAPITAL SUM IN CASE AN INSURED LOSES A
LIMB OR THEIR EYESIGHT?
A
ACCIDENTAL DEATH
B
RETURN OF PREMIUM
C
DISABILITY BENEFIT
D
ACCIDENTAL DEATH AND DISMEMBERMENT
A
TYPICALLY 6 MONTHS AFTER THE DISABILITY OCCURS
IF A POLICYOWNER HAS A WHOLE LIFE INSURANCE POLICY WITH A DISABILITY
WAIVER OF PREMIUM RIDER, WHEN DOES THE RIDER BENEFIT START IF A
QUALIFYING DISABILITY SHOULD OCCUR?
A
TYPICALLY 6 MONTHS AFTER THE DISABILITY OCCURS
B
IMMEDIATELY
C
AFTER THE DOCTOR CERTIFIES THE DISABILITY
D
ONE YEAR AFTER THE CLAIM FORMS ARE RECEIVED BY THE INSURER
