This California Life and Health Insurance Exam quiz is useful for those individuals who are looking towards producing or selling life and/or health insurance in the state of California. Since you need a license to do so which comes with the California Life and Health Insurance Agent exam, therefore you need a lot of practice to make it through the exam itself. Here we have got a beneficial practice test for you. Take the test and prepare yourself for the exam. All the best!
The item to be insured faces high catastrophic loss exposure.
The item to be insured is part of a large group of homogeneous exposure units.
The item to be insured has a market value that is difficult to determine.
The item to be insured holds no hardship to the owner should it be lost or damaged.
If a mutual company goes public, it demutualizes.
Mutual companies issue policies referred to as participating.
Policy dividends issued by mutual companies are guaranteed and not taxable.
Dividends allow policyholders to share in a mutual company's divisible surplus.
Elected by the people of California every four years
Selected by the Governor as an appointee
Is a representative to the National Association of Insurance Commissioners (NAIC)
Capable of becoming the conservator of a financially impaired or insolvent insurer
Marketing plans to offer free insurance as an inducement to buy or rent real property are prohibited.
Acts of fair and unfair discrimination are prohibited.
Agents are not permitted to advertise that an insurer is a member of any insurance guaranty. association
The act of twisting could result in a license suspension for up to three years.
A licensee has 30 days to update a change in address.
Licensees are required to have an in-state residential address.
Loss of a precious professional license could result in the automatic denial of the life-only license application.
A plea of nolo contendere is considered a conviction. Thus it could hinder attempts to obtain a life-only license.
Tommy Greene and Associates
Thomas Greene, CLU, & Company
Greene Insurance Agency
None of the above would be automatically approved
As a life insurance product, future proceeds are tax-free.
She has a 30-day free look period in case she changes her mind.
Since she only has a few more years before she retires, she should invest with the objective of making as much money as possible. Her time horizon is limited.
She will have to begin taking withdrawals within six months of receiving the proceeds.
75% of eligible employees must elect to join the plan.
100% of eligible employees must participate.
75% of employees must elect to join the plan.
100% of employees must be allowed to participate.
The new policy will be term life. The employee pays all premiums.
The new policy will be term life. The employer will pay a portion of the cost.
The new policy will be cash value. The employer will pay a portion of the cost.
The new policy will be cash value. The employee pays all the premiums.
Executive Bonus Plan
Deferred Compensation Plans
Life with refund option, life with ten years certain, straight life
Straight life, life with ten years certain, life refund option
Life with ten years certain, life with refund option, straight life
Life with refund option, straight life, life with ten years certain
Interest only option
One-year term option
Reduce the next premium payment
Accumulate with interest
$2,000 or less in coverage and premiums collected by the agent.
$10,000 coverage and premiums paid by mail.
$50,000 coverage and premiums paid by mail.
$100,000 coverage and premiums collected by the agent.
Variable Universal Life
Accelerated Death Benefit
Accidental Death Benefit
Accidental Death and Dismemberment
Cost of Living
The client is covered during underwriting.
The agent faces potential suspension or revocation of their license.
The client is not covered during underwriting since binders only start once underwriting is complete.
Since the medical exam hasn't been completed yet, the client is not covered at all.
Every week your client plays $20 on the lotto.
Any action that could do harm to your client's well-being, such as reckless driving.
Your client invest 5% of his salary into the defined benefit plan at his work.
All of the above situations involve some risk.
Identification of their relationship to the insurance company.
The license number must appear in the same size font as the phone number.
Must not include any titles, designations, or licenses that are not currently held.
All of the above.
Qualified and unfunded
Fully funded and non-qualified
Qualified and non-qualified
Contributory and noncontributory
Automatic Premium Loan
Accelerated (Living) Benefit
Assignment of Benefit
Here's an interesting quiz for you.