California Life Insurance Quiz

51 Questions | Total Attempts: 1459

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Life Insurance Quizzes & Trivia

Quiz for california life insurance.


Questions and Answers
  • 1. 
    Which of the following best describes teh concept of risk?
    • A. 

      Any reduction in the quantity, quality, or value of something.

    • B. 

      The potential or actual cause of a loss.

    • C. 

      A possibility of a loss and uncertainty about wether it will occur.

    • D. 

      A condition that might increase the severity of a loss.

  • 2. 
    Which of the following characterizes a speculative risk?
    • A. 

      Having a financial interest in the thing at risk.

    • B. 

      A possibility for loss or gain.

    • C. 

      Transfering the risk of loss to another party.

    • D. 

      Human carelessness or irresponsibility.

  • 3. 
    Causes of loss are also known as
    • A. 

      Perils

    • B. 

      Hazards

    • C. 

      Pure risks

    • D. 

      Exposure units.

  • 4. 
    If an insurance company doing business in your state has been incorporated inder the laws of another state within the United States, it would be considered to be.
    • A. 

      A domestic insurer

    • B. 

      An alien insurer

    • C. 

      A foreign insurer

    • D. 

      An unauthorized insurer.

  • 5. 
    According to the law of large numbers, if large numbers of similar risks are combined in a group, future losses become more
    • A. 

      Measurable

    • B. 

      Predictable

    • C. 

      Catastrophic

    • D. 

      Uncertain

  • 6. 
    Which of the following types of insurance company is referred to as a participating company?
    • A. 

      An assesment insurer.

    • B. 

      A stock insurer.

    • C. 

      A reciprocal insurer.

    • D. 

      A mutual insurer.

  • 7. 
    Submitting premium payments promptly to the insurer is part of an agent's
    • A. 

      Implied authority

    • B. 

      Apparent authority

    • C. 

      Fiduciary responsibilities

    • D. 

      Express authority

  • 8. 
    A failure to disclose known facts would be an act of
    • A. 

      Concealment

    • B. 

      Adhesion

    • C. 

      Consideration

    • D. 

      Misrepresantation

  • 9. 
    Which of the following is a consumer publication that describes the type of coverage being offered and provides general information to help an applicant compare different policies?
    • A. 

      Sales presentation

    • B. 

      Conditional receipt

    • C. 

      Buyers guide

    • D. 

      Disclosure authorization form

  • 10. 
    The human value approach to determining insurance needs focuses mostly on
    • A. 

      Inflationary trends in the economy

    • B. 

      Future income needs of survivors

    • C. 

      An individual's future stream of income

    • D. 

      Probate and estate taxes

  • 11. 
    A social Security blackout period is the period of time.
    • A. 

      Between the date of an early retirement and the date an individual first becomes elibible for Social Security retirement benefits

    • B. 

      After survivor benefits for the youngest child end and before the surviving spouse becomes eligible for Social Security retirement benefits.

    • C. 

      That a disabled worker has to wait before Social Security disability benefits begin.

    • D. 

      During which income earned after age 65 is no longer subject to Social Security taxes.

  • 12. 
    Which of the following is provided by the Fair Credit Reporting Act?
    • A. 

      The availability of credit life insurance on an impartial basis

    • B. 

      Protection to debtors against credit collection agencies

    • C. 

      The requirement that an applicant for insurance be informed that a consumer report may be requested regarding his application

    • D. 

      Information concerning any previous applications for insurance by an applicant

  • 13. 
    Which of the following is CORRECT regarding the existance of insurable interest in a life or health insurance policy?
    • A. 

      Insurable interest must exist at the time of loss

    • B. 

      Insurable interest must exist at the time of application.

    • C. 

      Insurable interest must exist throughout the duration of the policy.

    • D. 

      Insurable interest must exist at the time of the insured's death.

  • 14. 
    All of the following statements are correct regarding the completion of a life or health insurance application EXCEPT
    • A. 

      Any life insurance application submitted to the underwriting department must include the signatures of the policyowner, proposed insured, and agent

    • B. 

      Any changes made to an application before its submission to the insurer must be initialed by the applicant

    • C. 

      The initial premium must be submitted to the insurer with the completed application

    • D. 

      Incomplete applications may be delay the underwriting process

  • 15. 
    Which of the following most accurately defines a representation?
    • A. 

      A statement guaranteed to be absolutely true

    • B. 

      A statement that is true to the best knowledge of the applicant

    • C. 

      A statement that is material to the risk involved

    • D. 

      A statement pertaining to the substandard nature of the risk to be insured

  • 16. 
    All of the following are primary sources of information available to a life or health insurance company's underwriting department concerning insurance applicants EXCEPT
    • A. 

      Medical examination

    • B. 

      Application

    • C. 

      Agent's report

    • D. 

      Statement of good health

  • 17. 
    Mr James borrows funds form a bank to make improvements to his home. The bank suggests that he purchase life insurance that will pay that will pay off his loan amount in the event of his premature death. Which of the following would best help him achieve this objective?
    • A. 

      Level term

    • B. 

      Decreasing term

    • C. 

      Increasing term

    • D. 

      Convertible term

  • 18. 
    Which of the following statements regarding variable life universal insurance is CORRECT?
    • A. 

      It offers a combination of investment options and a guaranteed death benefit.

    • B. 

      The premiums paid are fixed at a level amount.

    • C. 

      This policy combines whole life and decreasing term coverage.

    • D. 

      Lower premiums are charged in the early years of the policy.

  • 19. 
    The contract which at issue provides the maximum amount of insurance protection at the lowest outlay of funds best describes
    • A. 

      Term insurance

    • B. 

      Whole life insurance

    • C. 

      Universal life insurance

    • D. 

      Endowments

  • 20. 
    Credit life insurance protects
    • A. 

      The debtor

    • B. 

      The employer

    • C. 

      The lender

    • D. 

      The beneficiary

  • 21. 
    Which of the following is NOT one of the characteristics of a renewable term insurance policy?
    • A. 

      The insured can demand renewal at the end of the original term

    • B. 

      Premiums for a renewal policy cannot be increased.

    • C. 

      Evidence of insurability cannot be required at renewal

    • D. 

      Limits may be placed on the number of permitted renewals.

  • 22. 
    Which of the following characterizes a limited payment whole life insurance policy?
    • A. 

      It becomes a fully paid-up policy prior to maturity.

    • B. 

      Death benefits are payable for a limited period of time.

    • C. 

      Cash value withdrawals are permitted only for a limited number of years.

    • D. 

      Proceeds may be paid only to the policyowner or a primary beneficary, and not to any other individual or party.

  • 23. 
    At what age of the insured would a whole life insurance policy reach maturity?
    • A. 

      Whatever age is elected by the policyowner

    • B. 

      At age 75

    • C. 

      At age 90

    • D. 

      At age 100

  • 24. 
    Which type of policy permits the policyowner to request changes in the face amount, premium payments, and/or type of protection during the policy term?
    • A. 

      Adjustable life insurance

    • B. 

      Universal life insurance

    • C. 

      Variable life insurance

    • D. 

      Modified life insurance

  • 25. 
    How many months is the typical waiting period connected with the waiver of premium provision found in a life insurance contract?
    • A. 

      1

    • B. 

      2

    • C. 

      3

    • D. 

      6

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