California Life Insurance Exam Version 1
Practice exam for Life Insurance Producer under Insurance Exams (Licensing Exams). 5 sample questions.
Sample Questions
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Question 1
Which policy covering two or more individuals terminates after paying benefits only on the second death?
Correct Answer: C
Rationale: A survivorship life policy, also known as a second-to-die policy, pays the death benefit only upon the death of the second insured. This contrasts with a joint life policy, which pays on the first death. A family policy typically covers multiple family members with benefits payable on any covered death. A limited payment whole life policy is for a single life and has a limited premium payment period, not related to multiple lives.
Rationale: A survivorship life policy, also known as a second-to-die policy, pays the death benefit only upon the death of the second insured. This contrasts with a joint life policy, which pays on the first death. A family policy typically covers multiple family members with benefits payable on any covered death. A limited payment whole life policy is for a single life and has a limited premium payment period, not related to multiple lives.
Question 2
All of the following are requirements of a contract EXCEPT
Correct Answer: B
Rationale: Consideration in a contract requires that each party provides something of value, but the law does not require that the consideration be of equal value. The key is that there is a bargained-for exchange, not that the values are equivalent. The other options are fundamental elements of a valid contract: legality, competency, and offer and acceptance.
Rationale: Consideration in a contract requires that each party provides something of value, but the law does not require that the consideration be of equal value. The key is that there is a bargained-for exchange, not that the values are equivalent. The other options are fundamental elements of a valid contract: legality, competency, and offer and acceptance.
Question 3
According to the California Insurance Code, the Commissioner can disapprove a licensee's request to use a fictitious name for any of the following reasons EXCEPT the
Correct Answer: A
Rationale: The Commissioner can disapprove a fictitious name if it is misleading, too similar to an existing name, or implies the licensee is an insurer/underwriter. However, a licensee is generally permitted to use their own actual name without seeking approval for a fictitious name, making this the exception.
Rationale: The Commissioner can disapprove a fictitious name if it is misleading, too similar to an existing name, or implies the licensee is an insurer/underwriter. However, a licensee is generally permitted to use their own actual name without seeking approval for a fictitious name, making this the exception.
Question 4
A husband and wife have a disabled child who is financially dependent upon them. The death of one parent would not result in financial disaster for the child, but the death of both parents would. Which policy should they purchase?
Correct Answer: C
Rationale: A second-to-die policy (survivorship life) is designed to pay a benefit only upon the death of the second insured. This is ideal for situations where the financial need arises after both individuals are deceased, such as providing for a dependent child after both parents have passed away. A first-to-die policy pays on the first death, which is not the primary concern here. Juvenile and family protection policies do not specifically address this two-life dependency scenario.
Rationale: A second-to-die policy (survivorship life) is designed to pay a benefit only upon the death of the second insured. This is ideal for situations where the financial need arises after both individuals are deceased, such as providing for a dependent child after both parents have passed away. A first-to-die policy pays on the first death, which is not the primary concern here. Juvenile and family protection policies do not specifically address this two-life dependency scenario.
Question 5
Failure to report background changes within 30 days as required under Section 1729.2 of the California Insurance Code could subject a licensee or applicant to
Correct Answer: D
Rationale: Section 1729.2 of the California Insurance Code mandates timely reporting of background changes. Failure to comply can result in severe penalties, including the denial of an application, suspension of an existing license, or even revocation of the license. The option 'All of the above' correctly encompasses these potential disciplinary actions.
Rationale: Section 1729.2 of the California Insurance Code mandates timely reporting of background changes. Failure to comply can result in severe penalties, including the denial of an application, suspension of an existing license, or even revocation of the license. The option 'All of the above' correctly encompasses these potential disciplinary actions.