Free Life Insurance Basics Practice Questions
California Life-Only Agent exam (series Life-Only) — 132 practice questions.
Subtopics: Insurable interest timing, Life settlements, HIV testing consent, Genetic test consent, Life settlement rescission, STOLI, Insurable interest examples, Spendthrift clause, HIV underwriting, Insurable interest, Own life, Love and affection, Life settlement broker, Settlement licensing, Insurable interest parties, Personal uses, Liquidity, Human life value, Needs approach, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Premium factors, Mortality, Interest assumption, Premium mode, Advertising, Field underwriting, Application accuracy, Sources of underwriting, Risk classification, Substandard risk, Effective date, Statement of good health, Backdating, MIB, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Surrender comparison index, Net amount at risk, Legal reserve, CSO mortality table, Level premium funding, Cash value accumulation, Endowment maturity, Free look period, Policy replacement rules, Twisting, Churning, Rebating, Defamation, Binding receipt, Insuring clause, Consideration clause, Owner vs insured, Stranger-originated life insurance, Suitability, Sales illustration, Producer appointment, Paramedical exam, Inspection report, Nonmedical limit, Split-dollar plan, Section 162 executive bonus, Dependency period need, Social Security blackout period, Capital retention approach, Final expense need, Insurance age, Flat extra premium, Postponed risk, Agent's report, Policy summary, Material misrepresentation, Estate creation, Cash accumulation, Charitable giving, Buy-sell cross purchase, Buy-sell entity purchase, Cross purchase count, Key person beneficiary, Deferred compensation, Split dollar collateral assignment, Executive bonus taxation, Business overhead uses, Information for needs analysis, Group vs individual class, Nonparticipating policy, Fixed vs variable, Variable minimum death benefit, Gross vs net premium, Modal factors, Mortality table use, Gender and mortality, Producer delivery duties, Constructive delivery, Rated policy delivery, Conditional receipt insurability, No premium with application, Application signatures, Application corrections, Insurable interest third party, Self insurable interest, Attending physician statement, MIB adverse decisions, MIB pre-notice, Underwriting prohibited factor, Rated policy, Standard risk, Prescription database, Social Security fully insured, Currently insured, Survivor benefits children, Spouse caring for child, Blackout period end, Lump-sum death benefit, Full retirement age, Social Security disability, Social Security as offset, Producer report purpose
Read the Life Insurance Basics study guide
Sample questions & answers
1. In California life insurance, insurable interest must exist:
At the time the contract is made
Section 10110.1(f) requires an insurable interest to exist when the life or disability policy becomes effective, but not at the time of loss.
2. In a California life settlement, the policyowner:
Sells the policy to a third party for more than its cash value but less than its face
A life settlement is the sale of an existing policy to a third party for a lump sum, regulated under California's life settlement law.
3. Before an insurer may require an HIV test for life underwriting in California it must:
Obtain the applicant's written informed consent
Section 799.03 requires a life or disability income insurer that asks an applicant to take an HIV test to obtain the applicant's written informed consent.
4. Before a California life insurer requires an applicant to take a test for a genetic characteristic as part of underwriting, the insurer must:
Obtain the applicant's written informed consent under the statutory rules
Genetic tests may be required only for policies contingent on medical testing, and only under the informed consent and privacy provisions of Section 10148 and Article 6.6 (Section 791 et seq.).
Practice: Life Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
