Beneficiaries Practice Questions
67 free beneficiaries questions for the California Life & Health insurance license exam. Pick any question — answer it and get the full 3-part explanation, no signup required.
- 1.An employer purchases a life insurance policy on a key employee. The employer's insurable interest exists b…Difficulty 2/5
- 2.In an individual life insurance policy, the party who holds the right to exercise ownership rights - such a…Difficulty 1/5
- 3.A life insurance policy is owned by an irrevocable life insurance trust. Who has the authority to change th…Difficulty 2/5
- 4.In a key-person life insurance arrangement, which party is typically the policyowner and the beneficiary?Difficulty 1/5
- 5.A policyowner who is not the insured dies before the insured. Which statement best describes what happens t…Difficulty 3/5
- 6.An individual's insurable interest in his or her own life is generally considered to be:Difficulty 1/5
- 7.In an annuity contract, the 'annuitant' is best defined as:Difficulty 1/5
- 8.An annuity is owned by a mother, with her daughter as the annuitant and her son as the beneficiary. Who con…Difficulty 2/5
- 9.Under an annuity with a 'life with 10-year period certain' payout, the beneficiary becomes entitled to paym…Difficulty 2/5
- 10.An annuitant dies before receiving all guaranteed payments under a refund annuity. The unpaid amount is pai…Difficulty 2/5
- 11.An annuitant paid $40,000 into an annuity contract and died before any payout began. The contract pays its …Difficulty 2/5
- 12.Under a straight life (life-only) annuity with no period-certain or refund feature, if the annuitant dies s…Difficulty 1/5
- 13.A person's spouse, parents, and children are presumed to have an insurable interest in that person's life b…Difficulty 2/5
- 14.A 'primary beneficiary' under a life insurance policy is:Difficulty 1/5
- 15.A contingent (secondary) beneficiary receives the death proceeds when:Difficulty 1/5
- 16.A revocable beneficiary designation means the policyowner may:Difficulty 1/5
- 17.A life insurance policy contains a common disaster clause. If the insured and the primary beneficiary die i…Difficulty 2/5
- 18.Many policies contain a beneficiary survival clause requiring the beneficiary to survive the insured for a …Difficulty 2/5
- 19.The difference between a 'per capita' and a 'per stirpes' beneficiary distribution is that:Difficulty 2/5
- 20.An insured names 'my children, per stirpes' as beneficiaries. At the insured's death, two children are aliv…Difficulty 3/5
- 21.Which is a consequence of naming the insured's estate as the beneficiary of a life insurance policy?Difficulty 2/5
- 22.Naming a trust as the beneficiary of a life insurance policy is beneficial because:Difficulty 2/5
- 23.Why do insurance professionals usually discourage naming a minor child as the direct beneficiary of a life …Difficulty 2/5
- 24.A policyowner names three beneficiaries and specifies '40% to Maria, 35% to James, and 25% to a charity.' T…Difficulty 1/5
- 25.A policyowner signs a change-of-beneficiary form naming a new beneficiary but dies before submitting the fo…Difficulty 2/5
- 26.A revocable beneficiary's interest in the death proceeds is best described as:Difficulty 2/5
- 27.Under an interest-only settlement option, the insurer:Difficulty 2/5
- 28.Under a life-income settlement option, the beneficiary receives:Difficulty 2/5
- 29.Under the Internal Revenue Code, a lump-sum life insurance death benefit paid to a named beneficiary is gen…Difficulty 2/5
- 30.A beneficiary elects to leave death proceeds with the insurer under an interest-only option and receives pe…Difficulty 2/5
- 31.For federal estate tax purposes, the death proceeds of a life insurance policy are included in the insured'…Difficulty 3/5
- 32.When life insurance proceeds are paid to the insured's estate rather than a named beneficiary, the income t…Difficulty 2/5
- 33.Under a group life insurance plan, the beneficiary of a covered employee's death benefit is typically:Difficulty 1/5
- 34.In a group life insurance arrangement, the 'master policy' is:Difficulty 1/5
- 35.Which statement correctly contrasts beneficiary designation in group life insurance versus an individual po…Difficulty 2/5
- 36.A policyowner of a revocable life insurance policy wants to change the beneficiary to a new name. Which par…Difficulty 1/5
- 37.In a life insurance policy, which party holds the exclusive right to change the beneficiary designation and…Difficulty 1/5
- 38.An insured policyowner absolutely assigns her life insurance policy to a lender as part of a business arran…Difficulty 3/5
- 39.Why is life insurance sometimes described as creating an 'instant estate'?Difficulty 1/5
- 40.A life insurance policy names the insured's spouse as beneficiary. At the insured's death, the proceeds:Difficulty 1/5
- 41.If a life insurance policy's named beneficiary has predeceased the insured and no contingent beneficiary is…Difficulty 2/5
- 42.A joint life insurance policy covering two insureds will generally pay the death benefit:Difficulty 1/5
- 43.Which life insurance product is designed primarily for estate planning and pays the death benefit only when…Difficulty 2/5
- 44.In an annuity contract, the 'annuitant' is the person:Difficulty 1/5
- 45.An annuity owner names a beneficiary under a revocable designation. Which party generally holds the right t…Difficulty 2/5
- 46.If an annuity owner dies during the accumulation phase and a beneficiary has been named, the beneficiary ty…Difficulty 2/5
- 47.Under a 'life with 10-year period certain' annuity option, if the annuitant dies four years after payments …Difficulty 2/5
- 48.A refund annuity provides that if the annuitant dies before receiving payments equal to the cost of the con…Difficulty 2/5
- 49.A joint and survivor annuity is designed to provide payments:Difficulty 1/5
- 50.A beneficiary receives a lump-sum death benefit from a deferred annuity. Which portion is taxable as ordina…Difficulty 2/5