Life Insurance Practice Questions
639 free life insurance 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.When a client purchases a life insurance policy, the client is using which risk management technique with r…Difficulty 1/5
- 2.In a life insurance policy, the party who pays the premium and holds all ownership rights, such as naming t…Difficulty 1/5
- 3.In a life insurance policy, which party generally has the legal right to exercise the policy's ownership pr…Difficulty 1/5
- 4.In a life insurance policy where the policyowner and the insured are different people, which statement corr…Difficulty 2/5
- 5.What is the defining purpose of a life insurance policy?Difficulty 1/5
- 6.In a life insurance policy, which party holds all of the contractual ownership rights, including the right …Difficulty 1/5
- 7.A client is deciding how to handle the financial risk that her premature death could leave her family witho…Difficulty 1/5
- 8.In a life insurance policy, which statement correctly distinguishes the roles of the applicant, the insured…Difficulty 1/5
- 9.Which party to a life insurance contract is entitled to exercise the ownership rights, such as changing the…Difficulty 1/5
- 10.In an individual life insurance policy, the person whose life is insured and whose death triggers payment o…Difficulty 1/5
- 11.Under a life insurance policy, which party holds the right to name or change the beneficiary, assign the po…Difficulty 1/5
- 12.Under a life insurance policy, which party has the right to change the beneficiary, assign the policy, and …Difficulty 1/5
- 13.In an individual life insurance policy, which person holds the rights under the contract during the insured…Difficulty 1/5
- 14.A business sets aside its own funds to pay for expected minor losses rather than buying insurance, while pu…Difficulty 1/5
- 15.Under a life insurance policy, which party generally has the right to change the beneficiary, assign the po…Difficulty 1/5
- 16.A business owner wants a life insurance arrangement under which, if a key employee dies, the business will …Difficulty 2/5
- 17.A closely held corporation wants to provide supplemental retirement income to a key executive. Under the pl…Difficulty 2/5
- 18.A family decides to purchase a life insurance policy on the primary wage earner so that the insurer will pa…Difficulty 1/5
- 19.In a life insurance contract, which statement correctly describes the difference between the policyowner an…Difficulty 1/5
- 20.A family purchases life insurance so that surviving family members will be paid a death benefit if the brea…Difficulty 1/5
- 21.Under a life insurance policy, the right to change the beneficiary, assign the policy, take a policy loan, …Difficulty 1/5
- 22.Purchasing a life insurance policy is best described as applying which risk management technique?Difficulty 1/5
- 23.A business owner decides to absorb smaller, predictable losses out of the company's own savings rather than…Difficulty 1/5
- 24.A business owner decides to set aside funds to cover a small, expected property loss rather than buying ins…Difficulty 1/5
- 25.A 40-year-old buys a term life policy instead of setting money aside, because her family could not absorb t…Difficulty 2/5
- 26.In the risk management process, an individual who purchases a life insurance policy has most directly engag…Difficulty 1/5
- 27.Which step should come FIRST in the individual life insurance planning process?Difficulty 1/5
- 28.A business purchases life insurance on its key employees to fund the financial loss their deaths would caus…Difficulty 1/5
- 29.A family purchases life insurance so that, if the breadwinner dies, the insurer bears the financial burden …Difficulty 1/5
- 30.A business promises an executive retirement benefits and uses life insurance to fund the promise. The emplo…Difficulty 2/5
- 31.A corporation wants to provide additional retirement income to key executives and owns life insurance polic…Difficulty 2/5
- 32.A business wishes to fund a deferred compensation arrangement for a key executive. How is life insurance co…Difficulty 2/5
- 33.An employer wants to reward a key executive with retirement income but must restrict eligibility to a selec…Difficulty 2/5
- 34.A professional firm wants to guarantee that a key employee's salary will keep flowing if the employee is un…Difficulty 2/5
- 35.A corporation promises to pay a key executive retirement benefits, with the executive's family to receive a…Difficulty 2/5
- 36.An employer wants to provide supplemental retirement income to a valued executive using life insurance. The…Difficulty 2/5
- 37.A wage earner buys life insurance so that, if the wage earner dies, the family receives a lump sum to repla…Difficulty 1/5
- 38.An employer wants to fund a retirement benefit for a key executive by purchasing life insurance on the exec…Difficulty 2/5
- 39.An employer arranges for a life insurance policy on a key executive and agrees to pay the executive supplem…Difficulty 2/5
- 40.In a split-dollar life insurance arrangement between an employer and a key employee, which statement best d…Difficulty 2/5
- 41.An employer promises an executive retirement benefits in the future and uses life insurance on the executiv…Difficulty 2/5
- 42.Before recommending a specific life insurance policy, an agent conducts a personal fact-finding interview t…Difficulty 2/5
- 43.Which of the following is guaranteed in a traditional whole life policy?Difficulty 1/5
- 44.In a term life insurance policy, the insurer's limit of liability is best described as:Difficulty 2/5
- 45.A universal life policy is often described as an "unbundled" product. What does this mean?Difficulty 2/5
- 46.A corporation wants to provide an executive with a benefit paid after retirement, funded while the executiv…Difficulty 2/5
- 47.A corporation wants to reward a key executive by promising retirement income to be paid later, and uses a l…Difficulty 2/5
- 48.A small business owner wants the business to continue paying the owner's family a specified income for a se…Difficulty 2/5
- 49.An employer uses life insurance to fund a plan that will continue paying a deceased employee's salary to th…Difficulty 1/5
- 50.When a person buys life insurance, which risk management technique is being used with respect to the financ…Difficulty 1/5