Life Insurance Practice Questions — Page 2 of 13
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.
- 51.Under a salary continuation plan, what is the purpose of the life insurance coverage?Difficulty 2/5
- 52.A small firm wants to continue paying an employee's salary to the employee's surviving family for a period …Difficulty 2/5
- 53.Under the insurable interest rule for life insurance, the policyowner's insurable interest in the insured's…Difficulty 2/5
- 54.A whole life policy is issued with premiums that start lower than the level whole life premium and increase…Difficulty 2/5
- 55.Which type of insurer is generally associated with issuing nonparticipating life insurance policies, which …Difficulty 1/5
- 56.Which statement about a nonparticipating life insurance policy is correct?Difficulty 1/5
- 57.An employer promises to pay a key executive a set sum at retirement and funds that future obligation with l…Difficulty 3/5
- 58.Life insurance is often said to create an "instant estate." What does this mean?Difficulty 1/5
- 59.In a universal life insurance policy, the insurer typically deducts which amounts from the cash value on a …Difficulty 2/5
- 60.A sole proprietor wants coverage that pays the business's fixed operating expenses — rent, salaries, utilit…Difficulty 2/5
- 61.A nonparticipating life insurance policy differs from a participating policy primarily in that a nonpartici…Difficulty 1/5
- 62.A client wants a policy that allows the premium amount and the face amount to be changed up or down within …Difficulty 2/5
- 63.A business wants to continue paying an executive's salary for a period after the executive's death. The bus…Difficulty 2/5
- 64.Compared with a traditional fixed universal life policy, the policyowner of a variable universal life (VUL)…Difficulty 2/5
- 65.A variable universal life (VUL) policy differs from a fixed universal life policy primarily because the VUL:Difficulty 2/5
- 66.A universal life policy states a 'guaranteed maximum premium.' What does that guarantee mean?Difficulty 2/5
- 67.Which statement correctly describes a nonparticipating life insurance policy?Difficulty 2/5
- 68.A whole life policy charges a lower premium during the first three years and a higher level premium for the…Difficulty 2/5
- 69.Which statement is correct about the death benefit of a variable life insurance policy?Difficulty 2/5
- 70.A single premium whole life policy is characterized by:Difficulty 1/5
- 71.Two business partners are insured under one policy that pays the face amount upon the death of the first of…Difficulty 2/5
- 72.Which statement about a nonparticipating life insurance policy is correct?Difficulty 1/5
- 73.An endowment policy pays the face amount to the insured if the insured survives to the policy's maturity da…Difficulty 1/5
- 74.Which statement best describes a level term life insurance policy?Difficulty 1/5
- 75.Which statement correctly describes a variable universal life (VUL) policy?Difficulty 2/5
- 76.In a universal life policy, the premium amount the insurer is contractually guaranteed never to charge more…Difficulty 2/5
- 77.A whole life policy charges a lower premium during the first two years and then a higher, level premium for…Difficulty 2/5
- 78.A policyowner purchases a variable life insurance policy funded through a separate account. Which party ass…Difficulty 2/5
- 79.Each month, a universal life insurer deducts a charge from the policy's cash value to cover the pure mortal…Difficulty 2/5
- 80.Under a 20-pay life policy, the policyowner pays premiums for 20 years. After the premium-paying period end…Difficulty 1/5
- 81.A breadwinner buys a life policy with a family income rider. If the insured dies during the rider period, t…Difficulty 2/5
- 82.A policyowner pays a whole life premium on a monthly basis rather than annually. Compared with one annual p…Difficulty 2/5
- 83.When an agent presents a universal life illustration showing a projected premium, the contract also states …Difficulty 2/5
- 84.A joint life insurance policy covering two insureds pays the death benefit:Difficulty 1/5
- 85.A client purchases a whole life policy with premiums payable for only 20 years, after which the policy is f…Difficulty 1/5
- 86.Which feature is characteristic of a traditional whole life insurance policy?Difficulty 1/5
- 87.A family income policy provides the beneficiary with a monthly income for the remainder of a stated income …Difficulty 2/5
- 88.A policy that covers two insureds and pays the death benefit when the first of the two insureds dies is kno…Difficulty 1/5
- 89.A family income rider attached to a whole life policy provides what type of benefit?Difficulty 2/5
- 90.A family income rider added to a life insurance policy is designed to:Difficulty 2/5
- 91.Which statement correctly describes where the investment risk lies under a variable universal life (VUL) in…Difficulty 2/5
- 92.A modified whole life insurance policy is characterized by:Difficulty 2/5
- 93.Which statement best describes a modified premium whole life insurance policy?Difficulty 2/5
- 94.An indeterminate premium life insurance policy is characterized by which of the following?Difficulty 2/5
- 95.A family policy on a husband and wife typically provides:Difficulty 2/5
- 96.A policy insures two lives and pays the face amount upon the death of the first insured to die. This type o…Difficulty 2/5
- 97.With a single-premium whole life policy, the policyowner:Difficulty 1/5
- 98.A rider that pays the insured's family a monthly income after the insured's death, continuing until the end…Difficulty 2/5
- 99.Two spouses purchase a joint life insurance policy designed to pay the death benefit when the FIRST of the …Difficulty 2/5
- 100.In an equity-indexed universal life (IUL) policy, how is interest credited to the cash value?Difficulty 2/5