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Life Insurance Practice Questions — Page 5 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.

  1. 201.In a life insurance policy, the "consideration" that makes the contract enforceable consists of:
    Difficulty 1/5
  2. 202.When a policyowner chooses to pay premiums monthly instead of annually, the premium payment mode refers to:
    Difficulty 1/5
  3. 203.When a policyowner borrows against a life insurance policy, the loan:
    Difficulty 2/5
  4. 204.A policyowner borrows against the cash value of a permanent life policy. If the loan, plus accrued interest…
    Difficulty 2/5
  5. 205.A policyowner misstated the insured's age at application, and the insurer discovers the error after the con…
    Difficulty 2/5
  6. 206.In a life insurance contract, the consideration given by the policyowner consists of:
    Difficulty 1/5
  7. 207.An automatic premium loan (APL) provision operates by:
    Difficulty 2/5
  8. 208.A policyowner has elected the automatic premium loan (APL) option on a whole life policy and fails to pay a…
    Difficulty 2/5
  9. 209.Which statement about a policy loan on a whole life policy is correct?
    Difficulty 2/5
  10. 210.When a policyowner borrows against a life insurance policy, the loan is:
    Difficulty 2/5
  11. 211.The key difference between a revocable and an irrevocable beneficiary designation is that:
    Difficulty 2/5
  12. 212.A beneficiary chooses a settlement option that will pay income for as long as the beneficiary lives, with p…
    Difficulty 2/5
  13. 213.A life insurance policy was issued with no settlement option elected by the policyowner. After the insured …
    Difficulty 1/5
  14. 214.An automatic premium loan (APL) provision in a life insurance policy:
    Difficulty 2/5
  15. 215.An insured's age is misstated on a life insurance application, and the insurer discovers the error after th…
    Difficulty 2/5
  16. 216.Why does the insurer ask the insured to sign a delivery receipt when a life insurance policy is delivered?
    Difficulty 1/5
  17. 217.Under which settlement option does the beneficiary receive payments consisting only of the interest earned …
    Difficulty 1/5
  18. 218.If a whole life policy lapses with sufficient cash value and the policyowner has made no nonforfeiture elec…
    Difficulty 2/5
  19. 219.A policyowner with a whole life policy stops paying premiums during the grace period. If the policy include…
    Difficulty 2/5
  20. 220.A life insurance policy contains a common disaster (survivorship) clause. The insured and the primary benef…
    Difficulty 3/5
  21. 221.The cash surrender value of a whole life insurance policy is generally determined by:
    Difficulty 2/5
  22. 222.A beneficiary who chooses the "life income" settlement option will receive:
    Difficulty 2/5
  23. 223.The insuring clause of a life insurance policy is the provision that:
    Difficulty 1/5
  24. 224.A spendthrift clause in a life insurance policy:
    Difficulty 1/5
  25. 225.Under a fixed-period settlement option, the beneficiary receives:
    Difficulty 2/5
  26. 226.An applicant is a recreational private pilot. The insurer issues the policy with an aviation (hazardous avo…
    Difficulty 2/5
  27. 227.The insured selects a settlement option that pays the beneficiary a specific sum each month until the death…
    Difficulty 2/5
  28. 228.A policyowner borrows money from a life insurer using the policy as security. The loan is secured by:
    Difficulty 2/5
  29. 229.Under a life income settlement option, the beneficiary:
    Difficulty 1/5
  30. 230.An automatic premium loan (APL) provision allows the insurer to:
    Difficulty 2/5
  31. 231.A policyowner of a participating whole life policy instructs the insurer to keep the annual dividends with …
    Difficulty 1/5
  32. 232.The Needs approach to determining how much life insurance a client should buy focuses on:
    Difficulty 2/5
  33. 233.A life insurance policy is issued with an aviation exclusion endorsement because the insured flies private …
    Difficulty 2/5
  34. 234.A common disaster (simultaneous death) provision in a life insurance policy typically states that if the in…
    Difficulty 2/5
  35. 235.A policyowner stops paying premiums, has not taken a paid-up policy, and makes no nonforfeiture election. I…
    Difficulty 3/5
  36. 236.Under an interest-only settlement option, the insurer:
    Difficulty 1/5
  37. 237.A small manufacturer insures its founder, whose death would cause serious financial loss to the company. Th…
    Difficulty 2/5
  38. 238.Under an interest-only settlement option, the insurer:
    Difficulty 2/5
  39. 239.Which of the following causes of death is most likely to be excluded or restricted under a life insurance p…
    Difficulty 2/5
  40. 240.A beneficiary chooses to receive the death benefit in installments of exactly $1,000 per month until the pr…
    Difficulty 2/5
  41. 241.Under the extended term nonforfeiture option, the net cash value of a lapsed whole life policy is used to:
    Difficulty 2/5
  42. 242.A policyowner names her children as beneficiaries with the designation my children, per stirpes. At the ins…
    Difficulty 2/5
  43. 243.An insured with an in-force life policy takes up private airplane flying, and the insurer responds by addin…
    Difficulty 2/5
  44. 244.Under an interest-only settlement option, the insurer:
    Difficulty 1/5
  45. 245.A policy names the insured's three children as equal beneficiaries. One child has died leaving two children…
    Difficulty 2/5
  46. 246.A participating policyowner wants each annual dividend to buy additional paid-up insurance coverage. This d…
    Difficulty 2/5
  47. 247.The consideration clause of a life insurance policy states that the contract is issued in exchange for:
    Difficulty 1/5
  48. 248.The participating policy dividend option that uses dividends to purchase additional paid-up whole life insu…
    Difficulty 1/5
  49. 249.A beneficiary elects a settlement option that guarantees a specific number of payments even if the benefici…
    Difficulty 3/5
  50. 250.When a beneficiary designation states that the death benefit is to be divided 'per stirpes,' the proceeds are:
    Difficulty 1/5