Life Insurance Practice Questions — Page 6 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.
- 251.A beneficiary who selects the life income settlement option for life insurance proceeds receives:Difficulty 2/5
- 252.A life policy contains an aviation exclusion and the insured dies while piloting a private aircraft, an act…Difficulty 2/5
- 253.A policyowner borrows money from the insurer using a permanent life policy. The policy loan is best describ…Difficulty 2/5
- 254.A beneficiary elects a settlement option that guarantees a specific number of payments even if the benefici…Difficulty 3/5
- 255.Two partners own a business equally and sign a buy-sell agreement funded with life insurance. The primary p…Difficulty 2/5
- 256.What does an automatic premium loan (APL) provision in a whole life policy do when a premium is not paid by…Difficulty 2/5
- 257.A beneficiary selects a settlement option that guarantees payments for as long as the beneficiary lives, re…Difficulty 2/5
- 258.Which of the following is a common exclusion found in life insurance policies?Difficulty 2/5
- 259.The participating policy dividend option that uses dividends to purchase additional paid-up whole life insu…Difficulty 1/5
- 260.Under the Internal Revenue Code, proceeds paid as a lump sum under a life insurance policy upon the insured…Difficulty 1/5
- 261.An employer pays the entire premium on $100,000 of group term life insurance for an employee. Under IRC Sec…Difficulty 2/5
- 262.Under a fixed amount settlement option, the beneficiary receives:Difficulty 2/5
- 263.Which of the following is NOT one of the standard life insurance settlement options?Difficulty 1/5
- 264.Under an interest-only settlement option, the proceeds of a life policy are:Difficulty 1/5
- 265.Under the fixed period settlement option, the beneficiary receives:Difficulty 2/5
- 266.Under the 'life income' settlement option, the beneficiary:Difficulty 2/5
- 267.If an applicant participates in a hazardous avocation such as skydiving, the insurer will most likely:Difficulty 2/5
- 268.A beneficiary elects to receive life insurance death proceeds under a settlement option in installments ove…Difficulty 1/5
- 269.A life insurance policy may exclude death caused by:Difficulty 1/5
- 270.Under which life insurance settlement option does the beneficiary receive the death proceeds in equal payme…Difficulty 2/5
- 271.Which of the following exchanges of contracts is generally tax-free under IRC Section 1035?Difficulty 2/5
- 272.A mortality table is used by life insurers primarily to:Difficulty 1/5
- 273.Under Internal Revenue Code Section 79, an employee who is covered by an employer-paid group term life insu…Difficulty 2/5
- 274.Under the one-year term dividend option, the policy dividend is used to:Difficulty 2/5
- 275.Under IRC Section 79, employer-paid group term life insurance coverage up to what amount is generally exclu…Difficulty 2/5
- 276.Which of the following is a standard dividend option available under a participating life insurance policy?Difficulty 1/5
- 277.Under IRC Section 72(b), the exclusion ratio used to find the nontaxable portion of each annuity payment is…Difficulty 3/5
- 278.Life insurance death proceeds paid in a lump sum to a beneficiary are generally:Difficulty 1/5
- 279.Under the paid-up additions dividend option on a participating whole life policy, policy dividends are used…Difficulty 2/5
- 280.If an insured is killed while committing a felony, the life insurer will generally:Difficulty 1/5
- 281.An applicant who participates in a hazardous avocation such as private flying or scuba diving applies for l…Difficulty 2/5
- 282.A life insurance policy contains a war exclusion clause. If the insured dies while serving in a declared wa…Difficulty 2/5
- 283.A beneficiary elects to receive a $200,000 life insurance death benefit in 20 equal annual installments rat…Difficulty 2/5
- 284.With the interest-only settlement option, what does the beneficiary receive?Difficulty 1/5
- 285.An employer provides an employee with $150,000 of employer-paid group term life insurance. Under IRC Sectio…Difficulty 2/5
- 286.A life insurance policy includes a war exclusion clause. How does this provision typically affect coverage?Difficulty 1/5
- 287.Which of the following is a standard dividend option available to the owner of a participating life insuran…Difficulty 2/5
- 288.How is the growth of cash value within a permanent life insurance policy treated for federal income tax pur…Difficulty 2/5
- 289.In a group life insurance arrangement, the contract issued to the employer (the group policyholder) is call…Difficulty 1/5
- 290.In a group life insurance plan, each covered employee receives a certificate of coverage. Which of the foll…Difficulty 1/5
- 291.A life insurance policy fails the seven-pay test and is classified as a modified endowment contract (MEC). …Difficulty 3/5
- 292.As a general rule, life insurance death proceeds paid in a lump sum to a beneficiary:Difficulty 1/5
- 293.Which aviation death is most commonly EXCLUDED under a life insurance aviation clause?Difficulty 1/5
- 294.A policyowner takes a partial withdrawal from the cash value of a permanent life policy. The total premiums…Difficulty 3/5
- 295.An applicant engages in a hazardous hobby, and the insurer is willing to issue the policy but does not want…Difficulty 2/5
- 296.Which statement about the federal income taxation of an individual's personally owned life insurance policy…Difficulty 1/5
- 297.An employer pays the entire premium for a $75,000 group term life policy on an employee. Under IRC Section …Difficulty 2/5
- 298.Life insurance policy general exclusions typically include all of the following EXCEPT:Difficulty 1/5
- 299.A life policy contains an aviation exclusion. Which death would most likely be excluded under a standard av…Difficulty 2/5
- 300.Which statement correctly contrasts term life insurance with whole life insurance?Difficulty 1/5