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Life Insurance Practice Questions — Page 7 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. 301.A life insurance policy contains an aviation exclusion clause. Which of the following deaths would most lik…
    Difficulty 2/5
  2. 302.A policyowner takes a partial withdrawal from the cash value of a permanent life policy. The total premiums…
    Difficulty 3/5
  3. 303.A beneficiary receives a life insurance death benefit in a single lump-sum payment. Under the Internal Reve…
    Difficulty 1/5
  4. 304.In a contributory group life insurance plan, the employees pay part of the premium. Which statement is corr…
    Difficulty 2/5
  5. 305.A policyowner withdraws cash from a life insurance policy's cash value, taking out more than the policy's c…
    Difficulty 3/5
  6. 306.If the insured dies while committing a felony, a life insurance policy that contains an illegal activity ex…
    Difficulty 1/5
  7. 307.In a group life insurance plan, the contract of insurance is issued to the:
    Difficulty 1/5
  8. 308.In a noncontributory group life insurance plan, which statement is correct?
    Difficulty 2/5
  9. 309.An insured takes up a hazardous avocation, such as skydiving, after the policy was issued. Under a typical …
    Difficulty 1/5
  10. 310.A life insurance policy excludes a hazardous avocation, such as skydiving, through a special endorsement. I…
    Difficulty 2/5
  11. 311.In group life insurance, the employer receives the group contract and each covered employee receives a docu…
    Difficulty 1/5
  12. 312.An applicant works in a high-risk occupation. The insurer issues the policy but attaches an endorsement exc…
    Difficulty 2/5
  13. 313.An employer pays the full premium for $100,000 of group term life insurance on an employee. For federal inc…
    Difficulty 2/5
  14. 314.A client wants life insurance that matches a declining mortgage balance, with the death benefit shrinking a…
    Difficulty 1/5
  15. 315.A renewable term insurance policy allows the insured to:
    Difficulty 1/5
  16. 316.Which task is an administrative responsibility of the employer as policyholder under a group life insurance…
    Difficulty 2/5
  17. 317.In a noncontributory group life insurance plan, participation is required of:
    Difficulty 1/5
  18. 318.In group life insurance, the master contract is issued to:
    Difficulty 1/5
  19. 319.An employer pays the entire premium for a $75,000 group term life policy on an employee. For federal income…
    Difficulty 2/5
  20. 320.In a contributory group life insurance plan, the:
    Difficulty 1/5
  21. 321.Life insurance death proceeds received by a beneficiary in a lump sum are generally:
    Difficulty 1/5
  22. 322.An insured takes up skydiving after the policy was issued, and the insurer adds a hazardous avocation exclu…
    Difficulty 3/5
  23. 323.Under the federal income tax rules for life insurance, a death benefit paid as a lump sum to a beneficiary …
    Difficulty 1/5
  24. 324.In a group life insurance plan, the master policy is issued to the employer and each covered employee recei…
    Difficulty 1/5
  25. 325.A policyowner takes a loan from the cash value of a non-MEC whole life policy. For federal income tax purpo…
    Difficulty 2/5
  26. 326.How is a life insurance death benefit paid as a lump sum to a named beneficiary treated for federal income …
    Difficulty 1/5
  27. 327.Under IRC Section 79, group term life insurance provided by an employer is taxable to the employee:
    Difficulty 2/5
  28. 328.A policyowner exchanges an existing life insurance policy for a new life insurance policy with different co…
    Difficulty 2/5
  29. 329.A life insurance policy becomes a modified endowment contract (MEC) under IRC Section 7702. Which statement…
    Difficulty 3/5
  30. 330.A death benefit of $200,000 is paid to a beneficiary in 20 equal annual installments. For federal income ta…
    Difficulty 2/5
  31. 331.A distinguishing feature of universal life insurance is that it:
    Difficulty 2/5
  32. 332.A policyowner surrenders a whole life policy and receives a cash surrender value that exceeds the total pre…
    Difficulty 3/5
  33. 333.A beneficiary elects to leave the life insurance death proceeds with the insurer and receive them under a s…
    Difficulty 1/5
  34. 334.An employer pays the entire premium on $80,000 of group term life insurance for an employee. For federal in…
    Difficulty 3/5
  35. 335.Which statement correctly distinguishes contributory from noncontributory group life insurance?
    Difficulty 2/5
  36. 336.Under IRC §79, employer-paid group term life insurance coverage up to which amount is generally excluded fr…
    Difficulty 2/5
  37. 337.Under a typical group life insurance plan, which responsibility belongs to the employer as policyholder?
    Difficulty 2/5
  38. 338.As the policyholder of a group life insurance plan, the employer is generally responsible for all of the fo…
    Difficulty 1/5
  39. 339.Which of the following exchanges qualifies for tax-free treatment under IRC §1035?
    Difficulty 3/5
  40. 340.An annuitant invests $100,000 (cost basis) in an annuity contract with an expected total return of $500,000…
    Difficulty 3/5
  41. 341.An employer pays the entire premium for $90,000 of group term life insurance on a 45-year-old employee. Und…
    Difficulty 2/5
  42. 342.In a group life insurance plan, which document does an individual covered employee typically receive?
    Difficulty 1/5
  43. 343.In group life insurance, which statement is correct?
    Difficulty 1/5
  44. 344.An employer provides group term life insurance to employees and pays the entire premium. Under IRC §79, how…
    Difficulty 2/5
  45. 345.In a group life insurance plan, the master contract is issued to:
    Difficulty 1/5
  46. 346.A policyowner surrenders a life insurance policy for its cash value of $25,000 after having paid $20,000 in…
    Difficulty 2/5
  47. 347.Because the cash values in a variable life insurance policy are invested in separate accounts whose perform…
    Difficulty 2/5
  48. 348.Dividends paid on a participating whole life insurance policy are best described as:
    Difficulty 2/5
  49. 349.A policyowner surrenders a whole life policy and receives its cash value. For federal income tax purposes, …
    Difficulty 2/5
  50. 350.What distinguishes a contributory group life insurance plan from a noncontributory plan?
    Difficulty 2/5