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