CA LIFE EXAM PREP A

Risk in insurance terminology refers to the

Events or conditions that increase the probability of a loss occurring are referred to as

What type of risk allows both gains and losses?

The principle that states that larger the number of exposure units, the more predictable the number of future losses is known as

All of the following statements about insurable interest are true EXCEPT

The tendency of less favorable insurance risks to seek or continue coverage to a greater extent than average risks is called

For an insurance contract, utmost good faith means

When debt, income, mortgage, and expenses are used to determine the amount of insurance an insured should purchase it is known as the

When the business is the owner, pays the premium, and is the beneficiary of a life insurance policy, this is an example of what kind of business insurance?

Which method of handling risk is considered to be self-insurance?

A business overhead expense policy does NOT reimburse a business owner for

The limit of liability to an insurer for an individual life insurance policy is the

Which would NOT be considered a business use of life insurance?

A provision in a life insurance policy that states the insured cannot receive more than their loss is known as

There are 3 partners in a business. How many life insurance policies would be required for a cross-purchase plan?

A deliberate act that causes harm to another person regardless of whether the offending party intended to injure the aggrieved party is a

To prevent people from taking advantage of minors or the mentally incompetent, a contract must have which element?

The consideration involved in an insurance contract on the part of the insured refers to the

Any areas of ambiguity in an insurance contract are decided in favor of the insured because the contract is a(n)

Statements in the application for insurance that must be true to the best of the applicant’s knowledge are called

An applicant failed to disclose a material fact on an application. Which of the following is correct? He is guilty of

The concept that all parties to a contract are entitled to all the information necessary to make an informed decision is called

Which statement is INCORRECT regarding tort law?

An exchange of unequal amounts or values is known as a/an

Which provision allows the policyowner to put a lapsed insurance policy back in force under certain conditions?

A depiction that includes nonguaranteed elements of a policy for individual or group insurance over a period of years is called a(n)

All of the following MUST sign the application EXCEPT

If a change needs to be made to an application, the correct method would be for the agent to

All of the following are true of a nonmedical application EXCEPT

If a proposed insured dies before the policy is issued but while in possession of a conditional receipt, the company will

A database maintained by insurance companies to collect and maintain information on applications and claims is called the

If an insurer requests an HIV test, whose written consent is needed?

Applicants whose health, habits, or occupations make them higher than normal risks are referred to as

Which mode of payment does not have an additional charge (loading)?

When is a producer required to obtain a signed Statement of Good Health?

The period to receive a full refund for a life insurance or annuity policy issued to a person 60 years of age or old must be at least

The intent of the replacement regulations is to protect the original

An insured owns a term insurance policy in which the amount of protection remains constant during the term period. What kind of term insurance does he own?

An annually renewable term policy

Which of the following amounts must increase in an increasing term policy?

A 35 year old insured’s five year level term policy will probably renew to a

The type of policy that can be changed from one that does not accumulate cash value to one that does is a

All of the following statements regarding whole life insurance are true EXCEPT

How long does coverage continue on a limited–pay whole life policy?

If a single premium (lump sum) is paid on a whole life policy, cash value will

An equity-indexed life insurance policy’s cash value is usually linked to an index such as the

An Adjustable Life policy allows for the policy owner to do all of the following EXCEPT

Which of the following is NOT true about a universal life policy?

When are benefits paid from a joint life policy?

In a jumping juvenile life, the component that “jumps” is the