1. Exam Prep
  2. California
  3. Life-Only Agent
  4. Life Insurance Basics

Free Life Insurance Basics Practice Questions

California Life-Only Agent exam (series Life-Only) — 39 practice questions.

Subtopics: Insurable interest timing, Life settlements, HIV testing consent, Genetic information, Insurable interest, Insurable interest parties, Personal uses, Liquidity, Human life value, Needs approach, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Premium factors, Mortality, Interest assumption, Premium mode, Advertising, Field underwriting, Application accuracy, Sources of underwriting, Risk classification, Substandard risk, Effective date, Statement of good health, Backdating, MIB, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Surrender comparison index

Sample questions & answers

1. In California life insurance, insurable interest must exist:

At the time the contract is made

For life insurance the insurable interest must exist when the contract is made, not necessarily at the time of loss.

2. In a California life settlement, the policyowner:

Sells an existing life policy to a third party for more than its cash value but less than the death benefit

A life settlement is the sale of an existing policy to a third party for a lump sum, regulated under California's life settlement law.

3. Before an insurer may require an HIV test for life underwriting in California it must:

Obtain the applicant's written informed consent

California requires written informed consent before an applicant may be tested for HIV for insurance underwriting.

4. California limits a life insurer's use of an applicant's genetic characteristics by:

Prohibiting refusal of coverage or different terms based solely on genetic characteristics absent actuarial justification

California prohibits discrimination in life and disability insurance based solely on a person's genetic characteristics.

All Life-Only Agent topics

Practice: Life Insurance Basics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Pennsylvania Insurance Department and the exam administrator before relying on it.