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CA Life Insurance Practice Exam Questions and Answers (100% Pass)
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CA Life Insurance Practice Exam Questions and Answers (100% Pass)
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AMCA Life Insurance Practice Exam
Questions and Answers (100% Pass)
A key person is typically all of the following, except: - ✔️✔️-Not directly involved in sales,
production, or service
Key persons are employees whose contributions have a significant impact on the
revenue and profitability of the company, especially in small businesses. They are
typically: part of the management team, more highly paid, respected by customers,
creditors, suppliers, and vendors, and have direct responsibilities for sales, production,
or service.
Which one of the following is not a reason why premium for the individual policy issued
to an insured exercising a group conversion right is higher than the group life rate
previously charged? - ✔️✔️-The conversion policy has a higher death benefit
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,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
The premium of an individual policy issued due to a group life insurance plan
conversion will be at a higher than normal rate to include the insurer's guaranteed
convertible surcharge because the majority of all conversions involve persons that
would otherwise be uninsurable, because the conversion policy will be issued at the
attained (current) age of the insured, and the policy will build cash values.
The type of life insurance used to provide funds for a Buy-Sell Agreement is: - ✔️✔️-Any
type of life insurance
Any type of life insurance may be used to provide funds for a Buy-Sell Agreement.
Lorraine's position has been terminated, and she is interested in converting her group
life coverage to an individual policy. In the process, she will find all of the following to be
TRUE, except: - ✔️✔️-She will be converting her group term benefit to an individual term
benefit
She will be converting her group term life to an individual permanent policy.
To help protect against experiencing immediate claims, group plans have a(n) _______
period set up by the group sponsor. - ✔️✔️-Probationary
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,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
A probationary period is set up to help reduce the chance of facing immediate claims.
How is the funding for Social Security provided? - ✔️✔️-Through FICA taxes that are paid
by both employers and employees
Both the employer and employee fund Social Security through paying FICA taxes. Self-
employed persons pay the entire amount.
The premium for optional dependent group insurance can be payable by: - ✔️✔️The
employer, the employee or both
Optional dependent coverage may be paid for by the employer, the employee, or both.
When an insurer wishes to implement changes to a group life policy, whom must it
notify? - ✔️✔️The group sponsor
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, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
Just as in individual contracts, the owner controls the policy. In this case, only the plan
sponsor has a policy (i.e. the Master Policy). As such, the insurer must notify the group
sponsor of the changes.
There is a conversion period of how many days in which the employee may, upon
termination of eligibility and without evidence of insurability, convert his/her group life
insurance benefit to an individual permanent policy? - ✔️✔️31
There is a conversion period of 31 days in which the employee may, upon termination of
eligibility and without evidence of insurability, convert his/her group life insurance benefit
to an individual permanent policy.
The proceeds from a _________ plan provide the necessary funds to recruit, hire, and
train a replacement employee. - ✔️✔️Key employee
Key employee life insurance plans provide the funds to recruit, hire, and train a
replacement employee.
Which of the following is a disadvantage of being covered under a group insurance
plan? - ✔️✔️The group sponsor can elect to discontinue the plan, and the insurance
company can increase the rates it charges
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