California Life-Only Agent Exam, Life Insurance Basics: all 30 questions

All questions from the Life Insurance Basics section for California Life-Only Agent Exam, each with the correct answer.

• 4001In a life insurance policy, the person whose death triggers the death benefit is the
• 4002The person who has the rights to change beneficiaries, borrow against cash value, and surrender a policy is the
• 4003A person who completes an application for insurance is called the
• 4004Which approach to determining life insurance amounts calculates the present value of the insured's future earnings?
• 4005The needs approach to determining the amount of life insurance is based on
• 4006Key person insurance is purchased by a business to
• 4007A buy-sell agreement funded with life insurance is designed to
• 4008Under California Insurance Code section 10110, when must insurable interest exist for a life insurance policy?
• 4009A person has an unlimited insurable interest in
• 4010A creditor generally has an insurable interest in the life of
• 4011A mortality table shows
• 4012The statement that life insurance creates an immediate estate means that
• 4013A limit of liability in a life insurance policy refers to
• 4014Which method of risk management applies when a family purchases life insurance on the breadwinner?
• 4015The personal insurance planning process begins with
• 4016Split dollar life insurance is an arrangement in which
• 4017Deferred compensation plans funded by life insurance are intended to
• 4018Business overhead expense insurance pays
• 4019What is the main purpose of an insurance premium?
• 4020Which of the following is a component of a life insurance premium?
• 4021A person's family needs a monthly income during the children's school years, then a smaller one later. Which life insurance need does this describe?
• 4022Which of the following is NOT a method of managing risk?
• 4023When the death benefit is paid to a beneficiary, which party is the person who named the beneficiary?
• 4024A husband buys a policy on his wife's life and names himself as beneficiary. Who is the policy owner?
• 4025Which of the following best describes an insurer's mortality assumption?
• 4026Insurable interest in life insurance is required to prevent
• 4027An employer typically has an insurable interest in
• 4028Life insurance proceeds paid to a named beneficiary generally
• 4029An insured purchases a policy and names a trust as beneficiary. This is an example of
• 4030Which of the following needs does life insurance commonly address?

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