California Insurance License Exam Practice Test Practice Question

Which of the following is NOT ordinary life insurance?

Correct Answer: B

Rationale: Option B, the 20-year endowment life policy, is not considered ordinary life insurance because it combines life insurance with a savings component, maturing at a specific age or after a set period. This feature distinguishes it from typical life insurance products focused solely on death benefits.

Option A, a group term life insurance policy, provides coverage for a group of people and is characterized by its temporary nature, aligning with ordinary life insurance principles.

Option C, a life paid-up-at-age-85 policy, ensures coverage until age 85 with premiums paid up, fitting the definition of ordinary life insurance.

Option D, a participating whole life policy, offers lifelong coverage and dividends, making it a standard form of ordinary life insurance.

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