Life Insurance Exam Questions
and Answers 100% PASS
A contract that has as its basic function the systematic liquidation of accumulated assets
through periodic payments is called an:—ANSWER--Annuity
Which of the following features allows an insurance policy to remain in force for a specified
number of days beyond the premium due date?—ANSWER--Grace Period provision
A life insurance policy that combines Term insurance and an interest bearing account is BEST
classified as which of the following types of policies?—ANSWER--Universal Life
Which of the following annuities BEST suits the needs of a 35-year-old factory worker
concerned about inflation who wants to establish a retirement plan?—ANSWER--A Flexible
Premium Variable Annuity
In which of the following contracts is the Death benefit called the principal sum?—ANSWER-
-Accidental Death and Dismemberment (AD&D)
An insured intentionally understates their age on their application for a life policy. At death,
the insurer will take which of the following actions?—ANSWER--Pay a reduced Death benefit
based on the insured's actual age
A Variable Life Policy differs from a Whole Life policy in which of the following ways?—
ANSWER--How reserves are invested
, In life insurance, the Free Look provision begins on the:—ANSWER--policy delivery date
An insurance producer takes an application for a life insurance policy but does not collect
the initial premium. On delivery of the policy to the proposed insured, the producer must
collect the initial premium and which of the following?—ANSWER--The insured's signed
statement of continued good health
An applicant for life insurance may question the validity and source of any consumer
information developed under the:—ANSWER--Fair Credit Reporting Act
A type of annuity in which the cash values are invested in securities is called:—ANSWER--
Variable
Which of the following statements is CORRECT about the Paid-Up Additions in a participating
Whole Life policy?—ANSWER--They are purchased on an attained age basis.
A contract that promises to pay an income to an insured until their death is called:—
ANSWER--Life Annuity
Which of the following policies is an interest-sensitive form of permanent protection?—
ANSWER--Universal Life
At which of the following times MUST a life insurance applicant be informed of their rights
under the Fair Credit Reporting Act?During the initial appointment—ANSWER--When the
policy is delivery
Federal income tax laws generally treat proceeds of life insurance policies as:—ANSWER--
nontaxable
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
and Answers 100% PASS
A contract that has as its basic function the systematic liquidation of accumulated assets
through periodic payments is called an:—ANSWER--Annuity
Which of the following features allows an insurance policy to remain in force for a specified
number of days beyond the premium due date?—ANSWER--Grace Period provision
A life insurance policy that combines Term insurance and an interest bearing account is BEST
classified as which of the following types of policies?—ANSWER--Universal Life
Which of the following annuities BEST suits the needs of a 35-year-old factory worker
concerned about inflation who wants to establish a retirement plan?—ANSWER--A Flexible
Premium Variable Annuity
In which of the following contracts is the Death benefit called the principal sum?—ANSWER-
-Accidental Death and Dismemberment (AD&D)
An insured intentionally understates their age on their application for a life policy. At death,
the insurer will take which of the following actions?—ANSWER--Pay a reduced Death benefit
based on the insured's actual age
A Variable Life Policy differs from a Whole Life policy in which of the following ways?—
ANSWER--How reserves are invested
, In life insurance, the Free Look provision begins on the:—ANSWER--policy delivery date
An insurance producer takes an application for a life insurance policy but does not collect
the initial premium. On delivery of the policy to the proposed insured, the producer must
collect the initial premium and which of the following?—ANSWER--The insured's signed
statement of continued good health
An applicant for life insurance may question the validity and source of any consumer
information developed under the:—ANSWER--Fair Credit Reporting Act
A type of annuity in which the cash values are invested in securities is called:—ANSWER--
Variable
Which of the following statements is CORRECT about the Paid-Up Additions in a participating
Whole Life policy?—ANSWER--They are purchased on an attained age basis.
A contract that promises to pay an income to an insured until their death is called:—
ANSWER--Life Annuity
Which of the following policies is an interest-sensitive form of permanent protection?—
ANSWER--Universal Life
At which of the following times MUST a life insurance applicant be informed of their rights
under the Fair Credit Reporting Act?During the initial appointment—ANSWER--When the
policy is delivery
Federal income tax laws generally treat proceeds of life insurance policies as:—ANSWER--
nontaxable
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
