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100 practice exam questions LIFE INSURANCE
Life Insurance Licensing Practice Exam
– 100 Updated Questions & Verified
Answers (2026 Edition)
B, an insurance agent, tells his clients that their rights may coercion
be impaired if they fail to complete a release form within
a given period of time. B may be found guilty of
The Consideration clause of an insurance contract Amount of premium payments and when they are due
includes
Under a Graded Pre mium Whole Life policy, the pre mium increases each year during the early years of the contract and
remains the same after that time
J chooses a monthly premium payment mode on his The gross premium is higher on a monthly payme nt mode as compared to being
Whole Life insurance policy. Which of the se state me nts is paid annually
correct?
The Consideration clause of an insurance contact the sche dule and amount of pre mium payments
includes:
An e mployer that offers a qualified retireme nt plan to its make tax-deductible contributions to the plan
employees is eligible to
In a life insurance policy, which provision states who may Ow ner's Rights
select policy options, designate, and name a be neficiary,
and be the recipient of any financial benefits from the
policy?
A Dome stic Insurance Company in Te xas is considered a is incorporated and for med in Texas
company that
, An applicant's me dical information receive d from the Applicant's physician
Medical infor mation Bureau (MIB) may be furnishe d to
the:
A 15-year mortgage is best protected by what kind of life 15-year decreasing term
policy?
L takes out a life insurance policy and dies 10 years later. adjust the death benefit to a reduced amount
During the claim process, the insurer discovers that L had
understated her age on the application. Under the
Misstatement of Age provision, the insurer will
Why would the Insurance Commissioner examine the determine the solvency of the company
records of an insurance company?
What action should a producer take if the initial premium Forward the application to the insurer without the initial premium
is NOT submitted with the application?
The Automatic Pre mium Loan provision is de signed to: avoid a policy lapse
How are surrender charges deducte d in a life policy with Deducted when the policy is discontinued
a rear-end loaded provision?
P and Q are married and have three children. P is the P only
primary beneficiary on Q's Accidental Death and
Dismember ment (AD&D) policy and Q's sister R is the
contingent beneficiary. P, Q, and R are involved in a car
accident and Q and R are killed instantly. The Accide ntal
Death benefits will be paid to
How long does an insurance company appointment Until terminated
remain in force?
Under a Graded Pre mium policy, the premiums are lower during the policy's early years
A policyow ner would like to change the be neficiary on a irrevocable
Life insurance policy and make the change permanent.
Which type of designation would fulfill this need?
in architecture firm would stand to lose a lot of mone y in Ke y person insurance
the event of the death of its project manager. What type
of policy should the firm purchase on his project
manager?
A policy of adhesion can only be modified by whom? The insurance company.
(A policy of adhesion is best described as a policy w hich only the insurance
company can modify.)
What kind of life insurance product covers children under Term rider-
their parent's policy? Family plan policies usually cover the family head with per manent insurance and
the coverage on the spouse and children is ter m insurance in the for m of a rider.
100 practice exam questions LIFE INSURANCE
Life Insurance Licensing Practice Exam
– 100 Updated Questions & Verified
Answers (2026 Edition)
B, an insurance agent, tells his clients that their rights may coercion
be impaired if they fail to complete a release form within
a given period of time. B may be found guilty of
The Consideration clause of an insurance contract Amount of premium payments and when they are due
includes
Under a Graded Pre mium Whole Life policy, the pre mium increases each year during the early years of the contract and
remains the same after that time
J chooses a monthly premium payment mode on his The gross premium is higher on a monthly payme nt mode as compared to being
Whole Life insurance policy. Which of the se state me nts is paid annually
correct?
The Consideration clause of an insurance contact the sche dule and amount of pre mium payments
includes:
An e mployer that offers a qualified retireme nt plan to its make tax-deductible contributions to the plan
employees is eligible to
In a life insurance policy, which provision states who may Ow ner's Rights
select policy options, designate, and name a be neficiary,
and be the recipient of any financial benefits from the
policy?
A Dome stic Insurance Company in Te xas is considered a is incorporated and for med in Texas
company that
, An applicant's me dical information receive d from the Applicant's physician
Medical infor mation Bureau (MIB) may be furnishe d to
the:
A 15-year mortgage is best protected by what kind of life 15-year decreasing term
policy?
L takes out a life insurance policy and dies 10 years later. adjust the death benefit to a reduced amount
During the claim process, the insurer discovers that L had
understated her age on the application. Under the
Misstatement of Age provision, the insurer will
Why would the Insurance Commissioner examine the determine the solvency of the company
records of an insurance company?
What action should a producer take if the initial premium Forward the application to the insurer without the initial premium
is NOT submitted with the application?
The Automatic Pre mium Loan provision is de signed to: avoid a policy lapse
How are surrender charges deducte d in a life policy with Deducted when the policy is discontinued
a rear-end loaded provision?
P and Q are married and have three children. P is the P only
primary beneficiary on Q's Accidental Death and
Dismember ment (AD&D) policy and Q's sister R is the
contingent beneficiary. P, Q, and R are involved in a car
accident and Q and R are killed instantly. The Accide ntal
Death benefits will be paid to
How long does an insurance company appointment Until terminated
remain in force?
Under a Graded Pre mium policy, the premiums are lower during the policy's early years
A policyow ner would like to change the be neficiary on a irrevocable
Life insurance policy and make the change permanent.
Which type of designation would fulfill this need?
in architecture firm would stand to lose a lot of mone y in Ke y person insurance
the event of the death of its project manager. What type
of policy should the firm purchase on his project
manager?
A policy of adhesion can only be modified by whom? The insurance company.
(A policy of adhesion is best described as a policy w hich only the insurance
company can modify.)
What kind of life insurance product covers children under Term rider-
their parent's policy? Family plan policies usually cover the family head with per manent insurance and
the coverage on the spouse and children is ter m insurance in the for m of a rider.
