Life Insurance Exam Questions (Illinois) QUESTIONS WITH
WELL VERIFIED ANSWERS
Which of the following are characteristics of Universal Life Insurance policies - answer☑️✔️...
Insurer - answer☑️✔️...Provides insurance coverage by issuing particular insurance policies or
contracts
Insurance Agencies - answer☑️✔️...Are independent sales organizations that provide service
and distribute insurance policies to consumers (also called Carriers)
Producers - answer☑️✔️...Are licensed individuals representing an insurance company when
transacting insurance business
A _______________________ insurance company is owned by its policyholders?
A. Stock
B. Reciprocal
C. Fraternal Benefits Society
D. Mutual - answer☑️✔️...D. Mutual
________________________ refers to the location, or jurisdiction, where an insurer is formed
or incorporated - answer☑️✔️...Domicile
Which of the following is an insurance company that is organized under the laws of another
state within the United States?
A. Domestic
B. Alien
C. Foreign
,D. Authorized - answer☑️✔️...C. Foreign
A federal regulation called the _____________________ protects consumer privacy -
answer☑️✔️...Fair Credit Reporting Act (FCRA)
________________________ was passed to help detect and prevent illegal activity like, drug
trafficking and acts of terrorism - answer☑️✔️...The PATRIOT Act
An insurance policy is a contact between which two parties? - answer☑️✔️...Insurer and
Insured
To ___________________ means to compensate for a loss, or to make one whole again -
answer☑️✔️...Indemnify
For Life and Health Insurance, insurable interest must exist at the time of:
A. Application
B. Loss
C. Application and Loss
D. Policy Delivery - answer☑️✔️...A. Application
What are the four elements of a legal contract? - answer☑️✔️...1. Competent Parties
2. Legal Purpose
3. Agreement (Offer and Acceptance)
4. Consideration
________________________ is the exchange of value (payment of premium) to make a
contract binding - answer☑️✔️...Consideration
,Each of the follow is an element of a legal contract, EXCEPT:
A. Consideration
B. Legal Purpose
C. Agreement
D. Indemnity - answer☑️✔️...D. Indemnity
An _____________________ contract is one that is based on an uncertain event, or "by
chance"? - answer☑️✔️...Aleatory
A _____________________ contract is one in which only one party is legally bound to the
contractual obligations - answer☑️✔️...Unilateral
A _______________________ contract is one in which both parties must perform certain duties
to make the contract enforceable - answer☑️✔️...Conditional
Statements made by the applicant on the application are considered
___________________________? - answer☑️✔️...Representations
A warranty is defined as which of the following?
A. Intentional misrepresentation on the application
B. Statement in the application that is guaranteed to be true
C. A false statement in the application
D. A substantially true statement - answer☑️✔️...B. Statement in the application that is
guaranteed to be true
, The purchaser of a life insurance policy is called the _______________________? -
answer☑️✔️...Policyowner
J is named in the policy as the individual who is entitled to receive the policy proceeds upon the
death of T. Which of the following statements best applies to this scenario?
A. J is named as the owner of T's policy
B. T is the insured in the policy and J is the named beneficiary
C. T is the owner and beneficiary of the policy
D. J is the insured and beneficiary of the policy - answer☑️✔️...B. T is the insured in the policy
and J is the named beneficiary
A life insurance policy is being applied for on Z's life. In order for the contract to be valid, all of
the following have an insurable interest and could be the owner of the policy, except:
A. Z
B. Z's spouse
C. Z's neighbor
D. Z's business partner - answer☑️✔️...C. Z's neighbor
What are the four different phases in the sale of products? - answer☑️✔️...1. Solicitation
2. Negotiation
3. Execution of a contract
4. Handling matters subsequent to a contract
What needs to be provided to the applicant at the time of application or no later than policy
delivery? - answer☑️✔️...1. Buyers Guide
2. Policy Summary
WELL VERIFIED ANSWERS
Which of the following are characteristics of Universal Life Insurance policies - answer☑️✔️...
Insurer - answer☑️✔️...Provides insurance coverage by issuing particular insurance policies or
contracts
Insurance Agencies - answer☑️✔️...Are independent sales organizations that provide service
and distribute insurance policies to consumers (also called Carriers)
Producers - answer☑️✔️...Are licensed individuals representing an insurance company when
transacting insurance business
A _______________________ insurance company is owned by its policyholders?
A. Stock
B. Reciprocal
C. Fraternal Benefits Society
D. Mutual - answer☑️✔️...D. Mutual
________________________ refers to the location, or jurisdiction, where an insurer is formed
or incorporated - answer☑️✔️...Domicile
Which of the following is an insurance company that is organized under the laws of another
state within the United States?
A. Domestic
B. Alien
C. Foreign
,D. Authorized - answer☑️✔️...C. Foreign
A federal regulation called the _____________________ protects consumer privacy -
answer☑️✔️...Fair Credit Reporting Act (FCRA)
________________________ was passed to help detect and prevent illegal activity like, drug
trafficking and acts of terrorism - answer☑️✔️...The PATRIOT Act
An insurance policy is a contact between which two parties? - answer☑️✔️...Insurer and
Insured
To ___________________ means to compensate for a loss, or to make one whole again -
answer☑️✔️...Indemnify
For Life and Health Insurance, insurable interest must exist at the time of:
A. Application
B. Loss
C. Application and Loss
D. Policy Delivery - answer☑️✔️...A. Application
What are the four elements of a legal contract? - answer☑️✔️...1. Competent Parties
2. Legal Purpose
3. Agreement (Offer and Acceptance)
4. Consideration
________________________ is the exchange of value (payment of premium) to make a
contract binding - answer☑️✔️...Consideration
,Each of the follow is an element of a legal contract, EXCEPT:
A. Consideration
B. Legal Purpose
C. Agreement
D. Indemnity - answer☑️✔️...D. Indemnity
An _____________________ contract is one that is based on an uncertain event, or "by
chance"? - answer☑️✔️...Aleatory
A _____________________ contract is one in which only one party is legally bound to the
contractual obligations - answer☑️✔️...Unilateral
A _______________________ contract is one in which both parties must perform certain duties
to make the contract enforceable - answer☑️✔️...Conditional
Statements made by the applicant on the application are considered
___________________________? - answer☑️✔️...Representations
A warranty is defined as which of the following?
A. Intentional misrepresentation on the application
B. Statement in the application that is guaranteed to be true
C. A false statement in the application
D. A substantially true statement - answer☑️✔️...B. Statement in the application that is
guaranteed to be true
, The purchaser of a life insurance policy is called the _______________________? -
answer☑️✔️...Policyowner
J is named in the policy as the individual who is entitled to receive the policy proceeds upon the
death of T. Which of the following statements best applies to this scenario?
A. J is named as the owner of T's policy
B. T is the insured in the policy and J is the named beneficiary
C. T is the owner and beneficiary of the policy
D. J is the insured and beneficiary of the policy - answer☑️✔️...B. T is the insured in the policy
and J is the named beneficiary
A life insurance policy is being applied for on Z's life. In order for the contract to be valid, all of
the following have an insurable interest and could be the owner of the policy, except:
A. Z
B. Z's spouse
C. Z's neighbor
D. Z's business partner - answer☑️✔️...C. Z's neighbor
What are the four different phases in the sale of products? - answer☑️✔️...1. Solicitation
2. Negotiation
3. Execution of a contract
4. Handling matters subsequent to a contract
What needs to be provided to the applicant at the time of application or no later than policy
delivery? - answer☑️✔️...1. Buyers Guide
2. Policy Summary
