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Life Insurance Exam Practice
Questions And Answers 2026
In general, what amount of personal life insurance premiums is
deductible for federal income tax purpose?
- ............ SOLUTION✔✔✔..........None
in a life insurance policy, the promise by the insurer to pay certain
benefits is the: - ............ SOLUTION✔✔✔..........Insuring
clause
W applies for life insurance on W's five year old child and submits
the initial annual premium. The producer issues W a receipt and
says that coverage will be effective immediately if the application
is approved, because no medical examination is required. Which
of the following types of receipts did the producer issue? - ............
SOLUTION✔✔✔..........Conditional
Which of the following annuities pays benefits based on units
rather than specific dollar amounts? - ............
SOLUTION✔✔✔..........A variable annuity
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which of the following term policies guarantees the insured the
right to continue term coverage after expiration of the initial
policy period? - ............ SOLUTION✔✔✔..........Renewable
An example of limited-pay life policy is - ............
SOLUTION✔✔✔..........Life Paid-up at Age 65
which of the following items requires that an insurance
application state that an investigative consumer report may be
obtained on the prospective insured? - ............
SOLUTION✔✔✔..........Fair Credit Reporting Act
A convertible term policy offers which of the following
advantages? - ............ SOLUTION✔✔✔..........the insured does
not have to provide evidence of insurability when requesting an
conversion.
An insurance company may charge a higher total premium to an
insured who pays a policy quarterly rather than annually because
the quarterly payment results in: - ............
SOLUTION✔✔✔..........a reduction in the company's interest
earning and an increase in administrative expenses.
An underwriter's evaluation of information on a life insurance
application is also known as - ............
SOLUTION✔✔✔..........risk classification
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A customer surrenders a recently issued whole life policy and
requests proceeds be made payable to an unrelated third party.
This would be a red flag potential violation of the: - ............
SOLUTION✔✔✔..........anti-money laundering rules
which of the following annuities ensures level income for the
lifetime of two annuitants? - ............ SOLUTION✔✔✔..........A
joint and survivor annuity
which of the following statements is correct about the federal
income tax law in relation to $100,000 worth of group term life
insurance coverage through an employer sponsored plan - ............
SOLUTION✔✔✔..........an employer can deduct a premium for
tax purposes only if the employer is also the beneficiary of the
insurance
Which of the following types of policies provides permanent
protection at the lowest annual premium? - ............
SOLUTION✔✔✔..........term
An immediate annuity will have: - ............
SOLUTION✔✔✔..........a Single Premium
Life Insurance Exam Practice
Questions And Answers 2026
In general, what amount of personal life insurance premiums is
deductible for federal income tax purpose?
- ............ SOLUTION✔✔✔..........None
in a life insurance policy, the promise by the insurer to pay certain
benefits is the: - ............ SOLUTION✔✔✔..........Insuring
clause
W applies for life insurance on W's five year old child and submits
the initial annual premium. The producer issues W a receipt and
says that coverage will be effective immediately if the application
is approved, because no medical examination is required. Which
of the following types of receipts did the producer issue? - ............
SOLUTION✔✔✔..........Conditional
Which of the following annuities pays benefits based on units
rather than specific dollar amounts? - ............
SOLUTION✔✔✔..........A variable annuity
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which of the following term policies guarantees the insured the
right to continue term coverage after expiration of the initial
policy period? - ............ SOLUTION✔✔✔..........Renewable
An example of limited-pay life policy is - ............
SOLUTION✔✔✔..........Life Paid-up at Age 65
which of the following items requires that an insurance
application state that an investigative consumer report may be
obtained on the prospective insured? - ............
SOLUTION✔✔✔..........Fair Credit Reporting Act
A convertible term policy offers which of the following
advantages? - ............ SOLUTION✔✔✔..........the insured does
not have to provide evidence of insurability when requesting an
conversion.
An insurance company may charge a higher total premium to an
insured who pays a policy quarterly rather than annually because
the quarterly payment results in: - ............
SOLUTION✔✔✔..........a reduction in the company's interest
earning and an increase in administrative expenses.
An underwriter's evaluation of information on a life insurance
application is also known as - ............
SOLUTION✔✔✔..........risk classification
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A customer surrenders a recently issued whole life policy and
requests proceeds be made payable to an unrelated third party.
This would be a red flag potential violation of the: - ............
SOLUTION✔✔✔..........anti-money laundering rules
which of the following annuities ensures level income for the
lifetime of two annuitants? - ............ SOLUTION✔✔✔..........A
joint and survivor annuity
which of the following statements is correct about the federal
income tax law in relation to $100,000 worth of group term life
insurance coverage through an employer sponsored plan - ............
SOLUTION✔✔✔..........an employer can deduct a premium for
tax purposes only if the employer is also the beneficiary of the
insurance
Which of the following types of policies provides permanent
protection at the lowest annual premium? - ............
SOLUTION✔✔✔..........term
An immediate annuity will have: - ............
SOLUTION✔✔✔..........a Single Premium
