LIFE PRODUCER FINAL TEST PAPER 2026
QUESTIONS AND SOLUTIONS GRADED A+
COMPLETE STUDY GUIDE
●● Inspection Report.
Answer: An insurer receives a report regarding potential insured that
includes financial status, hobbies, and habits. What type of report is
that?
●● Spendthrift Clause.
Answer: The clause that protects the proceeds of a life insurance policy
from creditors after the death of the insured is known as
●● Term.
Answer: Children's riders attached to whole life policies are usually
issued as what type of insurance?
●● Decreasing Term.
Answer: An individual has just borrowed $10,000 from his bank on a 5-
year installment loan requiring monthly payments. What type of life
insurance policy would be best suited to this situation
,●● 24 total hours, including 8 hours approved for the line of licensing
that the producer holds.
Answer: How many hours of CE must be completed every 2 years?
●● The creditors have rights to the proceeds if they can show evidence
of valid assignment.
Answer: Which of the following statements is true concerning the
creditors of the deceased insured?
●● Insurable interest and consent.
Answer: A life insurance policy has a legal purpose if both of which of
the following elements exist?
●● Cost of Living Rider.
Answer: A long stretch of national economic hardship causes a 7% rate
of inflation. A policy owner notices that the face value of her life
insurance policy has been raised 7% as a result. Which policy rider
caused this change?
●● Universal Life.
Answer: Which of the following Life Insurance policies would be
considered interest-sensitive?
●● Express Authority.
,Answer: The authority granted to an agent through the agent's contract is
referred to as
●● The policyowner must sign a delivery receipt.
Answer: What must happen when an individual policy or annuity has
been personally delivered to the policyowner?
●● Reinsure policies of the insolvent insurer through other companies.
Answer: In the event of an insurer's insolvency, the South Carolina Life
and Health Guaranty Association will
●● within 30 days.
Answer: Once the Director issues a cease and desist order, how soon
must an insurer comply with the order?
●● It is reduced to the amount of what the cash value would buy as a
single premium.
Answer: When a reduced-paid up nonforfeiture option is chosen, what
happens to the face amount of the policy?
●● Suggesting negotiations in settling the claim.
Answer: All of the following are unfair claims settlement practices
EXCEPT
, ●● 3.
Answer: How many hours of continuing education in Ethics are required
each compliance period
●● The Broker.
Answer: In the transaction of insurance, which of the following is
considered to be representing the client?
●● The beneficiary.
Answer: In a group life insurance policy, the employer may select all of
the following EXCEPT
●● Lower.
Answer: The premium of a survivorship life policy compared with that
of a joint life policy would be
●● It begins when the policy is delivered..
Answer: Which of the following is TRUE about the 10- day-free=look
period in a Life Insurance policy?
●● It is a life contingency option.
Answer: All of the following statements are true regarding installments
for a fixed period annuity settlement option EXCEPT
QUESTIONS AND SOLUTIONS GRADED A+
COMPLETE STUDY GUIDE
●● Inspection Report.
Answer: An insurer receives a report regarding potential insured that
includes financial status, hobbies, and habits. What type of report is
that?
●● Spendthrift Clause.
Answer: The clause that protects the proceeds of a life insurance policy
from creditors after the death of the insured is known as
●● Term.
Answer: Children's riders attached to whole life policies are usually
issued as what type of insurance?
●● Decreasing Term.
Answer: An individual has just borrowed $10,000 from his bank on a 5-
year installment loan requiring monthly payments. What type of life
insurance policy would be best suited to this situation
,●● 24 total hours, including 8 hours approved for the line of licensing
that the producer holds.
Answer: How many hours of CE must be completed every 2 years?
●● The creditors have rights to the proceeds if they can show evidence
of valid assignment.
Answer: Which of the following statements is true concerning the
creditors of the deceased insured?
●● Insurable interest and consent.
Answer: A life insurance policy has a legal purpose if both of which of
the following elements exist?
●● Cost of Living Rider.
Answer: A long stretch of national economic hardship causes a 7% rate
of inflation. A policy owner notices that the face value of her life
insurance policy has been raised 7% as a result. Which policy rider
caused this change?
●● Universal Life.
Answer: Which of the following Life Insurance policies would be
considered interest-sensitive?
●● Express Authority.
,Answer: The authority granted to an agent through the agent's contract is
referred to as
●● The policyowner must sign a delivery receipt.
Answer: What must happen when an individual policy or annuity has
been personally delivered to the policyowner?
●● Reinsure policies of the insolvent insurer through other companies.
Answer: In the event of an insurer's insolvency, the South Carolina Life
and Health Guaranty Association will
●● within 30 days.
Answer: Once the Director issues a cease and desist order, how soon
must an insurer comply with the order?
●● It is reduced to the amount of what the cash value would buy as a
single premium.
Answer: When a reduced-paid up nonforfeiture option is chosen, what
happens to the face amount of the policy?
●● Suggesting negotiations in settling the claim.
Answer: All of the following are unfair claims settlement practices
EXCEPT
, ●● 3.
Answer: How many hours of continuing education in Ethics are required
each compliance period
●● The Broker.
Answer: In the transaction of insurance, which of the following is
considered to be representing the client?
●● The beneficiary.
Answer: In a group life insurance policy, the employer may select all of
the following EXCEPT
●● Lower.
Answer: The premium of a survivorship life policy compared with that
of a joint life policy would be
●● It begins when the policy is delivered..
Answer: Which of the following is TRUE about the 10- day-free=look
period in a Life Insurance policy?
●● It is a life contingency option.
Answer: All of the following statements are true regarding installments
for a fixed period annuity settlement option EXCEPT
