Life Insurance Exam Questions and Answers PDF
1. What is another word for a mathematician who analyzes the probability of specific events occurring
and values health or life insurance policies depending on the probability of those events occurring?
Statistician
Computator
Actuary
Economist
ANSWER: Actuary
An actuary is a mathematician who analyzes the probability of certain events occurring and then prices
insurance policies depending on the probability of those events occurring.
2. Mikey, Len’s grandson, is one of his three children. Len’s disability policy names his wife as the
primary beneficiary, but she died five years ago. All of Len’s children had died by the time he goes
away. They, like Mikey, had benefited from his generosity. Mikey is what kind of beneficiary?
Secondary
Tertiary
Primary
None of the above
All of the above
ANSWER: Tertiary
The policyholder names a beneficiary to receive the benefits or payout from an insurance policy. The
following are the three sorts of beneficiaries:
Primary (a spouse) is the primary beneficiary, receiving benefits or cash from the policy before all other
beneficiaries.
In the case that the primary beneficiary is deceased when the insured dies, a secondary beneficiary (a
child) can get the benefits or proceeds.
In the case that both the primary and secondary beneficiaries are deceased when the insured dies, a
tertiary beneficiary (a grandchild) can get the benefits or proceeds.
3. When compared to other types of plans, adjustable life policies are?
, Flexible
Illegal
Strict
Risky
Waiver
ANSWER: Flexible
In comparison to other types of plans, adjustable life policies are more flexible.
Adjustable life insurance policies exist primarily because of the flexibility they provide.
Adjustable life insurance policies allow you to adjust the policy’s main aspects, such as the premiums
you pay and the face value.
Conventional insurance is utilized as a base, and the features can then be tailored to the insured’s
specific needs.
The insured has the option of requesting a certain premium payment schedule and amount.
Changes to the protection time and face amount are also possible.
The insured gains more flexibility with an adjustable policy, while the insurer can charge a larger
premium than with a whole or term life policy.
4. Ken wants to get a life insurance policy as soon as possible, but he also wants the flexibility to shop
about and switch plans if he discovers one that he likes better. What benefit will Ken receive from this
provision?
Free look
Sample period
Review period
First look
Tryout clause
ANSWER: Free look
A “free-look” clause allows a policyholder to buy life insurance with the option of shopping around and
switching policies if better coverage is found.
Following the actual delivery of the policy, these policies often give a ten to thirty-day review period.
1. What is another word for a mathematician who analyzes the probability of specific events occurring
and values health or life insurance policies depending on the probability of those events occurring?
Statistician
Computator
Actuary
Economist
ANSWER: Actuary
An actuary is a mathematician who analyzes the probability of certain events occurring and then prices
insurance policies depending on the probability of those events occurring.
2. Mikey, Len’s grandson, is one of his three children. Len’s disability policy names his wife as the
primary beneficiary, but she died five years ago. All of Len’s children had died by the time he goes
away. They, like Mikey, had benefited from his generosity. Mikey is what kind of beneficiary?
Secondary
Tertiary
Primary
None of the above
All of the above
ANSWER: Tertiary
The policyholder names a beneficiary to receive the benefits or payout from an insurance policy. The
following are the three sorts of beneficiaries:
Primary (a spouse) is the primary beneficiary, receiving benefits or cash from the policy before all other
beneficiaries.
In the case that the primary beneficiary is deceased when the insured dies, a secondary beneficiary (a
child) can get the benefits or proceeds.
In the case that both the primary and secondary beneficiaries are deceased when the insured dies, a
tertiary beneficiary (a grandchild) can get the benefits or proceeds.
3. When compared to other types of plans, adjustable life policies are?
, Flexible
Illegal
Strict
Risky
Waiver
ANSWER: Flexible
In comparison to other types of plans, adjustable life policies are more flexible.
Adjustable life insurance policies exist primarily because of the flexibility they provide.
Adjustable life insurance policies allow you to adjust the policy’s main aspects, such as the premiums
you pay and the face value.
Conventional insurance is utilized as a base, and the features can then be tailored to the insured’s
specific needs.
The insured has the option of requesting a certain premium payment schedule and amount.
Changes to the protection time and face amount are also possible.
The insured gains more flexibility with an adjustable policy, while the insurer can charge a larger
premium than with a whole or term life policy.
4. Ken wants to get a life insurance policy as soon as possible, but he also wants the flexibility to shop
about and switch plans if he discovers one that he likes better. What benefit will Ken receive from this
provision?
Free look
Sample period
Review period
First look
Tryout clause
ANSWER: Free look
A “free-look” clause allows a policyholder to buy life insurance with the option of shopping around and
switching policies if better coverage is found.
Following the actual delivery of the policy, these policies often give a ten to thirty-day review period.
