WebCE - Life Insurance Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
What rule lets a policyowner Right to examine (free look)
return a policy for a refund of
premiums paid for a certain
period of time after the policy is
issued?
- right to examine (free look)
- grace period
- get-acquainted period
- consideration
For a life insurance policy, when At the inception of the policy
must insurable interest exist? With life insurance policies, insurable
- at the inception of the policy interest
- throughout the term of insurance must exist only at the policy's inception.
coverage
- at time of claim
- before the application for
insurance is made
,Deferred annuities accumulate Under no circumstances
funds for future distribution. Under Accumulated funds in a deferred annuity
what circumstances are these always belong to the owner. They are not
funds forfeitable to the insurer? forfeitable, even if the owner stops making
- only if the owner stops paying premium payments.
premiums
- only at the annuitant's death, if it
occurs before the annuity starting
date
- under no circumstances
- only if the owner is convicted of
a felony
Joanna has a $500,000 She is terminally or chronically ill.
permanent
life insurance policy that she no
longer wants to keep in force. In
order to enter into a viatical
settlement, what must Joanna
prove?
- She has a financial need to sell
her policy.
- She is terminally or chronically
ill.
- She will use the funds to pay for
medical expenses.
- She is her family's breadwinner.
,All the following statements about The family term rider covers multiple family
family term riders with life members (spouse plus children) with term
insurance are correct, EXCEPT: insurance based on their ages.
- A family term rider is an
alternative to either a separate
spousal rider or separate
children's rider.
- The family term rider covers
multiple family members (spouse
plus children) with term insurance
based on their ages.
- The policyowner can add or
drop insureds on this type of
policy at any time but must prove
insurability if adding insureds.
- Children covered by this rider
can convert their coverage to
permanent coverage at age 21
without proof of insurability.
With life insurance, for how long Insurable interest must exist only at the
must insurable interest exist? time the
- Insurable interest must exist only applicant enters into a life insurance
at the time the applicant enters contract.
into a life insurance contract.
- It must continue for the life of
the policy.
- It must exist when a claim is
submitted.
- If no insurable interest exists
when a policyowner buys a life
insurance policy, the contract may
still be enforced.
, Which of the following Designate an irrevocable trust to be the
arrangements best suits a life owner
insurance applicant's goal of of the policy
keeping the policy out of his or A common reason for third-party
her estate? ownership of
- designate the insured's estate to a life insurance policy is to prevent the
be the owner of the policy policy's
- designate the insured to be the death benefit from being included in the
owner of the policy insured's estate. Designating an
- designate the insurance irrevocable life
company to be the owner of the insurance trust (ILIT) to be the owner is a
policy common way to achieve this.
- designate an irrevocable trust to
be the owner of the policy
A life insurance policy can Accidental death
exclude coverage for death Most life insurance policies exclude
caused by all of the following coverage
EXCEPT: if death occurs as a result of war, aviation,
- war or warlike acts hazardous occupation, or commission of a
- committing a felony felony. A policy would pay the death
- accidental death benefit if
- hazardous occupation the insured died accidentally.
Matt participates in the company's Turns age 70
qualified retirement plan and is Plan distributions must begin no later than
planning to retire at age 67. He April
must begin receiving distributions 1 of the year following the year the
from the plan by April 1 of the year participant
following the year in which he: turns 70 or upon retirement from the plan
- reaches his Social Security full sponsor, whichever is later.
retirement age
- turns age 62
- turns age 70
- turns age 75
Answers with Verified Solutions | Latest
Updated 2026
What rule lets a policyowner Right to examine (free look)
return a policy for a refund of
premiums paid for a certain
period of time after the policy is
issued?
- right to examine (free look)
- grace period
- get-acquainted period
- consideration
For a life insurance policy, when At the inception of the policy
must insurable interest exist? With life insurance policies, insurable
- at the inception of the policy interest
- throughout the term of insurance must exist only at the policy's inception.
coverage
- at time of claim
- before the application for
insurance is made
,Deferred annuities accumulate Under no circumstances
funds for future distribution. Under Accumulated funds in a deferred annuity
what circumstances are these always belong to the owner. They are not
funds forfeitable to the insurer? forfeitable, even if the owner stops making
- only if the owner stops paying premium payments.
premiums
- only at the annuitant's death, if it
occurs before the annuity starting
date
- under no circumstances
- only if the owner is convicted of
a felony
Joanna has a $500,000 She is terminally or chronically ill.
permanent
life insurance policy that she no
longer wants to keep in force. In
order to enter into a viatical
settlement, what must Joanna
prove?
- She has a financial need to sell
her policy.
- She is terminally or chronically
ill.
- She will use the funds to pay for
medical expenses.
- She is her family's breadwinner.
,All the following statements about The family term rider covers multiple family
family term riders with life members (spouse plus children) with term
insurance are correct, EXCEPT: insurance based on their ages.
- A family term rider is an
alternative to either a separate
spousal rider or separate
children's rider.
- The family term rider covers
multiple family members (spouse
plus children) with term insurance
based on their ages.
- The policyowner can add or
drop insureds on this type of
policy at any time but must prove
insurability if adding insureds.
- Children covered by this rider
can convert their coverage to
permanent coverage at age 21
without proof of insurability.
With life insurance, for how long Insurable interest must exist only at the
must insurable interest exist? time the
- Insurable interest must exist only applicant enters into a life insurance
at the time the applicant enters contract.
into a life insurance contract.
- It must continue for the life of
the policy.
- It must exist when a claim is
submitted.
- If no insurable interest exists
when a policyowner buys a life
insurance policy, the contract may
still be enforced.
, Which of the following Designate an irrevocable trust to be the
arrangements best suits a life owner
insurance applicant's goal of of the policy
keeping the policy out of his or A common reason for third-party
her estate? ownership of
- designate the insured's estate to a life insurance policy is to prevent the
be the owner of the policy policy's
- designate the insured to be the death benefit from being included in the
owner of the policy insured's estate. Designating an
- designate the insurance irrevocable life
company to be the owner of the insurance trust (ILIT) to be the owner is a
policy common way to achieve this.
- designate an irrevocable trust to
be the owner of the policy
A life insurance policy can Accidental death
exclude coverage for death Most life insurance policies exclude
caused by all of the following coverage
EXCEPT: if death occurs as a result of war, aviation,
- war or warlike acts hazardous occupation, or commission of a
- committing a felony felony. A policy would pay the death
- accidental death benefit if
- hazardous occupation the insured died accidentally.
Matt participates in the company's Turns age 70
qualified retirement plan and is Plan distributions must begin no later than
planning to retire at age 67. He April
must begin receiving distributions 1 of the year following the year the
from the plan by April 1 of the year participant
following the year in which he: turns 70 or upon retirement from the plan
- reaches his Social Security full sponsor, whichever is later.
retirement age
- turns age 62
- turns age 70
- turns age 75
