Page 1 of 136
CNA State Exam Update Questions And
Correct Verified Answers, 100% Guaranteed
Pass ||Complete A+ Guide
1. What is the primary purpose of life insurance?
A) Investment growth
B) Tax deferral
C) Indemnification for loss of life
D) Estate liquidation
✅ Correct Answer: C – Life insurance provides a death
benefit to beneficiaries, indemnifying against financial loss
from the insured’s death.
,Page 2 of 136
2. Which principle states that the insured must face the
possibility of financial loss?
A) Law of large numbers
B) Indemnity
C) Insurable interest
D) Subrogation
✅ Correct Answer: C – Insurable interest requires that the
policyowner would suffer a financial or emotional loss upon the
insured’s death.
3. Scenario: John wants to buy a life insurance policy on
his business partner, Mark. They have no family relation
but co-own a company. Does John have insurable interest?
A) No, only family members qualify
B) Yes, due to business partnership
C) Only if Mark agrees in writing
D) No, because they are not related
,Page 3 of 136
✅ Correct Answer: B – Business partners have insurable
interest due to potential financial loss from the partner’s death.
4. Who is the “insured” in a life insurance policy?
A) The person who pays the premium
B) The person whose life is covered
C) The beneficiary
D) The policyowner
✅ Correct Answer: B – The insured is the person whose
death triggers the benefit.
5. The policyowner has all of the following rights EXCEPT:
A) Name beneficiary
B) Assign policy
C) Collect death benefit
D) Surrender policy for cash
, Page 4 of 136
✅ Correct Answer: C – Only the beneficiary (or estate if no
beneficiary) collects death benefit.
6. What is a “third-party ownership” in life insurance?
A) Insured and beneficiary are same
B) Policyowner, insured, and beneficiary are all different
people
C) Insured pays premiums
D) Beneficiary is a minor
✅ Correct Answer: B – Example: Corporation (owner) buys
policy on employee (insured) with employee’s spouse as
beneficiary.
7. Which life insurance need is calculated using the “human
life value” approach?
A) Funeral expenses
CNA State Exam Update Questions And
Correct Verified Answers, 100% Guaranteed
Pass ||Complete A+ Guide
1. What is the primary purpose of life insurance?
A) Investment growth
B) Tax deferral
C) Indemnification for loss of life
D) Estate liquidation
✅ Correct Answer: C – Life insurance provides a death
benefit to beneficiaries, indemnifying against financial loss
from the insured’s death.
,Page 2 of 136
2. Which principle states that the insured must face the
possibility of financial loss?
A) Law of large numbers
B) Indemnity
C) Insurable interest
D) Subrogation
✅ Correct Answer: C – Insurable interest requires that the
policyowner would suffer a financial or emotional loss upon the
insured’s death.
3. Scenario: John wants to buy a life insurance policy on
his business partner, Mark. They have no family relation
but co-own a company. Does John have insurable interest?
A) No, only family members qualify
B) Yes, due to business partnership
C) Only if Mark agrees in writing
D) No, because they are not related
,Page 3 of 136
✅ Correct Answer: B – Business partners have insurable
interest due to potential financial loss from the partner’s death.
4. Who is the “insured” in a life insurance policy?
A) The person who pays the premium
B) The person whose life is covered
C) The beneficiary
D) The policyowner
✅ Correct Answer: B – The insured is the person whose
death triggers the benefit.
5. The policyowner has all of the following rights EXCEPT:
A) Name beneficiary
B) Assign policy
C) Collect death benefit
D) Surrender policy for cash
, Page 4 of 136
✅ Correct Answer: C – Only the beneficiary (or estate if no
beneficiary) collects death benefit.
6. What is a “third-party ownership” in life insurance?
A) Insured and beneficiary are same
B) Policyowner, insured, and beneficiary are all different
people
C) Insured pays premiums
D) Beneficiary is a minor
✅ Correct Answer: B – Example: Corporation (owner) buys
policy on employee (insured) with employee’s spouse as
beneficiary.
7. Which life insurance need is calculated using the “human
life value” approach?
A) Funeral expenses
