LIFE INSURANCE EXAM ILLINOIS PRACTICE
QUESTIONS AND DETAILED SOLUTIONS
◉ Policyholders.
Answer: Who elects the governing body of a mutual insurance
company?
◉ Fair Credit Reporting Act.
Answer: An insurance applicant MUST be informed of an
investigation regarding his/her reputation and character according
to the ____________.
◉ Independent Agent.
Answer: Which of the following represents multiple companies?
◉ NAIC: The National Association of Insurance Commissioners.
Answer: Which agency is responsible for helping to standardize
state insurance laws across the country?
◉ National Association of Insurance Commissioners.
Answer: Which of the following entities is best known to standardize
insurance laws between the states?
,◉ Independent Agent.
Answer: Michael is an agent who represents multiple companies.
Michael is considered to be a(n)
◉ Mutual or Participating.
Answer: Which of the following types of insurers is owned by its
policyholders and pays dividends?
◉ The insurance company.
Answer: A policy of adhesion can only be modified by whom?
◉ Investor-Originated Life Insurance.
Answer: Which of these arrangements allows one to bypass
insurable interest laws?
◉ Promise to pay a death benefit.
Answer: What is the consideration given by an insurer in the
Consideration clause of a life policy?
◉ When the application is made.
Answer: When must insurable interest be present in order for a life
insurance policy to be valid?
, ◉ Warranty.
Answer: Which of these is considered a statement that is assured to
be true in every respect?
◉ Contracts of Adhesion.
Answer: Insurance policies offered on a "take it or leave it" basis are
considered what?
◉ Insurer.
Answer: Who makes the legally enforceable promises in a unilateral
contract?
◉ The schedule and the amount of premium payments.
Answer: The Consideration clause of an insurance contract includes
__________________.
◉ Waiver.
Answer: Which of the following terms can be defined as "the
voluntary abandonment by a party of a known right"?
◉ Express.
QUESTIONS AND DETAILED SOLUTIONS
◉ Policyholders.
Answer: Who elects the governing body of a mutual insurance
company?
◉ Fair Credit Reporting Act.
Answer: An insurance applicant MUST be informed of an
investigation regarding his/her reputation and character according
to the ____________.
◉ Independent Agent.
Answer: Which of the following represents multiple companies?
◉ NAIC: The National Association of Insurance Commissioners.
Answer: Which agency is responsible for helping to standardize
state insurance laws across the country?
◉ National Association of Insurance Commissioners.
Answer: Which of the following entities is best known to standardize
insurance laws between the states?
,◉ Independent Agent.
Answer: Michael is an agent who represents multiple companies.
Michael is considered to be a(n)
◉ Mutual or Participating.
Answer: Which of the following types of insurers is owned by its
policyholders and pays dividends?
◉ The insurance company.
Answer: A policy of adhesion can only be modified by whom?
◉ Investor-Originated Life Insurance.
Answer: Which of these arrangements allows one to bypass
insurable interest laws?
◉ Promise to pay a death benefit.
Answer: What is the consideration given by an insurer in the
Consideration clause of a life policy?
◉ When the application is made.
Answer: When must insurable interest be present in order for a life
insurance policy to be valid?
, ◉ Warranty.
Answer: Which of these is considered a statement that is assured to
be true in every respect?
◉ Contracts of Adhesion.
Answer: Insurance policies offered on a "take it or leave it" basis are
considered what?
◉ Insurer.
Answer: Who makes the legally enforceable promises in a unilateral
contract?
◉ The schedule and the amount of premium payments.
Answer: The Consideration clause of an insurance contract includes
__________________.
◉ Waiver.
Answer: Which of the following terms can be defined as "the
voluntary abandonment by a party of a known right"?
◉ Express.
