LIFE INSURANCE PRACTICE EXAM
QUIZ AND ANSWERS
Insurable Receipt - correct answers:The reciept given to a life insurance applicant when the application is
completed and the initial premium is received is called a(n)
Representations - correct answers:Statements in the application for insurance that are believed to be
true to the best of the applicants knowledge are
Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate - correct
answers:An annuity is considered fixed when it does all of the following EXCEPT
Continuous Premium (straight) life - correct answers:The most common type of whole life insurance
where premiums are payable over the whole life of the insured to age 100 is called.
Entire contract - correct answers:The policy and a copy of the application, along with any riders and
amendments, is called the
Not taxable - correct answers:Money borrowed from the policy's cash value is
All annuities (Variable, Deferreed & Equity Indexed) - correct answers:Which of the following annuity
products requires an agent to hold a securities license?
Life income annuity - correct answers:Which type of annuity settlement stops when the annuitant dies?
59 1/2 - correct answers:At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty
Buy-Sell Agreement - correct answers:Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the surviving partner to use the death benefit to
purchase the deceased's business interests?
, Adjustable life - correct answers:Which type of policy allows the insured to change the amount of the
dwah benefit, the amount of premium, or the type of coverage S their needs change?
Either the cash value or the premiums paid, whichever is greater - correct answers:If an annuitant dies
during the accumulation period, what will the beneficiary receive?
Nonadmitted - correct answers:Any insurer who is NOT approved to do business in this state is
considered
Insurable Interest Exists - correct answers:To prevent people from profiting from a loss, insurers is the
certain
Adjusts the death benefit based on the premiums that were paid - correct answers:If a misstatement of
age is discovered during the processing of a life insurance claim what will the insurer do?
Policy Exclusions - correct answers:Which of the following allows an insurance company to deny
coverage of the insurers eewth occurs in war?
Evidence of insurability is usually required - correct answers:Each of the following is a typical
characteristic of groups life insurance EXCEPT
Fixed-Period Installments - correct answers:A life settlement option that pays out the death benefit is.
Incrementally, in a specified amount until all of the proceeds are exhausted, is called
Not subject to any taxes - correct answers:A life insurance death benefit paid in a lump sum to a
beneficiary is
Accumulation at Interest - correct answers:Which of the following is NOT a nonforfeiture option in whole
life policies?
Annuitant - correct answers:Which of the following indicates the person upon whose life the annuity
income amount is determined?
QUIZ AND ANSWERS
Insurable Receipt - correct answers:The reciept given to a life insurance applicant when the application is
completed and the initial premium is received is called a(n)
Representations - correct answers:Statements in the application for insurance that are believed to be
true to the best of the applicants knowledge are
Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate - correct
answers:An annuity is considered fixed when it does all of the following EXCEPT
Continuous Premium (straight) life - correct answers:The most common type of whole life insurance
where premiums are payable over the whole life of the insured to age 100 is called.
Entire contract - correct answers:The policy and a copy of the application, along with any riders and
amendments, is called the
Not taxable - correct answers:Money borrowed from the policy's cash value is
All annuities (Variable, Deferreed & Equity Indexed) - correct answers:Which of the following annuity
products requires an agent to hold a securities license?
Life income annuity - correct answers:Which type of annuity settlement stops when the annuitant dies?
59 1/2 - correct answers:At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty
Buy-Sell Agreement - correct answers:Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the surviving partner to use the death benefit to
purchase the deceased's business interests?
, Adjustable life - correct answers:Which type of policy allows the insured to change the amount of the
dwah benefit, the amount of premium, or the type of coverage S their needs change?
Either the cash value or the premiums paid, whichever is greater - correct answers:If an annuitant dies
during the accumulation period, what will the beneficiary receive?
Nonadmitted - correct answers:Any insurer who is NOT approved to do business in this state is
considered
Insurable Interest Exists - correct answers:To prevent people from profiting from a loss, insurers is the
certain
Adjusts the death benefit based on the premiums that were paid - correct answers:If a misstatement of
age is discovered during the processing of a life insurance claim what will the insurer do?
Policy Exclusions - correct answers:Which of the following allows an insurance company to deny
coverage of the insurers eewth occurs in war?
Evidence of insurability is usually required - correct answers:Each of the following is a typical
characteristic of groups life insurance EXCEPT
Fixed-Period Installments - correct answers:A life settlement option that pays out the death benefit is.
Incrementally, in a specified amount until all of the proceeds are exhausted, is called
Not subject to any taxes - correct answers:A life insurance death benefit paid in a lump sum to a
beneficiary is
Accumulation at Interest - correct answers:Which of the following is NOT a nonforfeiture option in whole
life policies?
Annuitant - correct answers:Which of the following indicates the person upon whose life the annuity
income amount is determined?
