West Virginia Life Final Exam Questions with Correct Answers
variable life products require a producer to - hold a life insurance license and a securities license
which of these actions is NOT required when a producer replaces an existing individual life insurance policy - obtain the beneficiary's signature
which of the following correctly explains the actions an agent should take if a customer wants to apply for a life insurance policy - complete the application and review the information with the customer prior to obtaining the customers signature, then send the application off to the insurance company
which is true concerning a variable universal life policy - policyowner controls where the investment will go and selects the amount of premium payment
according to west virginia law, a group life insurance policy requires at LEAST ____ insureds - two
A Life insurance policyowner would like to take out a policy loan against the cash value in his Whole Life policy. The interest rate applied to this loan may vary over time. This is
referred to as a ______ rate loan. - Variable
S the producer is charged a fee for placing an insurance policy. Under West Virginia law, S must - report the placement to his primary insurer
A domestic insurance company in West Virginia MUST - be incorporated and formed in west virginia
M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take? - pay face amount minus the past due premium
The reason for backdating a policy is - to obtain a premium rate based on an earlier age
K owns a whole life policy. If K wants an increasing death benefit to protect against inflation, which dividend option should she choose? - Paid-up additional insurance
All of the following could result in the revocation of a producer's license EXCEPT - being
charged with a misdemeanor for a driving incident
life insurance death benefits up to _____ are guaranteed by the west virginia life and health guaranty association - 300,000 A stock insurance company - is owned exclusively by its shareholders
what is considered to be a characteristic of an immediate annuity - benefit payments start within one payment period of purchase
B the producer sold an insurance contract to a client. B has engaged in - transacting insurance
A policy of adhesion can only be modified by whom - the insurance company
P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies in a lump sum of 20,000 at the end of that 20 year period. What type of policy should P purchase? - family maintence policy
who approves continuing education courses in west virginia - insurance commissioner and the board of insurance agent education
B owns a whole life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of - additional whole life coverage at specified times
what is the initial source of underwriting for an insurance policy - application containing statements from the insured
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? - decreasing term
K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - daughter
a 45 year-old woman won $100,000 in a scratch of lottery ticket. she purchased an annuity that will pay her $1,500 per month beginning at age 60. which of these annuities
did this woman purchase? - deferred fixed annuity
a contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of - adhesion
Variable annuities may invest premiums in each of the following, EXCEPT: - insurers corporate business account
which of the following is true if the owner of an IRA names their spouse as beneficiary, but then dies before any distributions are made? - the account can be rolled into the surviving spouses IRA which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? - variable life
when an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. what exactly does a needs analysis involve - establishes the needs of the individual and his dependents
a variable annuity has which of the following characteristcs - underlying equity investments
which unfair trade practice involves a producer telling a prospective client that a policys dividends are guaranteed - misrepresentation
Y purchased 100,000 worth or permanent protection and himself and 50,000 worth of 10-year term coverage for his wife on the same policy. which of these policies did Y purchase - whole life policy with an other insured rider
which of these statements concerning an individual straight life annuity is accurate - payments are made to an annuitant for life
Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? - 5
who has the right to change a revocable beneficiary - policyowner
a license may be denied, suspended, or revoked if the licensee - is found guilty of misrepresentation
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? - contributory
which type of life insurance beneficary requires his/her consent when a change of beneficiary is attempted by the policyowner - irrevocable beneficiary
which of these is NOT a reason for a business to buy key person life insurance - a pension deficiency if the key employee dies
T is an insurance license applicant who intends to primarily engage in insurance transactions on himself and his family. If the insurance department is made aware of this, T will most likely - not be issued a license
a policyowner would like to change the beneficiary on a life insurance policy and make the change permanent. which type of designation would fulfill this need - irrevocable
variable life products require a producer to - hold a life insurance license and a securities license
which of these actions is NOT required when a producer replaces an existing individual life insurance policy - obtain the beneficiary's signature
which of the following correctly explains the actions an agent should take if a customer wants to apply for a life insurance policy - complete the application and review the information with the customer prior to obtaining the customers signature, then send the application off to the insurance company
which is true concerning a variable universal life policy - policyowner controls where the investment will go and selects the amount of premium payment
according to west virginia law, a group life insurance policy requires at LEAST ____ insureds - two
A Life insurance policyowner would like to take out a policy loan against the cash value in his Whole Life policy. The interest rate applied to this loan may vary over time. This is
referred to as a ______ rate loan. - Variable
S the producer is charged a fee for placing an insurance policy. Under West Virginia law, S must - report the placement to his primary insurer
A domestic insurance company in West Virginia MUST - be incorporated and formed in west virginia
M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take? - pay face amount minus the past due premium
The reason for backdating a policy is - to obtain a premium rate based on an earlier age
K owns a whole life policy. If K wants an increasing death benefit to protect against inflation, which dividend option should she choose? - Paid-up additional insurance
All of the following could result in the revocation of a producer's license EXCEPT - being
charged with a misdemeanor for a driving incident
life insurance death benefits up to _____ are guaranteed by the west virginia life and health guaranty association - 300,000 A stock insurance company - is owned exclusively by its shareholders
what is considered to be a characteristic of an immediate annuity - benefit payments start within one payment period of purchase
B the producer sold an insurance contract to a client. B has engaged in - transacting insurance
A policy of adhesion can only be modified by whom - the insurance company
P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies in a lump sum of 20,000 at the end of that 20 year period. What type of policy should P purchase? - family maintence policy
who approves continuing education courses in west virginia - insurance commissioner and the board of insurance agent education
B owns a whole life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of - additional whole life coverage at specified times
what is the initial source of underwriting for an insurance policy - application containing statements from the insured
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? - decreasing term
K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - daughter
a 45 year-old woman won $100,000 in a scratch of lottery ticket. she purchased an annuity that will pay her $1,500 per month beginning at age 60. which of these annuities
did this woman purchase? - deferred fixed annuity
a contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of - adhesion
Variable annuities may invest premiums in each of the following, EXCEPT: - insurers corporate business account
which of the following is true if the owner of an IRA names their spouse as beneficiary, but then dies before any distributions are made? - the account can be rolled into the surviving spouses IRA which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? - variable life
when an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. what exactly does a needs analysis involve - establishes the needs of the individual and his dependents
a variable annuity has which of the following characteristcs - underlying equity investments
which unfair trade practice involves a producer telling a prospective client that a policys dividends are guaranteed - misrepresentation
Y purchased 100,000 worth or permanent protection and himself and 50,000 worth of 10-year term coverage for his wife on the same policy. which of these policies did Y purchase - whole life policy with an other insured rider
which of these statements concerning an individual straight life annuity is accurate - payments are made to an annuitant for life
Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? - 5
who has the right to change a revocable beneficiary - policyowner
a license may be denied, suspended, or revoked if the licensee - is found guilty of misrepresentation
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? - contributory
which type of life insurance beneficary requires his/her consent when a change of beneficiary is attempted by the policyowner - irrevocable beneficiary
which of these is NOT a reason for a business to buy key person life insurance - a pension deficiency if the key employee dies
T is an insurance license applicant who intends to primarily engage in insurance transactions on himself and his family. If the insurance department is made aware of this, T will most likely - not be issued a license
a policyowner would like to change the beneficiary on a life insurance policy and make the change permanent. which type of designation would fulfill this need - irrevocable
