WV State Life Insurance Exam.pdf file:///C:/Users/HP/Desktop/NIW/WV%20State%20Life%20Insuran
WV State Life Insurance Exam
Questions & Answers
1. A group-owned insurance company that is formed to assume and spreadthe liability
risks of its members is known as a
ANS Risk retention group
2. Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated?
ANS 1970-Fair Credit ReportingAct
3. Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first
six months. Q dies suddenly and the beneficiary is paid $500,000.This exchange of unequal
values reflects which of the following insurance contract features?
ANS Aleatory
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,WV State Life Insurance Exam.pdf file:///C:/Users/HP/Desktop/NIW/WV%20State%20Life%20Insuran
4. The stated amount or percent of liquid assets that an insurer must have onhand that
will satisfy future obligations to its policyholders is called
ANS Reserves
5. All of the following are considered to be typical characteristics describingthe nature of
an insurance contract, EXCEPT
ANS Bilateral
6. What year was the McCarran-Ferguson Act enacted?
ANS 1945
7. Which of the following consists of an offer, acceptance, and consideration?-
ANS Contract
8. Who elects the governing body of a mutual insurance company?
ANS Policyhold-ers
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,WV State Life Insurance Exam.pdf file:///C:/Users/HP/Desktop/NIW/WV%20State%20Life%20Insuran
9. Insurance policies are considered aleatory contracts because
ANS Performanceis conditioned upon a future occurrence
10. Who makes the legally enforceable promises in a unilateral contract?
ANS In-surance company
11. Insurance contracts are known as because certain future conditionsor
acts must occur before any claims can be paid.
ANS Conditional
12. A life insurance arrangement which circumvents insurable intereststatutes is
called
ANS Investor-Originated Life Insurance
13. In an insurance contract, the insurer is the only party who makes a legallyenforceable
promise. What kind of contract is this?
ANS Unilateral
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14. When third-party ownership is involved, applicants who also happen to bethe stated
primary beneficiary are required to have
ANS Insurable interest in the proposed insured
15. Which of these arrangements allows one to bypass insurable interestlaws?
ANS Investor-Originated Life Insurance
16. When must insurable interest exist for a life insurance contract to bevalid?
ANS Inception of the contract
17. If a contract of adhesion contains complicated language, to whom wouldthe
interpretation be in favor of?
ANS Insured
18. Which of these is an element of aVariable Life policy?
ANS A fixed, level premium
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WV State Life Insurance Exam
Questions & Answers
1. A group-owned insurance company that is formed to assume and spreadthe liability
risks of its members is known as a
ANS Risk retention group
2. Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated?
ANS 1970-Fair Credit ReportingAct
3. Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first
six months. Q dies suddenly and the beneficiary is paid $500,000.This exchange of unequal
values reflects which of the following insurance contract features?
ANS Aleatory
1 of 33 8/20/2024, 1:29
,WV State Life Insurance Exam.pdf file:///C:/Users/HP/Desktop/NIW/WV%20State%20Life%20Insuran
4. The stated amount or percent of liquid assets that an insurer must have onhand that
will satisfy future obligations to its policyholders is called
ANS Reserves
5. All of the following are considered to be typical characteristics describingthe nature of
an insurance contract, EXCEPT
ANS Bilateral
6. What year was the McCarran-Ferguson Act enacted?
ANS 1945
7. Which of the following consists of an offer, acceptance, and consideration?-
ANS Contract
8. Who elects the governing body of a mutual insurance company?
ANS Policyhold-ers
2 of 33 8/20/2024, 1:29
,WV State Life Insurance Exam.pdf file:///C:/Users/HP/Desktop/NIW/WV%20State%20Life%20Insuran
9. Insurance policies are considered aleatory contracts because
ANS Performanceis conditioned upon a future occurrence
10. Who makes the legally enforceable promises in a unilateral contract?
ANS In-surance company
11. Insurance contracts are known as because certain future conditionsor
acts must occur before any claims can be paid.
ANS Conditional
12. A life insurance arrangement which circumvents insurable intereststatutes is
called
ANS Investor-Originated Life Insurance
13. In an insurance contract, the insurer is the only party who makes a legallyenforceable
promise. What kind of contract is this?
ANS Unilateral
3 of 33 8/20/2024, 1:29
,WV State Life Insurance Exam.pdf file:///C:/Users/HP/Desktop/NIW/WV%20State%20Life%20Insuran
14. When third-party ownership is involved, applicants who also happen to bethe stated
primary beneficiary are required to have
ANS Insurable interest in the proposed insured
15. Which of these arrangements allows one to bypass insurable interestlaws?
ANS Investor-Originated Life Insurance
16. When must insurable interest exist for a life insurance contract to bevalid?
ANS Inception of the contract
17. If a contract of adhesion contains complicated language, to whom wouldthe
interpretation be in favor of?
ANS Insured
18. Which of these is an element of aVariable Life policy?
ANS A fixed, level premium
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