WV State Life Insurance Exam Latest Questions
with Correct Solutions| Already Graded A| Ace
Your Grades.
1. When is the face amount paid under a Joint Life and Survivor policy? -
Correct Answer-Upon the death of the last insured
2. Variable Whole Life Insurance can be described as: - Correct Answer-
Both an insurance and securities product
3. All of these characteristics of an Adjustable Life policy, EXCEPT: -
Correct Answer-Face amount can be adjusted using policy dividends
4. Term insurance has which of the following characteristics? - Correct
Answer-Expires at the end of the policy period
5. A group-owned insurance company that is formed to assume and
spread the liability risks of its members is known as a: - Correct Answer-
Risk retention group
,6. Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated? - Correct Answer-1970-
Fair Credit Reporting Act
7. 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? - Correct Answer-Aleatory
8. The stated amount or percent of liquid assets that an insurer must have
on hand that will satisfy future obligations to its policyholders is called: -
Correct Answer-Reserves
9. All of the following are considered to be typical characteristics describing
the nature of an insurance contract, EXCEPT: - Correct Answer-Bilateral
10. What year was the mccarran-Ferguson Act enacted? - Correct
Answer-1945
11. Which of the following consists of an offer, acceptance, and
consideration? - Correct Answer-Contract
,12. Who elects the governing body of a mutual insurance company? -
Correct Answer-Policyholders
13. Insurance policies are considered aleatory contracts because: -
Correct Answer-Performance is conditioned upon a future occurrence
14. Who makes the legally enforceable promises in a unilateral contract?
- Correct Answer-Insurance company
15. Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid. - Correct
Answer-Conditional
16. A life insurance arrangement which circumvents insurable interest
statutes is called: - Correct Answer-Investor-Originated Life Insurance
17. In an insurance contract, the insurer is the only party who makes a
legally enforceable promise. What kind of contract is this? - Correct
Answer-Unilateral
, 18. When third-party ownership is involved, applicants who also happen
to be the stated primary beneficiary are required to have: - Correct
Answer-Insurable interest in the proposed insured
19. Which of these arrangements allows one to bypass insurable interest
laws? - Correct Answer-Investor-Originated Life Insurance
20. When must insurable interest exist for a life insurance contract to be
valid? - Correct Answer-Inception of the contract
21. If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of? - Correct Answer-Insured
22. Which of these is an element of a Variable Life policy? - Correct
Answer-A fixed, level premium
23. A father who dies within 3 years after purchasing a life insurance
policy on his infant daughter can have the policy premiums waived
under which provision? - Correct Answer-Payor provision
with Correct Solutions| Already Graded A| Ace
Your Grades.
1. When is the face amount paid under a Joint Life and Survivor policy? -
Correct Answer-Upon the death of the last insured
2. Variable Whole Life Insurance can be described as: - Correct Answer-
Both an insurance and securities product
3. All of these characteristics of an Adjustable Life policy, EXCEPT: -
Correct Answer-Face amount can be adjusted using policy dividends
4. Term insurance has which of the following characteristics? - Correct
Answer-Expires at the end of the policy period
5. A group-owned insurance company that is formed to assume and
spread the liability risks of its members is known as a: - Correct Answer-
Risk retention group
,6. Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated? - Correct Answer-1970-
Fair Credit Reporting Act
7. 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? - Correct Answer-Aleatory
8. The stated amount or percent of liquid assets that an insurer must have
on hand that will satisfy future obligations to its policyholders is called: -
Correct Answer-Reserves
9. All of the following are considered to be typical characteristics describing
the nature of an insurance contract, EXCEPT: - Correct Answer-Bilateral
10. What year was the mccarran-Ferguson Act enacted? - Correct
Answer-1945
11. Which of the following consists of an offer, acceptance, and
consideration? - Correct Answer-Contract
,12. Who elects the governing body of a mutual insurance company? -
Correct Answer-Policyholders
13. Insurance policies are considered aleatory contracts because: -
Correct Answer-Performance is conditioned upon a future occurrence
14. Who makes the legally enforceable promises in a unilateral contract?
- Correct Answer-Insurance company
15. Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid. - Correct
Answer-Conditional
16. A life insurance arrangement which circumvents insurable interest
statutes is called: - Correct Answer-Investor-Originated Life Insurance
17. In an insurance contract, the insurer is the only party who makes a
legally enforceable promise. What kind of contract is this? - Correct
Answer-Unilateral
, 18. When third-party ownership is involved, applicants who also happen
to be the stated primary beneficiary are required to have: - Correct
Answer-Insurable interest in the proposed insured
19. Which of these arrangements allows one to bypass insurable interest
laws? - Correct Answer-Investor-Originated Life Insurance
20. When must insurable interest exist for a life insurance contract to be
valid? - Correct Answer-Inception of the contract
21. If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of? - Correct Answer-Insured
22. Which of these is an element of a Variable Life policy? - Correct
Answer-A fixed, level premium
23. A father who dies within 3 years after purchasing a life insurance
policy on his infant daughter can have the policy premiums waived
under which provision? - Correct Answer-Payor provision
