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WV STATE LIFE INSURANCE EXAM 2024 ACTUAL EXAM 2
VERSIONS (VERSION A AND B) COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY GRADED A+
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a: - ANSWER ✔✔-Risk retention group
Which of the following requires insurers to disclose when an applicant's consumer or credit history is
being investigated? - ANSWER ✔✔-1970-Fair Credit Reporting Act
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? - ANSWER ✔✔-Aleatory
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: - ANSWER ✔✔-Reserves
All of the following are considered to be typical characteristics describing the nature of an insurance
contract, EXCEPT: - ANSWER ✔✔-Bilateral
What year was the McCarran-Ferguson Act enacted? - ANSWER ✔✔-1945
Which of the following consists of an offer, acceptance, and consideration? - ANSWER ✔✔-Contract
Who elects the governing body of a mutual insurance company? - ANSWER ✔✔-Policyholders
Insurance policies are considered aleatory contracts because: - ANSWER ✔✔-Performance is conditioned
upon a future occurrence
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
,2|Page
Who makes the legally enforceable promises in a unilateral contract? - ANSWER ✔✔-Insurance company
Insurance contracts are known as _____ because certain future conditions or acts must occur before any
claims can be paid. - ANSWER ✔✔-Conditional
A life insurance arrangement which circumvents insurable interest statutes is called: - ANSWER ✔✔-
Investor-Originated Life Insurance
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What
kind of contract is this? - ANSWER ✔✔-Unilateral
When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary
are required to have: - ANSWER ✔✔-Insurable interest in the proposed insured
Which of these arrangements allows one to bypass insurable interest laws? - ANSWER ✔✔-Investor-
Originated Life Insurance
When must insurable interest exist for a life insurance contract to be valid? - ANSWER ✔✔-Inception of
the contract
If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?
- ANSWER ✔✔-Insured
Which of these is an element of a Variable Life policy? - ANSWER ✔✔-A fixed, level premium
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? - ANSWER ✔✔-Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? - ANSWER ✔✔-
Policyowner
Which of the following actions is NOT possible with a Universal Life policy? - ANSWER ✔✔-Premiums
may be applied as a credit against income tax
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
, 3|Page
Which of the following policies is characterized by a flexible premium and death benefit and allows the
policy owner control of the investment aspect of the plan? - ANSWER ✔✔-Variable universal life
A term life insurance policy matures: - ANSWER ✔✔-upon the insured's death during the term of the
policy
What type of life policy covers two people and pays upon the death of the last insured? - ANSWER ✔✔-
Survivorship
When is the face amount paid under a Joint Life and Survivor policy? - ANSWER ✔✔-Upon the death of
the last insured
Variable Whole Life Insurance can be described as: - ANSWER ✔✔-Both an insurance and securities
product
All of these characteristics of an Adjustable Life policy, EXCEPT: - ANSWER ✔✔-Face amount can be
adjusted using policy dividends
Term insurance has which of the following characteristics? - ANSWER ✔✔-Expires at the end of the
policy period
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 and a lump sum of $20,000 at the end of that 20 year period. What type of policy
should P purchase? - ANSWER ✔✔-Family Maintenance policy
Which of the following types of policies BEST identifies one in which the cash value may fluctuate to
reflect changing assumptions regarding mortality cost, interest, and expense factors? - ANSWER ✔✔-
Universal life
A(n) ________ Life policy offers the owner investment in products such as money-market funds, long-
term bonds and equities - ANSWER ✔✔-Variable
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
WV STATE LIFE INSURANCE EXAM 2024 ACTUAL EXAM 2
VERSIONS (VERSION A AND B) COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY GRADED A+
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a: - ANSWER ✔✔-Risk retention group
Which of the following requires insurers to disclose when an applicant's consumer or credit history is
being investigated? - ANSWER ✔✔-1970-Fair Credit Reporting Act
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? - ANSWER ✔✔-Aleatory
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: - ANSWER ✔✔-Reserves
All of the following are considered to be typical characteristics describing the nature of an insurance
contract, EXCEPT: - ANSWER ✔✔-Bilateral
What year was the McCarran-Ferguson Act enacted? - ANSWER ✔✔-1945
Which of the following consists of an offer, acceptance, and consideration? - ANSWER ✔✔-Contract
Who elects the governing body of a mutual insurance company? - ANSWER ✔✔-Policyholders
Insurance policies are considered aleatory contracts because: - ANSWER ✔✔-Performance is conditioned
upon a future occurrence
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
,2|Page
Who makes the legally enforceable promises in a unilateral contract? - ANSWER ✔✔-Insurance company
Insurance contracts are known as _____ because certain future conditions or acts must occur before any
claims can be paid. - ANSWER ✔✔-Conditional
A life insurance arrangement which circumvents insurable interest statutes is called: - ANSWER ✔✔-
Investor-Originated Life Insurance
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What
kind of contract is this? - ANSWER ✔✔-Unilateral
When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary
are required to have: - ANSWER ✔✔-Insurable interest in the proposed insured
Which of these arrangements allows one to bypass insurable interest laws? - ANSWER ✔✔-Investor-
Originated Life Insurance
When must insurable interest exist for a life insurance contract to be valid? - ANSWER ✔✔-Inception of
the contract
If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?
- ANSWER ✔✔-Insured
Which of these is an element of a Variable Life policy? - ANSWER ✔✔-A fixed, level premium
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? - ANSWER ✔✔-Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? - ANSWER ✔✔-
Policyowner
Which of the following actions is NOT possible with a Universal Life policy? - ANSWER ✔✔-Premiums
may be applied as a credit against income tax
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
, 3|Page
Which of the following policies is characterized by a flexible premium and death benefit and allows the
policy owner control of the investment aspect of the plan? - ANSWER ✔✔-Variable universal life
A term life insurance policy matures: - ANSWER ✔✔-upon the insured's death during the term of the
policy
What type of life policy covers two people and pays upon the death of the last insured? - ANSWER ✔✔-
Survivorship
When is the face amount paid under a Joint Life and Survivor policy? - ANSWER ✔✔-Upon the death of
the last insured
Variable Whole Life Insurance can be described as: - ANSWER ✔✔-Both an insurance and securities
product
All of these characteristics of an Adjustable Life policy, EXCEPT: - ANSWER ✔✔-Face amount can be
adjusted using policy dividends
Term insurance has which of the following characteristics? - ANSWER ✔✔-Expires at the end of the
policy period
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 and a lump sum of $20,000 at the end of that 20 year period. What type of policy
should P purchase? - ANSWER ✔✔-Family Maintenance policy
Which of the following types of policies BEST identifies one in which the cash value may fluctuate to
reflect changing assumptions regarding mortality cost, interest, and expense factors? - ANSWER ✔✔-
Universal life
A(n) ________ Life policy offers the owner investment in products such as money-market funds, long-
term bonds and equities - ANSWER ✔✔-Variable
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
