©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Oklahoma (Life Insurance Only) Final Exam
Questions With Verified Answers
Laura added a children's rider to her life insurance policy. What type of coverage was added?
a) Level term
b) Increasing term
c) Decreasing term
d) Juvenile term - Answers✔A
Laura added a children's rider to her life insurance policy. What type of coverage was added?
a) Level term
b) Increasing term
c) Decreasing term
d) Juvenile term - Answers✔A
Which of the following is a TRUE statement regarding universal life insurance?
a) Death benefits are normally taxable
b) Policy loans are not permitted
c) Premiums or face amounts cannot be changed
d) Policy indicated how much of each premium is used toward company expenses - Answers✔D
How are level term policies able to provide premiums?
a) Policy dividends
b) Yearly policy fees
c) Yearly reductions in face amounts
d) Premiums are averaged over the term of the polcy - Answers✔D
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
What type of life insurance policy covers two or more persons and pays the face amount upon
the death of the first insured?
a) Joint and survivorship
b) Survivorship life
c) Universal life
d) Joint life - Answers✔D
Which statement concerning adjustable life insurance is accurate?
a) Cash value loans are not permitted
b) The face amount and premiums can be changed simultaneously by the policyowner
c) Settlement options are limited
d) Only face amount can be changed by policyowner - Answers✔B
What typically changes at the re-entry option found in some term life policies?
a) Beneficiary
b) Amount of coverage
c) Premium
d) Contestable period - Answers✔C
Which action will trigger a penalty tax on premature distributions from a modified endowment
contract (MEC)?
a) Policy loans
b) Claim on a death benefit
c) Extended term settlement option
d) Policyowner reaching the age of 70 ½ - Answers✔A
Assets that back the non-guaranteed values of variable life insurance products are held in which
account?
a) Trust account set up by the insured
b) Separate account set up by the insurer
c) General account of the insurer
d) Money market account - Answers✔B
2
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
An individual who purchases a modified life insurance policy expects
a) Higher rate of return
b) Coverage for two people
c) An improvement in future income
d) A flexible face amount - Answers✔C
Which statement regarding an adjustable life insurance policy is NOT true?
a) Combines term and permanent insurance into a single plan
b) Allows flexibility as insurance needs a change
c) Plan of coverage may be changed by the policyowner
d) Policy loans are not permitted - Answers✔D
Which statement concerning an adjustable life insurance policy is FALSE?
a) Cash surrender is possible
b) evidence of insurability is required when there is a change in premium
c) Combines term and permanent insurance into a single plan
d) An extra premium paid is allowable - Answers✔B
Which of the following could be a future use of the cash value that builds in a recently purchased
whole life insurance policy?
a) Convert the cash value to a paid-up term policy
b) Gives policyowner ability to borrow against funds within two years
c) Increases the policy's face amount
d) Provide supplemental income in 35 years - Answers✔D
An advantage of owning a flexible premium life insurance policy would be
a) Premiums are fixed for the first 5 years
b) The insurer can make policy changes without difficulty
c) The policyowner can make policy changes without difficulty
d) Evidence of insurability is required with any change in premium - Answers✔C
3
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Under an adjustable life insurance policy, which of the following may NOT be changed without
further underwriting?
a) The person insured
b) The period of coverage
c) The payment period
d) The plan of coverage - Answers✔A
What type of premiums are associated with individual mortgage protection life insurance
policies?
a) Level premiums
b) Flexible premiums
c) Modified premiums
d) Decreasing premiums - Answers✔A
Which of these life insurance policies does NOT contain a cash value provision?
a) Modified whole life
b) Universal life
c) Decreasing term life
d) Adjustable life - Answers✔C
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The
total premiums paid had totaled $16,000. What were the federal income tax consequences to the
policyowner on receipt of the cash value?
a) $16,000 was received as ordinary income and $4,000 as tax free
b) $20,000 was received as capital gain
c) $20,000 was received as ordinary income
d) $16,000 was received tax free and $4,000 as ordinary income - Answers✔D
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The
total premiums paid had totaled $16,000. What were the federal income tax consequences to the
policyowner on receipt of the cash value?
a) $16,000 was received as ordinary income and $4,000 as tax free
b) $20,000 was received as capital gain
4
ALL RIGHTS RESERVED.
Oklahoma (Life Insurance Only) Final Exam
Questions With Verified Answers
Laura added a children's rider to her life insurance policy. What type of coverage was added?
a) Level term
b) Increasing term
c) Decreasing term
d) Juvenile term - Answers✔A
Laura added a children's rider to her life insurance policy. What type of coverage was added?
a) Level term
b) Increasing term
c) Decreasing term
d) Juvenile term - Answers✔A
Which of the following is a TRUE statement regarding universal life insurance?
a) Death benefits are normally taxable
b) Policy loans are not permitted
c) Premiums or face amounts cannot be changed
d) Policy indicated how much of each premium is used toward company expenses - Answers✔D
How are level term policies able to provide premiums?
a) Policy dividends
b) Yearly policy fees
c) Yearly reductions in face amounts
d) Premiums are averaged over the term of the polcy - Answers✔D
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
What type of life insurance policy covers two or more persons and pays the face amount upon
the death of the first insured?
a) Joint and survivorship
b) Survivorship life
c) Universal life
d) Joint life - Answers✔D
Which statement concerning adjustable life insurance is accurate?
a) Cash value loans are not permitted
b) The face amount and premiums can be changed simultaneously by the policyowner
c) Settlement options are limited
d) Only face amount can be changed by policyowner - Answers✔B
What typically changes at the re-entry option found in some term life policies?
a) Beneficiary
b) Amount of coverage
c) Premium
d) Contestable period - Answers✔C
Which action will trigger a penalty tax on premature distributions from a modified endowment
contract (MEC)?
a) Policy loans
b) Claim on a death benefit
c) Extended term settlement option
d) Policyowner reaching the age of 70 ½ - Answers✔A
Assets that back the non-guaranteed values of variable life insurance products are held in which
account?
a) Trust account set up by the insured
b) Separate account set up by the insurer
c) General account of the insurer
d) Money market account - Answers✔B
2
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
An individual who purchases a modified life insurance policy expects
a) Higher rate of return
b) Coverage for two people
c) An improvement in future income
d) A flexible face amount - Answers✔C
Which statement regarding an adjustable life insurance policy is NOT true?
a) Combines term and permanent insurance into a single plan
b) Allows flexibility as insurance needs a change
c) Plan of coverage may be changed by the policyowner
d) Policy loans are not permitted - Answers✔D
Which statement concerning an adjustable life insurance policy is FALSE?
a) Cash surrender is possible
b) evidence of insurability is required when there is a change in premium
c) Combines term and permanent insurance into a single plan
d) An extra premium paid is allowable - Answers✔B
Which of the following could be a future use of the cash value that builds in a recently purchased
whole life insurance policy?
a) Convert the cash value to a paid-up term policy
b) Gives policyowner ability to borrow against funds within two years
c) Increases the policy's face amount
d) Provide supplemental income in 35 years - Answers✔D
An advantage of owning a flexible premium life insurance policy would be
a) Premiums are fixed for the first 5 years
b) The insurer can make policy changes without difficulty
c) The policyowner can make policy changes without difficulty
d) Evidence of insurability is required with any change in premium - Answers✔C
3
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Under an adjustable life insurance policy, which of the following may NOT be changed without
further underwriting?
a) The person insured
b) The period of coverage
c) The payment period
d) The plan of coverage - Answers✔A
What type of premiums are associated with individual mortgage protection life insurance
policies?
a) Level premiums
b) Flexible premiums
c) Modified premiums
d) Decreasing premiums - Answers✔A
Which of these life insurance policies does NOT contain a cash value provision?
a) Modified whole life
b) Universal life
c) Decreasing term life
d) Adjustable life - Answers✔C
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The
total premiums paid had totaled $16,000. What were the federal income tax consequences to the
policyowner on receipt of the cash value?
a) $16,000 was received as ordinary income and $4,000 as tax free
b) $20,000 was received as capital gain
c) $20,000 was received as ordinary income
d) $16,000 was received tax free and $4,000 as ordinary income - Answers✔D
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The
total premiums paid had totaled $16,000. What were the federal income tax consequences to the
policyowner on receipt of the cash value?
a) $16,000 was received as ordinary income and $4,000 as tax free
b) $20,000 was received as capital gain
4
