Illinois Life Insurance Practice Questions 2025/2026
GUARANTEE A
social security number
sales commission rate
name and signature - Name and signature
When calculating the amount of life insurance needed for an income earner, what has to be determined
when using the Needs Approach?
- The family's financial objectives if the income earner were to die or become disabled
- The income earner's credit score
- The insurance company's financial rating
- The income earner's future projected income - The family's financial objectives if the income earner
were to die or become disabled
The conversion privilege under a group life plan allows an employee to convert to a(n) - individual plan
upon employment termination
An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest
free. The provision that allows this is called
- partial surrender
- accelerated death benefit
- subrogation
- automatic premium loan - Partial surrender
Which of these riders will pay a death benefit if the insured's spouse dies?
-family term insurance rider
-guaranteed insurability rider
-family whole insurance rider
,-payor benefit rider - family term insurance rider
A family term insurance rider provides a death benefit if the spouse of the insured dies.
In what part of an insurance policy are policy benefits found?
-conditions
-entire contract
-waivers
-declarations - Declarations
Lloyd's of London - NOT an insurer but rather a syndicate of individuals and companies that underwrite
insurance.
1945 McCarran and Ferguson Act - This law made it clear that the states' continued regulation of
insurance was in the public's best interest. However, it also made possible the application of federal
antitrust laws to the extent that [the insurance business] is not regulated by state law.
1970 Fair Credit Reporting Act - Requires fair and accurate reporting of information about consumers,
including applications for insurance. Insurers must inform applicants about any investigations that are
being made upon completion of the application.
Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is
still alive to receive them? - Life annuity certain
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the
premium dies? - Payor Benefit
Which of the following types of insurance may a limited lines producer sell?
endowment
disability
industrial life
,whole life - Industrial Life
An employee under a group insurance policy has the right to name a beneficiary and the right to -
Convert to an individual policy in the event of employment termination
When a producer submits an insurance application, the application is REQUIRED to contain the
producer's:
home address
A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of
insurability, is called a(n)
-cost of living rider
-guaranteed term rider
-guaranteed insurability rider
-accelerated benefit rider - Guaranteed insurability rider
Which of these is NOT a characteristic of the Accelerated Death Benefit option?
-there may be a dollar limit on the maximum benefit
-the benefit can be offered as a rider at a specific extra cost or may be at no cost
-before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal
illness
-the face amount and policy premium are not affected by the payment - The benefit can be offered as a
rider at a specific extra cost or may be at no cost. Accelerated Death Benefit options are offered with NO
increase in premium.
How does one qualify as a fully-insured individual under Social Security disability coverage?
-individual has been credited with the appropriate number of quarters of coverage
-Individual is currently covered under Medicaid
, -Individual is currently employed
-Individual is expected to be disabled for 5 months - individual has been credited with the appropriate
number of quarters of coverage
A policyowner decides to cancel an insurance policy within 90 days of the issue date. As a result of this
cancellation, the producer is REQUIRED to refund a prorated portion of any fee charged within __ days of
receiving the cancellation notice.
30
60
45
90 - 30
Life insurance illustrations must include all of these EXCEPT
-date it was prepared
-nonguaranteed elements must be clearly marked as such
-guaranteed death benefits and values available upon surrender
-beneficiary's name - beneficiary's name
All of these are required to be included in a life insurance illustration EXCEPT
-rating classification
-insurer's mortality table
-insurer's name
-initial death benefit - insurer's mortality table
James is the insured on a life insurance policy where his age was misstated on the application. Which of
the following is CORRECT regarding the death benefit amount?
GUARANTEE A
social security number
sales commission rate
name and signature - Name and signature
When calculating the amount of life insurance needed for an income earner, what has to be determined
when using the Needs Approach?
- The family's financial objectives if the income earner were to die or become disabled
- The income earner's credit score
- The insurance company's financial rating
- The income earner's future projected income - The family's financial objectives if the income earner
were to die or become disabled
The conversion privilege under a group life plan allows an employee to convert to a(n) - individual plan
upon employment termination
An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest
free. The provision that allows this is called
- partial surrender
- accelerated death benefit
- subrogation
- automatic premium loan - Partial surrender
Which of these riders will pay a death benefit if the insured's spouse dies?
-family term insurance rider
-guaranteed insurability rider
-family whole insurance rider
,-payor benefit rider - family term insurance rider
A family term insurance rider provides a death benefit if the spouse of the insured dies.
In what part of an insurance policy are policy benefits found?
-conditions
-entire contract
-waivers
-declarations - Declarations
Lloyd's of London - NOT an insurer but rather a syndicate of individuals and companies that underwrite
insurance.
1945 McCarran and Ferguson Act - This law made it clear that the states' continued regulation of
insurance was in the public's best interest. However, it also made possible the application of federal
antitrust laws to the extent that [the insurance business] is not regulated by state law.
1970 Fair Credit Reporting Act - Requires fair and accurate reporting of information about consumers,
including applications for insurance. Insurers must inform applicants about any investigations that are
being made upon completion of the application.
Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is
still alive to receive them? - Life annuity certain
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the
premium dies? - Payor Benefit
Which of the following types of insurance may a limited lines producer sell?
endowment
disability
industrial life
,whole life - Industrial Life
An employee under a group insurance policy has the right to name a beneficiary and the right to -
Convert to an individual policy in the event of employment termination
When a producer submits an insurance application, the application is REQUIRED to contain the
producer's:
home address
A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of
insurability, is called a(n)
-cost of living rider
-guaranteed term rider
-guaranteed insurability rider
-accelerated benefit rider - Guaranteed insurability rider
Which of these is NOT a characteristic of the Accelerated Death Benefit option?
-there may be a dollar limit on the maximum benefit
-the benefit can be offered as a rider at a specific extra cost or may be at no cost
-before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal
illness
-the face amount and policy premium are not affected by the payment - The benefit can be offered as a
rider at a specific extra cost or may be at no cost. Accelerated Death Benefit options are offered with NO
increase in premium.
How does one qualify as a fully-insured individual under Social Security disability coverage?
-individual has been credited with the appropriate number of quarters of coverage
-Individual is currently covered under Medicaid
, -Individual is currently employed
-Individual is expected to be disabled for 5 months - individual has been credited with the appropriate
number of quarters of coverage
A policyowner decides to cancel an insurance policy within 90 days of the issue date. As a result of this
cancellation, the producer is REQUIRED to refund a prorated portion of any fee charged within __ days of
receiving the cancellation notice.
30
60
45
90 - 30
Life insurance illustrations must include all of these EXCEPT
-date it was prepared
-nonguaranteed elements must be clearly marked as such
-guaranteed death benefits and values available upon surrender
-beneficiary's name - beneficiary's name
All of these are required to be included in a life insurance illustration EXCEPT
-rating classification
-insurer's mortality table
-insurer's name
-initial death benefit - insurer's mortality table
James is the insured on a life insurance policy where his age was misstated on the application. Which of
the following is CORRECT regarding the death benefit amount?
