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WV State Life Insurance Exam LATEST 2025 EXAM
QUESTION AND ANSWER 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
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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
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
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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
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
WV State Life Insurance Exam LATEST 2025 EXAM
QUESTION AND ANSWER 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
, 2
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
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
, 3
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
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
