©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:08AM. A+
WV State Life Insurance Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
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
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
1
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:08AM. A+
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
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
2
WV State Life Insurance Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
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
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
1
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:08AM. A+
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
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
2
