WV State Life Insurance Exam questions
with verified answers passed
Risk retention group - correct answer ✔✔A group-owned insurance company that is formed to
assume and spread the liability risks of its members is known as a:
1970-Fair Credit Reporting Act - correct answer ✔✔Which of the following requires insurers to
disclose when an applicant's consumer or credit history is being investigated?
Aleatory - correct answer ✔✔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?
Reserves - correct answer ✔✔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:
Bilateral - correct answer ✔✔All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT:
1945 - correct answer ✔✔What year was the McCarran-Ferguson Act enacted?
Contract - correct answer ✔✔Which of the following consists of an offer, acceptance, and
consideration?
Policyholders - correct answer ✔✔Who elects the governing body of a mutual insurance
company?
,Performance is conditioned upon a future occurrence - correct answer ✔✔Insurance policies
are considered aleatory contracts because:
Insurance company - correct answer ✔✔Who makes the legally enforceable promises in a
unilateral contract?
Conditional - correct answer ✔✔Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid.
Investor-Originated Life Insurance - correct answer ✔✔A life insurance arrangement which
circumvents insurable interest statutes is called:
Unilateral - correct answer ✔✔In an insurance contract, the insurer is the only party who makes
a legally enforceable promise. What kind of contract is this?
Insurable interest in the proposed insured - correct answer ✔✔When third-party ownership is
involved, applicants who also happen to be the stated primary beneficiary are required to have:
Investor-Originated Life Insurance - correct answer ✔✔Which of these arrangements allows one
to bypass insurable interest laws?
Inception of the contract - correct answer ✔✔When must insurable interest exist for a life
insurance contract to be valid?
Insured - correct answer ✔✔If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of?
A fixed, level premium - correct answer ✔✔Which of these is an element of a Variable Life
policy?
, Payor provision - correct answer ✔✔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?
Policyowner - correct answer ✔✔Who benefits in Investor-Originated Life Insurance (IOLI) when
the insured dies?
Premiums may be applied as a credit against income tax - correct answer ✔✔Which of the
following actions is NOT possible with a Universal Life policy?
Variable universal life - correct answer ✔✔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?
upon the insured's death during the term of the policy - correct answer ✔✔A term life
insurance policy matures:
Survivorship - correct answer ✔✔What type of life policy covers two people and pays upon the
death of the last insured?
Upon the death of the last insured - correct answer ✔✔When is the face amount paid under a
Joint Life and Survivor policy?
Both an insurance and securities product - correct answer ✔✔Variable Whole Life Insurance can
be described as:
Face amount can be adjusted using policy dividends - correct answer ✔✔All of these
characteristics of an Adjustable Life policy, EXCEPT:
with verified answers passed
Risk retention group - correct answer ✔✔A group-owned insurance company that is formed to
assume and spread the liability risks of its members is known as a:
1970-Fair Credit Reporting Act - correct answer ✔✔Which of the following requires insurers to
disclose when an applicant's consumer or credit history is being investigated?
Aleatory - correct answer ✔✔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?
Reserves - correct answer ✔✔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:
Bilateral - correct answer ✔✔All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT:
1945 - correct answer ✔✔What year was the McCarran-Ferguson Act enacted?
Contract - correct answer ✔✔Which of the following consists of an offer, acceptance, and
consideration?
Policyholders - correct answer ✔✔Who elects the governing body of a mutual insurance
company?
,Performance is conditioned upon a future occurrence - correct answer ✔✔Insurance policies
are considered aleatory contracts because:
Insurance company - correct answer ✔✔Who makes the legally enforceable promises in a
unilateral contract?
Conditional - correct answer ✔✔Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid.
Investor-Originated Life Insurance - correct answer ✔✔A life insurance arrangement which
circumvents insurable interest statutes is called:
Unilateral - correct answer ✔✔In an insurance contract, the insurer is the only party who makes
a legally enforceable promise. What kind of contract is this?
Insurable interest in the proposed insured - correct answer ✔✔When third-party ownership is
involved, applicants who also happen to be the stated primary beneficiary are required to have:
Investor-Originated Life Insurance - correct answer ✔✔Which of these arrangements allows one
to bypass insurable interest laws?
Inception of the contract - correct answer ✔✔When must insurable interest exist for a life
insurance contract to be valid?
Insured - correct answer ✔✔If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of?
A fixed, level premium - correct answer ✔✔Which of these is an element of a Variable Life
policy?
, Payor provision - correct answer ✔✔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?
Policyowner - correct answer ✔✔Who benefits in Investor-Originated Life Insurance (IOLI) when
the insured dies?
Premiums may be applied as a credit against income tax - correct answer ✔✔Which of the
following actions is NOT possible with a Universal Life policy?
Variable universal life - correct answer ✔✔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?
upon the insured's death during the term of the policy - correct answer ✔✔A term life
insurance policy matures:
Survivorship - correct answer ✔✔What type of life policy covers two people and pays upon the
death of the last insured?
Upon the death of the last insured - correct answer ✔✔When is the face amount paid under a
Joint Life and Survivor policy?
Both an insurance and securities product - correct answer ✔✔Variable Whole Life Insurance can
be described as:
Face amount can be adjusted using policy dividends - correct answer ✔✔All of these
characteristics of an Adjustable Life policy, EXCEPT:
