LIFE INSURANCE PRACTICE EXAM
20-pay life - ANS - All other factors being equal, which of the following types of policies will
accumulate cash value at the fastest rate.
\31 days - ANS - How long does an employee have to convert group policy coverage to an
individual policy without evidence of insurability?
\403(b) Tax-Sheltered Annuity (TSAs) - ANS - Which of the following retirement plans is a
special tax favored plan for NONPROFIT, charitable, educational or religious groups?
\59 1/2 - ANS - At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty
\Accumulation at Interest - ANS - Which of the following is NOT a nonforfeiture option in whole
life policies?
\Accumulation period - ANS - The "pay in" phase of the annuity is known as what period?
\Adjustable life - ANS - Which type of policy allows the insured to change the amount of the
dwah benefit, the amount of premium, or the type of coverage S their needs change?
\Adjusts the death benefit based on the premiums that were paid - ANS - If a misstatement of
age is discovered during the processing of a life insurance claim what will the insurer do?
\Agents Report - ANS - This is the prtbirbthenapplication that provides information about an
applicants dinadial condition and character, as well as the purpose of sale and how long the
agent has known the applicant:
\Alien Insurer - ANS - London Mutual Life is an insurer incorporated in England, and is
transacting business in this state. London Muthal would be considered what type of insurer?
\All annuities (Variable, Deferreed & Equity Indexed) - ANS - Which of the following annuity
products requires an agent to hold a securities license?
\Annuitant - ANS - Which of the following indicates the person upon whose life the annuity
income amount is determined?
\Assignment - ANS - The legal transfer of all or part of a policyowners rights, title or interest is
called an (a)
\Bobs estate - ANS - Betty is the only beneficiary named on her husband Bob's policy which has
a Common Disaster provision (within 90 days death benefit will go to primary estate) They are in
a car wreck, and Bob dies instantly. Betty lives for 29 days. Who will receive the death benefit?
\Buy-Sell Agreement - ANS - Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the surviving partner to use the death
benefit to purchase the deceased's business interests?
\Certificate of Insurance - ANS - What do employees covered under a group contract receive?
\Contestability - ANS - What does the payor benefit rider protect?
\Continuous Premium (straight) life - ANS - The most common type of whole life insurance
where premiums are payable over the whole life of the insured to age 100 is called.
\Delivered - ANS - An insurer mails an insurance policy to a new policyowner. When the insurer
relinquishes control of the policy, the policy is considered
20-pay life - ANS - All other factors being equal, which of the following types of policies will
accumulate cash value at the fastest rate.
\31 days - ANS - How long does an employee have to convert group policy coverage to an
individual policy without evidence of insurability?
\403(b) Tax-Sheltered Annuity (TSAs) - ANS - Which of the following retirement plans is a
special tax favored plan for NONPROFIT, charitable, educational or religious groups?
\59 1/2 - ANS - At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty
\Accumulation at Interest - ANS - Which of the following is NOT a nonforfeiture option in whole
life policies?
\Accumulation period - ANS - The "pay in" phase of the annuity is known as what period?
\Adjustable life - ANS - Which type of policy allows the insured to change the amount of the
dwah benefit, the amount of premium, or the type of coverage S their needs change?
\Adjusts the death benefit based on the premiums that were paid - ANS - If a misstatement of
age is discovered during the processing of a life insurance claim what will the insurer do?
\Agents Report - ANS - This is the prtbirbthenapplication that provides information about an
applicants dinadial condition and character, as well as the purpose of sale and how long the
agent has known the applicant:
\Alien Insurer - ANS - London Mutual Life is an insurer incorporated in England, and is
transacting business in this state. London Muthal would be considered what type of insurer?
\All annuities (Variable, Deferreed & Equity Indexed) - ANS - Which of the following annuity
products requires an agent to hold a securities license?
\Annuitant - ANS - Which of the following indicates the person upon whose life the annuity
income amount is determined?
\Assignment - ANS - The legal transfer of all or part of a policyowners rights, title or interest is
called an (a)
\Bobs estate - ANS - Betty is the only beneficiary named on her husband Bob's policy which has
a Common Disaster provision (within 90 days death benefit will go to primary estate) They are in
a car wreck, and Bob dies instantly. Betty lives for 29 days. Who will receive the death benefit?
\Buy-Sell Agreement - ANS - Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the surviving partner to use the death
benefit to purchase the deceased's business interests?
\Certificate of Insurance - ANS - What do employees covered under a group contract receive?
\Contestability - ANS - What does the payor benefit rider protect?
\Continuous Premium (straight) life - ANS - The most common type of whole life insurance
where premiums are payable over the whole life of the insured to age 100 is called.
\Delivered - ANS - An insurer mails an insurance policy to a new policyowner. When the insurer
relinquishes control of the policy, the policy is considered
