Life Insurance Exam Questions And
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J mhas ma mlife mpolicy mwith mthe mGuaranteed mInsurability mrider. mJ mhas mjust mcelebrated mtheir m42nd
mbirthday mand mrealizes mthat mshe mwants mto muse mher mrider mand mbuy mmore mdeath mbenefit. mWhich mof
mthe mfollowing mwill mapply mto mJ's mrequest?
A: mThe minsurer mwill mallow mJ mto madd mmore minsurance mwithout mproving minsurability.
B: mThe minsurer mwill mallow mJ mto madd mmore minsurance mpending ma mparamedical mexam.
C: mThe minsurer mwill mdeny mJ's mrequest mto madd mmore minsurance.
D: mThe minsurer mwill mallow mJ mto madd mmore mcoverage mpending mproof mof minsurability mand mextra
mpremium. m- mAnswer m- mC: mThe minsurer mwill mdeny mJ's mrequest mto madd mmore minsurance.
An minsured mhas ma mpolicy mwith ma mWaiver mof mPremium mrider. mThe minsured mhas msuffered man millness
mthat mwill mprevent mthem mfor mworking mfor mtwo myears. mWhen mwill mtheir mpremiums mbe mwaived?
A: mImmediately
B: mAfter mthe mfirst mnine mmonths mof mdisability
C: mAfter mthe mfirst msix mmonths mof mdisability
D: mNever, mpremiums mcannot mbe mwaived mbecause millness mis mnot ma mdisability. m- mAnswer m- mC: mAfter mthe
mfirst msix mmonths mof mdisability
The mclause mthat mdefines mand mdescribes mthe mscope mof mcoverage mand mthe mlimits mof mindemnification mis
mknown mas mthe:
A: mInsuring mAgreement
B: mIncontestable mClause
C: mPayor mClause
D: mEntire mContract mClause m- mAnswer m- mA: mInsuring mAgreement
,D mhas mjust mpaid moff mhis mmortgage mand mhas mdecided mthat mhe mno mlonger mneeds mhis mlife minsurance
mpolicy mwhich mhe moriginally mpurchased mto mcover mthe mhouse mpayments mshould mhe mdie. mIf mD mexplores
mthe mpossibly mof mselling mhis mpolicy mwhile mhe mis mstill malive, mit mis mknown mas:
A: ma mlife msettlement
B: man mannuity
C: ma mViatical msettlement
D: mSTOLI m- mAnswer m- mA: ma mlife msettlement
Combination/Variation mPlans minsure:
A: mGroups
B: mTwo mor mMore mlives munder mone mcontract
C: mTwo mor mmore mpeople munder mseparate mcontracts
D: mare ma mform mof mvariable mlife minsurance m- mAnswer m- mB: mTwo mor mMore mlives munder mone mcontract
What mis mthe mtax mconsideration mfor mtaking ma mcash mdividend moption?
A: mThe mdividend mis mfully mtaxable mas mincome
B: mThe mdividend mis mpaid mtax mfree
C: mDepending mon mincome mbracket mof mthe minsured, mthe mdividend mmay mbe mtaxable
D: mIf mthe mcompany mgets mto mkeep mhalf mof mthe mdividend mit mis mtake mfree m- mAnswer m- mB: mThe mdividend
mis mpaid mtax mfree
Which mof mthe mfollowing mis mnot mtrue mregarding ma mrenewable moption mon ma mterm mpolicy? m
A: mThe mpolicy mmust mbe mrenewed mregardless mof minsurability.
B: mThe mrates mcannot mbe mmore mthan mstandard mrates mat mrenewal.
C: mPremiums mare mbased moff mof mattained mage mrates.
D: mA mpolicy mcan mbe mrenewed, mhowever, mthe minsured mmust mconvert mto ma mdifferent mpolicy. m- mAnswer
m- mD: mA mpolicy mcan mbe mrenewed, mhowever, mthe minsured mmust mconvert mto ma mdifferent mpolicy.
Which mof mthe mfollowing mis mconsidered mto mbe mpart mof mthe mEntire mContract?
A: mDeclarations mPage
,B: mBuyers mGuide
C: mCopy mof mthe mApplication
D: mAll mof mthe mAbove m- mAnswer m- mC: mCopy mof mthe mApplication
Company mA mhas ma mpartnership mwith mCompany mZ. mThere mis man magreement min mplace mthat mif mthe mCEO
mof meither mcompany mwere mto mdie, mthe mother mcompany mwould mreceive mmoney mto mbuy mout mthe
mpartnership. mThis mis man mexample mof:
A: mBuy/Sell mAgreement
B: mCrosse mPurchase mplan
C: mBusiness mEntity mPlan
D: mKey mPerson m- mAnswer m- mC: mBusiness mEntity mPlan
All mof mthe mfollowing mare mtrue mregarding mthe mGuaranty mAssociation mEXCEPT:
A: mA mclaimant mmay mreceive mless mbenefits mthan mwhat mthey mhad mfrom ma mpolicy.
B: mThe mAssociation mis mcomprised mof mAll mmember minsurers
C: mThe mAssociation mis mcomprised mof mAll mmember minsurers mand mhave ma mright mto mend mmembership
mwhile mstill mtransacting mbusiness min mIL
D: mThere mis ma m$250,000 mlimit mon mthe mpresent mvalue mof mannuity mbenefits. m- mAnswer m- mC: mThe
mAssociation mis mcomprised mof mAll mmember minsurers mand mhave ma mright mto mend mmembership mwhile mstill
mtransacting mbusiness min mIL
G mhas ma mcredit mlife mpolicy mand mis mreplacing mthat mwith ma mwhole mlife mpolicy. mThe magent mmust:
A: mformally mreplace mcoverage mand minclude mall mforms mto mthe minsured
B: mnotify mthe mexisting minsurer mwith ma mnotice mregarding mreplacement mform
C: msign mthe mapplication mand mforward mall msigned mdocuments mto mthe mreplacing minsurer mto msend mto mthe
mexisting minsurer
D: mNone mof mthe mAbove m- mAnswer m- mD: mNone mof mthe mAbove
Each mof mthe mfollowing mis man munfair mclaims mpractice mby man minsurance mcompany, mEXCEPT:
A: mFailing mto macknowledging mimportant mcommunications mregarding mclaims mfiled min ma mtimely mmanner.
, B: mSupplying mbrochures mto mclaimants mthat mindicate ma mcompetitor mis min ma mprecarious mfinancial
mposition.
C: mPurposefully mmisrepresenting mimportant mpolicy mcoverage mand mprovisions mto mall mclaimants.
D: mNot msupplying mclaims mforms mwith mproper minstructions mregarding mtheir mcompletion. m- mAnswer m- mB:
mSupplying mbrochures mto mclaimants mthat mindicate ma mcompetitor mis min ma mprecarious mfinancial mposition.
All mof mthe mfollowing mstatements mpertaining mto ma mtemporary mlicense mare mtrue, mEXCEPT:
A: mthey msurvive mthe mtransfer mof mownership mof man minsurance mcompany mwho msponsored mthe mlicensee.
B: mthe mfee mis m$50.
C: mthe mDirector mmay mlimit mthem min many mmanner min morder mto mprotect mthe mpublic.
D: ma mlicensed msponsor mmay mbe mrequired. m- mAnswer m- mA: mthey msurvive mthe mtransfer mof mownership mof
man minsurance mcompany mwho msponsored mthe mlicensee.
A mTemporary mLicense m(180 mdays) mallows mthe mholder mto mengage min mall mof mthe mfollowing mactivities,
mEXCEPT:
A: ma msurviving mspouse mof ma mproducer mcan muse mthe mauthority mto mhelp meffect mthe msale mof mthe
minsurance mbusiness.
B: mmake mcertain mthat minsureds mare mpaying mrenewal mpremiums min ma mtimely mmanner.
C: mask mthe mDirector mto mextend mthe mauthority mif man manticipated magency msale mis mtaking mlonger mthan
m180 mdays.
D: msell ma mnew mpolicy mto man mexisting mclient. m- mAnswer m- mD: msell ma mnew mpolicy mto man mexisting mclient.
The msubject mof ma mmarket mconduct mexamination mfor mnon-financial mmatters mmay mrequest ma mhearing
mwithin mhow mmany mdays mafter mreceiving mthe mexamination mreport?
A: m10 mdays
B: m15 mdays
C: m20 mdays
D: m30 mdays m- mAnswer m- mA: m10 mdays
Which mof mthe mfollowing msales mis mclassified mas mcontrolled mbusiness?
A: mA mproducer mplaces ma mone mmillion mdollar mlife mpolicy mon mthe mlife mof mhis memployer
Verified Answers
J mhas ma mlife mpolicy mwith mthe mGuaranteed mInsurability mrider. mJ mhas mjust mcelebrated mtheir m42nd
mbirthday mand mrealizes mthat mshe mwants mto muse mher mrider mand mbuy mmore mdeath mbenefit. mWhich mof
mthe mfollowing mwill mapply mto mJ's mrequest?
A: mThe minsurer mwill mallow mJ mto madd mmore minsurance mwithout mproving minsurability.
B: mThe minsurer mwill mallow mJ mto madd mmore minsurance mpending ma mparamedical mexam.
C: mThe minsurer mwill mdeny mJ's mrequest mto madd mmore minsurance.
D: mThe minsurer mwill mallow mJ mto madd mmore mcoverage mpending mproof mof minsurability mand mextra
mpremium. m- mAnswer m- mC: mThe minsurer mwill mdeny mJ's mrequest mto madd mmore minsurance.
An minsured mhas ma mpolicy mwith ma mWaiver mof mPremium mrider. mThe minsured mhas msuffered man millness
mthat mwill mprevent mthem mfor mworking mfor mtwo myears. mWhen mwill mtheir mpremiums mbe mwaived?
A: mImmediately
B: mAfter mthe mfirst mnine mmonths mof mdisability
C: mAfter mthe mfirst msix mmonths mof mdisability
D: mNever, mpremiums mcannot mbe mwaived mbecause millness mis mnot ma mdisability. m- mAnswer m- mC: mAfter mthe
mfirst msix mmonths mof mdisability
The mclause mthat mdefines mand mdescribes mthe mscope mof mcoverage mand mthe mlimits mof mindemnification mis
mknown mas mthe:
A: mInsuring mAgreement
B: mIncontestable mClause
C: mPayor mClause
D: mEntire mContract mClause m- mAnswer m- mA: mInsuring mAgreement
,D mhas mjust mpaid moff mhis mmortgage mand mhas mdecided mthat mhe mno mlonger mneeds mhis mlife minsurance
mpolicy mwhich mhe moriginally mpurchased mto mcover mthe mhouse mpayments mshould mhe mdie. mIf mD mexplores
mthe mpossibly mof mselling mhis mpolicy mwhile mhe mis mstill malive, mit mis mknown mas:
A: ma mlife msettlement
B: man mannuity
C: ma mViatical msettlement
D: mSTOLI m- mAnswer m- mA: ma mlife msettlement
Combination/Variation mPlans minsure:
A: mGroups
B: mTwo mor mMore mlives munder mone mcontract
C: mTwo mor mmore mpeople munder mseparate mcontracts
D: mare ma mform mof mvariable mlife minsurance m- mAnswer m- mB: mTwo mor mMore mlives munder mone mcontract
What mis mthe mtax mconsideration mfor mtaking ma mcash mdividend moption?
A: mThe mdividend mis mfully mtaxable mas mincome
B: mThe mdividend mis mpaid mtax mfree
C: mDepending mon mincome mbracket mof mthe minsured, mthe mdividend mmay mbe mtaxable
D: mIf mthe mcompany mgets mto mkeep mhalf mof mthe mdividend mit mis mtake mfree m- mAnswer m- mB: mThe mdividend
mis mpaid mtax mfree
Which mof mthe mfollowing mis mnot mtrue mregarding ma mrenewable moption mon ma mterm mpolicy? m
A: mThe mpolicy mmust mbe mrenewed mregardless mof minsurability.
B: mThe mrates mcannot mbe mmore mthan mstandard mrates mat mrenewal.
C: mPremiums mare mbased moff mof mattained mage mrates.
D: mA mpolicy mcan mbe mrenewed, mhowever, mthe minsured mmust mconvert mto ma mdifferent mpolicy. m- mAnswer
m- mD: mA mpolicy mcan mbe mrenewed, mhowever, mthe minsured mmust mconvert mto ma mdifferent mpolicy.
Which mof mthe mfollowing mis mconsidered mto mbe mpart mof mthe mEntire mContract?
A: mDeclarations mPage
,B: mBuyers mGuide
C: mCopy mof mthe mApplication
D: mAll mof mthe mAbove m- mAnswer m- mC: mCopy mof mthe mApplication
Company mA mhas ma mpartnership mwith mCompany mZ. mThere mis man magreement min mplace mthat mif mthe mCEO
mof meither mcompany mwere mto mdie, mthe mother mcompany mwould mreceive mmoney mto mbuy mout mthe
mpartnership. mThis mis man mexample mof:
A: mBuy/Sell mAgreement
B: mCrosse mPurchase mplan
C: mBusiness mEntity mPlan
D: mKey mPerson m- mAnswer m- mC: mBusiness mEntity mPlan
All mof mthe mfollowing mare mtrue mregarding mthe mGuaranty mAssociation mEXCEPT:
A: mA mclaimant mmay mreceive mless mbenefits mthan mwhat mthey mhad mfrom ma mpolicy.
B: mThe mAssociation mis mcomprised mof mAll mmember minsurers
C: mThe mAssociation mis mcomprised mof mAll mmember minsurers mand mhave ma mright mto mend mmembership
mwhile mstill mtransacting mbusiness min mIL
D: mThere mis ma m$250,000 mlimit mon mthe mpresent mvalue mof mannuity mbenefits. m- mAnswer m- mC: mThe
mAssociation mis mcomprised mof mAll mmember minsurers mand mhave ma mright mto mend mmembership mwhile mstill
mtransacting mbusiness min mIL
G mhas ma mcredit mlife mpolicy mand mis mreplacing mthat mwith ma mwhole mlife mpolicy. mThe magent mmust:
A: mformally mreplace mcoverage mand minclude mall mforms mto mthe minsured
B: mnotify mthe mexisting minsurer mwith ma mnotice mregarding mreplacement mform
C: msign mthe mapplication mand mforward mall msigned mdocuments mto mthe mreplacing minsurer mto msend mto mthe
mexisting minsurer
D: mNone mof mthe mAbove m- mAnswer m- mD: mNone mof mthe mAbove
Each mof mthe mfollowing mis man munfair mclaims mpractice mby man minsurance mcompany, mEXCEPT:
A: mFailing mto macknowledging mimportant mcommunications mregarding mclaims mfiled min ma mtimely mmanner.
, B: mSupplying mbrochures mto mclaimants mthat mindicate ma mcompetitor mis min ma mprecarious mfinancial
mposition.
C: mPurposefully mmisrepresenting mimportant mpolicy mcoverage mand mprovisions mto mall mclaimants.
D: mNot msupplying mclaims mforms mwith mproper minstructions mregarding mtheir mcompletion. m- mAnswer m- mB:
mSupplying mbrochures mto mclaimants mthat mindicate ma mcompetitor mis min ma mprecarious mfinancial mposition.
All mof mthe mfollowing mstatements mpertaining mto ma mtemporary mlicense mare mtrue, mEXCEPT:
A: mthey msurvive mthe mtransfer mof mownership mof man minsurance mcompany mwho msponsored mthe mlicensee.
B: mthe mfee mis m$50.
C: mthe mDirector mmay mlimit mthem min many mmanner min morder mto mprotect mthe mpublic.
D: ma mlicensed msponsor mmay mbe mrequired. m- mAnswer m- mA: mthey msurvive mthe mtransfer mof mownership mof
man minsurance mcompany mwho msponsored mthe mlicensee.
A mTemporary mLicense m(180 mdays) mallows mthe mholder mto mengage min mall mof mthe mfollowing mactivities,
mEXCEPT:
A: ma msurviving mspouse mof ma mproducer mcan muse mthe mauthority mto mhelp meffect mthe msale mof mthe
minsurance mbusiness.
B: mmake mcertain mthat minsureds mare mpaying mrenewal mpremiums min ma mtimely mmanner.
C: mask mthe mDirector mto mextend mthe mauthority mif man manticipated magency msale mis mtaking mlonger mthan
m180 mdays.
D: msell ma mnew mpolicy mto man mexisting mclient. m- mAnswer m- mD: msell ma mnew mpolicy mto man mexisting mclient.
The msubject mof ma mmarket mconduct mexamination mfor mnon-financial mmatters mmay mrequest ma mhearing
mwithin mhow mmany mdays mafter mreceiving mthe mexamination mreport?
A: m10 mdays
B: m15 mdays
C: m20 mdays
D: m30 mdays m- mAnswer m- mA: m10 mdays
Which mof mthe mfollowing msales mis mclassified mas mcontrolled mbusiness?
A: mA mproducer mplaces ma mone mmillion mdollar mlife mpolicy mon mthe mlife mof mhis memployer
