IOWA LIFE INSURANCE EXAM 2025
QUESTIONS AND ANSWERS
How does an indexed annuity differ from a fixed annuity? - ANS Indexed annuity owners may
receive credited interest tied to the fluctuations of the linked index
(An indexed annuity differs from a fixed annuity in that indexed annuity owners may received
credited interest tied to the fluctuations of the linked index)
When third party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have - ANS insurance interest in the purposed insured
(In third-party ownership, an applicant who is also the stated primary beneficiary must have an
insurable interest in the proposed insured)
Under an Interest Sensitive Whole Life policy - ANS Cash values are determined by interest
rates
(Under an Interest Sensitive Whole Life policy, the cash value accrues according to market
value, except in the case of some companies which offer a guaranteed interest rate
independent of markets)
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE -
ANS Evidence of insurability is required when the option is exercised
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, What is the MINIMUM age for an individual to be a licensed Iowa Insurance producer? -
ANS 18
All of these are considered to be a benefit under Social Security, EXCEPT for -
ANS unemployment
Which of the following is NOT a reason for the Commissioner to revoke a producer's license? -
ANS Producer is insolvent
A producer has influenced an existing policyowner to convert an existing whole life policy to
Reduced Paid-up Insurance. The producer then sells the policyowner a new universal life policy.
This transaction is called - ANS Replacement
(Taking an existing whole life policy and converting it to reduced paid-up insurance while
immediately taking out a new life policy is considered replacement, which is a heavily-regulated
transaction)
What type of life policy covers two people and pays upon the death of the last insured? -
ANS Survivorship
Which of the following is an important underwriting principle of group life insurance? -
ANS Everyone must be covered in the group
Why is an applicant's signature required on a life insurance application? - ANS To attest that
the statements on the application are accurate to the best of the applicant's knowledge
K, age 45, and his wife, age 43, have three children. They purchase a Family Policy that covers
K's wife to age 65. All of these situations will pay a death benefit except - ANS K's wife dies at
age 66
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
QUESTIONS AND ANSWERS
How does an indexed annuity differ from a fixed annuity? - ANS Indexed annuity owners may
receive credited interest tied to the fluctuations of the linked index
(An indexed annuity differs from a fixed annuity in that indexed annuity owners may received
credited interest tied to the fluctuations of the linked index)
When third party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have - ANS insurance interest in the purposed insured
(In third-party ownership, an applicant who is also the stated primary beneficiary must have an
insurable interest in the proposed insured)
Under an Interest Sensitive Whole Life policy - ANS Cash values are determined by interest
rates
(Under an Interest Sensitive Whole Life policy, the cash value accrues according to market
value, except in the case of some companies which offer a guaranteed interest rate
independent of markets)
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE -
ANS Evidence of insurability is required when the option is exercised
1 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
, What is the MINIMUM age for an individual to be a licensed Iowa Insurance producer? -
ANS 18
All of these are considered to be a benefit under Social Security, EXCEPT for -
ANS unemployment
Which of the following is NOT a reason for the Commissioner to revoke a producer's license? -
ANS Producer is insolvent
A producer has influenced an existing policyowner to convert an existing whole life policy to
Reduced Paid-up Insurance. The producer then sells the policyowner a new universal life policy.
This transaction is called - ANS Replacement
(Taking an existing whole life policy and converting it to reduced paid-up insurance while
immediately taking out a new life policy is considered replacement, which is a heavily-regulated
transaction)
What type of life policy covers two people and pays upon the death of the last insured? -
ANS Survivorship
Which of the following is an important underwriting principle of group life insurance? -
ANS Everyone must be covered in the group
Why is an applicant's signature required on a life insurance application? - ANS To attest that
the statements on the application are accurate to the best of the applicant's knowledge
K, age 45, and his wife, age 43, have three children. They purchase a Family Policy that covers
K's wife to age 65. All of these situations will pay a death benefit except - ANS K's wife dies at
age 66
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
