WV State Life Insurance Exam Rated A+
_______ is the authority given to a producer to transact business on behalf of the
insurer - ANSWER-Appointment
___________ ___________ insurance is life or health insurance offered through direct-
response solicitation by a sponsoring organization - ANSWER-Mass marketed
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
A group life insurance policy insured may assign up to _____ of the insured's coverage -
ANSWER-100%
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
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would the
death proceeds be directed? - ANSWER-company x
A labor union must have at LEAST ____ members to be issued a group life policy -
ANSWER-25
A life insurance arrangement which circumvents insurable interest statutes is called: -
ANSWER-Investor-Originated Life Insurance
A life insurance policy owner recently died. The proceeds from this policy are NOT
exempt from a creditor's claims when they are payable to - ANSWER-The insured's
estate
A life policy loan in WV cannot charge a fixed rate of interest higher than - ANSWER-
8%
A Loss-Purchase Buy and Sell agreement among three partners, funded with individual
life insurance, would require how many policies? - ANSWER-6
A Medical Information Report (MIB) report may disclose which of the following: -
ANSWER-Prior use of marijuana
A noncontributory group term life plan is characterized by: - ANSWER-The entire cost of
the plan is paid for by the employer
A person who is insured within a group contract will be given a - ANSWER-certificate
, A policy loan is made possible by which of these life insurance policy features? -
ANSWER-Cash value provision
A policy owner is allowed to pay premiums more than once a year under which
provision? - ANSWER-Mode of premium
A policy owner is allowed to pay premiums more than once a year under which
provision? - ANSWER-Mode of premium
A policy owner's rights are limited under which beneficiary designation? - ANSWER-
Irrevocable
A policy that becomes a Modified Endowment Contract (MEC): - ANSWER-Will lose
many of its tax advantages
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - ANSWER-20-pay life
accumulates cash value faster than straight life
A prelicensing course must be successfully completed for which of the following? -
ANSWER-resident producer
A primary beneficiary has died before the insured in a life insurance policy. A contingent
beneficiary is also named in the policy. Which of the following will occur when the
insured dies? - ANSWER-Proceeds will go to the contingent beneficiary
A producer is making a sales presentation for a whole life insurance policy. Which of the
following statements may the producer guarantee during the presentation? -
ANSWER-"I will guarantee a return of my commissions as an incentive"
A producer must notify the insurance commissioner within ____ days following the final
deposition of an administrative action by any government agency - ANSWER-30
A producer who is a resident in another state but licensed to transact insurance in West
Virginia is called a(n) ______ producer - ANSWER-nonresident
A stock insurance company - ANSWER-is owned exclusively by its shareholders
A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? - ANSWER-Aviation exclusion
A term life insurance policy matures: - ANSWER-upon the insured's death during the
term of the policy
_______ is the authority given to a producer to transact business on behalf of the
insurer - ANSWER-Appointment
___________ ___________ insurance is life or health insurance offered through direct-
response solicitation by a sponsoring organization - ANSWER-Mass marketed
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
A group life insurance policy insured may assign up to _____ of the insured's coverage -
ANSWER-100%
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
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would the
death proceeds be directed? - ANSWER-company x
A labor union must have at LEAST ____ members to be issued a group life policy -
ANSWER-25
A life insurance arrangement which circumvents insurable interest statutes is called: -
ANSWER-Investor-Originated Life Insurance
A life insurance policy owner recently died. The proceeds from this policy are NOT
exempt from a creditor's claims when they are payable to - ANSWER-The insured's
estate
A life policy loan in WV cannot charge a fixed rate of interest higher than - ANSWER-
8%
A Loss-Purchase Buy and Sell agreement among three partners, funded with individual
life insurance, would require how many policies? - ANSWER-6
A Medical Information Report (MIB) report may disclose which of the following: -
ANSWER-Prior use of marijuana
A noncontributory group term life plan is characterized by: - ANSWER-The entire cost of
the plan is paid for by the employer
A person who is insured within a group contract will be given a - ANSWER-certificate
, A policy loan is made possible by which of these life insurance policy features? -
ANSWER-Cash value provision
A policy owner is allowed to pay premiums more than once a year under which
provision? - ANSWER-Mode of premium
A policy owner is allowed to pay premiums more than once a year under which
provision? - ANSWER-Mode of premium
A policy owner's rights are limited under which beneficiary designation? - ANSWER-
Irrevocable
A policy that becomes a Modified Endowment Contract (MEC): - ANSWER-Will lose
many of its tax advantages
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - ANSWER-20-pay life
accumulates cash value faster than straight life
A prelicensing course must be successfully completed for which of the following? -
ANSWER-resident producer
A primary beneficiary has died before the insured in a life insurance policy. A contingent
beneficiary is also named in the policy. Which of the following will occur when the
insured dies? - ANSWER-Proceeds will go to the contingent beneficiary
A producer is making a sales presentation for a whole life insurance policy. Which of the
following statements may the producer guarantee during the presentation? -
ANSWER-"I will guarantee a return of my commissions as an incentive"
A producer must notify the insurance commissioner within ____ days following the final
deposition of an administrative action by any government agency - ANSWER-30
A producer who is a resident in another state but licensed to transact insurance in West
Virginia is called a(n) ______ producer - ANSWER-nonresident
A stock insurance company - ANSWER-is owned exclusively by its shareholders
A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? - ANSWER-Aviation exclusion
A term life insurance policy matures: - ANSWER-upon the insured's death during the
term of the policy
