214 License EXAM comprehensive questions |
FREQUENTLY MOST TESTED QUESTIONS AND
VERIFIED SOLUTIONS/GET IT 100% ACCURATE!! 214
License Exam|| 2025/2026 UPDATE
Which of the following describes a participating insurance policy? -CORRECTANSWER
Policyowners are entitled to receive dividends
At what point must a life insurance applicant be informed of their rights that fall under
the Fair Credit Reporting Act? -CORRECTANSWER Upon completion of the application
Dividends payable to a policyowner are: -CORRECTANSWER Declared by the
insurance company.
At what point does an informal agreement become a binding contract? -
CORRECTANSWER When consideration is provided by one of the parties to the
contract
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have -CORRECTANSWER Insurable interest in the
proposed insured
,Which of the following arrangements allows one to bypass insurable interest laws? -
CORRECTANSWER (STOLI) or Investor Originated Life Insurance
Taking receipt of premiums and holding them for the insurance company is an example
of -CORRECTANSWER Fiduciary Responsibility
A policy of adhesion can only be modified by whom? -CORRECTANSWER The
Insurance Company
The exchange of unequal values reflects: -CORRECTANSWER Aleatory
Life and health insurance policies are -CORRECTANSWER Unilateral Contracts (one
makes promise, other can only accept by performance
The consideration clause of insurance contract includes -CORRECTANSWER The
schedule and amount of premium payments
A life insurance arrangement which circumvents insurable interest values is called -
CORRECTANSWER Investor Originated Life Insurance (IOLI)
Who makes the legally enforceable promises in a unilateral contract? -
CORRECTANSWER The Insurance Company
, A life insurance policy would be considered a wagering contract WITHOUT: -
CORRECTANSWER Insurable Interest
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called: -CORRECTANSWER Whole Life Policy
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? -
CORRECTANSWER the Policyowner(investor)
K purchased a Life insurance policy in 1986 which paid 10% interest in the early years
of the policy. Twenty years after the purchase, she received a notice from the insurer
stating that the policy will soon terminate unless a much-higher premium is paid
because of falling interest rates. This type of policy is known as: -CORRECTANSWER
Universal Life Policy
Which of these would be considered a Limited-Pay-Life policy? -CORRECTANSWER
Life Paid Up at Age 70
K is looking to purchase Renewable Term insurance. Which of these types of Term
insurance may be renewable? -CORRECTANSWER Level Term Policy (pays same
death benefit if insured dies any time during policy)
FREQUENTLY MOST TESTED QUESTIONS AND
VERIFIED SOLUTIONS/GET IT 100% ACCURATE!! 214
License Exam|| 2025/2026 UPDATE
Which of the following describes a participating insurance policy? -CORRECTANSWER
Policyowners are entitled to receive dividends
At what point must a life insurance applicant be informed of their rights that fall under
the Fair Credit Reporting Act? -CORRECTANSWER Upon completion of the application
Dividends payable to a policyowner are: -CORRECTANSWER Declared by the
insurance company.
At what point does an informal agreement become a binding contract? -
CORRECTANSWER When consideration is provided by one of the parties to the
contract
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have -CORRECTANSWER Insurable interest in the
proposed insured
,Which of the following arrangements allows one to bypass insurable interest laws? -
CORRECTANSWER (STOLI) or Investor Originated Life Insurance
Taking receipt of premiums and holding them for the insurance company is an example
of -CORRECTANSWER Fiduciary Responsibility
A policy of adhesion can only be modified by whom? -CORRECTANSWER The
Insurance Company
The exchange of unequal values reflects: -CORRECTANSWER Aleatory
Life and health insurance policies are -CORRECTANSWER Unilateral Contracts (one
makes promise, other can only accept by performance
The consideration clause of insurance contract includes -CORRECTANSWER The
schedule and amount of premium payments
A life insurance arrangement which circumvents insurable interest values is called -
CORRECTANSWER Investor Originated Life Insurance (IOLI)
Who makes the legally enforceable promises in a unilateral contract? -
CORRECTANSWER The Insurance Company
, A life insurance policy would be considered a wagering contract WITHOUT: -
CORRECTANSWER Insurable Interest
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called: -CORRECTANSWER Whole Life Policy
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? -
CORRECTANSWER the Policyowner(investor)
K purchased a Life insurance policy in 1986 which paid 10% interest in the early years
of the policy. Twenty years after the purchase, she received a notice from the insurer
stating that the policy will soon terminate unless a much-higher premium is paid
because of falling interest rates. This type of policy is known as: -CORRECTANSWER
Universal Life Policy
Which of these would be considered a Limited-Pay-Life policy? -CORRECTANSWER
Life Paid Up at Age 70
K is looking to purchase Renewable Term insurance. Which of these types of Term
insurance may be renewable? -CORRECTANSWER Level Term Policy (pays same
death benefit if insured dies any time during policy)
