WV State Life Insurance Exam |
175 Complete Questions and
answers
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as a: - -Risk retention group
- Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated? - -1970-Fair Credit
Reporting Act
- Q purchases a $500,000 life insurance policy and pays $900 in premiums
over the first six months. Q dies suddenly and the beneficiary is paid
$500,000. This exchange of unequal values reflects which of the following
insurance contract features? - -Aleatory
- The stated amount or percent of liquid assets that an insurer must have on
hand that will satisfy future obligations to its policyholders is called: - -
Reserves
- All of the following are considered to be typical characteristics describing
the nature of an insurance contract, EXCEPT: - -Bilateral
- What year was the McCarran-Ferguson Act enacted? - -1945
- Which of the following consists of an offer, acceptance, and consideration?
- -Contract
- Who elects the governing body of a mutual insurance company? - -
Policyholders
- Insurance policies are considered aleatory contracts because: - -
Performance is conditioned upon a future occurrence
- Who makes the legally enforceable promises in a unilateral contract? - -
Insurance company
- Insurance contracts are known as _____ because certain future conditions
or acts must occur before any claims can be paid. - -Conditional
- A life insurance arrangement which circumvents insurable interest statutes
is called: - -Investor-Originated Life Insurance
, - In an insurance contract, the insurer is the only party who makes a legally
enforceable promise. What kind of contract is this? - -Unilateral
- When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have: - -Insurable interest in
the proposed insured
- Which of these arrangements allows one to bypass insurable interest laws?
- -Investor-Originated Life Insurance
- When must insurable interest exist for a life insurance contract to be valid?
- -Inception of the contract
- If a contract of adhesion contains complicated language, to whom would
the interpretation be in favor of? - -Insured
- Which of these is an element of a Variable Life policy? - -A fixed, level
premium
- 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? - -Payor provision
- Who benefits in Investor-Originated Life Insurance (IOLI) when the insured
dies? - -Policyowner
- Which of the following actions is NOT possible with a Universal Life policy?
- -Premiums may be applied as a credit against income tax
- Which of the following policies is characterized by a flexible premium and
death benefit and allows the policy owner control of the investment aspect of
the plan? - -Variable universal life
- A term life insurance policy matures: - -upon the insured's death during
the term of the policy
- What type of life policy covers two people and pays upon the death of the
last insured? - -Survivorship
- When is the face amount paid under a Joint Life and Survivor policy? - -
Upon the death of the last insured
- Variable Whole Life Insurance can be described as: - -Both an insurance
and securities product
175 Complete Questions and
answers
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as a: - -Risk retention group
- Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated? - -1970-Fair Credit
Reporting Act
- Q purchases a $500,000 life insurance policy and pays $900 in premiums
over the first six months. Q dies suddenly and the beneficiary is paid
$500,000. This exchange of unequal values reflects which of the following
insurance contract features? - -Aleatory
- The stated amount or percent of liquid assets that an insurer must have on
hand that will satisfy future obligations to its policyholders is called: - -
Reserves
- All of the following are considered to be typical characteristics describing
the nature of an insurance contract, EXCEPT: - -Bilateral
- What year was the McCarran-Ferguson Act enacted? - -1945
- Which of the following consists of an offer, acceptance, and consideration?
- -Contract
- Who elects the governing body of a mutual insurance company? - -
Policyholders
- Insurance policies are considered aleatory contracts because: - -
Performance is conditioned upon a future occurrence
- Who makes the legally enforceable promises in a unilateral contract? - -
Insurance company
- Insurance contracts are known as _____ because certain future conditions
or acts must occur before any claims can be paid. - -Conditional
- A life insurance arrangement which circumvents insurable interest statutes
is called: - -Investor-Originated Life Insurance
, - In an insurance contract, the insurer is the only party who makes a legally
enforceable promise. What kind of contract is this? - -Unilateral
- When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have: - -Insurable interest in
the proposed insured
- Which of these arrangements allows one to bypass insurable interest laws?
- -Investor-Originated Life Insurance
- When must insurable interest exist for a life insurance contract to be valid?
- -Inception of the contract
- If a contract of adhesion contains complicated language, to whom would
the interpretation be in favor of? - -Insured
- Which of these is an element of a Variable Life policy? - -A fixed, level
premium
- 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? - -Payor provision
- Who benefits in Investor-Originated Life Insurance (IOLI) when the insured
dies? - -Policyowner
- Which of the following actions is NOT possible with a Universal Life policy?
- -Premiums may be applied as a credit against income tax
- Which of the following policies is characterized by a flexible premium and
death benefit and allows the policy owner control of the investment aspect of
the plan? - -Variable universal life
- A term life insurance policy matures: - -upon the insured's death during
the term of the policy
- What type of life policy covers two people and pays upon the death of the
last insured? - -Survivorship
- When is the face amount paid under a Joint Life and Survivor policy? - -
Upon the death of the last insured
- Variable Whole Life Insurance can be described as: - -Both an insurance
and securities product
