Insurance Exam Practice Exam: verified Questions
and Answers 2025\2026 A+ Grade
Pure or straight life
- correct answer Which of the following annuity benefit payment options would generate the highest
monthly payments to the contract owner upon annuitization?
Paid-up additions
1-year term
Cash
- correct answer All of the following are dividend options on a participating life insurance policy:
Insured
- correct answer The person upon whose life an annuity is based is known as the:
Reduced paid-up
- correct answer When a policyowner uses the cash value in their policy to buy a lesser amount of
permanent life insurance, they have exercised which nonforfeiture option:
Interest only
- correct answer Which of the following life insurance settlement options enables the beneficiary to
conserve the proceeds of a life insurance policy?
The account value
- correct answer In the case of a variable annuity sold to a senior citizen in this state for which the owner
has directed that the premium be invested in the mutual funds underlying the contract during the 30-
day cancellation period, cancellation during that period entitles the owner to a refund of:
They are purchased by those who are worried about outliving their savings.
They are not suitable as short term investments.
, They may be used as a life insurance settlement option.
- correct answer All of the following are true regarding annuities
Group (Life Insruance)
- correct answer Which of the following would not be considered to be ordinary life insurance?
They are not guaranteed
They are legally defined as a return of premium and are not taxable
They are paid out of the insurer's accumulated surplus
- correct answer All of the following are true regarding dividends paid by a mutual life insurance
company
Renewable
- correct answer Which type of term life insurance has a level face amount but a premium that increases
each year as the insured gets older?
The amount and frequency of future losses are unknown
- correct answer The transfer of risk to an insurance company is an effective risk management technique
when:
Change the beneficiary
Assign or transfer ownership in the policy
Take a loan
- correct answer The owner of a life insurance policy may do all of the following
The employer is the policyowner and the beneficiary
and Answers 2025\2026 A+ Grade
Pure or straight life
- correct answer Which of the following annuity benefit payment options would generate the highest
monthly payments to the contract owner upon annuitization?
Paid-up additions
1-year term
Cash
- correct answer All of the following are dividend options on a participating life insurance policy:
Insured
- correct answer The person upon whose life an annuity is based is known as the:
Reduced paid-up
- correct answer When a policyowner uses the cash value in their policy to buy a lesser amount of
permanent life insurance, they have exercised which nonforfeiture option:
Interest only
- correct answer Which of the following life insurance settlement options enables the beneficiary to
conserve the proceeds of a life insurance policy?
The account value
- correct answer In the case of a variable annuity sold to a senior citizen in this state for which the owner
has directed that the premium be invested in the mutual funds underlying the contract during the 30-
day cancellation period, cancellation during that period entitles the owner to a refund of:
They are purchased by those who are worried about outliving their savings.
They are not suitable as short term investments.
, They may be used as a life insurance settlement option.
- correct answer All of the following are true regarding annuities
Group (Life Insruance)
- correct answer Which of the following would not be considered to be ordinary life insurance?
They are not guaranteed
They are legally defined as a return of premium and are not taxable
They are paid out of the insurer's accumulated surplus
- correct answer All of the following are true regarding dividends paid by a mutual life insurance
company
Renewable
- correct answer Which type of term life insurance has a level face amount but a premium that increases
each year as the insured gets older?
The amount and frequency of future losses are unknown
- correct answer The transfer of risk to an insurance company is an effective risk management technique
when:
Change the beneficiary
Assign or transfer ownership in the policy
Take a loan
- correct answer The owner of a life insurance policy may do all of the following
The employer is the policyowner and the beneficiary
