DELAWARE LIFE INSURANCE EXAMINATION
TEST 2026 KEY TERMS AND MEANINGS FULL
STUDY SHEET
Upon the death of the insured, the primary beneficiary discovers
that the insured chose the interest only settlement option. What
does this mean? Answer; The beneficiary will only receive payments
of the interest earned on the death benefit
If a life insurance policy has an irrevocable beneficiary designation,
Answer; the beneficiary can only be changed with written
permission of the beneficiary
Which of the following terms means a result of calculation based on
the average number of months the insured is projected to live due to
medical history and mortality factors Answer; life expectancy
Which is NOT true about beneficiary designations? Answer; The
beneficiary must have insurable interest in the insured.
which of the following is true regarding taxation of dividends in
participating policies? Answer; dividends are not taxable
An insured will be allowed to reactivate her lapsed life insurance
policy if action is taken within a certain period of time, and proof of
insurability is provided. Which policy provision allows this? Answer;
reinstatement provision
Which of the following allows the insurer to relieve a minor insured
from premium payments if the minor's parent have died or become
disabled? Answer; payor benefit
,The policyowner wants to make sure that upon his death, the life
policy will pay a portion of the proceeds annually to his spouse, but
that the principal will be paid to their children when they reach a
certain age. Which settlement option should the policyowner
choose? Answer; interest only option
a prospective insured receives a conditional receipt but dies before
the policy is issued. the insurer will Answer; pay the policy proceeds
only if it would have issued the policy
a domestic insurer issuing variable contracts must establish one or
more Answer; separate accounts
Which life insurance settlement option guarantees payments for the
lifetime of the recipient, but also specifies a guaranteed period,
during which, if the original recipient dies, the payments will
continue to a designated beneficiary? Answer; Life income with
period certain
within how many days of requesting an investigative consumer
report must an insurer notify the consumer in writing that the
report will be obtained? Answer; 3 days
when a life insurance policy was issued, the policyowner designated
a primary and a contingent beneficiary.
Several years later, both the insured and the primary beneficiary
died in the same car accident, and it was impossible to determine
who died first.
Which of the following would receive the death benefit? Answer; the
insured's contingent beneficiary
which of the following is TRUE regarding the premium in term
policies? Answer; the premium is level
, all of the following are examples of third-party ownership of a life
insurance policy EXCEPT Answer; an insured borrows money from
the bank and makes a collateral assignment of a part of the death
benefit to secure the loan
which of the following types of policies will provide permanent
protection? Answer; whole life
The type of settlement option which pays throughout the lifetimes of
two or more beneficiaries is called Answer; joint and survivor
which of the following is NOT true regarding equity indexed
annuities Answer; they earn lower interest rates than fixed annuities
An insured purchased a 10-year level term life policy that is
guaranteed renewable and convertible. What happens at the end of
the 10-year term? Answer; the insured may renew the policy for
another 10 years, but at a higher premium rate
all of the following are true regarding the guaranteed insurability
rider EXCEPT Answer; The rider is available to all insured
which of the following terms is used to name the nontaxed return of
unused premiums? Answer; dividend
when an insured under a life insurance policy dies, the designated
beneficiary received the face amount of the policy as well as a refund
of all of the premiums paid. which rider is attached to policy?
Answer; return of premium
the ownership provision entitles the policyowner to do all of the
following EXCEPT Answer; set premium rates
which of the following is the best reason to purchase life insurance
rather than annuities? Answer; to create an estate
TEST 2026 KEY TERMS AND MEANINGS FULL
STUDY SHEET
Upon the death of the insured, the primary beneficiary discovers
that the insured chose the interest only settlement option. What
does this mean? Answer; The beneficiary will only receive payments
of the interest earned on the death benefit
If a life insurance policy has an irrevocable beneficiary designation,
Answer; the beneficiary can only be changed with written
permission of the beneficiary
Which of the following terms means a result of calculation based on
the average number of months the insured is projected to live due to
medical history and mortality factors Answer; life expectancy
Which is NOT true about beneficiary designations? Answer; The
beneficiary must have insurable interest in the insured.
which of the following is true regarding taxation of dividends in
participating policies? Answer; dividends are not taxable
An insured will be allowed to reactivate her lapsed life insurance
policy if action is taken within a certain period of time, and proof of
insurability is provided. Which policy provision allows this? Answer;
reinstatement provision
Which of the following allows the insurer to relieve a minor insured
from premium payments if the minor's parent have died or become
disabled? Answer; payor benefit
,The policyowner wants to make sure that upon his death, the life
policy will pay a portion of the proceeds annually to his spouse, but
that the principal will be paid to their children when they reach a
certain age. Which settlement option should the policyowner
choose? Answer; interest only option
a prospective insured receives a conditional receipt but dies before
the policy is issued. the insurer will Answer; pay the policy proceeds
only if it would have issued the policy
a domestic insurer issuing variable contracts must establish one or
more Answer; separate accounts
Which life insurance settlement option guarantees payments for the
lifetime of the recipient, but also specifies a guaranteed period,
during which, if the original recipient dies, the payments will
continue to a designated beneficiary? Answer; Life income with
period certain
within how many days of requesting an investigative consumer
report must an insurer notify the consumer in writing that the
report will be obtained? Answer; 3 days
when a life insurance policy was issued, the policyowner designated
a primary and a contingent beneficiary.
Several years later, both the insured and the primary beneficiary
died in the same car accident, and it was impossible to determine
who died first.
Which of the following would receive the death benefit? Answer; the
insured's contingent beneficiary
which of the following is TRUE regarding the premium in term
policies? Answer; the premium is level
, all of the following are examples of third-party ownership of a life
insurance policy EXCEPT Answer; an insured borrows money from
the bank and makes a collateral assignment of a part of the death
benefit to secure the loan
which of the following types of policies will provide permanent
protection? Answer; whole life
The type of settlement option which pays throughout the lifetimes of
two or more beneficiaries is called Answer; joint and survivor
which of the following is NOT true regarding equity indexed
annuities Answer; they earn lower interest rates than fixed annuities
An insured purchased a 10-year level term life policy that is
guaranteed renewable and convertible. What happens at the end of
the 10-year term? Answer; the insured may renew the policy for
another 10 years, but at a higher premium rate
all of the following are true regarding the guaranteed insurability
rider EXCEPT Answer; The rider is available to all insured
which of the following terms is used to name the nontaxed return of
unused premiums? Answer; dividend
when an insured under a life insurance policy dies, the designated
beneficiary received the face amount of the policy as well as a refund
of all of the premiums paid. which rider is attached to policy?
Answer; return of premium
the ownership provision entitles the policyowner to do all of the
following EXCEPT Answer; set premium rates
which of the following is the best reason to purchase life insurance
rather than annuities? Answer; to create an estate
