LIFE INSURANCE EXAM 7 COMPREHENSIVE
SCRIPT 2026 QUESTIONS AND SOLUTIONS
◉ insurable interest
(General Concept) Answer: - must exist at the time of the application
- insuring one's own life, family member, or a business partner
◉ Solicitation and sales presentation Answer: - illustration-
presentation of nonguaranteed elements
- buyer's guide is generic information about life polices which must
be provided at the time of application
- policy summary is a description of features and benefits of the
policy being issued and must be provided when the policy is
delivered.
◉ Underwriting (Field underwriting (by agent) Answer: -
application completed and signed
- agent's report: agent's observation about the application that can
assist in underwriting
-premiums with application and conditional receipts
,◉ underwriting ( company underwriting) Answer: - multiple
sources of information: applications, consumer reports, MIB
(Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard,
preferred
◉ Underwriting (Federal Regulation) Answer: - Fair Credit
Reporting Act: protect consumers against circulations of inaccurate
or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity
Reports Rules
◉ Premium Determination Answer: - 3 key Factors for life
insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher the
premium
◉ Policy Issue and Delivery Answer: Effective date of coverage - if
the premium is not paid with the application, the agent must obtain
the premium and a statement of continued good health at the time of
the policy delivery
◉ Agent/ Producer Answer: a legal representative of an insurance
company; the classification of producers usually includes agents and
brokers' agents are the agents of the insurer
, ◉ Applicant of proposed insured Answer: a person applying for
insurance
◉ Beneficiary Answer: a person who receives the benefits of an
insurance policy
◉ Broker Answer: an insurance producer who is not appointed by
an insurance company and who represents the client
◉ Death benefits Answer: the amount paid upon death of the
insured in a life insurance policy
◉ Estate Answer: a person's net worth
◉ Insurance policy Answer: a contact between a policyowner
(and/or insured) and an insurance company which agrees to pay
insured or the beneficiary for loss caused by specific events.
◉ Insured Answer: a person covered by the insurance policy; may or
may not be the policyowner
◉ insurer (principal) Answer: the company who issues an insurance
policy
SCRIPT 2026 QUESTIONS AND SOLUTIONS
◉ insurable interest
(General Concept) Answer: - must exist at the time of the application
- insuring one's own life, family member, or a business partner
◉ Solicitation and sales presentation Answer: - illustration-
presentation of nonguaranteed elements
- buyer's guide is generic information about life polices which must
be provided at the time of application
- policy summary is a description of features and benefits of the
policy being issued and must be provided when the policy is
delivered.
◉ Underwriting (Field underwriting (by agent) Answer: -
application completed and signed
- agent's report: agent's observation about the application that can
assist in underwriting
-premiums with application and conditional receipts
,◉ underwriting ( company underwriting) Answer: - multiple
sources of information: applications, consumer reports, MIB
(Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard,
preferred
◉ Underwriting (Federal Regulation) Answer: - Fair Credit
Reporting Act: protect consumers against circulations of inaccurate
or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity
Reports Rules
◉ Premium Determination Answer: - 3 key Factors for life
insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher the
premium
◉ Policy Issue and Delivery Answer: Effective date of coverage - if
the premium is not paid with the application, the agent must obtain
the premium and a statement of continued good health at the time of
the policy delivery
◉ Agent/ Producer Answer: a legal representative of an insurance
company; the classification of producers usually includes agents and
brokers' agents are the agents of the insurer
, ◉ Applicant of proposed insured Answer: a person applying for
insurance
◉ Beneficiary Answer: a person who receives the benefits of an
insurance policy
◉ Broker Answer: an insurance producer who is not appointed by
an insurance company and who represents the client
◉ Death benefits Answer: the amount paid upon death of the
insured in a life insurance policy
◉ Estate Answer: a person's net worth
◉ Insurance policy Answer: a contact between a policyowner
(and/or insured) and an insurance company which agrees to pay
insured or the beneficiary for loss caused by specific events.
◉ Insured Answer: a person covered by the insurance policy; may or
may not be the policyowner
◉ insurer (principal) Answer: the company who issues an insurance
policy
