WV STATE LIFE INSURANCE FINAL
TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
◍ Which statement is TRUE regarding a Variable Whole Life policy?.
Answer: A minimum guaranteed Death benefit is provided; Variable is
based on fluctuating investments. Everything larger than the minimum death
benefit may or may not be paid, just depends on the investment variables.
◍ The Commissioner can examine anyone in the business of insurance in the
state at anytime. A company shall be examined every 5 years..
Answer: Examination of Records
◍ the Commissioner may call and hold hearings for any purpose deemed
necessary..
Answer: Notice and Hearing
◍ At what point does an informal agreement become a binding contract?.
Answer: When consideration is provided by one of the parties of the
contract; Informal to binding means someone considered it enough to make
it happen
◍ the commissioner may conduct investigations or examinations whenever
deemed necessary, subpoena the witnesses to testify..
Answer: Insurance Commissioner
◍ K buys a policy where the premium stays fixed for the first 5 years. The
premium then increases in year 6 and stays level thereafter, all the while the
death benefit remains the same. What kind of policy is this?.
Answer: Modified Whole Life; The premium is paid on a modified schedule
but lasts whole life
,◍ K is looking to purchase Renewable Term Insurance. Which of these types
of Term Insurance may be renewable?.
Answer: Level; Think of renewable as refillable, you can level a glass of
water back to the top after its gone
◍ What provision in a life insurance policy states that the application is
considered part of the contract?.
Answer: Entire Contract provision; Think application plus contract equals
THE ENTIRE THING
◍ the commissioner may issue this order to any person committed of an unfair
or deceptive act..
Answer: cease and desist order
◍ Under a renewable term policy:.
Answer: The renewal premium is calculated on the basis of the insured's
attained age
◍ Which of these statements is INCORRECT regarding the federal income tax
treatment of life insurance?.
Answer: Entire cash surrender value is taxable; Only gained income is
taxable!!!
◍ What action will an insurer take if an interest payment on a policy loan is
not made on time?.
Answer: Automatically add the amount of interest due to the loan balance
◍ Which of the following information is NOT required to be included in a
Whole Life policy?.
Answer: Policy's guaranteed dividend table; Dividends are never
guaranteed!
◍ Insurance policies are offered on a "take it or leave it" basis, which make
them:.
Answer: Contracts of Adhesion; Adhesion means no negotiating, its take it
or leave it basically
, ◍ solicitation or inducement to purchase insurance, negotiations towards the
sale of insurance, executing a contract of insurance, advising on coverages
and claims..
Answer: Insurance Transaction
◍ S is covered by a whole life policy. Which insurance product can cover his
children?.
Answer: Child term rider
◍ an applicant for a West Virginia insurer must be: 18 years of age, not
committed any act that is grounds for suspension etc., completed a pre
licensing course, passed the state exam, submit the app with fees, not
intended to use the license primarily for controlled business, deemed
trustworthy and competent..
Answer: Producer
◍ Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements?.
Answer: Legal Purpose (Insurable Interest); Think violating a contract isnt
legal
◍ must complete 24 hrs of continuing education every 2 years to keep their
license. 3 of these hours are to be in ethics..
Answer: Continuing Education
◍ The Commissioner requires all applicants be fingerprinted and background
checked before obtaining their ins. license..
Answer: Fingerprinting
◍ The Consideration clause of an insurance contract includes:.
Answer: the schedule and amount of premium payments; THINK What you
consider to pay and when
◍ Under an Interest Sensitive Whole Life policy, what determinds the cash
value?.
Answer: cash values are determined by interest rates
TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
◍ Which statement is TRUE regarding a Variable Whole Life policy?.
Answer: A minimum guaranteed Death benefit is provided; Variable is
based on fluctuating investments. Everything larger than the minimum death
benefit may or may not be paid, just depends on the investment variables.
◍ The Commissioner can examine anyone in the business of insurance in the
state at anytime. A company shall be examined every 5 years..
Answer: Examination of Records
◍ the Commissioner may call and hold hearings for any purpose deemed
necessary..
Answer: Notice and Hearing
◍ At what point does an informal agreement become a binding contract?.
Answer: When consideration is provided by one of the parties of the
contract; Informal to binding means someone considered it enough to make
it happen
◍ the commissioner may conduct investigations or examinations whenever
deemed necessary, subpoena the witnesses to testify..
Answer: Insurance Commissioner
◍ K buys a policy where the premium stays fixed for the first 5 years. The
premium then increases in year 6 and stays level thereafter, all the while the
death benefit remains the same. What kind of policy is this?.
Answer: Modified Whole Life; The premium is paid on a modified schedule
but lasts whole life
,◍ K is looking to purchase Renewable Term Insurance. Which of these types
of Term Insurance may be renewable?.
Answer: Level; Think of renewable as refillable, you can level a glass of
water back to the top after its gone
◍ What provision in a life insurance policy states that the application is
considered part of the contract?.
Answer: Entire Contract provision; Think application plus contract equals
THE ENTIRE THING
◍ the commissioner may issue this order to any person committed of an unfair
or deceptive act..
Answer: cease and desist order
◍ Under a renewable term policy:.
Answer: The renewal premium is calculated on the basis of the insured's
attained age
◍ Which of these statements is INCORRECT regarding the federal income tax
treatment of life insurance?.
Answer: Entire cash surrender value is taxable; Only gained income is
taxable!!!
◍ What action will an insurer take if an interest payment on a policy loan is
not made on time?.
Answer: Automatically add the amount of interest due to the loan balance
◍ Which of the following information is NOT required to be included in a
Whole Life policy?.
Answer: Policy's guaranteed dividend table; Dividends are never
guaranteed!
◍ Insurance policies are offered on a "take it or leave it" basis, which make
them:.
Answer: Contracts of Adhesion; Adhesion means no negotiating, its take it
or leave it basically
, ◍ solicitation or inducement to purchase insurance, negotiations towards the
sale of insurance, executing a contract of insurance, advising on coverages
and claims..
Answer: Insurance Transaction
◍ S is covered by a whole life policy. Which insurance product can cover his
children?.
Answer: Child term rider
◍ an applicant for a West Virginia insurer must be: 18 years of age, not
committed any act that is grounds for suspension etc., completed a pre
licensing course, passed the state exam, submit the app with fees, not
intended to use the license primarily for controlled business, deemed
trustworthy and competent..
Answer: Producer
◍ Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements?.
Answer: Legal Purpose (Insurable Interest); Think violating a contract isnt
legal
◍ must complete 24 hrs of continuing education every 2 years to keep their
license. 3 of these hours are to be in ethics..
Answer: Continuing Education
◍ The Commissioner requires all applicants be fingerprinted and background
checked before obtaining their ins. license..
Answer: Fingerprinting
◍ The Consideration clause of an insurance contract includes:.
Answer: the schedule and amount of premium payments; THINK What you
consider to pay and when
◍ Under an Interest Sensitive Whole Life policy, what determinds the cash
value?.
Answer: cash values are determined by interest rates
