WV STATE LIFE INSURANCE TEST BANK
2026 COMPLETE QUESTIONS AND
SOLUTIONS VERIFIED RESULTS
●● The dividend option in which the policyowner uses dividends to
purchase a term policy for one year is referred to as the
Answer: One-year term option.
●● The life insurance policy clause that prevents an insurance company
from denying payment of a death claim after a specified period of time is
known as the
Answer: Incontestability clause.
●● Which of the following describes the tax advantage of a qualified
retirement plan?
Answer: The earnings in the plan accumulate tax deferred.
●● Which nonforfeiture option has the highest amount of insurance
protection?
Answer: Extended Term
●● An insured under a life insurance policy has been diagnosed with a
terminal illness and has 6 months to live. The insured knows that his
, financial state will worsen even more with the upcoming medical
expenses. What option could the insured utilize?
Answer: Viatical settlement
●● 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.
●● An insured committed suicide one year after his life insurance policy
was issued. The insurer will
Answer: Refund the premiums paid.
●● What is the benefit of choosing extended term as a nonforfeiture
option?
Answer: It has the highest amount of insurance protection.
●● When a life insurance policy is cancelled and the insured has
selected the extended term nonforfeiture option, the cash value will be
used to purchase term insurance that has a face amount
Answer: Equal to the original policy for as long a period of time that the
cash values will purchase.
2026 COMPLETE QUESTIONS AND
SOLUTIONS VERIFIED RESULTS
●● The dividend option in which the policyowner uses dividends to
purchase a term policy for one year is referred to as the
Answer: One-year term option.
●● The life insurance policy clause that prevents an insurance company
from denying payment of a death claim after a specified period of time is
known as the
Answer: Incontestability clause.
●● Which of the following describes the tax advantage of a qualified
retirement plan?
Answer: The earnings in the plan accumulate tax deferred.
●● Which nonforfeiture option has the highest amount of insurance
protection?
Answer: Extended Term
●● An insured under a life insurance policy has been diagnosed with a
terminal illness and has 6 months to live. The insured knows that his
, financial state will worsen even more with the upcoming medical
expenses. What option could the insured utilize?
Answer: Viatical settlement
●● 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.
●● An insured committed suicide one year after his life insurance policy
was issued. The insurer will
Answer: Refund the premiums paid.
●● What is the benefit of choosing extended term as a nonforfeiture
option?
Answer: It has the highest amount of insurance protection.
●● When a life insurance policy is cancelled and the insured has
selected the extended term nonforfeiture option, the cash value will be
used to purchase term insurance that has a face amount
Answer: Equal to the original policy for as long a period of time that the
cash values will purchase.
