Life Insurance West Virginia State Exam
Prep Test Bank Questions and Correct
Answers/ West Virginia Life Insurance/
WV Life Insurance MOST RECENT
(Graded A+)
General Life Insurance Principles
1. What is the primary purpose of life insurance?
A) To serve as an investment vehicle
B) To provide financial protection against premature death
C) To replace lost income due to disability
D) To accumulate wealth tax-free
Answer: B - Life insurance is primarily designed to provide financial
security to beneficiaries upon the death of the insured.
2. Which type of life insurance offers both a death benefit and a cash
value component?
A) Term life
B) Whole life
C) Accidental death
D) Group life
,Answer: B - Whole life insurance includes a savings element (cash value)
that grows over time, unlike term life which is pure protection.
3. Under a life insurance policy, the "incontestability clause" generally
becomes effective after how long?
A) 6 months
B) 1 year
C) 2 years
D) 3 years
Answer: C - After the policy has been in force for 2 years, the insurer
cannot contest the policy based on misstatements in the application except
for fraud.
4. A policyowner would like to change the beneficiary on a Life
insurance policy and make the change permanent. Which type of
designation would fulfill this need?
A) Revocable
B) Contingent
C) Irrevocable
D) Primary
Answer: C - An irrevocable beneficiary designation cannot be changed
without the beneficiary's consent, making it permanent.
Policy Provisions & Riders
,5. What kind of life insurance policy pays a specified monthly income
to a beneficiary for 30 years and then pays a lump sum benefit at the
end of that 30 years?
A) Family Lump Sum Policy
B) Family Maintenance Policy
C) Family Income Policy
D) Survivorship Policy
Answer: B - A Family Maintenance Policy provides periodic income
payments followed by a final lump sum.
6. A life insurance policy which ensures that the premium will be paid
if the insured becomes disabled has what kind of rider attached?
A) Accelerated Benefits
B) Waiver of Premium
C) Cost of Living
D) Return of Premium
Answer: B - The Waiver of Premium rider waives premium payments if the
insured becomes totally disabled.
7. B owns a Whole Life policy with a guaranteed insurability option
that allows him to purchase, without evidence of insurability, stated
amounts of:
A) additional Term Life coverage at any time
B) additional Term Life coverage at specified intervals
C) additional Whole Life coverage at any time
D) additional Whole Life coverage at specified times
, Answer: D - Guaranteed Insurability allows purchase of additional Whole
Life coverage at specified times without evidence of insurability.
8. Which of these Nonforfeiture Options continues a build-up of cash
value?
A) Extended Term
B) Reduced Paid-Up
C) Cash Surrender
D) Both A and B
Answer: B - Reduced Paid-Up insurance continues with no further
premiums and the cash value continues to build.
West Virginia State Law Questions
9. According to West Virginia law, a group life insurance policy
requires at LEAST ___ insureds.
A) Two
B) Five
C) Ten
D) Twenty
Answer: A - West Virginia law allows group life policies with as few as two
insureds.
10. A domestic insurance company in West Virginia MUST:
Prep Test Bank Questions and Correct
Answers/ West Virginia Life Insurance/
WV Life Insurance MOST RECENT
(Graded A+)
General Life Insurance Principles
1. What is the primary purpose of life insurance?
A) To serve as an investment vehicle
B) To provide financial protection against premature death
C) To replace lost income due to disability
D) To accumulate wealth tax-free
Answer: B - Life insurance is primarily designed to provide financial
security to beneficiaries upon the death of the insured.
2. Which type of life insurance offers both a death benefit and a cash
value component?
A) Term life
B) Whole life
C) Accidental death
D) Group life
,Answer: B - Whole life insurance includes a savings element (cash value)
that grows over time, unlike term life which is pure protection.
3. Under a life insurance policy, the "incontestability clause" generally
becomes effective after how long?
A) 6 months
B) 1 year
C) 2 years
D) 3 years
Answer: C - After the policy has been in force for 2 years, the insurer
cannot contest the policy based on misstatements in the application except
for fraud.
4. A policyowner would like to change the beneficiary on a Life
insurance policy and make the change permanent. Which type of
designation would fulfill this need?
A) Revocable
B) Contingent
C) Irrevocable
D) Primary
Answer: C - An irrevocable beneficiary designation cannot be changed
without the beneficiary's consent, making it permanent.
Policy Provisions & Riders
,5. What kind of life insurance policy pays a specified monthly income
to a beneficiary for 30 years and then pays a lump sum benefit at the
end of that 30 years?
A) Family Lump Sum Policy
B) Family Maintenance Policy
C) Family Income Policy
D) Survivorship Policy
Answer: B - A Family Maintenance Policy provides periodic income
payments followed by a final lump sum.
6. A life insurance policy which ensures that the premium will be paid
if the insured becomes disabled has what kind of rider attached?
A) Accelerated Benefits
B) Waiver of Premium
C) Cost of Living
D) Return of Premium
Answer: B - The Waiver of Premium rider waives premium payments if the
insured becomes totally disabled.
7. B owns a Whole Life policy with a guaranteed insurability option
that allows him to purchase, without evidence of insurability, stated
amounts of:
A) additional Term Life coverage at any time
B) additional Term Life coverage at specified intervals
C) additional Whole Life coverage at any time
D) additional Whole Life coverage at specified times
, Answer: D - Guaranteed Insurability allows purchase of additional Whole
Life coverage at specified times without evidence of insurability.
8. Which of these Nonforfeiture Options continues a build-up of cash
value?
A) Extended Term
B) Reduced Paid-Up
C) Cash Surrender
D) Both A and B
Answer: B - Reduced Paid-Up insurance continues with no further
premiums and the cash value continues to build.
West Virginia State Law Questions
9. According to West Virginia law, a group life insurance policy
requires at LEAST ___ insureds.
A) Two
B) Five
C) Ten
D) Twenty
Answer: A - West Virginia law allows group life policies with as few as two
insureds.
10. A domestic insurance company in West Virginia MUST:
