LIFE INSURANCE PRACTICE EXAM QUESTIONS
AND COMPLETE ANSWERS
Insurable Receipt CORRECT ANSWERS The reciept given to a life insurance applicant when the application is completed and the initial premium is received is called a(n)
Representations CORRECT ANSWERS Statements in the application for insurance that are believed to be true to the best of the applicants knowledge are
Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate CORRECT ANSWERS An annuity is considered fixed when it does all of the following EXCEPT
Continuous Premium (straight) life CORRECT ANSWERS The most common type of whole life
insurance where premiums are payable over the whole life of the insured to age 100 is called.
Entire contract CORRECT ANSWERS The policy and a copy of the application, along with any riders and amendments, is called the
Not taxable CORRECT ANSWERS Money borrowed from the policy's cash value is
All annuities (Variable, Deferreed & Equity Indexed) CORRECT ANSWERS Which of the following annuity products requires an agent to hold a securities license?
Life income annuity CORRECT ANSWERS Which type of annuity settlement stops when the annuitant dies?
59 1/2 CORRECT ANSWERS At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty Buy-Sell Agreement CORRECT ANSWERS Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use
the death benefit to purchase the deceased's business interests?
Adjustable life CORRECT ANSWERS Which type of policy allows the insured to change the amount of the dwah benefit, the amount of premium, or the type of coverage S their needs change?
Either the cash value or the premiums paid, whichever is greater CORRECT ANSWERS If an annuitant dies during the accumulation period, what will the beneficiary receive?
Nonadmitted CORRECT ANSWERS Any insurer who is NOT approved to do business in this state is considered
Insurable Interest Exists CORRECT ANSWERS To prevent people from profiting from a loss, insurers is the certain
Adjusts the death benefit based on the premiums that were paid CORRECT ANSWERS If a misstatement of age is discovered during the processing of a life insurance claim what will the insurer do?
Policy Exclusions CORRECT ANSWERS Which of the following allows an insurance company to deny coverage of the insurers eewth occurs in war?
Evidence of insurability is usually required CORRECT ANSWERS Each of the following is a typical characteristic of groups life insurance EXCEPT
AND COMPLETE ANSWERS
Insurable Receipt CORRECT ANSWERS The reciept given to a life insurance applicant when the application is completed and the initial premium is received is called a(n)
Representations CORRECT ANSWERS Statements in the application for insurance that are believed to be true to the best of the applicants knowledge are
Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate CORRECT ANSWERS An annuity is considered fixed when it does all of the following EXCEPT
Continuous Premium (straight) life CORRECT ANSWERS The most common type of whole life
insurance where premiums are payable over the whole life of the insured to age 100 is called.
Entire contract CORRECT ANSWERS The policy and a copy of the application, along with any riders and amendments, is called the
Not taxable CORRECT ANSWERS Money borrowed from the policy's cash value is
All annuities (Variable, Deferreed & Equity Indexed) CORRECT ANSWERS Which of the following annuity products requires an agent to hold a securities license?
Life income annuity CORRECT ANSWERS Which type of annuity settlement stops when the annuitant dies?
59 1/2 CORRECT ANSWERS At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty Buy-Sell Agreement CORRECT ANSWERS Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use
the death benefit to purchase the deceased's business interests?
Adjustable life CORRECT ANSWERS Which type of policy allows the insured to change the amount of the dwah benefit, the amount of premium, or the type of coverage S their needs change?
Either the cash value or the premiums paid, whichever is greater CORRECT ANSWERS If an annuitant dies during the accumulation period, what will the beneficiary receive?
Nonadmitted CORRECT ANSWERS Any insurer who is NOT approved to do business in this state is considered
Insurable Interest Exists CORRECT ANSWERS To prevent people from profiting from a loss, insurers is the certain
Adjusts the death benefit based on the premiums that were paid CORRECT ANSWERS If a misstatement of age is discovered during the processing of a life insurance claim what will the insurer do?
Policy Exclusions CORRECT ANSWERS Which of the following allows an insurance company to deny coverage of the insurers eewth occurs in war?
Evidence of insurability is usually required CORRECT ANSWERS Each of the following is a typical characteristic of groups life insurance EXCEPT
