WV State Life
Insurance Exam (175
questions and answer)
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as a: - answer Risk retention group
Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated? - answer 1970-Fair Credit
Reporting Act
Q purchases a $500,000 life insurance policy and pays $900 in premiums over
the first six months. Q dies suddenly and the beneficiary is paid $500,000. This
exchange of unequal values reflects which of the following insurance contract
features? - answer Aleatory
The stated amount or percent of liquid assets that an insurer must have on
hand that will satisfy future obligations to its policyholders is called: - answer
Reserves
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - answer Bilateral
,What year was the McCarran-Ferguson Act enacted? - answer 1945
Which of the following consists of an offer, acceptance, and consideration? -
answer Contract
Who elects the governing body of a mutual insurance company? - answer
Policyholders
Insurance policies are considered aleatory contracts because: - answer
Performance is conditioned upon a future occurrence
Who makes the legally enforceable promises in a unilateral contract? - answer
Insurance company
Insurance contracts are known as _____ because certain future conditions or
acts must occur before any claims can be paid. - answer Conditional
A life insurance arrangement which circumvents insurable interest statutes is
called: - answer Investor-Originated Life Insurance
In an insurance contract, the insurer is the only party who makes a legally
enforceable promise. What kind of contract is this? - answer Unilateral
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - answer Insurable interest in
the proposed insured
, Which of these arrangements allows one to bypass insurable interest laws? -
answer Investor-Originated Life Insurance
When must insurable interest exist for a life insurance contract to be valid? -
answer Inception of the contract
If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of? - answer Insured
Which of these is an element of a Variable Life policy? - answer A fixed, level
premium
A father who dies within 3 years after purchasing a life insurance policy on his
infant daughter can have the policy premiums waived under which provision?
- answer Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured
dies? - answer Policyowner
Which of the following actions is NOT possible with a Universal Life policy? -
answer Premiums may be applied as a credit against income tax
Which of the following policies is characterized by a flexible premium and
death benefit and allows the policy owner control of the investment aspect of
the plan? - answer Variable universal life
Insurance Exam (175
questions and answer)
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as a: - answer Risk retention group
Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated? - answer 1970-Fair Credit
Reporting Act
Q purchases a $500,000 life insurance policy and pays $900 in premiums over
the first six months. Q dies suddenly and the beneficiary is paid $500,000. This
exchange of unequal values reflects which of the following insurance contract
features? - answer Aleatory
The stated amount or percent of liquid assets that an insurer must have on
hand that will satisfy future obligations to its policyholders is called: - answer
Reserves
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - answer Bilateral
,What year was the McCarran-Ferguson Act enacted? - answer 1945
Which of the following consists of an offer, acceptance, and consideration? -
answer Contract
Who elects the governing body of a mutual insurance company? - answer
Policyholders
Insurance policies are considered aleatory contracts because: - answer
Performance is conditioned upon a future occurrence
Who makes the legally enforceable promises in a unilateral contract? - answer
Insurance company
Insurance contracts are known as _____ because certain future conditions or
acts must occur before any claims can be paid. - answer Conditional
A life insurance arrangement which circumvents insurable interest statutes is
called: - answer Investor-Originated Life Insurance
In an insurance contract, the insurer is the only party who makes a legally
enforceable promise. What kind of contract is this? - answer Unilateral
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - answer Insurable interest in
the proposed insured
, Which of these arrangements allows one to bypass insurable interest laws? -
answer Investor-Originated Life Insurance
When must insurable interest exist for a life insurance contract to be valid? -
answer Inception of the contract
If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of? - answer Insured
Which of these is an element of a Variable Life policy? - answer A fixed, level
premium
A father who dies within 3 years after purchasing a life insurance policy on his
infant daughter can have the policy premiums waived under which provision?
- answer Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured
dies? - answer Policyowner
Which of the following actions is NOT possible with a Universal Life policy? -
answer Premiums may be applied as a credit against income tax
Which of the following policies is characterized by a flexible premium and
death benefit and allows the policy owner control of the investment aspect of
the plan? - answer Variable universal life
