LIFE INSURANCE PRACTICE EXAM
QUESTIONS WITH CORRECT ANSWERS
Adjusts the death benefit based on the premiums that were paid - ANSWER-If a
misstatement of age is discovered during the processing of a life insurance claim what
will the insurer do?
Policy Exclusions - ANSWER-Which of the following allows an insurance company to
deny coverage of the insurers death occurs in war?
Evidence of insurability is usually required - ANSWER-Each of the following is a typical
characteristic of groups life insurance EXCEPT
Fixed-Period Installments - ANSWER-A life settlement option that pays out the death
benefit is. Incrementally, in a specified amount until all of the proceeds are exhausted, is
called
Not subject to any taxes - ANSWER-A life insurance death benefit paid in a lump sum to
a beneficiary is
Accumulation at Interest - ANSWER-Which of the following is NOT a nonforfeiture
option in whole life policies?
Annuitant - ANSWER-Which of the following indicates the person upon whose life the
annuity income amount is determined?
Single premium immediate annuity - ANSWER-An annuity that is purchased with a
lump-sum payment, and that begins income payments within one year is a
Dividends are NOT taxable - ANSWER-Which statement is INCORRECT concerning
policy dividends
Substandard - ANSWER-What is the risk classification for those who are insurable, but
have a higher than average risk?
The coverage decrease but the premiums stay the same - ANSWER-At age 25, an
individual purchased a decreasing term policy. What happens to the coverage and the
premiums as the insured gets older?
Insurer - ANSWER-An insurance agent represents the
Insurance - ANSWER-The transfer of a possible financial loss to another party refers to
QUESTIONS WITH CORRECT ANSWERS
Adjusts the death benefit based on the premiums that were paid - ANSWER-If a
misstatement of age is discovered during the processing of a life insurance claim what
will the insurer do?
Policy Exclusions - ANSWER-Which of the following allows an insurance company to
deny coverage of the insurers death occurs in war?
Evidence of insurability is usually required - ANSWER-Each of the following is a typical
characteristic of groups life insurance EXCEPT
Fixed-Period Installments - ANSWER-A life settlement option that pays out the death
benefit is. Incrementally, in a specified amount until all of the proceeds are exhausted, is
called
Not subject to any taxes - ANSWER-A life insurance death benefit paid in a lump sum to
a beneficiary is
Accumulation at Interest - ANSWER-Which of the following is NOT a nonforfeiture
option in whole life policies?
Annuitant - ANSWER-Which of the following indicates the person upon whose life the
annuity income amount is determined?
Single premium immediate annuity - ANSWER-An annuity that is purchased with a
lump-sum payment, and that begins income payments within one year is a
Dividends are NOT taxable - ANSWER-Which statement is INCORRECT concerning
policy dividends
Substandard - ANSWER-What is the risk classification for those who are insurable, but
have a higher than average risk?
The coverage decrease but the premiums stay the same - ANSWER-At age 25, an
individual purchased a decreasing term policy. What happens to the coverage and the
premiums as the insured gets older?
Insurer - ANSWER-An insurance agent represents the
Insurance - ANSWER-The transfer of a possible financial loss to another party refers to
