LIFE INSURANCE PRACTICE- EXAM GUIDE 2025
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Which of the following best describes annually renewable term insurance? - It is level
term insurance
A rider attached to a life insurance policy that provides coverage on the insured's family
memebers is called the - Other-insured rider
Which option for Universal life allows the beneficiary to collect both death benefit and cash
value when he dies - Option B
Example of apparent authority - Accepting late premiums after grace period
The President of a company is starting an annuity and decides that his corporation will be the
annuitant. Which of the following statements is true? - Corporations are never legal
annuitants
How many days does a licensee have to inform commissioner of change of address - 30
days
a man decides to purchase a $100,000 annually renewable term insurance life policy to provide
additional protection until his children finished college, he discovered that this policy -
required a premium increase at each renewal
Which is true about the cash surrender nonforfeiture option? - Funds exceeding the
premium paid are taxable as ordinary income.
A projection of insurance needs that is based upon the capitalization of a applicant's future
earnings is: - Human life value approach- is determined by the loss of income that would
result with the death of the insured, after making adjustments for expenses, inflation, etc.
State law specifically prohibits using illegal inducements in the marketing of
insurance. All of the following would be considered illegal inducements
, EXCEPT - Inviting prospective clients to the grand opening of the company's new office.
Cameron is purchasing a permanent life insurance policy with a face value of $25,000. While
this is all the insurance that he feels he can afford at this time, he wants to be sure that
additional coverage will be available in the future. He should include in this policy a -
Guaranteed insurability option
A prospective deferred annuity owner is concerned about what would happen if he surrendered
the annuity before the annuitization period. The agent most likely explained which of the
following? - b) Nonforfeiture option guarantees that the owner will receive a surrender
value of the contract.
An insured has a continuous premium whole life policy. She would like to use the policy
dividends to pay off her policy sooner than would have been possible otherwise. What dividend
option could she use? - Paid up option
All of the following statements about Credit Life insurance are true EXCEPT: - Benefits are
paid to the borrowers beneficiary (The creditor IS the beneficiary)
Randy transfers his life insurance policy to his son Andy two years before Randy's death. Which
of the following is true? - The entire face value of the policy will be included in Randy's
taxable estate.
What life insurance policy provision states that both the policy and a copy of the application
form the contract between the policyowner and the insurer? - Entire contract
Which of the following is the best reason to purchase life insurance rather than annuities? -
To create and estate
The death benefit under the Universal Life Option B - Gradually increases each year by
the amount that the cash value increases
the commissioner may waive pre licensing requirements for examinations for someone who has
been licensed insurance producer - In preceding 12 months
Abigail's father dies leaving her the designated beneficiary on his life insurance policy. She is
surprised to see that in addition to the face amount of the policy, she will also receive a refund
of all the of the premiums he had paid. Which rider is attached to the policy? - Return of
premium
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual
policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Which of the following best describes annually renewable term insurance? - It is level
term insurance
A rider attached to a life insurance policy that provides coverage on the insured's family
memebers is called the - Other-insured rider
Which option for Universal life allows the beneficiary to collect both death benefit and cash
value when he dies - Option B
Example of apparent authority - Accepting late premiums after grace period
The President of a company is starting an annuity and decides that his corporation will be the
annuitant. Which of the following statements is true? - Corporations are never legal
annuitants
How many days does a licensee have to inform commissioner of change of address - 30
days
a man decides to purchase a $100,000 annually renewable term insurance life policy to provide
additional protection until his children finished college, he discovered that this policy -
required a premium increase at each renewal
Which is true about the cash surrender nonforfeiture option? - Funds exceeding the
premium paid are taxable as ordinary income.
A projection of insurance needs that is based upon the capitalization of a applicant's future
earnings is: - Human life value approach- is determined by the loss of income that would
result with the death of the insured, after making adjustments for expenses, inflation, etc.
State law specifically prohibits using illegal inducements in the marketing of
insurance. All of the following would be considered illegal inducements
, EXCEPT - Inviting prospective clients to the grand opening of the company's new office.
Cameron is purchasing a permanent life insurance policy with a face value of $25,000. While
this is all the insurance that he feels he can afford at this time, he wants to be sure that
additional coverage will be available in the future. He should include in this policy a -
Guaranteed insurability option
A prospective deferred annuity owner is concerned about what would happen if he surrendered
the annuity before the annuitization period. The agent most likely explained which of the
following? - b) Nonforfeiture option guarantees that the owner will receive a surrender
value of the contract.
An insured has a continuous premium whole life policy. She would like to use the policy
dividends to pay off her policy sooner than would have been possible otherwise. What dividend
option could she use? - Paid up option
All of the following statements about Credit Life insurance are true EXCEPT: - Benefits are
paid to the borrowers beneficiary (The creditor IS the beneficiary)
Randy transfers his life insurance policy to his son Andy two years before Randy's death. Which
of the following is true? - The entire face value of the policy will be included in Randy's
taxable estate.
What life insurance policy provision states that both the policy and a copy of the application
form the contract between the policyowner and the insurer? - Entire contract
Which of the following is the best reason to purchase life insurance rather than annuities? -
To create and estate
The death benefit under the Universal Life Option B - Gradually increases each year by
the amount that the cash value increases
the commissioner may waive pre licensing requirements for examinations for someone who has
been licensed insurance producer - In preceding 12 months
Abigail's father dies leaving her the designated beneficiary on his life insurance policy. She is
surprised to see that in addition to the face amount of the policy, she will also receive a refund
of all the of the premiums he had paid. Which rider is attached to the policy? - Return of
premium
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual
policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best
