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Life Insurance Exam Questions and
Correct Answers/ Latest Update /
Already Graded
J has a life policy with the Guaranteed Insurability rider. J has just
celebrated their 42nd birthday and realizes that she wants to use her
rider and buy more death benefit. Which of the following will apply
to J's request?
A: The insurer will allow J to add more insurance without proving
insurability.
B: The insurer will allow J to add more insurance pending a
paramedical exam.
C: The insurer will deny J's request to add more insurance.
D: The insurer will allow J to add more coverage pending proof of
insurability and extra premium.
Ans: C: The insurer will deny J's request to add more insurance.
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An insured has a policy with a Waiver of Premium rider. The insured
has suffered an illness that will prevent them for working for two
years. When will their premiums be waived?
A: Immediately
B: After the first nine months of disability
C: After the first six months of disability
D: Never, premiums cannot be waived because illness is not a
disability.
Ans: C: After the first six months of disability
The clause that defines and describes the scope of coverage and
the limits of indemnification is known as the:
A: Insuring Agreement
B: Incontestable Clause
C: Payor Clause
D: Entire Contract Clause
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Ans: A: Insuring Agreement
D has just paid off his mortgage and has decided that he no longer
needs his life insurance policy which he originally purchased to cover
the house payments should he die. If D explores the possibly of selling
his policy while he is still alive, it is known as:
A: a life settlement
B: an annuity
C: a Viatical settlement
D: STOLI
Ans: A: a life settlement
Combination/Variation Plans insure:
A: Groups
B: Two or More lives under one contract
C: Two or more people under separate contracts
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D: are a form of variable life insurance
Ans: B: Two or More lives under one contract
What is the tax consideration for taking a cash dividend option?
A: The dividend is fully taxable as income
B: The dividend is paid tax free
C: Depending on income bracket of the insured, the dividend may
be taxable
D: If the company gets to keep half of the dividend it is take free
Ans: B: The dividend is paid tax free
Which of the following is not true regarding a renewable option on a
term policy?
A: The policy must be renewed regardless of insurability.
B: The rates cannot be more than standard rates at renewal.
C: Premiums are based off of attained age rates.
Life Insurance Exam Questions and
Correct Answers/ Latest Update /
Already Graded
J has a life policy with the Guaranteed Insurability rider. J has just
celebrated their 42nd birthday and realizes that she wants to use her
rider and buy more death benefit. Which of the following will apply
to J's request?
A: The insurer will allow J to add more insurance without proving
insurability.
B: The insurer will allow J to add more insurance pending a
paramedical exam.
C: The insurer will deny J's request to add more insurance.
D: The insurer will allow J to add more coverage pending proof of
insurability and extra premium.
Ans: C: The insurer will deny J's request to add more insurance.
,2|Page
An insured has a policy with a Waiver of Premium rider. The insured
has suffered an illness that will prevent them for working for two
years. When will their premiums be waived?
A: Immediately
B: After the first nine months of disability
C: After the first six months of disability
D: Never, premiums cannot be waived because illness is not a
disability.
Ans: C: After the first six months of disability
The clause that defines and describes the scope of coverage and
the limits of indemnification is known as the:
A: Insuring Agreement
B: Incontestable Clause
C: Payor Clause
D: Entire Contract Clause
,3|Page
Ans: A: Insuring Agreement
D has just paid off his mortgage and has decided that he no longer
needs his life insurance policy which he originally purchased to cover
the house payments should he die. If D explores the possibly of selling
his policy while he is still alive, it is known as:
A: a life settlement
B: an annuity
C: a Viatical settlement
D: STOLI
Ans: A: a life settlement
Combination/Variation Plans insure:
A: Groups
B: Two or More lives under one contract
C: Two or more people under separate contracts
, 4|Page
D: are a form of variable life insurance
Ans: B: Two or More lives under one contract
What is the tax consideration for taking a cash dividend option?
A: The dividend is fully taxable as income
B: The dividend is paid tax free
C: Depending on income bracket of the insured, the dividend may
be taxable
D: If the company gets to keep half of the dividend it is take free
Ans: B: The dividend is paid tax free
Which of the following is not true regarding a renewable option on a
term policy?
A: The policy must be renewed regardless of insurability.
B: The rates cannot be more than standard rates at renewal.
C: Premiums are based off of attained age rates.
