Page |1
WV State Life Insurance Exam Questions
and Correct Answers/ Latest Update /
Already Graded
A group-owned insurance company that is formed to assume and
spread the liability risks of its members is known as a:
Ans: Risk retention group
Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated?
Ans: 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?
Ans: 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:
Ans: Reserves
All rights reserved © 2025/ 2026 |
, Page |2
All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT:
Ans: Bilateral
What year was the McCarran-Ferguson Act enacted?
Ans: 1945
Which of the following consists of an offer, acceptance, and
consideration?
Ans: Contract
Who elects the governing body of a mutual insurance company?
Ans: Policyholders
Insurance policies are considered aleatory contracts because:
Ans: Performance is conditioned upon a future occurrence
Who makes the legally enforceable promises in a unilateral contract?
Ans: Insurance company
All rights reserved © 2025/ 2026 |
, Page |3
Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid.
Ans: Conditional
A life insurance arrangement which circumvents insurable interest
statutes is called:
Ans: 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?
Ans: Unilateral
When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have:
Ans: Insurable interest in the proposed insured
Which of these arrangements allows one to bypass insurable interest
laws?
Ans: Investor-Originated Life Insurance
All rights reserved © 2025/ 2026 |
, Page |4
When must insurable interest exist for a life insurance contract to be
valid?
Ans: Inception of the contract
If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of?
Ans: Insured
Which of these is an element of a Variable Life policy?
Ans: 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?
Ans: Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the
insured dies?
Ans: Policyowner
All rights reserved © 2025/ 2026 |
WV State Life Insurance Exam Questions
and Correct Answers/ Latest Update /
Already Graded
A group-owned insurance company that is formed to assume and
spread the liability risks of its members is known as a:
Ans: Risk retention group
Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated?
Ans: 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?
Ans: 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:
Ans: Reserves
All rights reserved © 2025/ 2026 |
, Page |2
All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT:
Ans: Bilateral
What year was the McCarran-Ferguson Act enacted?
Ans: 1945
Which of the following consists of an offer, acceptance, and
consideration?
Ans: Contract
Who elects the governing body of a mutual insurance company?
Ans: Policyholders
Insurance policies are considered aleatory contracts because:
Ans: Performance is conditioned upon a future occurrence
Who makes the legally enforceable promises in a unilateral contract?
Ans: Insurance company
All rights reserved © 2025/ 2026 |
, Page |3
Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid.
Ans: Conditional
A life insurance arrangement which circumvents insurable interest
statutes is called:
Ans: 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?
Ans: Unilateral
When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have:
Ans: Insurable interest in the proposed insured
Which of these arrangements allows one to bypass insurable interest
laws?
Ans: Investor-Originated Life Insurance
All rights reserved © 2025/ 2026 |
, Page |4
When must insurable interest exist for a life insurance contract to be
valid?
Ans: Inception of the contract
If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of?
Ans: Insured
Which of these is an element of a Variable Life policy?
Ans: 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?
Ans: Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the
insured dies?
Ans: Policyowner
All rights reserved © 2025/ 2026 |
