IOWA LIFE INSURANCE EXAM SCRIPT 2025/2026
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Advertisements - ✔✔Must meet stringent state requirements of accuracy and
truthfulness and clarity. Words like "investment", "profit", "savings", and "retirement
plan" are PROHIBITED. "Vanishing Deductible" must be associated with guaranteed
rates. Paid endorsements must be disclaimed
✔✔Life and Health Guarantee Association - ✔✔Advertising by the insurer that suggests
the insured is protected from financial loss by the Life and Health Guaranty Association
is forbidden by state law
✔✔Suitability - ✔✔An agent has the responsibility to sell suitable policies based upon
the particular circumstances of the prospect
✔✔Illustration - ✔✔Insurance commissioner must approve any _________ used
(in advertising)
✔✔Name of insurer
Name and address of producer
Name, age, and sex of proposed insured
Underwriting classification
Name and type of policy
Initial death benefit - ✔✔Information required in a life illustration
✔✔Represent policy as anything other than life insurance
Mislead about non-guaranteed features
Use the term "Vanishing Premium"
Use incomplete illustrations - ✔✔Four activities insurers are prohibited from doing with
illustrations
✔✔Policy Summary - ✔✔Describes the main benefits, features, and exclusions of the
policy. Must include agent's & agency's name and address, and at least 5 years of
premium and benefit patterns. Will also show the life insurance policy cost comparison
information
✔✔Buyer's Guide - ✔✔**Helps prospective buyers** decide how much and what type of
life insurance they need. Describes term, whole life and endowment types with pros and
cons of each. Difference between participating and non-participating policies
✔✔Before an application may be accepted - ✔✔When is a Buyer's Guide furnished?
✔✔Use of life insurance
,Agents/funeral home relationship
Merch guarantees
Nonpayment of premium outcome - ✔✔Four items that need to be disclosed in a funeral
prearrangement
✔✔Interest-adjusted Method/Surrender Cost Index - ✔✔3 methods are taken into
account, the accumulated premium, accumulated dividend, and cash value surrender
value. Premium and dividends are accumulated at 5% interest. Cash value and
accumulated dividends are subtracted from accumulated premium. This result is then
divided by an "annuity factor" to determine the annual factor for the index
✔✔Comparative Interest Rate Method - ✔✔COMPARES INTEREST RATE that would
be needed on the premiums and dividends paid to reach the policy cash value at the
specified period. The policy with the highest rate would be considered preferable
✔✔Replacement - ✔✔Any transaction in which new insurance or a new annuity is to be
purchased and it is known or should be known to the proposing agent or broker or to the
proposing insurer if there is no agent
✔✔"Twisting" - ✔✔Is replacing an existing policy with another detriment of the
policyholder
✔✔1) Furnish the insurer, on a statement signed by the applicant and producer, info
about the existence of insurance or annuity contracts
2) Read to the applicant from a statement called "Notice Regarding Replacement" or
get consent of applicant not to read the statement; a signed copy of notice furnished to
applicant
3) Leave sales material used in presentation with the applicant
4) Send copies of the sales materials to insurer or send a signed statement to the
insurer that only materials furnished by insurer were used - ✔✔Steps that the producer
needs to complete when replacing a policy:
✔✔5 days - ✔✔(Steps that the producer needs to complete when replacing a policy)
NOTIFY PRIOR INSURER WITHIN ____ DAYS
✔✔30 day - ✔✔(Steps that the producer needs to complete when replacing a policy)
GIVE THE APPLICANT A ____ DAY "FREE LOOK"
✔✔In House - ✔✔(Steps that the producer needs to complete when replacing a policy)
Allow prior time credit for incontestable clause and suicide clause periods when the
replacement is ___________
✔✔5 years - ✔✔(Steps that the producer needs to complete when replacing a policy)
Retain all replacement records for ______
, ✔✔5 days - ✔✔(Steps to by completed by existing insurer in a replacement transaction)
The prior insurance company will send an in-force illustration within _________ of
receiving notice of the replacement
✔✔Why the insurance is needed
How it will be used
Who will have access to it
Assurance that the information obtained will be confidential - ✔✔What does the
producer need to tell the applicant about the use and disclosure information?:
✔✔The agent - ✔✔Who completes the insurance application?
✔✔When the error that has been corrected has been initialed by the applicant -
✔✔When can the application be changed?
✔✔Backdating a policy more than 6 months is prohibited - ✔✔What are the rules about
backdating a policy?
✔✔Application completed and medical exam completed - ✔✔What are the two
conditions that need to be met for the application to be covered if a conditional receipt
has been issued?
✔✔Three conditions that need to be met for a policy to be effective - ✔✔Application for
insurance is approved
Policy is issued
Policy is delivered
✔✔Before delivering the policy - ✔✔When is a statement of good health required?
✔✔6 pieces of information used for underwriting an insurance policy - ✔✔Application
Producer Report
Attending Physician's Statement
Investigative Consumer Report
Medical Information Bureau Report
Medical Examinations:
✔✔HIV Testing Rules - ✔✔State code requires applicants give consent for HIV testing.
A release form must be given which explains the purpose, consent, use, and meaning
of test and disclosure of results
✔✔Temporary Protection - ✔✔Written for a specified period of time
✔✔Pure Protection - ✔✔Pays only for death with no cash value of its own
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Advertisements - ✔✔Must meet stringent state requirements of accuracy and
truthfulness and clarity. Words like "investment", "profit", "savings", and "retirement
plan" are PROHIBITED. "Vanishing Deductible" must be associated with guaranteed
rates. Paid endorsements must be disclaimed
✔✔Life and Health Guarantee Association - ✔✔Advertising by the insurer that suggests
the insured is protected from financial loss by the Life and Health Guaranty Association
is forbidden by state law
✔✔Suitability - ✔✔An agent has the responsibility to sell suitable policies based upon
the particular circumstances of the prospect
✔✔Illustration - ✔✔Insurance commissioner must approve any _________ used
(in advertising)
✔✔Name of insurer
Name and address of producer
Name, age, and sex of proposed insured
Underwriting classification
Name and type of policy
Initial death benefit - ✔✔Information required in a life illustration
✔✔Represent policy as anything other than life insurance
Mislead about non-guaranteed features
Use the term "Vanishing Premium"
Use incomplete illustrations - ✔✔Four activities insurers are prohibited from doing with
illustrations
✔✔Policy Summary - ✔✔Describes the main benefits, features, and exclusions of the
policy. Must include agent's & agency's name and address, and at least 5 years of
premium and benefit patterns. Will also show the life insurance policy cost comparison
information
✔✔Buyer's Guide - ✔✔**Helps prospective buyers** decide how much and what type of
life insurance they need. Describes term, whole life and endowment types with pros and
cons of each. Difference between participating and non-participating policies
✔✔Before an application may be accepted - ✔✔When is a Buyer's Guide furnished?
✔✔Use of life insurance
,Agents/funeral home relationship
Merch guarantees
Nonpayment of premium outcome - ✔✔Four items that need to be disclosed in a funeral
prearrangement
✔✔Interest-adjusted Method/Surrender Cost Index - ✔✔3 methods are taken into
account, the accumulated premium, accumulated dividend, and cash value surrender
value. Premium and dividends are accumulated at 5% interest. Cash value and
accumulated dividends are subtracted from accumulated premium. This result is then
divided by an "annuity factor" to determine the annual factor for the index
✔✔Comparative Interest Rate Method - ✔✔COMPARES INTEREST RATE that would
be needed on the premiums and dividends paid to reach the policy cash value at the
specified period. The policy with the highest rate would be considered preferable
✔✔Replacement - ✔✔Any transaction in which new insurance or a new annuity is to be
purchased and it is known or should be known to the proposing agent or broker or to the
proposing insurer if there is no agent
✔✔"Twisting" - ✔✔Is replacing an existing policy with another detriment of the
policyholder
✔✔1) Furnish the insurer, on a statement signed by the applicant and producer, info
about the existence of insurance or annuity contracts
2) Read to the applicant from a statement called "Notice Regarding Replacement" or
get consent of applicant not to read the statement; a signed copy of notice furnished to
applicant
3) Leave sales material used in presentation with the applicant
4) Send copies of the sales materials to insurer or send a signed statement to the
insurer that only materials furnished by insurer were used - ✔✔Steps that the producer
needs to complete when replacing a policy:
✔✔5 days - ✔✔(Steps that the producer needs to complete when replacing a policy)
NOTIFY PRIOR INSURER WITHIN ____ DAYS
✔✔30 day - ✔✔(Steps that the producer needs to complete when replacing a policy)
GIVE THE APPLICANT A ____ DAY "FREE LOOK"
✔✔In House - ✔✔(Steps that the producer needs to complete when replacing a policy)
Allow prior time credit for incontestable clause and suicide clause periods when the
replacement is ___________
✔✔5 years - ✔✔(Steps that the producer needs to complete when replacing a policy)
Retain all replacement records for ______
, ✔✔5 days - ✔✔(Steps to by completed by existing insurer in a replacement transaction)
The prior insurance company will send an in-force illustration within _________ of
receiving notice of the replacement
✔✔Why the insurance is needed
How it will be used
Who will have access to it
Assurance that the information obtained will be confidential - ✔✔What does the
producer need to tell the applicant about the use and disclosure information?:
✔✔The agent - ✔✔Who completes the insurance application?
✔✔When the error that has been corrected has been initialed by the applicant -
✔✔When can the application be changed?
✔✔Backdating a policy more than 6 months is prohibited - ✔✔What are the rules about
backdating a policy?
✔✔Application completed and medical exam completed - ✔✔What are the two
conditions that need to be met for the application to be covered if a conditional receipt
has been issued?
✔✔Three conditions that need to be met for a policy to be effective - ✔✔Application for
insurance is approved
Policy is issued
Policy is delivered
✔✔Before delivering the policy - ✔✔When is a statement of good health required?
✔✔6 pieces of information used for underwriting an insurance policy - ✔✔Application
Producer Report
Attending Physician's Statement
Investigative Consumer Report
Medical Information Bureau Report
Medical Examinations:
✔✔HIV Testing Rules - ✔✔State code requires applicants give consent for HIV testing.
A release form must be given which explains the purpose, consent, use, and meaning
of test and disclosure of results
✔✔Temporary Protection - ✔✔Written for a specified period of time
✔✔Pure Protection - ✔✔Pays only for death with no cash value of its own
