WV state life insurance Exam 2025
Questions and Answers
Absolute Assignment - --Answer --Policy assignment under which the
assignee (person to whom the policy is assigned) receives full control over the
policy and also full rights to its benefits. Generally, when a policy is assigned to
secure a debt, the owner retains all rights in the policy in excess of the debt, even
though the assignment is absolute in form.
Accidental Death Benefit Rider - --Answer --pays a multiple of the death
proceeds if the cause of death is a covered accidental event.
Accelerated Benefit Rider - --Answer --Allows the insured to receive a
portion of the death benefit prior to death if the insured has a terminal illness and
expected to die within 1-2 years. Whatever amount is withdrawn in an accelerated
death benefit will decrease the death benefit when death occurs.
Accumulate Interest Option - --Answer --The "accumulate interest"
dividend option allows the policy owner to leave dividends with the insurer to
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, accumulate interest. In turn, the policy owner will be required to pay taxes on any
interest (profit) generated by the dividend.
Assignment Clause - --Answer --allows the right to transfer policy rights to
another person or entity
Automatic Premium Loan Provision - --Answer --Authorizes insurer to
automatically pay any premium in default at the end of the grace period and charge
the amount so paid against the life insurance policy as a policy loan.
Cash option - --Answer --The "cash" dividend option allows the policy
owner to cash out the dividends they receive.
Cash Surrender Option - --Answer --A nonforfeiture option that allows
whole life insurance policy owners to receive a payout of their policy's cash values.
Collateral Assignment - --Answer --Assignment of a policy to a creditor as
security for a debt. The creditor is entitled to be reimbursed out of policy proceeds
for the amount owed. The beneficiary is entitled to any excess of policy proceeds
over the amount due the creditor in the event of the insured's death.
Consideration Clause - --Answer --states a policyowner must pay a premium
in exchange for the insurer's promise to pay benefits. A policyowner's
consideration consists of completing the application and paying the initial
premium. The amount and frequency of premium payments are contained in the
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Questions and Answers
Absolute Assignment - --Answer --Policy assignment under which the
assignee (person to whom the policy is assigned) receives full control over the
policy and also full rights to its benefits. Generally, when a policy is assigned to
secure a debt, the owner retains all rights in the policy in excess of the debt, even
though the assignment is absolute in form.
Accidental Death Benefit Rider - --Answer --pays a multiple of the death
proceeds if the cause of death is a covered accidental event.
Accelerated Benefit Rider - --Answer --Allows the insured to receive a
portion of the death benefit prior to death if the insured has a terminal illness and
expected to die within 1-2 years. Whatever amount is withdrawn in an accelerated
death benefit will decrease the death benefit when death occurs.
Accumulate Interest Option - --Answer --The "accumulate interest"
dividend option allows the policy owner to leave dividends with the insurer to
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, accumulate interest. In turn, the policy owner will be required to pay taxes on any
interest (profit) generated by the dividend.
Assignment Clause - --Answer --allows the right to transfer policy rights to
another person or entity
Automatic Premium Loan Provision - --Answer --Authorizes insurer to
automatically pay any premium in default at the end of the grace period and charge
the amount so paid against the life insurance policy as a policy loan.
Cash option - --Answer --The "cash" dividend option allows the policy
owner to cash out the dividends they receive.
Cash Surrender Option - --Answer --A nonforfeiture option that allows
whole life insurance policy owners to receive a payout of their policy's cash values.
Collateral Assignment - --Answer --Assignment of a policy to a creditor as
security for a debt. The creditor is entitled to be reimbursed out of policy proceeds
for the amount owed. The beneficiary is entitled to any excess of policy proceeds
over the amount due the creditor in the event of the insured's death.
Consideration Clause - --Answer --states a policyowner must pay a premium
in exchange for the insurer's promise to pay benefits. A policyowner's
consideration consists of completing the application and paying the initial
premium. The amount and frequency of premium payments are contained in the
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
