Insurance Exam Practice
Questions with 100% Correct
SOLUTIONs Latest UPDATE 2025/2026
100% GUARANTEED PASS!!!(A+
GRADED 100% VERIFIED)
1. All of the following are dividend options on a participating life insurance
policy: - ANSWER ✓ Paid-up additions
1-year term
Cash
2. All of the following are true regarding key person life insurance: -
ANSWER ✓ The employer is the policyowner and the beneficiary
Death benefits are payable to the employer tax free
The employee is the insured
3. If a corporation and a shareholder enter into an agreement that requires the
corporation to buy the shareholder's shares upon his or her death, they have
entered into: - ANSWER ✓ A buy/sell agreement
4. All of following are required nonforfeiture options or provisions on a cash
value life insurance policy: - ANSWER ✓ Extended term
Cash surrender
Reduced paid-up
5. The greater the number of similar exposure units insured, the easier it will be
to predict future claims based upon the law of: - ANSWER ✓ Large
numbers
, 6. List in order from the lowest annual premium to the highest: - ANSWER ✓
Modified, ordinary, limited pay, single premium
7. Group life insurance policies may exclude all of the following: - ANSWER
✓ Military
Aviation
War
(EXCEPT Accidents)
8. Which risk classification will have the highest premium? - ANSWER ✓
Non-standard
9. The person upon whose life a life insurance policy is based is known as the:
- ANSWER ✓ Insured
10.A client who wants life insurance protection and cash values that fluctuate in
value based upon the performance of a separate account should purchase: -
ANSWER ✓ Variable life
11.When making a life settlement, a policyowner will permanently transfer all
rights of ownership in the policy to another party by making a(n): -
ANSWER ✓ Absolute assignment
12.Which of the following completes the application for life insurance? -
ANSWER ✓ Applicant
13.If the beneficiary of a life insurance policy wants $1,000 per month for as
long as the money lasts, they should choose the ________ settlement option.
- ANSWER ✓ Fixed amount
14.All of the following are true regarding group life conversion: - ANSWER ✓
Proof of insurability is not required
The employee may convert to any policy issued by the group insurer, except
term
Questions with 100% Correct
SOLUTIONs Latest UPDATE 2025/2026
100% GUARANTEED PASS!!!(A+
GRADED 100% VERIFIED)
1. All of the following are dividend options on a participating life insurance
policy: - ANSWER ✓ Paid-up additions
1-year term
Cash
2. All of the following are true regarding key person life insurance: -
ANSWER ✓ The employer is the policyowner and the beneficiary
Death benefits are payable to the employer tax free
The employee is the insured
3. If a corporation and a shareholder enter into an agreement that requires the
corporation to buy the shareholder's shares upon his or her death, they have
entered into: - ANSWER ✓ A buy/sell agreement
4. All of following are required nonforfeiture options or provisions on a cash
value life insurance policy: - ANSWER ✓ Extended term
Cash surrender
Reduced paid-up
5. The greater the number of similar exposure units insured, the easier it will be
to predict future claims based upon the law of: - ANSWER ✓ Large
numbers
, 6. List in order from the lowest annual premium to the highest: - ANSWER ✓
Modified, ordinary, limited pay, single premium
7. Group life insurance policies may exclude all of the following: - ANSWER
✓ Military
Aviation
War
(EXCEPT Accidents)
8. Which risk classification will have the highest premium? - ANSWER ✓
Non-standard
9. The person upon whose life a life insurance policy is based is known as the:
- ANSWER ✓ Insured
10.A client who wants life insurance protection and cash values that fluctuate in
value based upon the performance of a separate account should purchase: -
ANSWER ✓ Variable life
11.When making a life settlement, a policyowner will permanently transfer all
rights of ownership in the policy to another party by making a(n): -
ANSWER ✓ Absolute assignment
12.Which of the following completes the application for life insurance? -
ANSWER ✓ Applicant
13.If the beneficiary of a life insurance policy wants $1,000 per month for as
long as the money lasts, they should choose the ________ settlement option.
- ANSWER ✓ Fixed amount
14.All of the following are true regarding group life conversion: - ANSWER ✓
Proof of insurability is not required
The employee may convert to any policy issued by the group insurer, except
term
