INSURANCE EXAM: LIFE (IOWA LAWS,
RULES, AND REGULATIONS
PERTINENT TO LIFE ONLY) EXAM 2025
QUESTIONS AND ANSWERS
Which of the following documents must be provided to the Policyowner or applicant during
policy replacement?
A) notice regarding replacement
B) disclosure authorization form
C) buyers guide and policy summary
D) policy illustration - ANS notice regarding replacement
a group insurance policy issued to a nonprofit industrial association must cover at least how
many employees at the dat of issue
A) 100
B) 1000
C) 10
D) 50 - ANS 1000
what is the purpose of life insurance solicitation regulations
A) to help producers understand different policies
B) to help consumers compare life insurance products in regard to their relative cost
C) to provide information regarding replacement of policies
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, D) to name producers required and prohibited actions for product advertising - ANS to help
consumers compare life insurance products in regard to their relative cost
During replacement of life insurance, a replacing insurer must do which of the following?
A) designate a new producer for a replaced policy
B) send a copy of the notice regarding replacement to the department of insurance
C) obtain a list of all life insurance policies that will be replaced
D) guarantee a replacement for each existing policy - ANS obtain a list of all life insurance
policies that will be replaced
which of the following is true if an insurer bases a life insurance policy loan interest rate on a
published monthly average
A) the policy loan must not exceed one half the cash surrender value, or the average cash
surrender value published in the previous year
B) the average must not exceed the monthly average of the month ending 2 months before the
date the rate is determined
C) the average must be no less than the monthly average of the month of loan issuance
D) the published monthly average must appear in a recognized financial index - ANS the
average must not exceed the monthly average of the month ending 2 months before the date
the rate is determined
suitability is based on all of the following EXCEPT
A) the clients age
B) the clients insurance objectives
C) the clients financial situation
D) the clients initial premium - ANS the clients initial premium
conversion privilege in group life insurance policies must be exercised within what period of
time after termination of group coverage
A) 10 days
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
RULES, AND REGULATIONS
PERTINENT TO LIFE ONLY) EXAM 2025
QUESTIONS AND ANSWERS
Which of the following documents must be provided to the Policyowner or applicant during
policy replacement?
A) notice regarding replacement
B) disclosure authorization form
C) buyers guide and policy summary
D) policy illustration - ANS notice regarding replacement
a group insurance policy issued to a nonprofit industrial association must cover at least how
many employees at the dat of issue
A) 100
B) 1000
C) 10
D) 50 - ANS 1000
what is the purpose of life insurance solicitation regulations
A) to help producers understand different policies
B) to help consumers compare life insurance products in regard to their relative cost
C) to provide information regarding replacement of policies
1 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
, D) to name producers required and prohibited actions for product advertising - ANS to help
consumers compare life insurance products in regard to their relative cost
During replacement of life insurance, a replacing insurer must do which of the following?
A) designate a new producer for a replaced policy
B) send a copy of the notice regarding replacement to the department of insurance
C) obtain a list of all life insurance policies that will be replaced
D) guarantee a replacement for each existing policy - ANS obtain a list of all life insurance
policies that will be replaced
which of the following is true if an insurer bases a life insurance policy loan interest rate on a
published monthly average
A) the policy loan must not exceed one half the cash surrender value, or the average cash
surrender value published in the previous year
B) the average must not exceed the monthly average of the month ending 2 months before the
date the rate is determined
C) the average must be no less than the monthly average of the month of loan issuance
D) the published monthly average must appear in a recognized financial index - ANS the
average must not exceed the monthly average of the month ending 2 months before the date
the rate is determined
suitability is based on all of the following EXCEPT
A) the clients age
B) the clients insurance objectives
C) the clients financial situation
D) the clients initial premium - ANS the clients initial premium
conversion privilege in group life insurance policies must be exercised within what period of
time after termination of group coverage
A) 10 days
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
