WV STATE LIFE INSURANCE EXAM 2025 |COMPLETE
ACTUAL EXAM QUESTIONS WITH CORRECT
VERIFIED ANSWERS |PRE-EVALUATED A+
A group-owned insurance company that is formed to assume and spread
the liability risks of its members is known as a: - CORRECT ANS>> Risk
retention group
Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated? - CORRECT 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? - CORRECT 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: -
CORRECT ANS>> Reserves
All of the following are considered to be typical characteristics describing
the nature of an insurance contract, EXCEPT: - CORRECT ANS>>
Bilateral
What year was the McCarran-Ferguson Act enacted? - CORRECT ANS>>
1945
Which of the following consists of an offer, acceptance, and consideration?
- CORRECT ANS>> Contract
Who elects the governing body of a mutual insurance company? -
CORRECT ANS>> Policyholders
Insurance policies are considered aleatory contracts because: - CORRECT
,ANS>> Performance is conditioned upon a future occurrence
Who makes the legally enforceable promises in a unilateral contract? -
CORRECT ANS>> Insurance company
Insurance contracts are known as because certain future conditions or acts
must occur before any claims can be paid. - CORRECT ANS>> Conditional
A life insurance arrangement which circumvents insurable interest statutes
is called: - CORRECT 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? - CORRECT ANS>>
Unilateral
When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have: - CORRECT ANS>>
Insurable interest in -the proposed insured
Which of these arrangements allows one to bypass insurable interest laws?
- CORRECT ANS>> Investor- Originated Life Insurance
When must insurable interest exist for a life insurance contract to be valid?
- CORRECT ANS>> Inception of the contract
If a contract of adhesion contains complicated language, to whom would
the interpretation be in favor of? - CORRECT ANS>> Insured
Which of these is an element of a Variable Life policy? - CORRECT 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? - CORRECT ANS>> Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured
dies? - CORRECT ANS>> Policyowner
Which of the following actions is NOT possible with a Universal Life policy?
- CORRECT ANS>> Premiums may be applied as a credit against income
tax
Which of the following policies is characterized by a flexible premium and
death benefit and allows the policy owner control of the investment aspect
of the plan? - CORRECT ANS>> Variable universal life
A term life insurance policy matures: - CORRECT ANS>> upon the
insured's death during the term of the policy
What type of life policy covers two people and pays upon the death of the
last insured? - CORRECT ANS>> Survivorship
When is the face amount paid under a Joint Life and Survivor policy? -
CORRECT ANS>> Upon the death of the last insured
Variable Whole Life Insurance can be described as: - CORRECT ANS>>
Both an insurance and securities product
All of these characteristics of an Adjustable Life policy, EXCEPT: -
CORRECT ANS>> Face amount can be adjusted using policy dividends
Term insurance has which of the following characteristics? - CORRECT
ANS>> Expires at the end of the policy period
P is looking to purchase a life insurance policy that will pay a stated
monthly income to his beneficiaries for 20 years after he dies and a lump
ACTUAL EXAM QUESTIONS WITH CORRECT
VERIFIED ANSWERS |PRE-EVALUATED A+
A group-owned insurance company that is formed to assume and spread
the liability risks of its members is known as a: - CORRECT ANS>> Risk
retention group
Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated? - CORRECT 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? - CORRECT 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: -
CORRECT ANS>> Reserves
All of the following are considered to be typical characteristics describing
the nature of an insurance contract, EXCEPT: - CORRECT ANS>>
Bilateral
What year was the McCarran-Ferguson Act enacted? - CORRECT ANS>>
1945
Which of the following consists of an offer, acceptance, and consideration?
- CORRECT ANS>> Contract
Who elects the governing body of a mutual insurance company? -
CORRECT ANS>> Policyholders
Insurance policies are considered aleatory contracts because: - CORRECT
,ANS>> Performance is conditioned upon a future occurrence
Who makes the legally enforceable promises in a unilateral contract? -
CORRECT ANS>> Insurance company
Insurance contracts are known as because certain future conditions or acts
must occur before any claims can be paid. - CORRECT ANS>> Conditional
A life insurance arrangement which circumvents insurable interest statutes
is called: - CORRECT 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? - CORRECT ANS>>
Unilateral
When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have: - CORRECT ANS>>
Insurable interest in -the proposed insured
Which of these arrangements allows one to bypass insurable interest laws?
- CORRECT ANS>> Investor- Originated Life Insurance
When must insurable interest exist for a life insurance contract to be valid?
- CORRECT ANS>> Inception of the contract
If a contract of adhesion contains complicated language, to whom would
the interpretation be in favor of? - CORRECT ANS>> Insured
Which of these is an element of a Variable Life policy? - CORRECT 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? - CORRECT ANS>> Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured
dies? - CORRECT ANS>> Policyowner
Which of the following actions is NOT possible with a Universal Life policy?
- CORRECT ANS>> Premiums may be applied as a credit against income
tax
Which of the following policies is characterized by a flexible premium and
death benefit and allows the policy owner control of the investment aspect
of the plan? - CORRECT ANS>> Variable universal life
A term life insurance policy matures: - CORRECT ANS>> upon the
insured's death during the term of the policy
What type of life policy covers two people and pays upon the death of the
last insured? - CORRECT ANS>> Survivorship
When is the face amount paid under a Joint Life and Survivor policy? -
CORRECT ANS>> Upon the death of the last insured
Variable Whole Life Insurance can be described as: - CORRECT ANS>>
Both an insurance and securities product
All of these characteristics of an Adjustable Life policy, EXCEPT: -
CORRECT ANS>> Face amount can be adjusted using policy dividends
Term insurance has which of the following characteristics? - CORRECT
ANS>> Expires at the end of the policy period
P is looking to purchase a life insurance policy that will pay a stated
monthly income to his beneficiaries for 20 years after he dies and a lump
