State exam life insurance 2026 Questions
and Questions
What is the prerequisite for receiving a commission from an insurance transaction?
- Correct Answer -License for same type of insurance transaction.
When would life ins. proceeds be taxable by the Federal government? - Correct
Answer -If there is a transfer for value (policy is sold to another person)
A qualified plan may not: - Correct Answer -Favor shareholders and top executives
Policyholder who is the insured named a primary beneficiary and contingent
beneficiary. Prior to the insured's death, primary and contingent dies by a common
disaster. Who will receive the proceeds? - Correct Answer -The insured's estate
After insured dies, it is discovered that the policy was rated based upon an
incorrect age. The insured misstated age on application 8 years ago. What effect
will this have on the benefit? - Correct Answer -Proceeds will be adjusted to
correct age.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
,When it comes to the attention of the Dept. of Ins. that a producer has committed a
violation or engaged in an unfair trade practice, before issuing a cease and desist
order, the head of the Dept. of Ins. must? - Correct Answer -Hold a hearing
What is NOT true about the survivorship life policy? - Correct Answer -The
premium is based on the age of each insured.
How does the incontestability clause benefit the insured? - Correct Answer -It
prevents the policy from being cancelled if, after several years, it is discovered that
there was a misrepresentation by the policy owner.
In an adjustable life policy, what can NOT be changed by policy owner? - Correct
Answer -The type of investment.
What is NOT an unfair claims settlement practice? - Correct Answer -Suggesting
negotiations in settling the claim
What policy rider would an insured use to protect against the negative effect of
inflation on the future purchasing power of a life policy? - Correct Answer -Cost of
living rider. The amt. of increase is tied to an increase in the inflation index, such
as the Consumer Price Index
Statements made by an applicant for life ins. which are true to the best of their
knowledge are? - Correct Answer -Representations
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
,Who can make fully deductible contributions to a traditional IRA. - Correct
Answer -An individual NOT covered by employer-sponsored plan who has earned
income.
What is true regarding the annuity period? - Correct Answer -It may last for the
lifetime of the annuitant
To avoid violating the state ins. code regarding unfair claims settlement practices,
insurers must pay a claim within how many days of the final agreement to the
settlement? - Correct Answer -FIVE days
What settlement option provides a single beneficiary with income for the rest of
his/her life? - Correct Answer -Single life option
Cameron is purchasing a permanent life ins. with face value of $25,000. This is all
the ins. he feels he can afford at this time. he wants to be sure that additional
coverage will be available in the future. He should include in this policy? - Correct
Answer -Guaranteed insurability options. It allows insured to purchase specific
amts. of additional ins. at specific times w/o proof of insurability.
An insured has a life policy with face amt. of $500. He pays a premium every
week to the agent who sold his the policy. What kind of policy does he have? -
Correct Answer -Industrial life. It is written on an individual basis in small amts.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
, usually face value less than $1,000, with premium payable weekly or monthly.
Generally policies are written non-medically.
What is NOT used in determining annuity suitability? - Correct Answer -
Beneficiaries age
In Ohio, a temporary license may NOT be issued for the - Correct Answer -Agent's
retirement
Based on the Human Life Value Approach, what is NOT used to calculate an
individual's life value? - Correct Answer -Predicted needs of the family after
insured's death.
A viatical settlement is arranged between a viator company and a/an? - Correct
Answer -Terminally ill insured who transfers his/her life ins. in return for an
immediate cash settlement.
A couple receives a set amt. of income from their annuity. When the wife dies,
husband no longer receives annuity payments. What type of annuity did the couple
buy? - Correct Answer -Joint life annuity option
Insurance transactions include - Correct Answer -Solicitation, negotiations, sale,
advising an individual concerning coverage/claims.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 4
and Questions
What is the prerequisite for receiving a commission from an insurance transaction?
- Correct Answer -License for same type of insurance transaction.
When would life ins. proceeds be taxable by the Federal government? - Correct
Answer -If there is a transfer for value (policy is sold to another person)
A qualified plan may not: - Correct Answer -Favor shareholders and top executives
Policyholder who is the insured named a primary beneficiary and contingent
beneficiary. Prior to the insured's death, primary and contingent dies by a common
disaster. Who will receive the proceeds? - Correct Answer -The insured's estate
After insured dies, it is discovered that the policy was rated based upon an
incorrect age. The insured misstated age on application 8 years ago. What effect
will this have on the benefit? - Correct Answer -Proceeds will be adjusted to
correct age.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
,When it comes to the attention of the Dept. of Ins. that a producer has committed a
violation or engaged in an unfair trade practice, before issuing a cease and desist
order, the head of the Dept. of Ins. must? - Correct Answer -Hold a hearing
What is NOT true about the survivorship life policy? - Correct Answer -The
premium is based on the age of each insured.
How does the incontestability clause benefit the insured? - Correct Answer -It
prevents the policy from being cancelled if, after several years, it is discovered that
there was a misrepresentation by the policy owner.
In an adjustable life policy, what can NOT be changed by policy owner? - Correct
Answer -The type of investment.
What is NOT an unfair claims settlement practice? - Correct Answer -Suggesting
negotiations in settling the claim
What policy rider would an insured use to protect against the negative effect of
inflation on the future purchasing power of a life policy? - Correct Answer -Cost of
living rider. The amt. of increase is tied to an increase in the inflation index, such
as the Consumer Price Index
Statements made by an applicant for life ins. which are true to the best of their
knowledge are? - Correct Answer -Representations
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
,Who can make fully deductible contributions to a traditional IRA. - Correct
Answer -An individual NOT covered by employer-sponsored plan who has earned
income.
What is true regarding the annuity period? - Correct Answer -It may last for the
lifetime of the annuitant
To avoid violating the state ins. code regarding unfair claims settlement practices,
insurers must pay a claim within how many days of the final agreement to the
settlement? - Correct Answer -FIVE days
What settlement option provides a single beneficiary with income for the rest of
his/her life? - Correct Answer -Single life option
Cameron is purchasing a permanent life ins. with face value of $25,000. This is all
the ins. he feels he can afford at this time. he wants to be sure that additional
coverage will be available in the future. He should include in this policy? - Correct
Answer -Guaranteed insurability options. It allows insured to purchase specific
amts. of additional ins. at specific times w/o proof of insurability.
An insured has a life policy with face amt. of $500. He pays a premium every
week to the agent who sold his the policy. What kind of policy does he have? -
Correct Answer -Industrial life. It is written on an individual basis in small amts.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
, usually face value less than $1,000, with premium payable weekly or monthly.
Generally policies are written non-medically.
What is NOT used in determining annuity suitability? - Correct Answer -
Beneficiaries age
In Ohio, a temporary license may NOT be issued for the - Correct Answer -Agent's
retirement
Based on the Human Life Value Approach, what is NOT used to calculate an
individual's life value? - Correct Answer -Predicted needs of the family after
insured's death.
A viatical settlement is arranged between a viator company and a/an? - Correct
Answer -Terminally ill insured who transfers his/her life ins. in return for an
immediate cash settlement.
A couple receives a set amt. of income from their annuity. When the wife dies,
husband no longer receives annuity payments. What type of annuity did the couple
buy? - Correct Answer -Joint life annuity option
Insurance transactions include - Correct Answer -Solicitation, negotiations, sale,
advising an individual concerning coverage/claims.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 4
