Life Insurance Test Exam 2026 Questions
and Answers
a man decides to purchase a $100,000 annually renewable term insurance life
policy to provide additional protection until his children finished college, he
discovered that this policy - Correct Answer -required a premium increase at each
renewal
A policyowner of a universal life insurance policy must receive a policy status
report from the insurer at least - Correct Answer -annually
A projection of insurance needs that is based upon the capitalization of a
applicant's future earnings is: - Correct Answer -Human life value approach- is
determined by the loss of income that would result with the death of the insured,
after making adjustments for expenses, inflation, etc.
A prospective deferred annuity owner is concerned about what would happen if he
surrendered the annuity before the annuitization period. The agent most likely
explained which of the following? - Correct Answer -b) Nonforfeiture option
guarantees that the owner will receive a surrender value of the contract.
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, A rider attached to a life insurance policy that provides coverage on the insured's
family memebers is called the - Correct Answer -Other-insured rider
Abigail's father dies leaving her the designated beneficiary on his life insurance
policy. She is surprised to see that in addition to the face amount of the policy, she
will also receive a refund of all the of the premiums he had paid. Which rider is
attached to the policy? - Correct Answer -Return of premium
Adverse selection is a concept best described as: - Correct Answer -risks with
higher probability of loss seeking insurance more often than other risks
After three years of making payments into a flexible premium deferred annuity, the
owner decides to surrender the annuity. The insurer returns all the premium
payments to the owner, except for a predetermined percentage. What is this
percentage called? - Correct Answer -
All of the following are examples of risk retention EXCEPT - Correct Answer -
Premiums
All of the following are true of the federal tax advantages of a qualified plan,
EXCEPT - Correct Answer -At distribution, all amounts received by the employee
are free of taxes.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
and Answers
a man decides to purchase a $100,000 annually renewable term insurance life
policy to provide additional protection until his children finished college, he
discovered that this policy - Correct Answer -required a premium increase at each
renewal
A policyowner of a universal life insurance policy must receive a policy status
report from the insurer at least - Correct Answer -annually
A projection of insurance needs that is based upon the capitalization of a
applicant's future earnings is: - Correct Answer -Human life value approach- is
determined by the loss of income that would result with the death of the insured,
after making adjustments for expenses, inflation, etc.
A prospective deferred annuity owner is concerned about what would happen if he
surrendered the annuity before the annuitization period. The agent most likely
explained which of the following? - Correct Answer -b) Nonforfeiture option
guarantees that the owner will receive a surrender value of the contract.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
, A rider attached to a life insurance policy that provides coverage on the insured's
family memebers is called the - Correct Answer -Other-insured rider
Abigail's father dies leaving her the designated beneficiary on his life insurance
policy. She is surprised to see that in addition to the face amount of the policy, she
will also receive a refund of all the of the premiums he had paid. Which rider is
attached to the policy? - Correct Answer -Return of premium
Adverse selection is a concept best described as: - Correct Answer -risks with
higher probability of loss seeking insurance more often than other risks
After three years of making payments into a flexible premium deferred annuity, the
owner decides to surrender the annuity. The insurer returns all the premium
payments to the owner, except for a predetermined percentage. What is this
percentage called? - Correct Answer -
All of the following are examples of risk retention EXCEPT - Correct Answer -
Premiums
All of the following are true of the federal tax advantages of a qualified plan,
EXCEPT - Correct Answer -At distribution, all amounts received by the employee
are free of taxes.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
