WV State Life Insurance Exam comprehensive questions and verified an
swers ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
1. A group-owned insurance company that is formed to Risk retention group
assume and spread the liability risks of its members
is known as a:
2. Which of the following requires insurers to disclose 1970-Fair Credit Reporting
when an applicant's consumer or credit history is Act
being investigated?
3. Q purchases a $500,000 life insurance policy and pays Aleatory
$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 fol-
lowing insurance contract features?
4. The stated amount or percent of liquid assets that Reserves
an insurer must have on hand that will satisfy future
obligations to its policyholders is called:
5. All of the following are considered to be typical char- Bilateral
acteristics describing the nature of an insurance con-
tract, EXCEPT:
6. What year was the McCarran-Ferguson Act enacted? 1945
7. Which of the following consists of an offer, accep- Contract
tance, and consideration?
8. Who elects the governing body of a mutual insurance Policyholders
company?
9. Insurance policies are considered aleatory contracts Performance is condi-
because: tioned upon a future occur-
rence
, WV State Life Insurance Exam comprehensive questions and verified an
swers ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
10. Who makes the legally enforceable promises in a uni- Insurance company
lateral contract?
11. Insurance contracts are known as _____ because cer- Conditional
tain future conditions or acts must occur before any
claims can be paid.
12. A life insurance arrangement which circumvents in- Investor-Originated Life In-
surable interest statutes is called: surance
13. In an insurance contract, the insurer is the only party Unilateral
who makes a legally enforceable promise. What kind
of contract is this?
14. When third-party ownership is involved, applicants Insurable interest in the
who also happen to be the stated primary beneficiary proposed insured
are required to have:
15. Which of these arrangements allows one to bypass Investor-Originated Life In-
insurable interest laws? surance
16. When must insurable interest exist for a life insurance Inception of the contract
contract to be valid?
17. If a contract of adhesion contains complicated lan- Insured
guage, to whom would the interpretation be in favor
of?
18. Which of these is an element of a Variable Life policy? A fixed, level premium
19. Payor provision
, WV State Life Insurance Exam comprehensive questions and verified an
swers ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
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?
20. Who benefits in Investor-Originated Life Insurance Policyowner
(IOLI) when the insured dies?
21. Which of the following actions is NOT possible with a Premiums may be applied
Universal Life policy? as a credit against income
tax
22. Which of the following policies is characterized by a Variable universal life
flexible premium and death benefit and allows the
policy owner control of the investment aspect of the
plan?
23. A term life insurance policy matures: upon the insured's death
during the term of the pol-
icy
24. What type of life policy covers two people and pays Survivorship
upon the death of the last insured?
25. When is the face amount paid under a Joint Life and Upon the death of the last
Survivor policy? insured
26. Variable Whole Life Insurance can be described as: Both an insurance and se-
curities product
27. All of these characteristics of an Adjustable Life policy, Face amount can be adjust-
EXCEPT: ed using policy dividends
28.
swers ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
1. A group-owned insurance company that is formed to Risk retention group
assume and spread the liability risks of its members
is known as a:
2. Which of the following requires insurers to disclose 1970-Fair Credit Reporting
when an applicant's consumer or credit history is Act
being investigated?
3. Q purchases a $500,000 life insurance policy and pays Aleatory
$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 fol-
lowing insurance contract features?
4. The stated amount or percent of liquid assets that Reserves
an insurer must have on hand that will satisfy future
obligations to its policyholders is called:
5. All of the following are considered to be typical char- Bilateral
acteristics describing the nature of an insurance con-
tract, EXCEPT:
6. What year was the McCarran-Ferguson Act enacted? 1945
7. Which of the following consists of an offer, accep- Contract
tance, and consideration?
8. Who elects the governing body of a mutual insurance Policyholders
company?
9. Insurance policies are considered aleatory contracts Performance is condi-
because: tioned upon a future occur-
rence
, WV State Life Insurance Exam comprehensive questions and verified an
swers ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
10. Who makes the legally enforceable promises in a uni- Insurance company
lateral contract?
11. Insurance contracts are known as _____ because cer- Conditional
tain future conditions or acts must occur before any
claims can be paid.
12. A life insurance arrangement which circumvents in- Investor-Originated Life In-
surable interest statutes is called: surance
13. In an insurance contract, the insurer is the only party Unilateral
who makes a legally enforceable promise. What kind
of contract is this?
14. When third-party ownership is involved, applicants Insurable interest in the
who also happen to be the stated primary beneficiary proposed insured
are required to have:
15. Which of these arrangements allows one to bypass Investor-Originated Life In-
insurable interest laws? surance
16. When must insurable interest exist for a life insurance Inception of the contract
contract to be valid?
17. If a contract of adhesion contains complicated lan- Insured
guage, to whom would the interpretation be in favor
of?
18. Which of these is an element of a Variable Life policy? A fixed, level premium
19. Payor provision
, WV State Life Insurance Exam comprehensive questions and verified an
swers ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
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?
20. Who benefits in Investor-Originated Life Insurance Policyowner
(IOLI) when the insured dies?
21. Which of the following actions is NOT possible with a Premiums may be applied
Universal Life policy? as a credit against income
tax
22. Which of the following policies is characterized by a Variable universal life
flexible premium and death benefit and allows the
policy owner control of the investment aspect of the
plan?
23. A term life insurance policy matures: upon the insured's death
during the term of the pol-
icy
24. What type of life policy covers two people and pays Survivorship
upon the death of the last insured?
25. When is the face amount paid under a Joint Life and Upon the death of the last
Survivor policy? insured
26. Variable Whole Life Insurance can be described as: Both an insurance and se-
curities product
27. All of these characteristics of an Adjustable Life policy, Face amount can be adjust-
EXCEPT: ed using policy dividends
28.
