Page |1
214 License EXAM comprehensive
questions | FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED
SOLUTIONS/GET IT 100% ACCURATE!!
214 License Exam Pearson Vue Questions
and Correct Answers/ Latest Update /
Already Graded
Which of the following describes a participating insurance policy?
Ans: Policyowners are entitled to receive dividends
At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?
Ans: Upon completion of the application
Dividends payable to a policyowner are:
Ans: Declared by the insurance company.
At what point does an informal agreement become a binding contract?
Ans: When consideration is provided by one of the parties to
the contract
All rights reserved © 2025/ 2026 |
, Page |2
When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have
Ans: Insurable interest in the proposed insured
Which of the following arrangements allows one to bypass insurable
interest laws?
Ans: (STOLI) or Investor Originated Life Insurance
Taking receipt of premiums and holding them for the insurance
company is an example of
Ans: Fiduciary Responsibility
A policy of adhesion can only be modified by whom?
Ans: The Insurance Company
The exchange of unequal values reflects:
Ans: Aleatory
Life and health insurance policies are
All rights reserved © 2025/ 2026 |
, Page |3
Ans: Unilateral Contracts (one makes promise, other can only
accept by performance
The consideration clause of insurance contract includes
Ans: The schedule and amount of premium payments
A life insurance arrangement which circumvents insurable interest
values is called
Ans: Investor Originated Life Insurance (IOLI)
Who makes the legally enforceable promises in a unilateral contract?
Ans: The Insurance Company
A life insurance policy would be considered a wagering contract
WITHOUT:
Ans: Insurable Interest
A life insurance policy that provides a policyowner with cash value
along with a level face amount is called:
Ans: Whole Life Policy
All rights reserved © 2025/ 2026 |
, Page |4
Who benefits in Investor-Originated Life Insurance (IOLI) when the
insured dies?
Ans: the Policyowner(investor)
K purchased a Life insurance policy in 1986 which paid 10% interest in
the early years of the policy. Twenty years after the purchase, she
received a notice from the insurer stating that the policy will soon
terminate unless a much-higher premium is paid because of falling
interest rates. This type of policy is known as:
Ans: Universal Life Policy
Which of these would be considered a Limited-Pay-Life policy?
Ans: Life Paid Up at Age 70
K is looking to purchase Renewable Term insurance. Which of these
types of Term insurance may be renewable?
Ans: Level Term Policy (pays same death benefit if insured dies
any time during policy)
All rights reserved © 2025/ 2026 |
214 License EXAM comprehensive
questions | FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED
SOLUTIONS/GET IT 100% ACCURATE!!
214 License Exam Pearson Vue Questions
and Correct Answers/ Latest Update /
Already Graded
Which of the following describes a participating insurance policy?
Ans: Policyowners are entitled to receive dividends
At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?
Ans: Upon completion of the application
Dividends payable to a policyowner are:
Ans: Declared by the insurance company.
At what point does an informal agreement become a binding contract?
Ans: When consideration is provided by one of the parties to
the contract
All rights reserved © 2025/ 2026 |
, Page |2
When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have
Ans: Insurable interest in the proposed insured
Which of the following arrangements allows one to bypass insurable
interest laws?
Ans: (STOLI) or Investor Originated Life Insurance
Taking receipt of premiums and holding them for the insurance
company is an example of
Ans: Fiduciary Responsibility
A policy of adhesion can only be modified by whom?
Ans: The Insurance Company
The exchange of unequal values reflects:
Ans: Aleatory
Life and health insurance policies are
All rights reserved © 2025/ 2026 |
, Page |3
Ans: Unilateral Contracts (one makes promise, other can only
accept by performance
The consideration clause of insurance contract includes
Ans: The schedule and amount of premium payments
A life insurance arrangement which circumvents insurable interest
values is called
Ans: Investor Originated Life Insurance (IOLI)
Who makes the legally enforceable promises in a unilateral contract?
Ans: The Insurance Company
A life insurance policy would be considered a wagering contract
WITHOUT:
Ans: Insurable Interest
A life insurance policy that provides a policyowner with cash value
along with a level face amount is called:
Ans: Whole Life Policy
All rights reserved © 2025/ 2026 |
, Page |4
Who benefits in Investor-Originated Life Insurance (IOLI) when the
insured dies?
Ans: the Policyowner(investor)
K purchased a Life insurance policy in 1986 which paid 10% interest in
the early years of the policy. Twenty years after the purchase, she
received a notice from the insurer stating that the policy will soon
terminate unless a much-higher premium is paid because of falling
interest rates. This type of policy is known as:
Ans: Universal Life Policy
Which of these would be considered a Limited-Pay-Life policy?
Ans: Life Paid Up at Age 70
K is looking to purchase Renewable Term insurance. Which of these
types of Term insurance may be renewable?
Ans: Level Term Policy (pays same death benefit if insured dies
any time during policy)
All rights reserved © 2025/ 2026 |
