Life Insurance License Practice Test
2026/2027 (State-Specific) – Free PDF with
70 Q&A
Description:
Are you preparing for your life insurance licensing exam in 2027? Access our state-specific
practice test with 70 updated questions and detailed answers designed to mirror the real exam
format. This free PDF download covers essential topics like policy types, underwriting,
regulations, and beneficiary rules—all aligned with current 2027 exam standards.
Whether you're studying in California, Texas, New York, Florida, or any other state,
our targeted practice questions will help you identify weak areas, master key concepts, and
build confidence before test day. Perfect for insurance pre-licensing students, career
changers, and financial professionals seeking an efficient, reliable study tool.
Don't just study—prepare with precision. Download your free 2027 practice exam now and pass
with confidence on your first try.
, Life Insurance Practice Exam 2026/2027: Free PDF Questions &
Answers
1. A policyowner wants to designate her spouse as the policy beneficiary but intends to keep all
ownership rights. To achieve this, she should name her spouse as the:
A. Irrevocable beneficiary
B. Revocable beneficiary
C. Contingent beneficiary
Answer: B
Explanation: A revocable beneficiary designation allows the policyowner to retain full control
of the policy, including the right to change the beneficiary or surrender the policy without the
beneficiary's consent. An irrevocable beneficiary would require the beneficiary's consent for
such changes.
2. Which contract is designed primarily for the systematic payout of an accumulated fund through
regular installments?
A. Indemnity contract
B. Investment contract
C. Endowment
D. Annuity
Answer: D
Explanation: An annuity contract is specifically structured to liquidate an accumulated sum of
money through a series of periodic payments, often for retirement income purposes.
3. An agent submits a life insurance application without collecting the initial premium. When
delivering the issued policy, what must the agent obtain from the proposed insured?
A. A copy of the MIB report
B. A statement of continued good health
C. A copy of the conditional receipt
D. A copy of the temporary insurance agreement
, Answer: B
Explanation: When a policy is delivered after a delay and the initial premium was not collected
with the application, insurers typically require a signed statement from the proposed insured
confirming that their health status has not materially changed, ensuring the risk assessment
remains valid.
4. For which of the following life insurance coverages can an employer typically deduct premium
payments as a regular business expense?
A. Buy-Sell Agreements
B. Group Life
C. Key Employee
D. Joint Life where the business is beneficiary
Answer: B
Explanation: Premiums for group life insurance coverage provided to employees are generally
tax-deductible for the employer as an ordinary and necessary business expense under current tax
guidelines.
5. An agent writes identical applications for the same policy type and face amount for twins. The
insurer issues both policies but charges one twin a significantly higher premium. This disparity is
most likely due to:
A. The incontestability clause
B. Insurable interest requirements
C. Consideration
D. Risk classification
Answer: D
Explanation: The difference in premium is attributable to risk classification. Despite being
twins, individual factors like medical history, lifestyle, or results from the underwriting process
(e.g., exams, inspections) can place each applicant in a different risk category, leading to varied
premium rates.
2026/2027 (State-Specific) – Free PDF with
70 Q&A
Description:
Are you preparing for your life insurance licensing exam in 2027? Access our state-specific
practice test with 70 updated questions and detailed answers designed to mirror the real exam
format. This free PDF download covers essential topics like policy types, underwriting,
regulations, and beneficiary rules—all aligned with current 2027 exam standards.
Whether you're studying in California, Texas, New York, Florida, or any other state,
our targeted practice questions will help you identify weak areas, master key concepts, and
build confidence before test day. Perfect for insurance pre-licensing students, career
changers, and financial professionals seeking an efficient, reliable study tool.
Don't just study—prepare with precision. Download your free 2027 practice exam now and pass
with confidence on your first try.
, Life Insurance Practice Exam 2026/2027: Free PDF Questions &
Answers
1. A policyowner wants to designate her spouse as the policy beneficiary but intends to keep all
ownership rights. To achieve this, she should name her spouse as the:
A. Irrevocable beneficiary
B. Revocable beneficiary
C. Contingent beneficiary
Answer: B
Explanation: A revocable beneficiary designation allows the policyowner to retain full control
of the policy, including the right to change the beneficiary or surrender the policy without the
beneficiary's consent. An irrevocable beneficiary would require the beneficiary's consent for
such changes.
2. Which contract is designed primarily for the systematic payout of an accumulated fund through
regular installments?
A. Indemnity contract
B. Investment contract
C. Endowment
D. Annuity
Answer: D
Explanation: An annuity contract is specifically structured to liquidate an accumulated sum of
money through a series of periodic payments, often for retirement income purposes.
3. An agent submits a life insurance application without collecting the initial premium. When
delivering the issued policy, what must the agent obtain from the proposed insured?
A. A copy of the MIB report
B. A statement of continued good health
C. A copy of the conditional receipt
D. A copy of the temporary insurance agreement
, Answer: B
Explanation: When a policy is delivered after a delay and the initial premium was not collected
with the application, insurers typically require a signed statement from the proposed insured
confirming that their health status has not materially changed, ensuring the risk assessment
remains valid.
4. For which of the following life insurance coverages can an employer typically deduct premium
payments as a regular business expense?
A. Buy-Sell Agreements
B. Group Life
C. Key Employee
D. Joint Life where the business is beneficiary
Answer: B
Explanation: Premiums for group life insurance coverage provided to employees are generally
tax-deductible for the employer as an ordinary and necessary business expense under current tax
guidelines.
5. An agent writes identical applications for the same policy type and face amount for twins. The
insurer issues both policies but charges one twin a significantly higher premium. This disparity is
most likely due to:
A. The incontestability clause
B. Insurable interest requirements
C. Consideration
D. Risk classification
Answer: D
Explanation: The difference in premium is attributable to risk classification. Despite being
twins, individual factors like medical history, lifestyle, or results from the underwriting process
(e.g., exams, inspections) can place each applicant in a different risk category, leading to varied
premium rates.
