VIRGINIA LIFE INSURANCE EXAM UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
Insurance issues very small face amounts, such as $1,000 or $2,000. Premiums
are paid weekly and collected by debit agents. They were designed for burial
coverage.
Answer:
Industrial life
Question:
insurance written for members of a __________, such as a place of employment,
association, or a union. Coverage is provided to the members of that __________
under one master contract. The __________ is underwritten as a whole, not on
each individual member. One of the benefits of __________ life coverage is
usually there is no evidence of insurability required.
Answer:
Group life
Question:
insurance written for members of a __________, such as a place of employment,
association, or a union.
Answer:
Group Life
Question:
Coverage is provided to the members of that __________ under one master
contract.
Answer:
Group Life
Question:
One of the benefits of __________ life coverage is usually there is no evidence of
insurability required.
Answer:
Group Life
Question:
Is made up of several types of individual life insurance, such as temporary
(term), permanent (whole).
Answer:
Ordinary life
Question:
insurance gives you the greatest amount of coverage for a limited period of
time.
Answer:
Term life
,Question:
is only good for a limited period of time because it has a finite date.
Answer:
Term Life
Question:
is an inexpensive type of insurance, making it an attractive option for large
policies.
Answer:
Term Life
Question:
is the CHEAPEST type of pure life insurance, and due to having a termination
date and not having any cash value, it will ALWAYS be cheaper than a whole
life policy with the same face value.
Answer:
Term Life
Question:
It provides a pure death protection since it only pays a death benefit if the
insured dies during the policy term.
Answer:
Term Life
Question:
is often renewal and convertible.
Answer:
Term Life
Question:
_________ insurance has a final TERMINATION date where you can no longer
renew it.
Answer:
Term Life
Question:
If the policy is CONVERTIBLE, you can CONVERT it to whole life (think rent to
own) at any time.
Answer:
Term Life
Question:
Any time you renew or convert ANY type of insurance, you do not have to
worry about your health, is your _________ is locked in. However, the price will
always go up, because your attained (or current) age is used for your new
policy.
Answer:
Insurability
Question:
also called level premium level term
, Answer:
Level term
Question:
also called level term
Answer:
Level Premium Level Term
Question:
has a level face amount and level premiums.
Answer:
Level Term
Question:
has a level face amount and the same premiums.
Answer:
Level Term
Question:
Premiums tend to be higher than annual renewable term because they are
level throughout the policy period. However, the premiums will increase at
each renewal.
Answer:
Level Term
Question:
Life insurance written to cover a need for a specified period of time at the
lowest premium is called ____________.
Answer:
Level Term
Question:
provides a fixed, low premium in exchange for coverage which lasts a
specified time period.
Answer:
Level Term
Question:
Term life insurance that provides an annually decreasing face amount over
time with level premiums.
Answer:
Decreasing Term
Question:
These policies are usually used for mortgage protection.
Answer:
Decreasing Term
Question:
A __________ term policy is a type of life policy which has a death benefit that
adjusts periodically (according to a schedule) and is written for a specific
period of time.
QUESTIONS AND CORRECT ANSWERS
Question:
Insurance issues very small face amounts, such as $1,000 or $2,000. Premiums
are paid weekly and collected by debit agents. They were designed for burial
coverage.
Answer:
Industrial life
Question:
insurance written for members of a __________, such as a place of employment,
association, or a union. Coverage is provided to the members of that __________
under one master contract. The __________ is underwritten as a whole, not on
each individual member. One of the benefits of __________ life coverage is
usually there is no evidence of insurability required.
Answer:
Group life
Question:
insurance written for members of a __________, such as a place of employment,
association, or a union.
Answer:
Group Life
Question:
Coverage is provided to the members of that __________ under one master
contract.
Answer:
Group Life
Question:
One of the benefits of __________ life coverage is usually there is no evidence of
insurability required.
Answer:
Group Life
Question:
Is made up of several types of individual life insurance, such as temporary
(term), permanent (whole).
Answer:
Ordinary life
Question:
insurance gives you the greatest amount of coverage for a limited period of
time.
Answer:
Term life
,Question:
is only good for a limited period of time because it has a finite date.
Answer:
Term Life
Question:
is an inexpensive type of insurance, making it an attractive option for large
policies.
Answer:
Term Life
Question:
is the CHEAPEST type of pure life insurance, and due to having a termination
date and not having any cash value, it will ALWAYS be cheaper than a whole
life policy with the same face value.
Answer:
Term Life
Question:
It provides a pure death protection since it only pays a death benefit if the
insured dies during the policy term.
Answer:
Term Life
Question:
is often renewal and convertible.
Answer:
Term Life
Question:
_________ insurance has a final TERMINATION date where you can no longer
renew it.
Answer:
Term Life
Question:
If the policy is CONVERTIBLE, you can CONVERT it to whole life (think rent to
own) at any time.
Answer:
Term Life
Question:
Any time you renew or convert ANY type of insurance, you do not have to
worry about your health, is your _________ is locked in. However, the price will
always go up, because your attained (or current) age is used for your new
policy.
Answer:
Insurability
Question:
also called level premium level term
, Answer:
Level term
Question:
also called level term
Answer:
Level Premium Level Term
Question:
has a level face amount and level premiums.
Answer:
Level Term
Question:
has a level face amount and the same premiums.
Answer:
Level Term
Question:
Premiums tend to be higher than annual renewable term because they are
level throughout the policy period. However, the premiums will increase at
each renewal.
Answer:
Level Term
Question:
Life insurance written to cover a need for a specified period of time at the
lowest premium is called ____________.
Answer:
Level Term
Question:
provides a fixed, low premium in exchange for coverage which lasts a
specified time period.
Answer:
Level Term
Question:
Term life insurance that provides an annually decreasing face amount over
time with level premiums.
Answer:
Decreasing Term
Question:
These policies are usually used for mortgage protection.
Answer:
Decreasing Term
Question:
A __________ term policy is a type of life policy which has a death benefit that
adjusts periodically (according to a schedule) and is written for a specific
period of time.
