©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
Life Insurance Practice Exam Questions and
Answers (100% Pass)
The ownership provision entities the policy owner to do all of the following EXCEPT
a) Assign the policy.
b) Designate a beneficiary.
c) Set premium rates.
d) Receive a policy loan. - ✔️✔️c) Set premium rates.
The insurer sets premium rates based upon underwriting considerations.
Which of the following protects consumers against the circulation of inaccurate or
obsolete personal or financial information?
a) The Guaranty Association
b) Consumer Privacy Act
1
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
c) The Fair Credit Reporting Act
d) Unfair Trade Practices Law - ✔️✔️c) The Fair Credit Reporting Act
The purpose of the Fair Credit Reporting Act is to protect consumers against the
circulation of inaccurate or obsolete information and to insure that consumer reporting
agencies are fair and equitable in their treatment of consumers.
Why is an equity indexed annuity considered to be fixed annuity?
a) It has modest investment potential.
b) It has a fixed rate of return.
c) It is not tied to an index like the S&P 500.
d) It has a guaranteed minimum interest rate. - ✔️✔️d) It has a guaranteed minimum
interest rate.
While equity indexed annuities earn higher interest rates than fixed annuities, both types
of annuities guarantee a specific minimum interest rate.
An agent who is a resident of another state may obtain an Oklahoma nonresident
license without taking a licensing examination provided
2
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
a) The agent is currently licensed in the state of domicile.
b) The agent obtained that license by passing a test suitable to the Oklahoma
Department.
c) The state where the agent lives affords the same privilege to residents of Oklahoma.
d) All of these requirements are met. - ✔️✔️d) All of these requirements are met.
A nonresident can be licensed as an insurance agent in the Oklahoma licensing
requirements are met, as long as the agents home state gives Oklahoma residents the
same privilege (reciprocity). The applicant must hold a license in good standing in his or
her resident state.
Which nonforfeiture option has the highest amount of insurance protection?
a) Decreasing Term
b) Reduced Paid-up
c) Extended Term
d) Conversion - ✔️✔️c) Extended Term
3
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
The Extended Term nonforfeiture option has the same face amount as the original
policy, but for a shorter period of time.
What is a material misrepresentation?
a) Any misstatement made by an applicant for insurance
b) Any misstatement by the producer
c) Concealment
d) A statement by the applicant that, upon discovery, would affect the underwriting
decision of the insurance company - ✔️✔️d) A statement by the applicant that, upon
discovery, would affect the underwriting decision of the insurance company
A material misrepresentation is a statement that, if discovered, would alter the
underwriting decision of the insurance company.
Which of the following information about the applicant is NOT included in the General
Information section of the application for insurance?
a) Occupation
b) Marital status
c) Medical background
4
Life Insurance Practice Exam Questions and
Answers (100% Pass)
The ownership provision entities the policy owner to do all of the following EXCEPT
a) Assign the policy.
b) Designate a beneficiary.
c) Set premium rates.
d) Receive a policy loan. - ✔️✔️c) Set premium rates.
The insurer sets premium rates based upon underwriting considerations.
Which of the following protects consumers against the circulation of inaccurate or
obsolete personal or financial information?
a) The Guaranty Association
b) Consumer Privacy Act
1
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
c) The Fair Credit Reporting Act
d) Unfair Trade Practices Law - ✔️✔️c) The Fair Credit Reporting Act
The purpose of the Fair Credit Reporting Act is to protect consumers against the
circulation of inaccurate or obsolete information and to insure that consumer reporting
agencies are fair and equitable in their treatment of consumers.
Why is an equity indexed annuity considered to be fixed annuity?
a) It has modest investment potential.
b) It has a fixed rate of return.
c) It is not tied to an index like the S&P 500.
d) It has a guaranteed minimum interest rate. - ✔️✔️d) It has a guaranteed minimum
interest rate.
While equity indexed annuities earn higher interest rates than fixed annuities, both types
of annuities guarantee a specific minimum interest rate.
An agent who is a resident of another state may obtain an Oklahoma nonresident
license without taking a licensing examination provided
2
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
a) The agent is currently licensed in the state of domicile.
b) The agent obtained that license by passing a test suitable to the Oklahoma
Department.
c) The state where the agent lives affords the same privilege to residents of Oklahoma.
d) All of these requirements are met. - ✔️✔️d) All of these requirements are met.
A nonresident can be licensed as an insurance agent in the Oklahoma licensing
requirements are met, as long as the agents home state gives Oklahoma residents the
same privilege (reciprocity). The applicant must hold a license in good standing in his or
her resident state.
Which nonforfeiture option has the highest amount of insurance protection?
a) Decreasing Term
b) Reduced Paid-up
c) Extended Term
d) Conversion - ✔️✔️c) Extended Term
3
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
The Extended Term nonforfeiture option has the same face amount as the original
policy, but for a shorter period of time.
What is a material misrepresentation?
a) Any misstatement made by an applicant for insurance
b) Any misstatement by the producer
c) Concealment
d) A statement by the applicant that, upon discovery, would affect the underwriting
decision of the insurance company - ✔️✔️d) A statement by the applicant that, upon
discovery, would affect the underwriting decision of the insurance company
A material misrepresentation is a statement that, if discovered, would alter the
underwriting decision of the insurance company.
Which of the following information about the applicant is NOT included in the General
Information section of the application for insurance?
a) Occupation
b) Marital status
c) Medical background
4
