Insurance Exam Practice Exam:
Questions and Answers
Pure or straight life - Answer-Which of the following annuity benefit payment options would generate
the highest monthly payments to the contract owner upon annuitization?
Paid-up additions
1-year term
Cash - Answer-All of the following are dividend options on a participating life insurance policy:
Insured - Answer-The person upon whose life an annuity is based is known as the:
Reduced paid-up - Answer-When a policyowner uses the cash value in their policy to buy a lesser
amount of permanent life insurance, they have exercised which nonforfeiture option:
Interest only - Answer-Which of the following life insurance settlement options enables the beneficiary
to conserve the proceeds of a life insurance policy?
, The account value - Answer-In the case of a variable annuity sold to a senior citizen in this state for
which the owner has directed that the premium be invested in the mutual funds underlying the contract
during the 30-day cancellation period, cancellation during that period entitles the owner to a refund of:
They are purchased by those who are worried about outliving their savings.
They are not suitable as short term investments.
They may be used as a life insurance settlement option. - Answer-All of the following are true regarding
annuities
Group (Life Insruance) - Answer-Which of the following would not be considered to be ordinary life
insurance?
They are not guaranteed
They are legally defined as a return of premium and are not taxable
They are paid out of the insurer's accumulated surplus - Answer-All of the following are true regarding
dividends paid by a mutual life insurance company
Renewable - Answer-Which type of term life insurance has a level face amount but a premium that
increases each year as the insured gets older?
The amount and frequency of future losses are unknown - Answer-The transfer of risk to an insurance
company is an effective risk management technique when:
Change the beneficiary
Questions and Answers
Pure or straight life - Answer-Which of the following annuity benefit payment options would generate
the highest monthly payments to the contract owner upon annuitization?
Paid-up additions
1-year term
Cash - Answer-All of the following are dividend options on a participating life insurance policy:
Insured - Answer-The person upon whose life an annuity is based is known as the:
Reduced paid-up - Answer-When a policyowner uses the cash value in their policy to buy a lesser
amount of permanent life insurance, they have exercised which nonforfeiture option:
Interest only - Answer-Which of the following life insurance settlement options enables the beneficiary
to conserve the proceeds of a life insurance policy?
, The account value - Answer-In the case of a variable annuity sold to a senior citizen in this state for
which the owner has directed that the premium be invested in the mutual funds underlying the contract
during the 30-day cancellation period, cancellation during that period entitles the owner to a refund of:
They are purchased by those who are worried about outliving their savings.
They are not suitable as short term investments.
They may be used as a life insurance settlement option. - Answer-All of the following are true regarding
annuities
Group (Life Insruance) - Answer-Which of the following would not be considered to be ordinary life
insurance?
They are not guaranteed
They are legally defined as a return of premium and are not taxable
They are paid out of the insurer's accumulated surplus - Answer-All of the following are true regarding
dividends paid by a mutual life insurance company
Renewable - Answer-Which type of term life insurance has a level face amount but a premium that
increases each year as the insured gets older?
The amount and frequency of future losses are unknown - Answer-The transfer of risk to an insurance
company is an effective risk management technique when:
Change the beneficiary
