1135 Life & Health Insurance Exam
Question & Answers ( Latest 2025 )
Which of these must be disclosed in a company's
universal life policy?i - CORRECT ANSWERS ✅The
policy's surrender charges
Which type of life insurance typically offers mortgage
protection? - CORRECT ANSWERS ✅Decreasing term
Dividends from a mutual insurance company are paid to
whom? - CORRECT ANSWERS ✅Policyowners
These are all accurate statements regarding universal life
insurance EXCEPT - CORRECT ANSWERS ✅Policy
loans are not permitted
Which of these is NOT a reason for a business to buy key
person life insurance? - CORRECT ANSWERS ✅A
pension deficiency if the key employee dies
Which of these do NOT indicate the presence of insurable
interest in a life insurance contract? - CORRECT
ANSWERS ✅Lifelong friendship
Which of these statements is true regarding an adjustable
life insurance policy? - CORRECT ANSWERS
,1135 Life & Health Insurance Exam
Question & Answers ( Latest 2025 )
✅Policyowners are given the option of alternating
between forms of term and whole life insurance
Which of these is NOT relevant when determining the
amount of personal life insurance needed? - CORRECT
ANSWERS ✅Local unemployment rate
XYZ Insurance Company gives direct authority to its
producers to sell insurance through an agency contract,
but nothing is stated regarding the collection of
premiums. Which authority grants the producer the right
to collect premiums? - CORRECT ANSWERS ✅Implied
What kind of life insurance policy allows the policyowner
the choice of investments along with adjustable
premiums? - CORRECT ANSWERS ✅Variable
universal life
In life insurance, the needs approach is used mostly to
establish - CORRECT ANSWERS ✅how much life
insurance a client should apply for
Which statement concerning adjustable life insurance is
accurate? - CORRECT ANSWERS ✅The face amount
,1135 Life & Health Insurance Exam
Question & Answers ( Latest 2025 )
and premiums can be changed simultaneously by the
policyowner
In what way are insurance policies said to be aleatory? -
CORRECT ANSWERS ✅Involves the potential for the
unequal exchange of value
Which statement concerning an adjustable life insurance
policy is FALSE? - CORRECT ANSWERS ✅Evidence of
insurability is always necessary when there is a change in
premium
When funds are shifted straight from one IRA to another
IRA, what percentage of the tax is withheld? - CORRECT
ANSWERS ✅None
How does the cost for a survivorship life policy compare
to the cost of combining two separate life insurance
policies? - CORRECT ANSWERS ✅Survivorship life
policy is lower
In a qualified retirement plan, the yearly contributions to
an employee's account - CORRECT ANSWERS ✅are
restricted to maximum levels set by the IRS
, 1135 Life & Health Insurance Exam
Question & Answers ( Latest 2025 )
An insurance company can be liable for a producer's
unauthorized acts - CORRECT ANSWERS ✅when the
agency contract is vague concerning the authority given
An individual participant personally received eligible
rollover funds from a profit-sharing plan. What is the
income tax withholding requirements for this transaction?
- CORRECT ANSWERS ✅20% is withheld for income
taxes
What minimum percentage of all eligible employees must
participate in a group life insurance plan if the premiums
are completely paid for by the employer? - CORRECT
ANSWERS ✅100%
All of these are considered features of whole life
insurance EXCEPT - CORRECT ANSWERS ✅Initial cost
is lower than for an equivalent amount of term insurance
In an individual retirement account (IRA), rollover
contributions are - CORRECT ANSWERS ✅not limited
by dollar amount
Question & Answers ( Latest 2025 )
Which of these must be disclosed in a company's
universal life policy?i - CORRECT ANSWERS ✅The
policy's surrender charges
Which type of life insurance typically offers mortgage
protection? - CORRECT ANSWERS ✅Decreasing term
Dividends from a mutual insurance company are paid to
whom? - CORRECT ANSWERS ✅Policyowners
These are all accurate statements regarding universal life
insurance EXCEPT - CORRECT ANSWERS ✅Policy
loans are not permitted
Which of these is NOT a reason for a business to buy key
person life insurance? - CORRECT ANSWERS ✅A
pension deficiency if the key employee dies
Which of these do NOT indicate the presence of insurable
interest in a life insurance contract? - CORRECT
ANSWERS ✅Lifelong friendship
Which of these statements is true regarding an adjustable
life insurance policy? - CORRECT ANSWERS
,1135 Life & Health Insurance Exam
Question & Answers ( Latest 2025 )
✅Policyowners are given the option of alternating
between forms of term and whole life insurance
Which of these is NOT relevant when determining the
amount of personal life insurance needed? - CORRECT
ANSWERS ✅Local unemployment rate
XYZ Insurance Company gives direct authority to its
producers to sell insurance through an agency contract,
but nothing is stated regarding the collection of
premiums. Which authority grants the producer the right
to collect premiums? - CORRECT ANSWERS ✅Implied
What kind of life insurance policy allows the policyowner
the choice of investments along with adjustable
premiums? - CORRECT ANSWERS ✅Variable
universal life
In life insurance, the needs approach is used mostly to
establish - CORRECT ANSWERS ✅how much life
insurance a client should apply for
Which statement concerning adjustable life insurance is
accurate? - CORRECT ANSWERS ✅The face amount
,1135 Life & Health Insurance Exam
Question & Answers ( Latest 2025 )
and premiums can be changed simultaneously by the
policyowner
In what way are insurance policies said to be aleatory? -
CORRECT ANSWERS ✅Involves the potential for the
unequal exchange of value
Which statement concerning an adjustable life insurance
policy is FALSE? - CORRECT ANSWERS ✅Evidence of
insurability is always necessary when there is a change in
premium
When funds are shifted straight from one IRA to another
IRA, what percentage of the tax is withheld? - CORRECT
ANSWERS ✅None
How does the cost for a survivorship life policy compare
to the cost of combining two separate life insurance
policies? - CORRECT ANSWERS ✅Survivorship life
policy is lower
In a qualified retirement plan, the yearly contributions to
an employee's account - CORRECT ANSWERS ✅are
restricted to maximum levels set by the IRS
, 1135 Life & Health Insurance Exam
Question & Answers ( Latest 2025 )
An insurance company can be liable for a producer's
unauthorized acts - CORRECT ANSWERS ✅when the
agency contract is vague concerning the authority given
An individual participant personally received eligible
rollover funds from a profit-sharing plan. What is the
income tax withholding requirements for this transaction?
- CORRECT ANSWERS ✅20% is withheld for income
taxes
What minimum percentage of all eligible employees must
participate in a group life insurance plan if the premiums
are completely paid for by the employer? - CORRECT
ANSWERS ✅100%
All of these are considered features of whole life
insurance EXCEPT - CORRECT ANSWERS ✅Initial cost
is lower than for an equivalent amount of term insurance
In an individual retirement account (IRA), rollover
contributions are - CORRECT ANSWERS ✅not limited
by dollar amount
