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Wv State Law Exam Newest 2025/2026 With
Complete All Questions And Correct Answers
|Already Graded A+||Brand New Version!|
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a: - . . ANSWER ✔ ✔Risk retention group
Which of the following requires insurers to disclose when
an applicant's consumer or credit history is being
investigated? - . . ANSWER ✔ ✔1970-Fair Credit
Reporting Act
Q purchases a $500,000 life insurance policy and pays
$900 in premiums over the first six months. Q dies
suddenly and the beneficiary is paid $500,000. This
exchange of unequal values reflects which of the following
insurance contract features? - . . ANSWER ✔ ✔Aleatory
The stated amount or percent of liquid assets that an
insurer must have on hand that will satisfy future
obligations to its policyholders is called: - . . ANSWER ✔
✔Reserves
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All of the following are considered to be typical
characteristics describing the nature of an insurance
contract, EXCEPT: - . . ANSWER ✔ ✔Bilateral
What year was the McCarran-Ferguson Act enacted? - . .
ANSWER ✔ ✔1945
Which of the following consists of an offer, acceptance,
and consideration? - . . ANSWER ✔ ✔Contract
Who elects the governing body of a mutual insurance
company? - . . ANSWER ✔ ✔Policyholders
Insurance policies are considered aleatory contracts
because: - . . ANSWER ✔ ✔Performance is conditioned
upon a future occurrence
Who makes the legally enforceable promises in a unilateral
contract? - . . ANSWER ✔ ✔Insurance company
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Insurance contracts are known as _____ because certain
future conditions or acts must occur before any claims can
be paid. - . . ANSWER ✔ ✔Conditional
A life insurance arrangement which circumvents insurable
interest statutes is called: - . . ANSWER ✔ ✔Investor-
Originated Life Insurance
In an insurance contract, the insurer is the only party who
makes a legally enforceable promise. What kind of
contract is this? - . . ANSWER ✔ ✔Unilateral
When third-party ownership is involved, applicants who
also happen to be the stated primary beneficiary are
required to have: - . . ANSWER ✔ ✔Insurable interest
in the proposed insured
Which of these arrangements allows one to bypass
insurable interest laws? - . . ANSWER ✔ ✔Investor-
Originated Life Insurance
When must insurable interest exist for a life insurance
contract to be valid? - . . ANSWER ✔ ✔Inception of the
contract
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If a contract of adhesion contains complicated language, to
whom would the interpretation be in favor of? - . .
ANSWER ✔ ✔Insured
Which of these is an element of a Variable Life policy? - . .
ANSWER ✔ ✔A fixed, level premium
A father who dies within 3 years after purchasing a life
insurance policy on his infant daughter can have the policy
premiums waived under which provision? - . . ANSWER
✔ ✔Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI)
when the insured dies? - . . ANSWER ✔ ✔Policyowner
Which of the following actions is NOT possible with a
Universal Life policy? - . . ANSWER ✔ ✔Premiums may
be applied as a credit against income tax
Which of the following policies is characterized by a
flexible premium and death benefit and allows the policy
owner control of the investment aspect of the plan? - . .
ANSWER ✔ ✔Variable universal life
Wv State Law Exam Newest 2025/2026 With
Complete All Questions And Correct Answers
|Already Graded A+||Brand New Version!|
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a: - . . ANSWER ✔ ✔Risk retention group
Which of the following requires insurers to disclose when
an applicant's consumer or credit history is being
investigated? - . . ANSWER ✔ ✔1970-Fair Credit
Reporting Act
Q purchases a $500,000 life insurance policy and pays
$900 in premiums over the first six months. Q dies
suddenly and the beneficiary is paid $500,000. This
exchange of unequal values reflects which of the following
insurance contract features? - . . ANSWER ✔ ✔Aleatory
The stated amount or percent of liquid assets that an
insurer must have on hand that will satisfy future
obligations to its policyholders is called: - . . ANSWER ✔
✔Reserves
,2|Page
All of the following are considered to be typical
characteristics describing the nature of an insurance
contract, EXCEPT: - . . ANSWER ✔ ✔Bilateral
What year was the McCarran-Ferguson Act enacted? - . .
ANSWER ✔ ✔1945
Which of the following consists of an offer, acceptance,
and consideration? - . . ANSWER ✔ ✔Contract
Who elects the governing body of a mutual insurance
company? - . . ANSWER ✔ ✔Policyholders
Insurance policies are considered aleatory contracts
because: - . . ANSWER ✔ ✔Performance is conditioned
upon a future occurrence
Who makes the legally enforceable promises in a unilateral
contract? - . . ANSWER ✔ ✔Insurance company
,3|Page
Insurance contracts are known as _____ because certain
future conditions or acts must occur before any claims can
be paid. - . . ANSWER ✔ ✔Conditional
A life insurance arrangement which circumvents insurable
interest statutes is called: - . . ANSWER ✔ ✔Investor-
Originated Life Insurance
In an insurance contract, the insurer is the only party who
makes a legally enforceable promise. What kind of
contract is this? - . . ANSWER ✔ ✔Unilateral
When third-party ownership is involved, applicants who
also happen to be the stated primary beneficiary are
required to have: - . . ANSWER ✔ ✔Insurable interest
in the proposed insured
Which of these arrangements allows one to bypass
insurable interest laws? - . . ANSWER ✔ ✔Investor-
Originated Life Insurance
When must insurable interest exist for a life insurance
contract to be valid? - . . ANSWER ✔ ✔Inception of the
contract
, 4|Page
If a contract of adhesion contains complicated language, to
whom would the interpretation be in favor of? - . .
ANSWER ✔ ✔Insured
Which of these is an element of a Variable Life policy? - . .
ANSWER ✔ ✔A fixed, level premium
A father who dies within 3 years after purchasing a life
insurance policy on his infant daughter can have the policy
premiums waived under which provision? - . . ANSWER
✔ ✔Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI)
when the insured dies? - . . ANSWER ✔ ✔Policyowner
Which of the following actions is NOT possible with a
Universal Life policy? - . . ANSWER ✔ ✔Premiums may
be applied as a credit against income tax
Which of the following policies is characterized by a
flexible premium and death benefit and allows the policy
owner control of the investment aspect of the plan? - . .
ANSWER ✔ ✔Variable universal life
