STATE FARM FIRE INDEPENDENT POLICY
EXAMPREP 2026 FULL QUESTIONS AND
CORRECT ANSWERS.
◉ Accelerated benefits rider. Answer: Life insurance rider that allow
for early payment of some portion of policy's face amount, should
the insured suffer from terminal illness/injury.
◉ adhesion. Answer: Contract must be accepted by the insured
exactly as it is written by the insurer. Terms of contract cannot be
negotiated. Contract is offered on a take it or leave it basis.
◉ admitted insurer. Answer: An insurance company that has been
approved to operate within a given jurisdiction.
◉ accidental death benefit rider. Answer: Life insurance policy rider
providing for payment of an additional benefit when death occurs by
accidental means.
◉ adjustable life. Answer: Policy allows the policymaker to adjust
the policy's face amount, premium, and type of protection without
having to complete a new application or any additional
underwriting.
,◉ agents (producer) report. Answer: Section of an insurance
application where the agent, details personal observations about the
applicant.
◉ annually renewable term (ART). Answer: A form of renewable
term insurance that provides coverage for one year and allows
policyowner to renew coverage each year, without evidence of
insurability.
◉ apparent authority. Answer: The insured believes the agent has
authority to act based on actions, words or deeds of the agent. Even
though the agent may not have been granted such authority by the
insurer, they will be held liable for the actions of the agent.
◉ automatic premium loan provision. Answer: Authorizes the
insurer to automatically pay any premium in default at the end of the
grace period. The premium owed plus interest charged is deducted
from the policy's cash value.
◉ beneficiary. Answer: Person to whom the proceeds of a life or
accident policy are payable when the insured dies.
◉ annuitant. Answer: One to whom an annuity is payable, or a
person upon the continuance of whose life further payment
depends.
,◉ attained age. Answer: With reference to an insured, the current
insurance age.
◉ aviation exclusion. Answer: The insurer will not pay a claim if the
insured dies as a result of flying an aircraft or acting as a member of
a flight crew. In most cases, the insurer will offer the applicant the
opportunity to purchase a rider offsetting the exclusion.
◉ buyers guide. Answer: A generic publication that explains life
insurance in a way that an average consumer can understand. It
does not contain specific product or policy information
◉ Buy-sell agreement. Answer: Agreement that a deceased
businessowner's interest will be sold and purchased at a
predetermined price or at a price according to a predetermined
formula.
◉ Churning. Answer: Replacing one life contract with another within
the same company without demonstrating a benefit to the client.
◉ common disaster provision. Answer: This policy provision
provides an alternative beneficiary in the event that the insured and
the original beneficiary die as the result of a common accident.
, ◉ Consideration. Answer: Element of a legal contract consisting of
premium payment and statements made by the prospective insured
in the application.
◉ Cash Value. Answer: The equity amount or savings accumulation
in a permanent life policy.
◉ Collateral assignment. Answer: Assignment of a policy to a
creditor as a security for a debt. At the insured death, the creditor is
entitled to be reimbursed out of policy proceeds for the amount
owed and any excess will go to the beneficiary.
◉ Conditional receipt. Answer: Given to the policyowners when they
pay a premium at time of application. in this case, the applicant is
covered the later of the date of the application or proof of
insurability, even though the policy may not have been issued.
◉ Consideration, legal purpose, offer, acceptance. and competent
parties.. Answer: The five parts of a legal contract.
◉ Contingent beneficiary. Answer: Persons named to receive
proceeds in case the original beneficiary is not alive.
◉ cost-of-living (col) rider. Answer: A rider available with some
policies that provides for an automatic increase in benefits (
EXAMPREP 2026 FULL QUESTIONS AND
CORRECT ANSWERS.
◉ Accelerated benefits rider. Answer: Life insurance rider that allow
for early payment of some portion of policy's face amount, should
the insured suffer from terminal illness/injury.
◉ adhesion. Answer: Contract must be accepted by the insured
exactly as it is written by the insurer. Terms of contract cannot be
negotiated. Contract is offered on a take it or leave it basis.
◉ admitted insurer. Answer: An insurance company that has been
approved to operate within a given jurisdiction.
◉ accidental death benefit rider. Answer: Life insurance policy rider
providing for payment of an additional benefit when death occurs by
accidental means.
◉ adjustable life. Answer: Policy allows the policymaker to adjust
the policy's face amount, premium, and type of protection without
having to complete a new application or any additional
underwriting.
,◉ agents (producer) report. Answer: Section of an insurance
application where the agent, details personal observations about the
applicant.
◉ annually renewable term (ART). Answer: A form of renewable
term insurance that provides coverage for one year and allows
policyowner to renew coverage each year, without evidence of
insurability.
◉ apparent authority. Answer: The insured believes the agent has
authority to act based on actions, words or deeds of the agent. Even
though the agent may not have been granted such authority by the
insurer, they will be held liable for the actions of the agent.
◉ automatic premium loan provision. Answer: Authorizes the
insurer to automatically pay any premium in default at the end of the
grace period. The premium owed plus interest charged is deducted
from the policy's cash value.
◉ beneficiary. Answer: Person to whom the proceeds of a life or
accident policy are payable when the insured dies.
◉ annuitant. Answer: One to whom an annuity is payable, or a
person upon the continuance of whose life further payment
depends.
,◉ attained age. Answer: With reference to an insured, the current
insurance age.
◉ aviation exclusion. Answer: The insurer will not pay a claim if the
insured dies as a result of flying an aircraft or acting as a member of
a flight crew. In most cases, the insurer will offer the applicant the
opportunity to purchase a rider offsetting the exclusion.
◉ buyers guide. Answer: A generic publication that explains life
insurance in a way that an average consumer can understand. It
does not contain specific product or policy information
◉ Buy-sell agreement. Answer: Agreement that a deceased
businessowner's interest will be sold and purchased at a
predetermined price or at a price according to a predetermined
formula.
◉ Churning. Answer: Replacing one life contract with another within
the same company without demonstrating a benefit to the client.
◉ common disaster provision. Answer: This policy provision
provides an alternative beneficiary in the event that the insured and
the original beneficiary die as the result of a common accident.
, ◉ Consideration. Answer: Element of a legal contract consisting of
premium payment and statements made by the prospective insured
in the application.
◉ Cash Value. Answer: The equity amount or savings accumulation
in a permanent life policy.
◉ Collateral assignment. Answer: Assignment of a policy to a
creditor as a security for a debt. At the insured death, the creditor is
entitled to be reimbursed out of policy proceeds for the amount
owed and any excess will go to the beneficiary.
◉ Conditional receipt. Answer: Given to the policyowners when they
pay a premium at time of application. in this case, the applicant is
covered the later of the date of the application or proof of
insurability, even though the policy may not have been issued.
◉ Consideration, legal purpose, offer, acceptance. and competent
parties.. Answer: The five parts of a legal contract.
◉ Contingent beneficiary. Answer: Persons named to receive
proceeds in case the original beneficiary is not alive.
◉ cost-of-living (col) rider. Answer: A rider available with some
policies that provides for an automatic increase in benefits (
