LIFE INSURANCE LICENSING
COMPREHENSIVE ASSESSMENT 2026 FULL
ANSWERS GRADED A+
● Which of the following is NOT true regarding policy loans?
1. An insurer can charge interest on outstanding policy loans.
2. A policy loan may be repaid after the policy is surrendered.
3. Money borrowed from the cash value is taxable.
4. Policy loans can be repaid at death. Answer: 3. Money borrowed from
the cash value is taxable.
● Which of the following is TRUE about credit life insurance?
1. Debtor is the policy beneficiary.
2. Creditor is the policyowner.
3. Debtor is the annuitant.
4. Creditor is the insured. Answer: 2. Creditor is the policyowner.
● What is the benefit of choosing extended term as a nonforfeiture
option? Answer: Choosing the nonforfeiture extended term option
allows the policy owner to use the cash value to purchase a term
insurance policy with a death benefit equal to that of the original whole-
life policy. The policy is calculated from the insured's attained age.
,● What is the purpose of the Washington Insurance Code regulation for
life insurance policy disclosure?
1. To provide better access to the company's marketing material for the
Department of Insurance
2. To provide uniform marketing standards to the insurers.
3. To provide the buyer's guide to prospective insureds.
4. To improve the buyer's understanding of the basic features of the
policy purchased Answer:
● The policyowner wants to make sure that upon his death, the life
policy will pay a portion of the proceeds annually to his spouse, but that
the principal will be paid to their children when they reach a certain age.
Which settlement option should the policyowner choose?
1. Fixed amount option
2. Interest only option
3. Life income with period certain
4. Joint and survivor Answer: 2. Interest only option
● What type of life insurance is most commonly used for group plans?
1. Whole life
2. Flexible premium whole life
3. Decreasing term
4. Annually renewable term Answer: 4. Annually renewable term
, ● Which of the following are NOT fundable by annuities?
1. Cash accumulation for any reason
2. A person's retirement
3. Estate liquidation
4. Death benefits Answer: 4. Death benefits
● Any life insurance policy that accumulates cash values must include a
provision for policy loans after a certain period of time. In the state of
Washington, that period of time is:
1. After 3 full years of premium payments.
2. On the 5th policy anniversary date.
3. On the 2nd policy anniversary date.
4. After 2 full years of premium payments. Answer: 1. After 3 full years
of premium payments.
● Which of the following is TRUE regarding a policy issued to a labor
union insuring members of the organization for the benefit of persons
other than the union or organization?
1. Eligible members must include all members of the labor union.
2. The policy must cover at least 25 members at date of issue.
3. Premiums for the policy are paid by the policyholder (labor union)
either entirely or in some combination with funds contributed by the
insured members.
COMPREHENSIVE ASSESSMENT 2026 FULL
ANSWERS GRADED A+
● Which of the following is NOT true regarding policy loans?
1. An insurer can charge interest on outstanding policy loans.
2. A policy loan may be repaid after the policy is surrendered.
3. Money borrowed from the cash value is taxable.
4. Policy loans can be repaid at death. Answer: 3. Money borrowed from
the cash value is taxable.
● Which of the following is TRUE about credit life insurance?
1. Debtor is the policy beneficiary.
2. Creditor is the policyowner.
3. Debtor is the annuitant.
4. Creditor is the insured. Answer: 2. Creditor is the policyowner.
● What is the benefit of choosing extended term as a nonforfeiture
option? Answer: Choosing the nonforfeiture extended term option
allows the policy owner to use the cash value to purchase a term
insurance policy with a death benefit equal to that of the original whole-
life policy. The policy is calculated from the insured's attained age.
,● What is the purpose of the Washington Insurance Code regulation for
life insurance policy disclosure?
1. To provide better access to the company's marketing material for the
Department of Insurance
2. To provide uniform marketing standards to the insurers.
3. To provide the buyer's guide to prospective insureds.
4. To improve the buyer's understanding of the basic features of the
policy purchased Answer:
● The policyowner wants to make sure that upon his death, the life
policy will pay a portion of the proceeds annually to his spouse, but that
the principal will be paid to their children when they reach a certain age.
Which settlement option should the policyowner choose?
1. Fixed amount option
2. Interest only option
3. Life income with period certain
4. Joint and survivor Answer: 2. Interest only option
● What type of life insurance is most commonly used for group plans?
1. Whole life
2. Flexible premium whole life
3. Decreasing term
4. Annually renewable term Answer: 4. Annually renewable term
, ● Which of the following are NOT fundable by annuities?
1. Cash accumulation for any reason
2. A person's retirement
3. Estate liquidation
4. Death benefits Answer: 4. Death benefits
● Any life insurance policy that accumulates cash values must include a
provision for policy loans after a certain period of time. In the state of
Washington, that period of time is:
1. After 3 full years of premium payments.
2. On the 5th policy anniversary date.
3. On the 2nd policy anniversary date.
4. After 2 full years of premium payments. Answer: 1. After 3 full years
of premium payments.
● Which of the following is TRUE regarding a policy issued to a labor
union insuring members of the organization for the benefit of persons
other than the union or organization?
1. Eligible members must include all members of the labor union.
2. The policy must cover at least 25 members at date of issue.
3. Premiums for the policy are paid by the policyholder (labor union)
either entirely or in some combination with funds contributed by the
insured members.
