WV STATE LIFE INSURANCE
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ The insured under a $100,000 life insurance policy with a triple indemnity
rider for accidental death was killed in a car accident. It was determined that
the accident was his fault. The triple indemnity rider in the policy specifies
that the death must not be contributed to by the insured in any manner. In
this case, what will the policy beneficiary receive?.
Answer: $100,000
◍ The dividend option in which the policyowner uses dividends to purchase a
term policy for one year is referred to as the.
Answer: One-year term option.
◍ 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
◍ 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
◍ The life insurance policy clause that prevents an insurance company from
denying payment of a death claim after a specified period of time is known
as the.
Answer: Incontestability clause.
◍ 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
◍ Which of the following describes the tax advantage of a qualified retirement
plan?.
Answer: The earnings in the plan accumulate tax deferred.
◍ Insurance contracts are known as _____ because certain future conditions or
acts must occur before any claims can be paid..
Answer: Conditional
◍ Which nonforfeiture option has the highest amount of insurance protection?.
Answer: Extended Term
◍ An insured under a life insurance policy has been diagnosed with a terminal
, illness and has 6 months to live. The insured knows that his financial state
will worsen even more with the upcoming medical expenses. What option
could the insured utilize?.
Answer: Viatical settlement
◍ An insured purchased a 10-year level term life policy that is guaranteed
renewable and convertible. What happens at the end of the 10-year term?.
Answer: The insured may renew the policy for another 10 years, but at a
higher premium rate.
◍ An insured committed suicide one year after his life insurance policy was
issued. The insurer will.
Answer: Refund the premiums paid.
◍ 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
◍ What is the benefit of choosing extended term as a nonforfeiture option?.
Answer: It has the highest amount of insurance protection.
◍ If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of?.
Answer: Insured
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ The insured under a $100,000 life insurance policy with a triple indemnity
rider for accidental death was killed in a car accident. It was determined that
the accident was his fault. The triple indemnity rider in the policy specifies
that the death must not be contributed to by the insured in any manner. In
this case, what will the policy beneficiary receive?.
Answer: $100,000
◍ The dividend option in which the policyowner uses dividends to purchase a
term policy for one year is referred to as the.
Answer: One-year term option.
◍ 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
◍ 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
◍ The life insurance policy clause that prevents an insurance company from
denying payment of a death claim after a specified period of time is known
as the.
Answer: Incontestability clause.
◍ 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
◍ Which of the following describes the tax advantage of a qualified retirement
plan?.
Answer: The earnings in the plan accumulate tax deferred.
◍ Insurance contracts are known as _____ because certain future conditions or
acts must occur before any claims can be paid..
Answer: Conditional
◍ Which nonforfeiture option has the highest amount of insurance protection?.
Answer: Extended Term
◍ An insured under a life insurance policy has been diagnosed with a terminal
, illness and has 6 months to live. The insured knows that his financial state
will worsen even more with the upcoming medical expenses. What option
could the insured utilize?.
Answer: Viatical settlement
◍ An insured purchased a 10-year level term life policy that is guaranteed
renewable and convertible. What happens at the end of the 10-year term?.
Answer: The insured may renew the policy for another 10 years, but at a
higher premium rate.
◍ An insured committed suicide one year after his life insurance policy was
issued. The insurer will.
Answer: Refund the premiums paid.
◍ 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
◍ What is the benefit of choosing extended term as a nonforfeiture option?.
Answer: It has the highest amount of insurance protection.
◍ If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of?.
Answer: Insured
