WV STATE LIFE INSURANCE VIEW AHEAD
TEST 2026 VERIFIED QUESTIONS WITH
SOLUTIONS GRADED A+
●● 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
●● 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
●● 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
●● 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
●● A term life insurance policy matures:
Answer: upon the insured's death during the term of the policy
●● What type of life policy covers two people and pays upon the death
of the last insured?
TEST 2026 VERIFIED QUESTIONS WITH
SOLUTIONS GRADED A+
●● 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
●● 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
●● 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
●● 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
●● A term life insurance policy matures:
Answer: upon the insured's death during the term of the policy
●● What type of life policy covers two people and pays upon the death
of the last insured?
