LIFE INSURANCE PRACTICE EXAM QUESTIONS AND
CORRECT ANSWERS
Insurable Receipt
The reciept given to a life insurance applicant when the application is completed and the initial premium
is received is called a(n)
Representations
Statements in the application for insurance that are believed to be true to the best of the applicants
knowledge are
Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate
An annuity is considered fixed when it does all of the following EXCEPT
Continuous Premium (straight) life
The most common type of whole life insurance where premiums are payable over the whole life of the
insured to age 100 is called.
Entire contract
The policy and a copy of the application, along with any riders and amendments, is called the
Not taxable
Money borrowed from the policy's cash value is
All annuities (Variable, Deferreed & Equity Indexed)
Which of the following annuity products requires an agent to hold a securities license?
Life income annuity
Which type of annuity settlement stops when the annuitant dies?
59 1/2
At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty
Buy-Sell Agreement
Two business partners own life insurance on each other. If one partner dies, which of the following
contracts will allow the surviving partner to use the death benefit to purchase the deceased's business
interests?
Adjustable life
Which type of policy allows the insured to change the amount of the dwah benefit, the amount of
premium, or the type of coverage S their needs change?
, Either the cash value or the premiums paid, whichever is greater
If an annuitant dies during the accumulation period, what will the beneficiary receive?
Nonadmitted
Any insurer who is NOT approved to do business in this state is considered
Insurable Interest Exists
To prevent people from profiting from a loss, insurers is the certain
Adjusts the death benefit based on the premiums that were paid
If a misstatement of age is discovered during the processing of a life insurance claim what will the
insurer do?
Policy Exclusions
Which of the following allows an insurance company to deny coverage of the insurers eewth occurs in
war?
Evidence of insurability is usually required
Each of the following is a typical characteristic of groups life insurance EXCEPT
Fixed-Period Installments
A life settlement option that pays out the death benefit is. Incrementally, in a specified amount until all
of the proceeds are exhausted, is called
Not subject to any taxes
A life insurance death benefit paid in a lump sum to a beneficiary is
Accumulation at Interest
Which of the following is NOT a nonforfeiture option in whole life policies?
Annuitant
Which of the following indicates the person upon whose life the annuity income amount is determined?
Single premium immediate annuity
An annuity that is purchased with a lump-sum payment, and that begins income payments within one
year is a
Dividends are NOT taxable
Which statement is INCORRECT concerning policy dividends
Substandard
What is the risk classification for those who are insurable, but have a higher than average risk?
CORRECT ANSWERS
Insurable Receipt
The reciept given to a life insurance applicant when the application is completed and the initial premium
is received is called a(n)
Representations
Statements in the application for insurance that are believed to be true to the best of the applicants
knowledge are
Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate
An annuity is considered fixed when it does all of the following EXCEPT
Continuous Premium (straight) life
The most common type of whole life insurance where premiums are payable over the whole life of the
insured to age 100 is called.
Entire contract
The policy and a copy of the application, along with any riders and amendments, is called the
Not taxable
Money borrowed from the policy's cash value is
All annuities (Variable, Deferreed & Equity Indexed)
Which of the following annuity products requires an agent to hold a securities license?
Life income annuity
Which type of annuity settlement stops when the annuitant dies?
59 1/2
At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty
Buy-Sell Agreement
Two business partners own life insurance on each other. If one partner dies, which of the following
contracts will allow the surviving partner to use the death benefit to purchase the deceased's business
interests?
Adjustable life
Which type of policy allows the insured to change the amount of the dwah benefit, the amount of
premium, or the type of coverage S their needs change?
, Either the cash value or the premiums paid, whichever is greater
If an annuitant dies during the accumulation period, what will the beneficiary receive?
Nonadmitted
Any insurer who is NOT approved to do business in this state is considered
Insurable Interest Exists
To prevent people from profiting from a loss, insurers is the certain
Adjusts the death benefit based on the premiums that were paid
If a misstatement of age is discovered during the processing of a life insurance claim what will the
insurer do?
Policy Exclusions
Which of the following allows an insurance company to deny coverage of the insurers eewth occurs in
war?
Evidence of insurability is usually required
Each of the following is a typical characteristic of groups life insurance EXCEPT
Fixed-Period Installments
A life settlement option that pays out the death benefit is. Incrementally, in a specified amount until all
of the proceeds are exhausted, is called
Not subject to any taxes
A life insurance death benefit paid in a lump sum to a beneficiary is
Accumulation at Interest
Which of the following is NOT a nonforfeiture option in whole life policies?
Annuitant
Which of the following indicates the person upon whose life the annuity income amount is determined?
Single premium immediate annuity
An annuity that is purchased with a lump-sum payment, and that begins income payments within one
year is a
Dividends are NOT taxable
Which statement is INCORRECT concerning policy dividends
Substandard
What is the risk classification for those who are insurable, but have a higher than average risk?
