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?
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?
