Life Insurance State Exam Questions and
Answers () (Verified Answers)
If the insured and primary beneficiary are both killed in the same accident and it cannot be
determined who died first, where are the death proceeds to be directed under the Uniform
Simultaneous Death Act?
Insured's contingent beneficiary
When can a policyowner change a revocable beneficiary?
Anytime
Which premium schedule results in the lowest cost to the policyowner?
Annual
A level premium indicates
the premium is fixed for the entire duration of the contract
J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these
statements is correct?
The gross premium is higher on a monthly payment mode as compared to being paid annually
C is trying to determine whether to convert her convertible term life policy to whole life insurance
using her original age or attained age. What factor would affect her decision the most?
The cost
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal
accident where K dies before P. Under the Common Disaster provision, which of these statements is
true?
Proceeds will be paid to P's estate
On a life insurance policy, who is qualified to change the beneficiary designation?
Policyowner
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy?
If the primary beneficiary dies before the insured
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment
policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of
natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death
benefit will the mother receive?
$0
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and
Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved
in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to
P only
, A policyowner is able to choose the frequency of premium payments through what policy feature?
Premium Mode
Which statement is true regarding a minor beneficiary?
Normally, a guardian is required to be appointed in the Beneficiary clause of the contract
What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is
made?
Irrevocable beneficiary
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
An insured covered by life insurance has just died. What will happen if the primary beneficiary had
already died before the insured and contingent beneficiary?
Proceeds will go to the contingent beneficiary
A policyowner would like to change the beneficiary on a Life insurance policy and make the change
permanent. Which type of designation would fulfill this need?
Irrevocable
A policyowner is allowed to pay premiums more than once a year under which provision?
Mode of Premium
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile
accident, where would the death proceeds be directed?
Daughter
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be
used?
Revocable
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as
beneficiary. M has the right to change the beneficiary designation at anytime. What type of
beneficiary is his son?
Revocable
Which statement regarding the Change of Beneficiary provision is true?
The policyowner can change the beneficiary
Which of these statements is INCORRECT regarding the federal income tax treatment of life
insurance?
Entire cash surrender value is taxable
Answers () (Verified Answers)
If the insured and primary beneficiary are both killed in the same accident and it cannot be
determined who died first, where are the death proceeds to be directed under the Uniform
Simultaneous Death Act?
Insured's contingent beneficiary
When can a policyowner change a revocable beneficiary?
Anytime
Which premium schedule results in the lowest cost to the policyowner?
Annual
A level premium indicates
the premium is fixed for the entire duration of the contract
J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these
statements is correct?
The gross premium is higher on a monthly payment mode as compared to being paid annually
C is trying to determine whether to convert her convertible term life policy to whole life insurance
using her original age or attained age. What factor would affect her decision the most?
The cost
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal
accident where K dies before P. Under the Common Disaster provision, which of these statements is
true?
Proceeds will be paid to P's estate
On a life insurance policy, who is qualified to change the beneficiary designation?
Policyowner
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy?
If the primary beneficiary dies before the insured
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment
policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of
natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death
benefit will the mother receive?
$0
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and
Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved
in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to
P only
, A policyowner is able to choose the frequency of premium payments through what policy feature?
Premium Mode
Which statement is true regarding a minor beneficiary?
Normally, a guardian is required to be appointed in the Beneficiary clause of the contract
What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is
made?
Irrevocable beneficiary
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
An insured covered by life insurance has just died. What will happen if the primary beneficiary had
already died before the insured and contingent beneficiary?
Proceeds will go to the contingent beneficiary
A policyowner would like to change the beneficiary on a Life insurance policy and make the change
permanent. Which type of designation would fulfill this need?
Irrevocable
A policyowner is allowed to pay premiums more than once a year under which provision?
Mode of Premium
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile
accident, where would the death proceeds be directed?
Daughter
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be
used?
Revocable
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as
beneficiary. M has the right to change the beneficiary designation at anytime. What type of
beneficiary is his son?
Revocable
Which statement regarding the Change of Beneficiary provision is true?
The policyowner can change the beneficiary
Which of these statements is INCORRECT regarding the federal income tax treatment of life
insurance?
Entire cash surrender value is taxable
