LIFE INSURANCE PRACTICE EXAM QUESTIONS AND
ANSWERS.
The receipt given to a life insurance applicant when the application is completed and the
initial premium is received is called a (n) - Correct Answer Insurable Receipt
Statements in the application for insurance that are believed to be true to the best of the
applicants knowledge are - Correct Answer Representations
An annuity is considered fixed when it does all of the following ACCEPT - Correct
Answer Provide the annuitant with an interest rate that is lesser of the guaranteed or
current rate
The most common type of whole life insurance where premiums are payable over the
whole life of the insured to age 100 is called. - Correct Answer Continuous Premium
(straight) life
The policy and a copy of the application, along with any riders and amendments, is
called the - Correct Answer Entire contract
Money borrowed from the policy's cash value is - Correct Answer Not taxable
Which of the following annuity products requires an agent to hold a securities license? -
Correct Answer All annuities (Variable, Deferred & Equity Indexed)
Which type of annuity settlement stops when the annuitant dies? - Correct Answer Life
income annuity
At what age can a participant receive distributions from a qualified plan without incurring
a 10% penalty - Correct Answer 59 1/2?
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? - Correct Answer Buy-Sell Agreement
Which type of policy allows the insured to change the amount of the dawn benefit, the
amount of premium, or the type of coverage S their needs change? - Correct Answer
Adjustable life
If an annuitant dies during the accumulation period, what will the beneficiary receive? -
Correct Answer either the cash value or the premiums paid, whichever is greater
Any insurer who is NOT approved to do business in this state is considered - Correct
Answer No admitted
ANSWERS.
The receipt given to a life insurance applicant when the application is completed and the
initial premium is received is called a (n) - Correct Answer Insurable Receipt
Statements in the application for insurance that are believed to be true to the best of the
applicants knowledge are - Correct Answer Representations
An annuity is considered fixed when it does all of the following ACCEPT - Correct
Answer Provide the annuitant with an interest rate that is lesser of the guaranteed or
current rate
The most common type of whole life insurance where premiums are payable over the
whole life of the insured to age 100 is called. - Correct Answer Continuous Premium
(straight) life
The policy and a copy of the application, along with any riders and amendments, is
called the - Correct Answer Entire contract
Money borrowed from the policy's cash value is - Correct Answer Not taxable
Which of the following annuity products requires an agent to hold a securities license? -
Correct Answer All annuities (Variable, Deferred & Equity Indexed)
Which type of annuity settlement stops when the annuitant dies? - Correct Answer Life
income annuity
At what age can a participant receive distributions from a qualified plan without incurring
a 10% penalty - Correct Answer 59 1/2?
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? - Correct Answer Buy-Sell Agreement
Which type of policy allows the insured to change the amount of the dawn benefit, the
amount of premium, or the type of coverage S their needs change? - Correct Answer
Adjustable life
If an annuitant dies during the accumulation period, what will the beneficiary receive? -
Correct Answer either the cash value or the premiums paid, whichever is greater
Any insurer who is NOT approved to do business in this state is considered - Correct
Answer No admitted
