ILLINOIS LIFE INSURANCE COMPREHENSIVE
FINAL EXAM 2025
If an insured dies during the grace period with no premiums paid - Precise Answer ✔✔the policy would
be payable, minus the premium amount
What is the purpose for having an accelerated death benefit on a life insurance policy - Precise Answer
✔✔It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill
The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) -
Precise Answer ✔✔accident
Which type of annuity stops all payments upon the death of the annuitant? - Precise Answer ✔✔life
annuity
Once a producers license has been revoked the producer must wait a minimum of __ years to reapply for
an insurance license - Precise Answer ✔✔3
What is not a common exclusion to a life insurance policy - Precise Answer ✔✔Accidental death
Level premium term life insurance policies - Precise Answer ✔✔have premiums that are averaged over
the policy period
A lapsed producer's license may be reinstated within _______ years of the license renewal date - Precise
Answer ✔✔1 year (12 months)
A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax
consequences. - Precise Answer ✔✔60
Producers must report felony convictions to the Director within ___ days - Precise Answer ✔✔30 days
, What best describes a conditional insurance contract - Precise Answer ✔✔A contract that requires
certain conditions or acts by the insured individual
A temporary insurance License is valid up to __ days - Precise Answer ✔✔90
A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n) - Precise
Answer ✔✔partial surrender
A permanent life insurance policy where the policyowner pays premiums for a specified number of years
is called a(n) - Precise Answer ✔✔limited pay policy
The __ must be signed by both the producer and applicant when an existing life insurance policy is being
reissued with a reduction in cash value - Precise Answer ✔✔Notice regarding replacement
Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium
was collected with the life insurance application? - Precise Answer ✔✔A good health statement
Life insurance policies will normally pay for losses arising from - Precise Answer ✔✔commercial aviation
Which type of beneficiary should be named if the insured wants to give explicit directions on how the
policy proceeds should be paid? - Precise Answer ✔✔individual
T the producer has just collected premium monies from a client t may personally hold these funds for a
max of. Days before depositing them in a premium trust fund - Precise Answer ✔✔14
Not a characteristic of accelerated death benefit option - Precise Answer ✔✔Can be offered as a rider at
a specific extra cost or may be at no cost
What does the group underwriting risk selection process help protect insurance companies from -
Precise Answer ✔✔Adverse selection
FINAL EXAM 2025
If an insured dies during the grace period with no premiums paid - Precise Answer ✔✔the policy would
be payable, minus the premium amount
What is the purpose for having an accelerated death benefit on a life insurance policy - Precise Answer
✔✔It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill
The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) -
Precise Answer ✔✔accident
Which type of annuity stops all payments upon the death of the annuitant? - Precise Answer ✔✔life
annuity
Once a producers license has been revoked the producer must wait a minimum of __ years to reapply for
an insurance license - Precise Answer ✔✔3
What is not a common exclusion to a life insurance policy - Precise Answer ✔✔Accidental death
Level premium term life insurance policies - Precise Answer ✔✔have premiums that are averaged over
the policy period
A lapsed producer's license may be reinstated within _______ years of the license renewal date - Precise
Answer ✔✔1 year (12 months)
A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax
consequences. - Precise Answer ✔✔60
Producers must report felony convictions to the Director within ___ days - Precise Answer ✔✔30 days
, What best describes a conditional insurance contract - Precise Answer ✔✔A contract that requires
certain conditions or acts by the insured individual
A temporary insurance License is valid up to __ days - Precise Answer ✔✔90
A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n) - Precise
Answer ✔✔partial surrender
A permanent life insurance policy where the policyowner pays premiums for a specified number of years
is called a(n) - Precise Answer ✔✔limited pay policy
The __ must be signed by both the producer and applicant when an existing life insurance policy is being
reissued with a reduction in cash value - Precise Answer ✔✔Notice regarding replacement
Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium
was collected with the life insurance application? - Precise Answer ✔✔A good health statement
Life insurance policies will normally pay for losses arising from - Precise Answer ✔✔commercial aviation
Which type of beneficiary should be named if the insured wants to give explicit directions on how the
policy proceeds should be paid? - Precise Answer ✔✔individual
T the producer has just collected premium monies from a client t may personally hold these funds for a
max of. Days before depositing them in a premium trust fund - Precise Answer ✔✔14
Not a characteristic of accelerated death benefit option - Precise Answer ✔✔Can be offered as a rider at
a specific extra cost or may be at no cost
What does the group underwriting risk selection process help protect insurance companies from -
Precise Answer ✔✔Adverse selection
