Dark back ground, better visibility, better eyecare.
Insurance Exam Practice Exam: Questions and
Answers 2024-2025.
Which of the following annuity benefit payment options would generate the
highest monthly payments to the contract owner upon annuitization? - Answer:
Pure or straight life
All of the following are dividend options on a participating life insurance policy: -
Answer: Paid-up additions
1-year term
Cash
The person upon whose life an annuity is based is known as the: - Answer:
Insured
Page 1 of 8
, When a policyowner uses the cash value in their policy to buy a lesser amount of
permanent life insurance, they have exercised which nonforfeiture option: -
Answer: Reduced paid-up
Which of the following life insurance settlement options enables the beneficiary
to conserve the proceeds of a life insurance policy? - Answer: Interest only
In the case of a variable annuity sold to a senior citizen in this state for which the
owner has directed that the premium be invested in the mutual funds underlying
the contract during the 30-day cancellation period, cancellation during that period
entitles the owner to a refund of: - Answer: The account value
All of the following are true regarding annuities - Answer: They are purchased by
those who are worried about outliving their savings.
They are not suitable as short term investments.
They may be used as a life insurance settlement option.
Which of the following would not be considered to be ordinary life insurance? -
Answer: Group (Life Insruance)
All of the following are true regarding dividends paid by a mutual life insurance
company - Answer: They are not guaranteed
Page 2 of 8
Insurance Exam Practice Exam: Questions and
Answers 2024-2025.
Which of the following annuity benefit payment options would generate the
highest monthly payments to the contract owner upon annuitization? - Answer:
Pure or straight life
All of the following are dividend options on a participating life insurance policy: -
Answer: Paid-up additions
1-year term
Cash
The person upon whose life an annuity is based is known as the: - Answer:
Insured
Page 1 of 8
, When a policyowner uses the cash value in their policy to buy a lesser amount of
permanent life insurance, they have exercised which nonforfeiture option: -
Answer: Reduced paid-up
Which of the following life insurance settlement options enables the beneficiary
to conserve the proceeds of a life insurance policy? - Answer: Interest only
In the case of a variable annuity sold to a senior citizen in this state for which the
owner has directed that the premium be invested in the mutual funds underlying
the contract during the 30-day cancellation period, cancellation during that period
entitles the owner to a refund of: - Answer: The account value
All of the following are true regarding annuities - Answer: They are purchased by
those who are worried about outliving their savings.
They are not suitable as short term investments.
They may be used as a life insurance settlement option.
Which of the following would not be considered to be ordinary life insurance? -
Answer: Group (Life Insruance)
All of the following are true regarding dividends paid by a mutual life insurance
company - Answer: They are not guaranteed
Page 2 of 8
