ILLINOIS LIFE INSURANCE EXAM 2024 2 TESTING
EXAM VERSIONS WITH 99 REAL EXAM QUESTIONS
AND ANSWERS WITH A STUDY GUIDE LATEST
UPDATE
An insured purchased an insurance policy 5 years ago. Last year, she received a
dividend check from the insurance company that was not taxable. This year, she did not
receive a check from the insurer. From what type of insurer did the insured purchase
the policy?
A. Mutual
B. Reciprocal
C. Nonprofit service organization
D. Stock
A. Mutual
Funds paid out after paying claims and other operating costs are returned to the
policyowners in the form of a dividend for a Mutual insurer.
A Straight Life policy has what type of premium?
A. An increasing annual premium for the life of the insured
B. A decreasing annual premium for the life of the insured.
C. A variable annual premium for the life of the insured
D. A level annual premium for the life of the insured.
D. A level annual premium for the life of the insured.
Straight Life policies charge a level annual premium for the lifetime of the insured and
provide a level, guaranteed death benefit.
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide
additional protection until his children finished college. He discovered that his policy
A. Decreased death benefit at each renewal
B. Required a premium increase each renewal
C. Built cash values
D. Required proof of insurability every year
B. Required a premium increase each renewal
Premiums are adjusted each year for Annually Renewable Term Life policies to the
insured's attained age.
The insurer discovered that one of the applicants for life insurance missed a couple of
questions on the application. What must the insurer do with the application?
A. Answer the missed questions for the applicant
B. Acknowledge the missed questions with a signature and continue the policy issue process
, ILLINOIS LIFE INSURANCE EXAM 2024 2 TESTING
EXAM VERSIONS WITH 99 REAL EXAM QUESTIONS
AND ANSWERS WITH A STUDY GUIDE LATEST
UPDATE
C. Proceed with issuing a policy
D. Return to the applicant for completion
D. Return to the applicant for completion
Any unanswered questions need to be answered before the policy is issued. If the
insurer received incomplete applications, they need to be returned to the applicants for
completion.
Which provision of a life insurance policy states the insurer's duty to pay benefits upon
the death of the insured, and to whom the benefits will be paid?
A. Insuring clause
B. Entire contract clause
C. Beneficiary clause
D. Consideration clause
A. Insuring clause
The insuring clause states that the insurer agrees to provide life insurance for the
named insured which will be paid to a designated beneficiary when proof of loss is
received by the insurer.
Insurance policies are not drawn up through negotiations, and an insured has little to
say about its provisions. What contract characteristic does this describe?
A. Unilateral
B. Conditional
C. Personal
D. Adhesion
D. Adhesion
A contract of adhesion is prepared by only the insurer; the insured's only option is to
accept or reject the policy as it is written.
Which of the following insurance arrangements will be appropriate for a parent buying a
life insurance policy on a child where the parent is the policyowner?
A. An irrevocable beneficiary
B. A buy-sell agreement
C. Family term rider
D. Third-party ownership
D. Third-party ownership
Contracts that are owned by someone other than the insured are known as third-party
ownership. Most policies involving third-party ownership are written in business
situations or for minors in which the parent owns the policy.
A father owns a life insurance policy on his 15-year old daughter. The policy contains
the optional payor Benefit rider. If the father becomes disabled, what will happen to the
, ILLINOIS LIFE INSURANCE EXAM 2024 2 TESTING
EXAM VERSIONS WITH 99 REAL EXAM QUESTIONS
AND ANSWERS WITH A STUDY GUIDE LATEST
UPDATE
life
, ILLINOIS LIFE INSURANCE EXAM 2024 2 TESTING
EXAM VERSIONS WITH 99 REAL EXAM QUESTIONS
AND ANSWERS WITH A STUDY GUIDE LATEST
UPDATE
insurance premiums?
A. The insured will have to pay premiums for 6 months. if at the end of this period the
father is still disabled, the insured will be refunded the premiums
/C. The premiums will become tax deductible until the insured's 18th birthday
D. Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected
B. The insured's premiums will be waived until she is 21
If the payor becomes disabled for at least 6 months or dies, the insurer will waive the
premiums until the minor reaches a certain age, such as 21.
A Universal Life Insurance policy is best described as a/an
A. Annually Renewable Term policy with a cash value amount
B. Variable Life with a cash value account
C. Whole Life policy with two premiums: target and minimum
D. Flexible Premium Variable Life policy
A. Annually Renewable Term policy with a cash value account.
A universal policy has two components: an insurance component and a cash account.
The insurance component (or the death protection) of a universal life policy is always
annual renewable term insurance.
A rider attached to a life insurance policy that provides coverage on the insured's
family members is called the
A. Juvenile rider
B. Payor rider
C. Other-insured rider
D. Change of insured rider
C. Other-insured rider
The other-insureds rider is useful in providing insurance for more than one family
member. The type of insurance offered by this rider is usually term insurance, with the
right to convert to permanent insurance
An insured under a life insurance policy has been idagnosed with a terminal illness and
has 6 months to live. The insured knows that his financial state will worsen even more
with the upcoming medical expenses. What option could the insured utilize?
A. Viatical settlement
B. Estate liquidation
C. Nonpayment of premium
D. Change of beneficiary
EXAM VERSIONS WITH 99 REAL EXAM QUESTIONS
AND ANSWERS WITH A STUDY GUIDE LATEST
UPDATE
An insured purchased an insurance policy 5 years ago. Last year, she received a
dividend check from the insurance company that was not taxable. This year, she did not
receive a check from the insurer. From what type of insurer did the insured purchase
the policy?
A. Mutual
B. Reciprocal
C. Nonprofit service organization
D. Stock
A. Mutual
Funds paid out after paying claims and other operating costs are returned to the
policyowners in the form of a dividend for a Mutual insurer.
A Straight Life policy has what type of premium?
A. An increasing annual premium for the life of the insured
B. A decreasing annual premium for the life of the insured.
C. A variable annual premium for the life of the insured
D. A level annual premium for the life of the insured.
D. A level annual premium for the life of the insured.
Straight Life policies charge a level annual premium for the lifetime of the insured and
provide a level, guaranteed death benefit.
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide
additional protection until his children finished college. He discovered that his policy
A. Decreased death benefit at each renewal
B. Required a premium increase each renewal
C. Built cash values
D. Required proof of insurability every year
B. Required a premium increase each renewal
Premiums are adjusted each year for Annually Renewable Term Life policies to the
insured's attained age.
The insurer discovered that one of the applicants for life insurance missed a couple of
questions on the application. What must the insurer do with the application?
A. Answer the missed questions for the applicant
B. Acknowledge the missed questions with a signature and continue the policy issue process
, ILLINOIS LIFE INSURANCE EXAM 2024 2 TESTING
EXAM VERSIONS WITH 99 REAL EXAM QUESTIONS
AND ANSWERS WITH A STUDY GUIDE LATEST
UPDATE
C. Proceed with issuing a policy
D. Return to the applicant for completion
D. Return to the applicant for completion
Any unanswered questions need to be answered before the policy is issued. If the
insurer received incomplete applications, they need to be returned to the applicants for
completion.
Which provision of a life insurance policy states the insurer's duty to pay benefits upon
the death of the insured, and to whom the benefits will be paid?
A. Insuring clause
B. Entire contract clause
C. Beneficiary clause
D. Consideration clause
A. Insuring clause
The insuring clause states that the insurer agrees to provide life insurance for the
named insured which will be paid to a designated beneficiary when proof of loss is
received by the insurer.
Insurance policies are not drawn up through negotiations, and an insured has little to
say about its provisions. What contract characteristic does this describe?
A. Unilateral
B. Conditional
C. Personal
D. Adhesion
D. Adhesion
A contract of adhesion is prepared by only the insurer; the insured's only option is to
accept or reject the policy as it is written.
Which of the following insurance arrangements will be appropriate for a parent buying a
life insurance policy on a child where the parent is the policyowner?
A. An irrevocable beneficiary
B. A buy-sell agreement
C. Family term rider
D. Third-party ownership
D. Third-party ownership
Contracts that are owned by someone other than the insured are known as third-party
ownership. Most policies involving third-party ownership are written in business
situations or for minors in which the parent owns the policy.
A father owns a life insurance policy on his 15-year old daughter. The policy contains
the optional payor Benefit rider. If the father becomes disabled, what will happen to the
, ILLINOIS LIFE INSURANCE EXAM 2024 2 TESTING
EXAM VERSIONS WITH 99 REAL EXAM QUESTIONS
AND ANSWERS WITH A STUDY GUIDE LATEST
UPDATE
life
, ILLINOIS LIFE INSURANCE EXAM 2024 2 TESTING
EXAM VERSIONS WITH 99 REAL EXAM QUESTIONS
AND ANSWERS WITH A STUDY GUIDE LATEST
UPDATE
insurance premiums?
A. The insured will have to pay premiums for 6 months. if at the end of this period the
father is still disabled, the insured will be refunded the premiums
/C. The premiums will become tax deductible until the insured's 18th birthday
D. Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected
B. The insured's premiums will be waived until she is 21
If the payor becomes disabled for at least 6 months or dies, the insurer will waive the
premiums until the minor reaches a certain age, such as 21.
A Universal Life Insurance policy is best described as a/an
A. Annually Renewable Term policy with a cash value amount
B. Variable Life with a cash value account
C. Whole Life policy with two premiums: target and minimum
D. Flexible Premium Variable Life policy
A. Annually Renewable Term policy with a cash value account.
A universal policy has two components: an insurance component and a cash account.
The insurance component (or the death protection) of a universal life policy is always
annual renewable term insurance.
A rider attached to a life insurance policy that provides coverage on the insured's
family members is called the
A. Juvenile rider
B. Payor rider
C. Other-insured rider
D. Change of insured rider
C. Other-insured rider
The other-insureds rider is useful in providing insurance for more than one family
member. The type of insurance offered by this rider is usually term insurance, with the
right to convert to permanent insurance
An insured under a life insurance policy has been idagnosed with a terminal illness and
has 6 months to live. The insured knows that his financial state will worsen even more
with the upcoming medical expenses. What option could the insured utilize?
A. Viatical settlement
B. Estate liquidation
C. Nonpayment of premium
D. Change of beneficiary
