WV state life insurance Exam 2025
Questions and Answers
Absolute Assignment - ANSWER-Policy assignment under which the assignee
(person to whom the policy is assigned) receives full control over the policy and
also full rights to its benefits. Generally, when a policy is assigned to secure a debt,
the owner retains all rights in the policy in excess of the debt, even though the
assignment is absolute in form.
Accidental Death Benefit Rider - ANSWER-pays a multiple of the death proceeds
if the cause of death is a covered accidental event.
Accelerated Benefit Rider - ANSWER-Allows the insured to receive a portion of
the death benefit prior to death if the insured has a terminal illness and expected to
die within 1-2 years. Whatever amount is withdrawn in an accelerated death benefit
will decrease the death benefit when death occurs.
Accumulate Interest Option - ANSWER-The "accumulate interest" dividend
option allows the policy owner to leave dividends with the insurer to accumulate
interest. In turn, the policy owner will be required to pay taxes on any interest
(profit) generated by the dividend.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Assignment Clause - ANSWER-allows the right to transfer policy rights to another
person or entity
Automatic Premium Loan Provision - ANSWER-Authorizes insurer to
automatically pay any premium in default at the end of the grace period and charge
the amount so paid against the life insurance policy as a policy loan.
Cash option - ANSWER-The "cash" dividend option allows the policy owner to
cash out the dividends they receive.
Cash Surrender Option - ANSWER-A nonforfeiture option that allows whole life
insurance policy owners to receive a payout of their policy's cash values.
Collateral Assignment - ANSWER-Assignment of a policy to a creditor as security
for a debt. The creditor is entitled to be reimbursed out of policy proceeds for the
amount owed. The beneficiary is entitled to any excess of policy proceeds over the
amount due the creditor in the event of the insured's death.
Consideration Clause - ANSWER-states a policyowner must pay a premium in
exchange for the insurer's promise to pay benefits. A policyowner's consideration
consists of completing the application and paying the initial premium. The amount
and frequency of premium payments are contained in the consideration clause.
"Please CONSIDER me for insurance. Here is my COMPLETED
APPLICATION, INITIAL PREMIUM, and how much, how often I agree to pay.
Please consider me."
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Questions and Answers
Absolute Assignment - ANSWER-Policy assignment under which the assignee
(person to whom the policy is assigned) receives full control over the policy and
also full rights to its benefits. Generally, when a policy is assigned to secure a debt,
the owner retains all rights in the policy in excess of the debt, even though the
assignment is absolute in form.
Accidental Death Benefit Rider - ANSWER-pays a multiple of the death proceeds
if the cause of death is a covered accidental event.
Accelerated Benefit Rider - ANSWER-Allows the insured to receive a portion of
the death benefit prior to death if the insured has a terminal illness and expected to
die within 1-2 years. Whatever amount is withdrawn in an accelerated death benefit
will decrease the death benefit when death occurs.
Accumulate Interest Option - ANSWER-The "accumulate interest" dividend
option allows the policy owner to leave dividends with the insurer to accumulate
interest. In turn, the policy owner will be required to pay taxes on any interest
(profit) generated by the dividend.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Assignment Clause - ANSWER-allows the right to transfer policy rights to another
person or entity
Automatic Premium Loan Provision - ANSWER-Authorizes insurer to
automatically pay any premium in default at the end of the grace period and charge
the amount so paid against the life insurance policy as a policy loan.
Cash option - ANSWER-The "cash" dividend option allows the policy owner to
cash out the dividends they receive.
Cash Surrender Option - ANSWER-A nonforfeiture option that allows whole life
insurance policy owners to receive a payout of their policy's cash values.
Collateral Assignment - ANSWER-Assignment of a policy to a creditor as security
for a debt. The creditor is entitled to be reimbursed out of policy proceeds for the
amount owed. The beneficiary is entitled to any excess of policy proceeds over the
amount due the creditor in the event of the insured's death.
Consideration Clause - ANSWER-states a policyowner must pay a premium in
exchange for the insurer's promise to pay benefits. A policyowner's consideration
consists of completing the application and paying the initial premium. The amount
and frequency of premium payments are contained in the consideration clause.
"Please CONSIDER me for insurance. Here is my COMPLETED
APPLICATION, INITIAL PREMIUM, and how much, how often I agree to pay.
Please consider me."
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
