IOWA LIFE INSURANCE EXAM STUDY
GUIDE 2026 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. purpose of life insurance - ANSWER ✔ pay a death benefit to beneficiaries
when the insured dies
2. life insurance for personal use - ANSWER ✔ death benefit serves to replace
the insured's future loss income and pay expenses that occur upon death,
living benefits
3. Group insurance vs. individual - ANSWER ✔ -covers many non-related
people
-less expensive per person
4. group insurance eligibility - ANSWER ✔ -group cannot be formed for the
express purpose of purchasing it
-employers
-labor unions
-trade and professional association groups
5. individual insurance - ANSWER ✔ covers one individual
,6. ordinary life insurance - ANSWER ✔ face amounts grater than $25,000,
premiums are payable monthly, quarterly, semi annually, annually; includes
every type of life insurance and annuity product, flexible options
7. industrial life insurance - ANSWER ✔ "burial insurance", small face
amounts 1000 or 2500 to 10,000; premiums paid frequently, no medical
exam, agent meets personally with policy owner to collect premium
8. permanent life insurance - ANSWER ✔ provides life ins for the insured's
entire life; coverage is provided until insured dies or reaches 120 years old
9. True or false: Level premium of permanent life insurance - once the policy is
issued premiums remain level for the full duration of policy coverage -
ANSWER ✔ true
10.Permanent life insurance accumulation element within the policy is
__________ ____________ - ANSWER ✔ cash value
11.Term life insurance - ANSWER ✔ coverage is temporary, time limit can be
as short as one year, as long as 20+ years or until the insured reaches a
specific age (ex. 65). No cash value, costs less than permanent life,
premiums increase with age
12.Participating vs nonparticipating life insurance - ANSWER ✔ par - issued
by mutual ins co's, policyowner is eligible for policy dividends declared by
the insurance co; dividends are paid from insurers divisible surplus
non par - issued by stock ins co, no policy dividends
,13.How is the insurance commissioner appointed? PAGE 2 - ANSWER ✔
Appointed by the governor and confirmed by the senate
14.How long is a term for the Iowa Insurance Commissioner? PAGE 2 -
ANSWER ✔ 4 Years
15.The power to examine and investigate into the affairs of every person
engaged in the business of insurance resides with the...PAGE 2 - ANSWER
✔ Commissioner of Insurance
16.Domestic Companies must be examined by the commissioner at least once
every _____ years? PAGE 2 - ANSWER ✔ Every 4 years
17.The commissioner may give notice of a hearing to say such person engaging
in any unfair method of competition or any unfair or deceptive act or
practice. The hearing shall not be less than how many days after notice of a
hearing is served? PAGE 2 - ANSWER ✔ 10 Days
18.If a person knew or reasonably should have known the person was in
violation of insurance trade practices, the penalty shall not
exceed________________. PAGE 2 - ANSWER ✔ $5,000 for each
violation, maximum of $50,000
19.If the commissioner finds that a producer has engaged in an unfair trade
practice, commissioner may... PAGE 2 - ANSWER ✔ impose a monetary
penalty, suspend the producer's license, revoke the producer's license
20.What will be issued if the commissioner finds that a producer has engaged in
an unfair trade practice? PAGE 2 - ANSWER ✔ a cease and desist order
, 21.A person applying for a resident insurance producer license would be
required to_____________. PAGE 2 - ANSWER ✔ Be at least 18, be of
good repute, and successfully complete an exam
22.An insurance producer doing business under any name other than the
insurance producer's legal name is required to... PAGE 2 - ANSWER ✔
Notify the commissioner prior to using the assumed name
23.Which of the following would be required to take an insurance licensing
examination?
A) A sales employee soliciting insurance
B) A person not receiving commission
C) A licensed attorney providing surety bonds incident to the attorney's
practice.
D) An administrative employee only indirectly related to the sale of
insurance
PAGE 6 - ANSWER ✔ Answer = A
24.A licensing exam would NOT be required of which of the following?
A) A clerical employee quoting prices to a prospective customer
B) An executive negotiating the sale of insurance
C)An insurer
D) A managerial employee receiving a commission
PAGE 6 - ANSWER ✔ --------> Answer = C
25.The commissioner may terminate a producer's license for which of the
following reasons?
A) Changing the producer's address
B)Changing the producer's name
GUIDE 2026 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. purpose of life insurance - ANSWER ✔ pay a death benefit to beneficiaries
when the insured dies
2. life insurance for personal use - ANSWER ✔ death benefit serves to replace
the insured's future loss income and pay expenses that occur upon death,
living benefits
3. Group insurance vs. individual - ANSWER ✔ -covers many non-related
people
-less expensive per person
4. group insurance eligibility - ANSWER ✔ -group cannot be formed for the
express purpose of purchasing it
-employers
-labor unions
-trade and professional association groups
5. individual insurance - ANSWER ✔ covers one individual
,6. ordinary life insurance - ANSWER ✔ face amounts grater than $25,000,
premiums are payable monthly, quarterly, semi annually, annually; includes
every type of life insurance and annuity product, flexible options
7. industrial life insurance - ANSWER ✔ "burial insurance", small face
amounts 1000 or 2500 to 10,000; premiums paid frequently, no medical
exam, agent meets personally with policy owner to collect premium
8. permanent life insurance - ANSWER ✔ provides life ins for the insured's
entire life; coverage is provided until insured dies or reaches 120 years old
9. True or false: Level premium of permanent life insurance - once the policy is
issued premiums remain level for the full duration of policy coverage -
ANSWER ✔ true
10.Permanent life insurance accumulation element within the policy is
__________ ____________ - ANSWER ✔ cash value
11.Term life insurance - ANSWER ✔ coverage is temporary, time limit can be
as short as one year, as long as 20+ years or until the insured reaches a
specific age (ex. 65). No cash value, costs less than permanent life,
premiums increase with age
12.Participating vs nonparticipating life insurance - ANSWER ✔ par - issued
by mutual ins co's, policyowner is eligible for policy dividends declared by
the insurance co; dividends are paid from insurers divisible surplus
non par - issued by stock ins co, no policy dividends
,13.How is the insurance commissioner appointed? PAGE 2 - ANSWER ✔
Appointed by the governor and confirmed by the senate
14.How long is a term for the Iowa Insurance Commissioner? PAGE 2 -
ANSWER ✔ 4 Years
15.The power to examine and investigate into the affairs of every person
engaged in the business of insurance resides with the...PAGE 2 - ANSWER
✔ Commissioner of Insurance
16.Domestic Companies must be examined by the commissioner at least once
every _____ years? PAGE 2 - ANSWER ✔ Every 4 years
17.The commissioner may give notice of a hearing to say such person engaging
in any unfair method of competition or any unfair or deceptive act or
practice. The hearing shall not be less than how many days after notice of a
hearing is served? PAGE 2 - ANSWER ✔ 10 Days
18.If a person knew or reasonably should have known the person was in
violation of insurance trade practices, the penalty shall not
exceed________________. PAGE 2 - ANSWER ✔ $5,000 for each
violation, maximum of $50,000
19.If the commissioner finds that a producer has engaged in an unfair trade
practice, commissioner may... PAGE 2 - ANSWER ✔ impose a monetary
penalty, suspend the producer's license, revoke the producer's license
20.What will be issued if the commissioner finds that a producer has engaged in
an unfair trade practice? PAGE 2 - ANSWER ✔ a cease and desist order
, 21.A person applying for a resident insurance producer license would be
required to_____________. PAGE 2 - ANSWER ✔ Be at least 18, be of
good repute, and successfully complete an exam
22.An insurance producer doing business under any name other than the
insurance producer's legal name is required to... PAGE 2 - ANSWER ✔
Notify the commissioner prior to using the assumed name
23.Which of the following would be required to take an insurance licensing
examination?
A) A sales employee soliciting insurance
B) A person not receiving commission
C) A licensed attorney providing surety bonds incident to the attorney's
practice.
D) An administrative employee only indirectly related to the sale of
insurance
PAGE 6 - ANSWER ✔ Answer = A
24.A licensing exam would NOT be required of which of the following?
A) A clerical employee quoting prices to a prospective customer
B) An executive negotiating the sale of insurance
C)An insurer
D) A managerial employee receiving a commission
PAGE 6 - ANSWER ✔ --------> Answer = C
25.The commissioner may terminate a producer's license for which of the
following reasons?
A) Changing the producer's address
B)Changing the producer's name
