LIFE INSURANCE FINAL EXAM SCRIPT 2026
COMPLETE SOLVED QUESTION SERIES
◉ A client buys a $50,000 Whole Life policy on himself and wants to
add $25,000 in Term coverage for his spouse. He should add which
of the following riders to his policy?
Answer: Other Insured Rider
◉ A $10,000 Life insurance policy with a Triple Indemnity clause
has been in force for three years. The insured is injured in a train
wreck and dies in a hospital five months later. The death proceeds
payable under the policy would be:
Answer: $10,000
◉ The provision in a Life insurance policy that provides protection
against unintentional policy lapse is known as the:
Answer: Automatic Premium Loan provision
◉ A client applied for Life insurance on October 1st. The application
was approved and the policy was issued on October 10th. It was
delivered to the customer on October 18th. When did the Free Look
start?
Answer: October 18th
,◉ Dividend projections may be included in a proposal for Life
insurance:
Answer: When there is a clear statement that they are not
guaranteed
◉ An insured died during the Grace Period of her Life insurance
policy and had not paid the required annual premium. The insurance
company is obligated to pay which of the following to the
beneficiary?
Answer: The face amount of the policy less any earned premiums
◉ What Life insurance policy provision applies if a policy lapsed last
year and the insured wants it back?
Answer: Reinstatement
◉ Which of the following is a Non-forfeiture Option that provides
continuing cash value buildup?
Answer: Reduced Paid-Up
◉ Which of the following Settlement Options might provide
payments that exceed the proceeds of the policy and the interest
earned?
Answer: Life Annuity
, ◉ If the insured dies 5 years after he bought a Life insurance policy
and the insurer determines that there was material
misrepresentation on his application, they will:
Answer: Pay the claim
◉ A beneficiary designation that prevents the policy owner from
making certain changes in the policy is:
Answer: Irrevocable
◉ An insurance company will grant an advance from the cash value
of a Life insurance policy when the policy owner requests which of
the following?
Answer: A policy loan
◉ Which of the following statements is true about exercising a
Guaranteed Insurability option:
I. The new insurance is available at the original issue age rate
II. Evidence of insurability is not required
III. The insured can exercise the option at any time after the age of
21
IV. The maximum purchase is specified in the contract
Answer: II and IV
COMPLETE SOLVED QUESTION SERIES
◉ A client buys a $50,000 Whole Life policy on himself and wants to
add $25,000 in Term coverage for his spouse. He should add which
of the following riders to his policy?
Answer: Other Insured Rider
◉ A $10,000 Life insurance policy with a Triple Indemnity clause
has been in force for three years. The insured is injured in a train
wreck and dies in a hospital five months later. The death proceeds
payable under the policy would be:
Answer: $10,000
◉ The provision in a Life insurance policy that provides protection
against unintentional policy lapse is known as the:
Answer: Automatic Premium Loan provision
◉ A client applied for Life insurance on October 1st. The application
was approved and the policy was issued on October 10th. It was
delivered to the customer on October 18th. When did the Free Look
start?
Answer: October 18th
,◉ Dividend projections may be included in a proposal for Life
insurance:
Answer: When there is a clear statement that they are not
guaranteed
◉ An insured died during the Grace Period of her Life insurance
policy and had not paid the required annual premium. The insurance
company is obligated to pay which of the following to the
beneficiary?
Answer: The face amount of the policy less any earned premiums
◉ What Life insurance policy provision applies if a policy lapsed last
year and the insured wants it back?
Answer: Reinstatement
◉ Which of the following is a Non-forfeiture Option that provides
continuing cash value buildup?
Answer: Reduced Paid-Up
◉ Which of the following Settlement Options might provide
payments that exceed the proceeds of the policy and the interest
earned?
Answer: Life Annuity
, ◉ If the insured dies 5 years after he bought a Life insurance policy
and the insurer determines that there was material
misrepresentation on his application, they will:
Answer: Pay the claim
◉ A beneficiary designation that prevents the policy owner from
making certain changes in the policy is:
Answer: Irrevocable
◉ An insurance company will grant an advance from the cash value
of a Life insurance policy when the policy owner requests which of
the following?
Answer: A policy loan
◉ Which of the following statements is true about exercising a
Guaranteed Insurability option:
I. The new insurance is available at the original issue age rate
II. Evidence of insurability is not required
III. The insured can exercise the option at any time after the age of
21
IV. The maximum purchase is specified in the contract
Answer: II and IV
