Exam (elaborations)
WV State Life Insurance Exam (175 questions and answers).
- Course
- Institution
WV State Life Insurance Exam (175 questions and answers).
[Show more]
Content preview
WV State LifeInsurance Exam (175
questions and answer)
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as a: - answer Risk retention group
Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated? - answer 1970-Fair Credit
Reporting Act
Q purchases a $500,000 life insurance policy and pays $900 in premiums over
the first six months. Q dies suddenly and the beneficiary is paid $500,000. This
exchange of unequal values reflects which of the following insurance contract
features? - answer Aleatory
The stated amount or percent of liquid assets that an insurer must have on
hand that will satisfy future obligations to its policyholders is called: - answer
Reserves
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - answer Bilateral
,What year was the McCarran-Ferguson Act enacted? - answer 1945
Which of the following consists of an offer, acceptance, and consideration? -
answer Contract
Who elects the governing body of a mutual insurance company? - answer
Policyholders
Insurance policies are considered aleatory contracts because: - answer
Performance is conditioned upon a future occurrence
Who makes the legally enforceable promises in a unilateral contract? - answer
Insurance company
Insurance contracts are known as _____ because certain future conditions or
acts must occur before any claims can be paid. - answer Conditional
A life insurance arrangement which circumvents insurable interest statutes is
called: - answer Investor-Originated Life Insurance
In an insurance contract, the insurer is the only party who makes a legally
enforceable promise. What kind of contract is this? - answer Unilateral
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - answer Insurable interest in
the proposed insured
, Which of these arrangements allows one to bypass insurable interest laws? -
answer Investor-Originated Life Insurance
When must insurable interest exist for a life insurance contract to be valid? -
answer Inception of the contract
If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of? - answer Insured
Which of these is an element of a Variable Life policy? - answer A fixed, level
premium
A father who dies within 3 years after purchasing a life insurance policy on his
infant daughter can have the policy premiums waived under which provision?
- answer Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured
dies? - answer Policyowner
Which of the following actions is NOT possible with a Universal Life policy? -
answer Premiums may be applied as a credit against income tax
Which of the following policies is characterized by a flexible premium and
death benefit and allows the policy owner control of the investment aspect of
the plan? - answer Variable universal life
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BRAINBOOSTERS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now