WV State Life Insurance Exam/ 175 Quizzes & Correct Ans
4 views 0 purchase
Course
WV State Life Insurance
Institution
WV State Life Insurance
WV State Life Insurance Exam/ 175 Quizzes & Correct Ans. Terms like:
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 c...
WV State Life Insurance Exam/ 175 Quizzes &
Correct Ans
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
Page 1 of 20
,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
Page 2 of 20
, 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
A term life insurance policy matures: - Answer: upon the insured's death during the term of the
policy
What type of life policy covers two people and pays upon the death of the last insured? -
Answer: Survivorship
When is the face amount paid under a Joint Life and Survivor policy? - Answer: Upon the death
of the last insured
Page 3 of 20
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 Pronurse1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
