WV State Life Insurance Exam/ 175 Quizzes & Correct Ans
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WV State Life Insurance
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WV State Life Insurance
WV State Life Insurance Exam/ 175 Quizzes & Correct Ans. Terms like:
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...
WV State Life Insurance Exam/ 175 Quizzes &
Correct Ans
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
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,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
Variable Whole Life Insurance can be described as: - Answer: Both an insurance and securities
product
All of these characteristics of an Adjustable Life policy, EXCEPT: - Answer: Face amount can be
adjusted using policy dividends
Term insurance has which of the following characteristics? - Answer: Expires at the end of the
policy period
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, P is looking to purchase a life insurance policy that will pay a stated monthly income to his
beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year
period. What type of policy should P purchase? - Answer: Family Maintenance policy
Which of the following types of policies BEST identifies one in which the cash value may
fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense
factors? - Answer: Universal life
A(n) ________ Life policy offers the owner investment in products such as money-market funds,
long-term bonds and equities - Answer: Variable
K purchased a $10,000 Life Policy that will pay the face amount to her if she lives to age 65, or
to her beneficiary if she dies before age 65. K purchased which of the following types of
policies? - Answer: Endowment at age 65
What type of life policy covers 2 lives and pays the face amount after the first one dies? -
Answer: Joint life policy
A policy that becomes a Modified Endowment Contract (MEC): - Answer: Will lose many of its
tax advantages
Which provision allows the policy owner to change a term life policy to a permanent one
without providing proof of good health? - Answer: Conversion
Which of the following statements is CORRECT about accelerated death benefits? - Answer:
Must have a terminal illness to qualify
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