Free Life Insurance Basics Practice Questions
South Dakota Life exam — 132 practice questions.
Subtopics: Agent representation, Field underwriting, Representation, Concealment, Risk classification, Underwriting sources, Premium factors, Stranger-owned insurance, Insurable interest, Consent of insured, Lack of insurable interest, Creditor exemption, Insurable interest parties, Personal uses, Liquidity, Human life value, Needs approach, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Mortality, Interest assumption, Premium mode, Advertising, Application accuracy, Sources of underwriting, Substandard risk, Effective date, Statement of good health, Backdating, MIB, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Surrender comparison index, Net amount at risk, Legal reserve, CSO mortality table, Level premium funding, Cash value accumulation, Endowment maturity, Free look period, Policy replacement rules, Twisting, Churning, Rebating, Defamation, Binding receipt, Insuring clause, Consideration clause, Owner vs insured, Stranger-originated life insurance, Suitability, Sales illustration, Producer appointment, Paramedical exam, Inspection report, Nonmedical limit, Split-dollar plan, Section 162 executive bonus, Dependency period need, Social Security blackout period, Capital retention approach, Final expense need, Insurance age, Flat extra premium, Postponed risk, Agent's report, Policy summary, Material misrepresentation, Estate creation, Cash accumulation, Charitable giving, Buy-sell cross purchase, Buy-sell entity purchase, Cross purchase count, Key person beneficiary, Deferred compensation, Split dollar collateral assignment, Executive bonus taxation, Business overhead uses, Information for needs analysis, Group vs individual class, Nonparticipating policy, Fixed vs variable, Variable minimum death benefit, Gross vs net premium, Modal factors, Mortality table use, Gender and mortality, Producer delivery duties, Constructive delivery, Rated policy delivery, Conditional receipt insurability, No premium with application, Application signatures, Application corrections, Insurable interest third party, Self insurable interest, Attending physician statement, MIB adverse decisions, MIB pre-notice, HIV testing consent, Underwriting prohibited factor, Rated policy, Standard risk, Prescription database, Social Security fully insured, Currently insured, Survivor benefits children, Spouse caring for child, Blackout period end, Lump-sum death benefit, Full retirement age, Social Security disability, Social Security as offset, Producer report purpose
Read the Life Insurance Basics study guide
Sample questions & answers
1. In a typical life insurance transaction, the producer acting under an appointment generally represents:
The insurer whose products are being offered
SDCL 58-30-142 defines an agent of the insurer as a producer compensated by an insurer who sells its products; an appointed producer acts for that insurer.
2. When a producer completes the application and gathers accurate information about a life applicant, the producer is performing:
Field underwriting
Gathering applicant information and completing the application accurately is the producer's field underwriting role.
3. A statement made by a life applicant that is believed true to the best of their knowledge is best described as a:
Representation
A representation is a statement believed to be true to the best of the applicant's knowledge, unlike a guaranteed warranty.
4. An applicant who deliberately stays silent about a material health condition to obtain coverage is engaging in:
Concealment
Concealment is the intentional withholding of a material fact the insurer would want to know in underwriting.
Practice: Life Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
