Free Life Insurance Basics Practice Questions
Virginia Life exam (series 11-05) — 141 practice questions.
Subtopics: Purpose, Human life value, Needs approach, Risk classification, Premium factors, Parties, Producer role, Buyer's guide, Insurable interest, Employer insurable interest, Buy-sell insurable interest, Insured consent, Spousal policies, Minors buying insurance, HIV testing consent, HIV underwriting, HIV test cost, Advertising terms, Vanishing premium, No medical exam ads, Agent-created ads, Advertising records, Financial planner titles, Insurable interest parties, Personal uses, Liquidity, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Mortality, Interest assumption, Premium mode, Advertising, Field underwriting, 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, 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. A primary purpose of life insurance is to:
Create an immediate estate for dependents
A primary personal use of life insurance is estate creation: the death benefit creates an immediate estate to support survivors.
2. The human life value approach estimates need based on:
The insured's expected future earnings
The human life value approach sets the amount of coverage from the present value of the insured's future earnings that the family would lose.
3. The needs approach to determining life coverage focuses on:
The dollars needed to meet the family's obligations
The needs approach totals the specific lump-sum and income needs the family must meet if the insured dies.
4. An applicant rated 'standard' is one who:
Represents average expected mortality
A standard risk reflects average expected mortality; preferred risks pay less, and substandard (rated) risks pay more.
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.
