Free Life Insurance Basics Practice Questions
West Virginia Life exam — 143 practice questions.
Subtopics: Group life, Human life value, Needs approach, Stranger-originated, Disclosure rule scope, Policy summary, Policy summary title, Policy data requests, Employee group size, Noncontributory group life, Individual selection, Labor union groups, Contributory participation, Trustee groups, Debtor group benefit, Conversion form, Conversion amount and rate, Conversion on policy termination, Group ownership assignment, Insurable interest - family, Insurable interest - business, Insurable interest - charities, Recovery of benefits, Life line scope, Life exam format, Insurable interest, Insurable interest parties, Personal uses, Liquidity, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Premium factors, Mortality, Interest assumption, Premium mode, Advertising, Field underwriting, Application accuracy, Sources of underwriting, Risk classification, 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, 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. Under a typical group life insurance plan, individual insureds receive:
A certificate of coverage under the master policy
Group life is issued under a master contract to the sponsor, and covered individuals receive certificates of coverage.
2. The human life value approach to determining life insurance need primarily measures:
The economic value of the insured's future earnings to dependents
Human life value estimates the economic loss to dependents from the insured's future earnings being cut short.
3. The needs approach to life insurance planning focuses on:
The specific obligations and goals survivors must fund
The needs approach sizes coverage to the actual financial obligations and goals the survivors would need to fund.
4. Stranger-originated life insurance (STOLI) arrangements are generally discouraged or prohibited because they:
Lack insurable interest when the policy is issued
STOLI arrangements are designed for investors who have no insurable interest in the insured when the contract is made, which West Virginia law requires.
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.
