WV STATE LIFE INSURANCE EXAM

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WV STATE LIFE INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

Answer:

Set up a meeting with the applicant to answer the remaining questions Question 2: Which of the following consists of an offer, acceptance, and consideration?

Answer:

Contract

Question 3: Which of these contracts fall under replacement regulations?

Answer:

Ordinary life Question 4: A policy owner is allowed to pay premiums more than once a year under which provision?

Answer:

Mode of premium Question 5: When an employee is terminated, how long does this employee have to convert group life coverage to an individual plan?

Answer:

31 days

Question 6: Which provision prevents an insurer from changing the terms of the contract with the policy owner by referring to documents not found within the policy itself?

Answer:

Entire contract provision Question 7: Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?

Answer:

life income Question 8: Which provision allows the policy owner to change a term life policy to a permanent one without providing proof of good health?

Answer:

Conversion Question 9: All of the following could result in the revocation of a producer's license EXCEPT:

Answer:

Replacing an insurance policy from one insurer to another based on misrepresentation Question 10: A policy that becomes a Modified Endowment Contract (MEC):

Answer:

Will lose many of its tax advantages

Question 11: Which of these is an element of a Variable Life policy?

Answer:

A fixed, level premium Question 12: The common disaster clause provides that if both the insured and the sole name beneficiary were to die in a common accident, which of the following is true?

Answer:

this clause provides the payment of proceeds to the insured's estate

Question 13: Who elects the governing body of a mutual insurance company?

Answer:

Policyholders

Question 14: Before a life insurance policy is issued, which of these components of the contract is required?

Answer:

Applicant's signature on application Question 15: A(n) ________ insurance company is one formed in a country other than the United States

Answer:

Alien Question 16: When is the face amount paid under a Joint Life and Survivor policy?

Answer:

Upon the death of the last insured Question 17: Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policy owner?

Answer:

Irrevocable beneficiary Question 18: A producer is making a sales presentation for a whole life insurance policy. Which of the following statements may the producer guarantee during the presentation?

Answer:

"I will guarantee a return of my commissions as an incentive" Question 19: All of the following are considered to be typical characteristics describing the

nature of an insurance contract, EXCEPT:

Answer:

Bilateral Question 20: If a life insurance policy's cash value is subject to loans exceeding ______, replacement is said to have occurred

Answer:

25%

Question 21: A policy owner's rights are limited under which beneficiary designation?

Answer:

Irrevocable Question 22: Life insurance death benefits up to ______ are guaranteed by the West Virginia Life and Health Guaranty Association

Answer:

$300,000

Question 23: A prelicensing course must be successfully completed for which of the following?

Answer:

resident producer Question 24: Which of the following is NOT a situation that involves life insurance policy replacement?

Answer:

Converting a term policy to a permanent policy with the same insurer

Question 25: When can a policyowner change a revocable beneficiary?

Answer:

Anytime Question 26: A producer who is a resident in another state but licensed to transact insurance in West Virginia is called a(n) ______ producer

Answer:

nonresident Question 27: ABC Insurance company failed to accept a valid proof of loss statement. This is considered to be a(n)

Answer:

Unfair claims practice Question 28: Which of the following is NOT an example of "conducting insurance business?"

Answer:

Selling shares of stock