The national guide explains the main life policy types:

• term;
• whole life;
• universal life;
• variable life;
• joint and survivorship policies.

Idaho's state questions on policy types focus on how Idaho defines life insurance, on group life eligibility (Idaho Code chapter 41-20), on credit life (chapter 41-23), and on variable licensing.

National concepts in brief

• Term gives temporary protection with no cash value.
• Whole life gives lifetime protection with guaranteed cash value.
• Universal life has flexible premiums and death benefits.
• Variable policies invest cash value in separate accounts, so the owner bears the risk.

Idaho definitions and licensing

• Life insurance includes endowments, extra accidental death or dismemberment benefits, extra disability benefits and settlement options. It does not include workers' compensation (Idaho Code 41-502).
• Variable products need a separate variable life and variable annuity line of authority. Idaho requires no exam for it, but the producer must have a FINRA CRD number (Idaho Code 41-1008(1)(e)).

Group life eligibility

• Eligible groups include employer, labor union, debtor, public employee, trustee and credit union groups (Idaho Code 41-2004).
• Participation: where employees contribute, at least 75% of eligible employees in the classes must join (Idaho Code 41-2006).
• Credit union groups: at least 25 members at issue, with coverage limited to the member's shares and deposits (Idaho Code 41-2008).
• Dependents: coverage on the deaths of members' spouses and minor children is allowed (Idaho Code 41-2009).
• Not group life: policies covering only related people, or business owners actively managing the business, are outside the group life chapter (Idaho Code 41-2002).

Credit life (chapter 41-23)

• Definition: credit life covers a debtor's life in connection with a specific loan or credit transaction (Idaho Code 41-2304).
• Form: individual or group, on the term plan only (Idaho Code 41-2305).
• Amount: no more than the debt (Idaho Code 41-2306).
• Term: may run no more than 15 days past scheduled maturity (Idaho Code 41-2307).
• Scope: loans longer than 15 years are outside the chapter.
• Delivery: the debtor gets a policy or certificate.
• Choice of insurer: the debtor may use existing coverage or any authorized insurer (Idaho Code 41-2313).
• Who can sell it: an authorized insurer, through licensed persons only (Idaho Code 41-2311).

Common exam traps

• Variable lines need a FINRA CRD number, not an Idaho exam.
• Contributory employee group life needs 75% participation.
• Credit life is term only and limited to the debt.