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Free Life Insurance Basics Practice Questions

Illinois Life exam — 79 practice questions.

Subtopics: Insurable interest, Risk classification, Adverse selection, Warranties and representations, Producer as field underwriter, Consideration, STOLI, Premium factors, 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, 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

Read the Life Insurance Basics study guide

Sample questions & answers

1. An Illinois applicant buying life insurance on a spouse has insurable interest because of:

Love affection and financial interdependence

A spouse has insurable interest based on the close family relationship and financial interdependence.

2. A life applicant in Illinois who receives a standard rating is one who:

Represents an average expected mortality risk

A standard risk represents average expected mortality and pays standard premium rates.

3. Adverse selection refers to the tendency of:

Higher-risk individuals to seek coverage more than average risks

Adverse selection is the tendency of those with greater-than-average risk to seek or keep insurance.

4. Statements an Illinois applicant believes to be true to the best of knowledge are:

Representations

Representations are statements believed true to the best of the applicant's knowledge and need only be substantially true.

All Life topics

Practice: Life Insurance Basics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

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.