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Free Life Insurance Basics Practice Questions

Louisiana Life exam — 79 practice questions.

Subtopics: Insurable interest, Primary beneficiary, Contingent beneficiary, Revocable beneficiary, Underwriting, Risk classification, Representations, Insurable interest abuse, 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, Premium factors, 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. In life insurance, insurable interest must exist:

At the time the policy is applied for

In life insurance, insurable interest must exist at the inception of the policy, not necessarily at the time of death.

2. The person first entitled to receive the death benefit when the insured dies is the:

Primary beneficiary

The primary beneficiary has the first right to the death proceeds upon the insured's death.

3. A contingent beneficiary receives the death benefit when:

The primary beneficiary has predeceased the insured

The contingent beneficiary receives proceeds only if the primary beneficiary is not living at the insured's death, or otherwise cannot take.

4. A revocable beneficiary designation means the policyowner may:

Change the beneficiary at any time

A revocable designation lets the policyowner change the beneficiary at will without the beneficiary's consent.

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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 Pennsylvania Insurance Department and the exam administrator before relying on it.