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Free Life Insurance Basics Practice Questions

Massachusetts Life exam — 79 practice questions.

Subtopics: Insurable interest, Risk concepts, Premium factors, Underwriting, Beneficiary, Producer responsibility, Representations, Stranger-owned, 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, 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, Policy summary, Material misrepresentation

Read the Life Insurance Basics study guide

Sample questions & answers

1. At what point must insurable interest exist for an individual life insurance policy?

At the time of application

Insurable interest in a life policy must exist at the inception of the contract, when the application is made.

2. The chance of loss arising from a person's habits such as smoking is best described as a:

Physical hazard

A physical hazard is a condition arising from the physical characteristics or habits that increase the chance of loss.

3. Which three primary factors most influence the calculation of a life insurance premium?

Mortality, interest, and expense

Life premiums are based primarily on mortality assumptions, expected interest earnings, and expenses.

4. The process of evaluating and classifying the risk presented by a life insurance applicant is called:

Underwriting

Underwriting is the selection, evaluation, and classification of risks for insurance.

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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.