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Free Life Insurance Basics Practice Questions

Ohio Life exam — 79 practice questions.

Subtopics: Insurable interest, STOLI, Valued contract, Risk classification, Field underwriting, Premium factors, Adverse selection, Representations, 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, 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. Which person clearly has an insurable interest in another's life?

A spouse in the other spouse's life

Close family members such as spouses have a recognized insurable interest.

2. Arranging life insurance for a person who lacks insurable interest so investors can profit at death is:

Stranger-originated life insurance, which is prohibited

STOLI lacks insurable interest and is prohibited.

3. Life insurance is generally considered what type of contract with respect to the amount paid at death?

A valued contract paying a stated face amount

Life insurance is a valued contract; it pays the stated face amount regardless of actual loss.

4. An applicant who is a long-time smoker with health issues would most likely be placed in which risk class?

Substandard (rated)

Higher-risk applicants are typically classified substandard and charged higher premiums.

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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 Insurance Department and the exam administrator before relying on it.