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Free Life Insurance Basics Practice Questions

South Dakota Life exam — 79 practice questions.

Subtopics: Agent representation, Field underwriting, Representation, Concealment, Risk classification, Underwriting sources, Premium factors, Stranger-owned insurance, Insurable interest, 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

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Sample questions & answers

1. In a typical life insurance transaction, the producer acting under an appointment generally represents:

The insurer whose products are being offered

An appointed producer generally represents the insurer, owing it duties of loyalty and good faith in the transaction.

2. When a producer completes the application and gathers accurate information about a life applicant, the producer is performing:

Field underwriting

Gathering applicant information and completing the application accurately is the producer's field underwriting role.

3. A statement made by a life applicant that is believed true to the best of their knowledge is best described as a:

Representation

A representation is a statement believed to be true to the best of the applicant's knowledge, unlike a guaranteed warranty.

4. An applicant who deliberately stays silent about a material health condition to obtain coverage is engaging in:

Concealment

Concealment is the intentional withholding of a material fact the insurer would want to know in underwriting.

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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.