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Free Life Insurance Basics Practice Questions

Virginia Life exam — 79 practice questions.

Subtopics: Purpose, Human life value, Needs approach, Risk classification, Premium factors, Parties, Producer role, Buyer's guide, Insurable interest, Insurable interest parties, Personal uses, Liquidity, 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. A primary purpose of life insurance is to:

Create an immediate estate to protect dependents

Life insurance creates an immediate estate at death to provide for dependents and cover financial obligations.

2. The human life value approach estimates need based on:

The insured's expected future earnings

The human life value approach estimates coverage based on the present value of the insured's future earnings.

3. The needs approach to determining life coverage focuses on:

The dollar amount required to meet the family's specific obligations

The needs approach totals the specific financial obligations the family must meet if the insured dies.

4. An applicant rated 'standard' is one who:

Represents average expected mortality risk

A standard risk reflects average mortality; preferred risks pay less and substandard (rated) risks pay more.

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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.