1. Exam Prep
  2. Washington
  3. Life
  4. Life Insurance Basics

Free Life Insurance Basics Practice Questions

Washington Life exam — 77 practice questions.

Subtopics: Insurable interest, Risk classification, Representations, Adverse selection, STOLI, Premium factors, 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, 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. For an individual life policy in Washington, insurable interest must generally exist:

At the time of application

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

2. An applicant classified as a preferred risk in Washington would typically receive:

A lower premium rate than standard

Preferred risks present lower-than-average mortality risk and generally qualify for premiums below standard rates.

3. Statements an applicant believes true to the best of their knowledge on a Washington life application are:

Representations

Applicant statements are treated as representations believed true to the best of their knowledge, not absolute warranties.

4. The tendency of higher-risk individuals to seek insurance more than lower-risk individuals is called:

Adverse selection

Adverse selection is the inclination of poorer-than-average risks to seek coverage, which insurers manage through underwriting.

All Life topics

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.