1. Exam Prep
  2. West Virginia
  3. Life, Accident & Health
  4. Life Insurance Basics

Free Life Insurance Basics Practice Questions

West Virginia Life, Accident & Health exam — 65 practice questions.

Subtopics: Premium mode, Policy dividends, Cash value, Revocable beneficiary, Parties to the contract, Estate as beneficiary, Cash value taxation, Group conversion, Credit life insurance, Key person insurance, Insurable interest, Personal uses, Determining amount, Business uses, Viatical settlements, Classes of policies, Premium factors, Premium frequency, Producer responsibilities, Policy delivery, Company underwriting, Classification of risks, Legal concepts, Definitions of perils, Types of losses and benefits, Limited health policies, Replacing health insurance, Premium determination, Conditional receipt, Binding receipt, Insuring clause, Consideration clause, Free-look provision, Policy ownership, Third-party ownership, Mortality table, Level premium concept, Net amount at risk, Policy reserves, Living benefits of cash value, Attending physician statement, Inspection report, Declined risk, Flat extra premium, Replacement, Buyer's Guide, Controlling adverse selection, Premature death, Final expense insurance, Estate liquidity, Charitable uses, Survivorship policy, Juvenile insurance, Life settlement, Creditor insurable interest, Human life value

Read the Life Insurance Basics study guide

Sample questions & answers

1. Choosing to pay a life insurance premium monthly rather than annually generally results in:

A slightly higher total annual cost due to added charges

More frequent premium modes usually carry added administrative charges, raising the total annual cost compared with paying annually.

2. Dividends paid on a participating whole life policy are best understood as:

A return of part of the premium that is not guaranteed

Policy dividends represent a return of a portion of premium and are not guaranteed, reflecting favorable insurer experience.

3. In a whole life policy, the cash value generally:

Grows over time and can be accessed through loans or surrender

Cash value accumulates over time and can be accessed through policy loans or surrender, but it is part of, not in addition to, the death benefit.

4. A revocable beneficiary designation means the policyowner may:

Change the beneficiary at any time without the beneficiary's consent

A revocable beneficiary can be changed at any time by the owner without the beneficiary's consent, unlike an irrevocable designation.

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Practice: Life Insurance Basics

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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.