WV State Life Insurance Exam Questions and Correct Answer
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Course
WV Life Insurance Laws and Rules
Institution
WV Life Insurance Laws And Rules
A group-owned insurance company that is formed to assume and spread the liability risks of
its members is known as a:
~: Risk retention group
Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated?
~: 1970-Fair Credit Reporti...
Elscores 8/18/2024 11:49:07 PM
WV State Life Insurance Exam
Questions and Correct Answer
A group-owned insurance company that is formed to assume and spread the liability risks of
its members is known as a:
~: Risk retention group
Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated?
~: 1970-Fair Credit Reporting Act
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six
months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal
values reflects which of the following insurance contract features?
~: Aleatory
The stated amount or percent of liquid assets that an insurer must have on hand that will
satisfy future obligations to its policyholders is called:
~: Reserves
All of the following are considered to be typical characteristics describing the nature of an
insurance contract, EXCEPT:
~: Bilateral
, Elscores 8/18/2024 11:49:07 PM
What year was the McCarran-Ferguson Act enacted?
~: 1945
Which of the following consists of an offer, acceptance, and consideration?
~: Contract
Who elects the governing body of a mutual insurance company?
~: Policyholders
Insurance policies are considered aleatory contracts because:
~: Performance is conditioned upon a future occurrence
Who makes the legally enforceable promises in a unilateral contract?
~: Insurance company
Insurance contracts are known as _____ because certain future conditions or acts must occur
before any claims can be paid.
~: Conditional
A life insurance arrangement which circumvents insurable interest statutes is called:
~: Investor-Originated Life Insurance
In an insurance contract, the insurer is the only party who makes a legally enforceable
promise. What kind of contract is this?
, Elscores 8/18/2024 11:49:07 PM
~: Unilateral
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have:
~: Insurable interest in the proposed insured
Which of these arrangements allows one to bypass insurable interest laws?
~: Investor-Originated Life Insurance
When must insurable interest exist for a life insurance contract to be valid?
~: Inception of the contract
If a contract of adhesion contains complicated language, to whom would the interpretation be
in favor of?
~: Insured
Which of these is an element of a Variable Life policy?
~: A fixed, level premium
A father who dies within 3 years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waived under which provision?
~: Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
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