Insurance Licensing Life-Producer Exam Questions Free Practice Test

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Questions # 1:

A group policy may be issued to a labor union. The members eligible for insurance under the policy shall be:

Options:

Members of any union

All of the members of the union

Only members of the union who are under the age of 65

Healthy members of the union

Expert Solution

Questions # 2:

The annual addition to an employee's account in a qualified retirement plan:

Options:

Can be any amount as determined by the employer from year to year

Must be the same dollar amount for every full-time employee

Cannot exceed maximum limits set by the Internal Revenue Service

Usually reflects the employee's individual work performance each year

Expert Solution

Questions # 3:

Who normally receives dividends in a stock insurance company?

Options:

Only members of the board of directors

Shareholders

Beneficiaries

Producers

Expert Solution

Questions # 4:

If, after submitting an application, a producer becomes aware of a material fact that may affect the underwriting decision, the producer's ethical responsibility requires that the producer:

Options:

Deny knowledge of the fact

Acknowledge the fact only if asked by the insurance company

Advise the applicant to amend the application

Report the fact to the insurance company

Expert Solution

Questions # 5:

The annual addition to an employee's account in a qualified retirement plan:

Options:

Can be any amount as determined by the employer from year to year

Must be the same dollar amount for every full-time employee

Cannot exceed maximum limits set by the Internal Revenue Service

Usually reflects the employee's individual work performance each year

Expert Solution

Questions # 6:

What does the annuitant usually receive during the liquidation phase of an annuity?

Options:

Cash withdrawals upon request

Benefit payments at regular intervals

A lump sum

Nothing

Expert Solution

Questions # 7:

In surrendering a life insurance contract for its cash value, the total of premiums paid less the total of any dividends received in cash or used to offset premiums is:

Options:

The cash value

The loan value

The gross proceeds

The cost basis

Expert Solution

Questions # 8:

A life insurance producer is normally responsible for all of the following EXCEPT:

Options:

Delivering newly issued policies to applicants

Notifying the company if a new policy will replace an existing policy

Approving policies for issue on behalf of the insurer

Collecting the initial premium from the applicant

Expert Solution

Questions # 9:

In determining the payment of accelerated life insurance benefits, all of the following are considered activities of daily living EXCEPT:

Options:

Dressing

Eating

Bathing

Speaking

Expert Solution

Questions # 10:

Which of the following statements about participating life insurance is true?

Options:

Policyowners may be entitled to receive dividends.

Policyowners are assessed monthly for losses.

The insured must be the policyowner.

The insurer must be a stock company.

Expert Solution

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