Free Life Insurance Practice Exam Online

Correct answer: C. Adjustable life can permit changes in premium, face amount, or protection period within policy rules

• A: This states the rule for joint life: Joint life commonly insures two lives and pays at the first death. The question instead asks about adjustable life, which has a different trigger or coverage function.
• B: This states the rule for group life insurance: Group life covers members under a master policy, often with certificates for covered individuals. The question instead asks about adjustable life, which has a different trigger or coverage function.
• D: This states the rule for decreasing term: Decreasing term has a death benefit that declines over time while premiums may remain level. The question instead asks about adjustable life, which has a different trigger or coverage function.

Correct answer: A. A term rider adds temporary life coverage to another policy

• B: This states the rule for child rider: A child rider can add limited life coverage on eligible children. The question instead asks about term rider, which has a different trigger or coverage function.
• C: This states the rule for long-term care rider: It may allow access to benefits for qualifying long-term care needs, subject to rider terms. The question instead asks about term rider, which has a different trigger or coverage function.
• D: This states the rule for fixed-period settlement: Proceeds are paid over a selected period. The question instead asks about term rider, which has a different trigger or coverage function.

Correct answer: B. Joint life commonly insures two lives and pays at the first death

• A: This states the rule for survivorship life: Survivorship life generally pays after the second insured dies. The question instead asks about joint life, which has a different trigger or coverage function.
• C: This states the rule for credit life insurance: Credit life is designed to pay off a borrower's debt if the insured debtor dies. The question instead asks about joint life, which has a different trigger or coverage function.
• D: This states the rule for level term: Level term keeps the death benefit level during the stated term period. The question instead asks about joint life, which has a different trigger or coverage function.

Correct answer: B. A child rider can add limited life coverage on eligible children

• A: This states the rule for spouse rider: A spouse rider can add coverage on the insured's spouse under rider terms. The question instead asks about child rider, which has a different trigger or coverage function.
• C: This states the rule for accelerated death benefit: It may allow early payment of part of the death benefit after qualifying terminal/chronic illness conditions. The question instead asks about child rider, which has a different trigger or coverage function.
• D: This states the rule for fixed-amount settlement: Proceeds are paid in specified amounts until the fund is exhausted. The question instead asks about child rider, which has a different trigger or coverage function.

Correct answer: B. Survivorship life generally pays after the second insured dies

• A: This states the rule for group life insurance: Group life covers members under a master policy, often with certificates for covered individuals. The question instead asks about survivorship life, which has a different trigger or coverage function.
• C: This states the rule for industrial/home-service life: Industrial life traditionally involved small face amounts and frequent premium collection. The question instead asks about survivorship life, which has a different trigger or coverage function.
• D: This states the rule for annual renewable term: Annual renewable term renews yearly, typically with premiums increasing as age increases. The question instead asks about survivorship life, which has a different trigger or coverage function.