OLAHI - Oklahoma Life Accident and Health Insurance Exam

Question 1: A form of permanent life insurance charges a level premium, guarantees a fixed death benefit, and builds a guaranteed cash value that grows over the life of the contract until it endows. Which of the following types of life insurance is being described here?

Term insurance

Credit life insurance

Accidental death coverage

Whole life insurance

Question 2: An applicant wants the largest possible death benefit for the lowest current premium, accepts that the coverage lasts only for a stated number of years, and understands the policy builds no cash value. Which of the following types of life insurance best fits these preferences?

Whole life insurance

Term insurance

Universal life insurance

Variable life insurance

Question 3: A permanent policy lets the owner raise or lower the premium within limits, adjust the death benefit, and see the cash value credited with a current interest rate the insurer declares. Which of the following types of life insurance is described by this flexibility?

Whole life insurance

Term insurance

Universal life insurance

Joint life insurance

Question 4: A permanent policy lets the owner direct the cash value into separate investment subaccounts such as stock and bond funds, and the cash value and death benefit rise or fall with investment performance while the owner bears the market risk. Which type of life insurance is this?

Variable life insurance

Whole life insurance

Term insurance

Group life insurance

Question 5: A term insurance policy allows the insured to continue coverage at the end of the term without proving insurability, and separately to exchange the term policy for a permanent one without a medical exam. Which of the following pair of term features does this describe?

Participating and nonparticipating

Level and decreasing

Graded and modified

Renewable and convertible

Question 6: Two applicants compare a permanent policy with a temporary policy and want to know which of them accumulates a savings element the owner can borrow against or surrender for value. Which of the following statements correctly distinguishes the two on that point?

Only term insurance builds cash value

Both build equal cash value

Whole life builds value, term does not

Neither builds any cash value

Question 7: An insured wants permanent coverage that lasts the whole of life but prefers to finish paying premiums within a set number of years, such as by age sixty-five, rather than paying for life. Which of the following whole life variations meets that preference?

Single-premium whole life

Limited-pay whole life

Term to sixty-five

Increasing term insurance

Question 8: A wealthy buyer purchases a permanent policy by paying the entire cost in one lump sum at issue, immediately creating substantial cash value and requiring no further premiums. Which of the following whole life variations is described by this single upfront payment?

Single-premium whole life

Modified whole life

Graded premium whole life

Annual renewable term

Question 9: A business insures two owners under one policy that pays the death benefit only when the second of the two insureds dies, a design often used for estate planning. Which of the following types of life insurance is described by this second-death payout?

Joint life, first-to-die

Group term life

Single-premium term

Survivorship life

Question 10: Two business partners buy one policy on both of their lives that pays its death benefit when the first of them dies, providing funds to buy out that partner's interest. Which of the following types of life insurance is described by this first-death payout?

Survivorship life

Credit life

Joint life

Endowment

Question 11: A cash-value life policy is funded so quickly that it fails a federal premium test, causing loans and withdrawals from it to be taxed less favorably than an ordinary life policy. Which of the following terms identifies a policy that has failed that test?

A modified endowment contract

A participating policy

A variable universal policy

A paid-up policy

Question 12: A terminally ill policyowner sells an existing life insurance policy to a third party for a lump sum that is more than the cash value but less than the death benefit, transferring ownership and the death benefit to the buyer. Which of the following describes this transaction?

A policy loan

An absolute assignment for value only

A nonforfeiture election

A viatical settlement

Question 13: A life insurance provision states that the policy, together with the attached copy of the application, constitutes the complete agreement between the parties and that nothing outside those documents is part of the contract. Which of the following provisions is described here?

The insuring clause

The entire contract provision

The incontestability clause

The consideration clause

Question 14: A life insurance provision prevents the insurer from denying a claim or voiding the policy because of misstatements on the application once the policy has been in force during the insured's lifetime for a stated period, usually two years. Which provision is this?

The reinstatement provision

The grace period

The incontestability clause

The suicide clause

Question 15: A life insurance provision gives the policyowner a set number of days after the premium due date to pay an overdue premium while keeping the policy in force, so a brief delay does not cause an immediate lapse. Which of the following provisions is described?

The grace period

The free-look period

The reinstatement period

The elimination period

Question 16: After a life policy has lapsed for nonpayment, the owner wants to restore it by paying back premiums with interest and providing new evidence of insurability within the allowed period. Which of the following provisions permits this restoration of a lapsed policy?

The incontestability clause

The waiver of premium rider

The automatic premium loan

The reinstatement provision

Question 17: An insured's true age was understated on the life insurance application, and only after the insured's death does the insurer discover the error while reviewing the claim. Which of the following describes how the misstatement of age provision directs the insurer to handle the death benefit?

The claim is denied entirely

The benefit is paid in full anyway

Benefit adjusted for the correct age

The policy is rescinded and premiums refunded

Question 18: A newly issued life policy gives the owner a limited number of days after delivery to examine the policy and, if not satisfied, return it to the insurer for a full refund of premium. Which of the following provisions is described here?

The grace period

The free-look provision

The reinstatement clause

The consideration clause

Question 19: In a life insurance policy, a policyowner names one person to receive the death benefit first, and names a second person to receive it only if the first has died before the insured. Which of the following correctly labels these two beneficiary designations?

Revocable and irrevocable

Per stirpes and per capita

Absolute and collateral

Primary and contingent

Question 20: In a life insurance policy, a policyowner names a beneficiary whose written consent must be obtained before the owner can change the beneficiary, take a policy loan, or surrender the policy for its value. Which of the following types of beneficiary designation is described here?

Irrevocable beneficiary

Contingent beneficiary

Revocable beneficiary

Tertiary beneficiary

OLAHI Oklahoma Life Accident and Health Insurance Exam - Set 3 - Part 1

Question 1: A form of permanent life insurance charges a level premium, guarantees a fixed death benefit, and builds a guaranteed cash value that grows over the life of the contract until it endows. Which of the following types of life insurance is being described here?

Question 2: An applicant wants the largest possible death benefit for the lowest current premium, accepts that the coverage lasts only for a stated number of years, and understands the policy builds no cash value. Which of the following types of life insurance best fits these preferences?

Question 3: A permanent policy lets the owner raise or lower the premium within limits, adjust the death benefit, and see the cash value credited with a current interest rate the insurer declares. Which of the following types of life insurance is described by this flexibility?

Question 4: A permanent policy lets the owner direct the cash value into separate investment subaccounts such as stock and bond funds, and the cash value and death benefit rise or fall with investment performance while the owner bears the market risk. Which type of life insurance is this?

Question 5: A term insurance policy allows the insured to continue coverage at the end of the term without proving insurability, and separately to exchange the term policy for a permanent one without a medical exam. Which of the following pair of term features does this describe?

Question 6: Two applicants compare a permanent policy with a temporary policy and want to know which of them accumulates a savings element the owner can borrow against or surrender for value. Which of the following statements correctly distinguishes the two on that point?

Question 7: An insured wants permanent coverage that lasts the whole of life but prefers to finish paying premiums within a set number of years, such as by age sixty-five, rather than paying for life. Which of the following whole life variations meets that preference?

Question 8: A wealthy buyer purchases a permanent policy by paying the entire cost in one lump sum at issue, immediately creating substantial cash value and requiring no further premiums. Which of the following whole life variations is described by this single upfront payment?

Question 9: A business insures two owners under one policy that pays the death benefit only when the second of the two insureds dies, a design often used for estate planning. Which of the following types of life insurance is described by this second-death payout?

Question 10: Two business partners buy one policy on both of their lives that pays its death benefit when the first of them dies, providing funds to buy out that partner's interest. Which of the following types of life insurance is described by this first-death payout?

Question 11: A cash-value life policy is funded so quickly that it fails a federal premium test, causing loans and withdrawals from it to be taxed less favorably than an ordinary life policy. Which of the following terms identifies a policy that has failed that test?

Question 12: A terminally ill policyowner sells an existing life insurance policy to a third party for a lump sum that is more than the cash value but less than the death benefit, transferring ownership and the death benefit to the buyer. Which of the following describes this transaction?

Question 13: A life insurance provision states that the policy, together with the attached copy of the application, constitutes the complete agreement between the parties and that nothing outside those documents is part of the contract. Which of the following provisions is described here?

Question 14: A life insurance provision prevents the insurer from denying a claim or voiding the policy because of misstatements on the application once the policy has been in force during the insured's lifetime for a stated period, usually two years. Which provision is this?

Question 15: A life insurance provision gives the policyowner a set number of days after the premium due date to pay an overdue premium while keeping the policy in force, so a brief delay does not cause an immediate lapse. Which of the following provisions is described?

Question 16: After a life policy has lapsed for nonpayment, the owner wants to restore it by paying back premiums with interest and providing new evidence of insurability within the allowed period. Which of the following provisions permits this restoration of a lapsed policy?

Question 18: A newly issued life policy gives the owner a limited number of days after delivery to examine the policy and, if not satisfied, return it to the insurer for a full refund of premium. Which of the following provisions is described here?

Question 19: In a life insurance policy, a policyowner names one person to receive the death benefit first, and names a second person to receive it only if the first has died before the insured. Which of the following correctly labels these two beneficiary designations?

Question 20: In a life insurance policy, a policyowner names a beneficiary whose written consent must be obtained before the owner can change the beneficiary, take a policy loan, or surrender the policy for its value. Which of the following types of beneficiary designation is described here?

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