[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-447167-105":3,"detail-sidebar-cat-0-en-105":79,"doc-detail-447167-en":129},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":72,"head_meta":74,"extra_data":76,"updated_unix":78},105,"en","life-insurance-exam-questions-sample-life-exam-questions-life-insurance","Life insurance exam questions - Sample Life exam questions - Life insurance","","Life insurance exam questions focused on key competencies for assessing individual circumstances, recommending appropriate life insurance coverage, and evaluating policy fit. Scenarios cover rated-policy triggers such as smoking status, travel, avocations, driving record, and drinking history, including explanations for correct and incorrect options. Additional questions compute minimum coverage based on mortgage, bequest, donations, and group insurance, analyze next risk-management actions, and compare universal life premium payment frequency effects on modal factors and cash values.",{"@graph":14,"@context":71},[15,34,54],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/exam/","Exam",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/life-insurance-exam-questions-sample-life-exam-questions-life-insurance/447167/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":48,"encodingFormat":47,"isAccessibleForFree":49,"interactionStatistic":50},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/life-insurance-exam-questions-sample-life-exam-questions-life-insurance/447167.png","ImageObject",300,407,{"name":42,"@type":43},"Aran","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-09-29",true,{"@type":51,"interactionType":52,"userInteractionCount":4},"InteractionCounter",{"@type":53},"ViewAction",{"@type":55,"mainEntity":56},"FAQPage",[57,63,67],{"name":58,"@type":59,"acceptedAnswer":60},"What factors determine whether a life insurance policy is a rated policy?","Question",{"text":61,"@type":62},"The question tests whether lifestyle and risk elements warrant a rated policy, explaining that repeated travel and certain avocations (and a driving record with violations) can affect premium rating, while smoking status is handled as a higher standard smoker rate rather than automatically requiring rated status.","Answer",{"name":64,"@type":59,"acceptedAnswer":65},"How do you determine the minimum life insurance coverage for Mario?",{"text":66,"@type":62},"The correct approach is to cover the mortgage need and the intended $100,000 donation, then subtract the existing group life insurance amount. The provided calculation yields the minimum coverage amount as $230,000.",{"name":68,"@type":59,"acceptedAnswer":69},"In universal life, does paying premiums monthly or annually change long-term cash value?",{"text":70,"@type":62},"The exam question states that no modal factor is applied for the universal life case described, so the long-term cash value is the same whether premiums are paid monthly or annually.","https://schema.org",{"og:url":32,"og:type":73,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":75,"canonical":32},"index,follow",{"doc_id":77,"site_id":7},447167,1790719105,{"code":4,"msg":80,"data":81},"success",[82,86,90,93,98,103,108,113,118,121,125],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":83,"show_sort_weight":84,"slug":85},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":87,"show_sort_weight":88,"slug":89},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":91,"slug":92},70,"exam",{"id":94,"doc_module":4,"doc_module_name":25,"category_name":95,"show_sort_weight":96,"slug":97},5,"Comic",60,"comic",{"id":99,"doc_module":4,"doc_module_name":25,"category_name":100,"show_sort_weight":101,"slug":102},6,"Technology",50,"technology",{"id":104,"doc_module":4,"doc_module_name":25,"category_name":105,"show_sort_weight":106,"slug":107},7,"Healthcare",40,"healthcare",{"id":109,"doc_module":4,"doc_module_name":25,"category_name":110,"show_sort_weight":111,"slug":112},8,"Research & Report",30,"research-report",{"id":114,"doc_module":4,"doc_module_name":25,"category_name":115,"show_sort_weight":116,"slug":117},9,"Religion & Spirituality",20,"religion-spirituality",{"id":116,"doc_module":4,"doc_module_name":25,"category_name":119,"show_sort_weight":116,"slug":120},"World Cup","world-cup",{"id":122,"doc_module":4,"doc_module_name":25,"category_name":123,"show_sort_weight":122,"slug":124},10,"Lifestyle","lifestyle",{"id":126,"doc_module":4,"doc_module_name":25,"category_name":127,"show_sort_weight":94,"slug":128},19,"General","general",{"code":4,"msg":80,"data":130},{"doc_id":77,"user_id":131,"nickname":42,"user_avatar":132,"doc_module":4,"category_id":33,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":133,"file_id":134,"file_url":135,"file_type":136,"file_size":137,"view_count":4,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":122,"language":138,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":139,"faqs":140,"seo_title":141,"seo_description":12,"update_tm":78,"read_time":142},137455076865,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","Examples of exam questions – Life insurance  \nCompetency: Recommend individual and group life insurance  \nproducts adapted to the client’s needs and situation (01 311) .  \nQuestion 1  \nSean is a smoker and travels frequently to developed countries to host scuba diving tours. In the past year, he received two traffic violations for running a red light and speeding. He drinks a glass of wine per week at social events. Sean is looking to buy life insurance.  \nAfter learning about his lifestyle, which aspect will make his insurance a rated policy?  \n1. Smoking status  \n2. Travel history  \n3. Avocations  \n4. Driving record  \n5. Drinking history  \na) 1, 2, 3 and 4 b) 2, 3 and 4 c) 1, 3 and 5 d) 2 and 4  \nCorrect answer: b)  \nExplanations  \nAnswer a: False. A smoking status does not call for a rated policy, but rather a standard smoker rate that is higher than a standard non-smoker rate.  \nAnswer b: Correct answer. Repeated trips, especially to politically unstable countries, are subject to a rated policy. Certain avocations, such as scuba diving, may also affect insurance rates. A driving record containing a number of violations or major violations often has a bearing on premium rating.  \nAnswer c: False. The client drinks very little alcohol and this would not justify having a rated policy.  \nAnswer d: False. It does not include the avocation element, which may be subject toa higher premium rate.  \nReferences  \nRelevant sections of exam preparation manual: Life insurance, 2nd edition , sections 9.4 and 9.5.3  \nEvaluated competency sub-component in Curriculum: 1.1 Determine the client’s situation  \nQuestion 2  \nMario and Danielle have been married for 10 years, are childless and have no desire to have children. Mario's annual net income is $120,000, and he has group life insurance for the same amount. Danielle's net income is $45,000 and she has no group insurance. Their home is valued at $320,000, and they currently have 20 years left on their $250,000 mortgage.  \nMario would like to bequeath an amount of $100,000 to the hospice that cared for his parents. Danielle inherited $250,000 recently upon the death of her father, which they are using to maximize their registered retirement savings plan (RRSP) contributions and use all unused contribution room. In the event of his own death, Mario would like to leave the house to Danielle mortgage-free.  \nTo meet Mario’s needs, what is the minimum amount of life insurance coverage he should buy?  \na) $420,000 b) $300,000 c) $230,000 d) $100,000  \nCorrect answer: c)  \nExplanations  \nAnswers a and b: False. They use the value of the residence ($320,000$) and not  \nthe mortgage amount ($250,000) .  \nCalculations:  \na: $320,000 + $100,000 = $420,000  \nb: $320,000 + $100,000 – $120,000 = $300,000  \nAnswer c: Correct answer. Mario's need is $250,000 for the mortgage, then  \n$100,000 for the donation to the seniors' residence less the amount of the group insurance, $120,000 .  \nCalculation: $250,000 + $100,000 – $120,000 = $230,000  \nAnswer d: False. It does not take either the mortgage ($250,000) or the  \ncurrent group insurance ($120,000) into account.  \nReferences  \nRelevant sections of exam preparation manual: Life insurance, 2nd edition, 2015, section [10.1.1.1](10.1.1.1)  \nEvaluated competency sub-component in Curriculum: 1.2 Assess the appropriateness of  \nthe client’s existing coverage in regards to his or her situation  \nQuestion 3  \nTom is turning 63 this year and has already retired. He has sizable non-registered assets with large unrealized capital gains and is concerned about the tax consequences upon the sale of the assets. He comes to you for risk management advice.  \nWhich of the following statements is correct regarding Tom’s next action?  \na) Under the risk avoidance technique, he can immediately apply capital losses.  \nb) Under the risk retention technique, he can choose to do nothing.  \nc) Under the risk transfer technique, he can transfer ownership to his son upon his death.  ","cbCaigBYAUbV3LOi","https://ap.wps.com/l/cbCaigBYAUbV3LOi","pdf",60810,"English","# Question 1\n## Rated policy eligibility factors\n# Question 2\n## Minimum life insurance coverage calculation\n# Question 3\n## Risk management next action\n# Question 4\n## Universal life modal factor and premium frequency","[{\"question\":\"What factors determine whether a life insurance policy is a rated policy?\",\"answer\":\"The question tests whether lifestyle and risk elements warrant a rated policy, explaining that repeated travel and certain avocations (and a driving record with violations) can affect premium rating, while smoking status is handled as a higher standard smoker rate rather than automatically requiring rated status.\"},{\"question\":\"How do you determine the minimum life insurance coverage for Mario?\",\"answer\":\"The correct approach is to cover the mortgage need and the intended $100,000 donation, then subtract the existing group life insurance amount. The provided calculation yields the minimum coverage amount as $230,000.\"},{\"question\":\"In universal life, does paying premiums monthly or annually change long-term cash value?\",\"answer\":\"The exam question states that no modal factor is applied for the universal life case described, so the long-term cash value is the same whether premiums are paid monthly or annually.\"}]","Life insurance exam questions - Sample Life exam questions - Life insurance | PDF",25]