OpenExamsFREE PRACTICE — ANY EXAM

Free Life Producer Practice Questions

142 free questions · Answer explanations · No signup required

View examination details, outline and sources

Loading selected examination banks…

Sample Practice Questions

Try these 10 sample questions from the Life Producer practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A client asks how ordinary whole life keeps premiums level even though the cost of protection rises with age. Which explanation fits this policy?

    1. A. The extra premium paid at younger ages builds a cash value reserve for later costs.
    2. B. The death benefit decreases each year to offset the rising cost of protection.
    3. C. Premiums are skipped whenever the policy's investment accounts earn enough.
    4. D. Coverage ends at the selected term, so no later protection cost must be funded.

    Answer: A

    Explanation: The guide says, "This extra premium builds a reserve (cash value)". Ordinary whole life uses excess early premiums to support lifelong coverage at a level premium; the alternatives describe other product structures.

    Reference: California Department of Insurance, Life Insurance Guide — Whole Life Insurance, premium structure

  2. 2An insured becomes totally disabled and cannot earn income. A waiver-of-premium rider is attached to the life policy. What does this rider do while its disability condition is met?

    1. A. Adds a second death benefit payable for an accidental death
    2. B. Increases the policy's face amount at each future option date
    3. C. Waives required premium payments during the insured's total disability
    4. D. Pays a portion of the death benefit for terminal illness

    Answer: C

    Explanation: The guide defines the rider as one that "will waive the premium payments required by an insured during the total disability of the insured." The disability trigger waives premiums, not the other rider benefits.

    Reference: California Department of Insurance, Life Insurance Guide — Waiver of Premium

  3. 3An Alaska application names Ava as applicant, Ben as policyowner, and Cara as beneficiary. A producer wants to alter an answer in Ava's written life application. Whose written consent is required for that alteration?

    1. A. Ava's, because she is the applicant who provided the answer
    2. B. Ben's, because he is the intended owner of the contract
    3. C. Cara's, because she is the named beneficiary at issue
    4. D. The insurer underwriter's, because it evaluates the answer

    Answer: A

    Explanation: Alaska law says, "An alteration of a written application for a life or health insurance policy may not be made by a person other than the applicant without the written consent of the applicant". Ava is the applicant, so her written consent is required regardless of the other roles.

    Reference: Alaska Statutes, Title 21 — AS 21.42.100(b)

  4. 4A policyowner needs cash from an in-force life policy. Which transaction pays cash from a third-party buyer who then assumes premiums and collects the death benefit?

    1. A. A policy surrender for cash value paid by the original insurer
    2. B. A life settlement in which a buyer takes the policy economics
    3. C. A policy loan secured by the contract's available cash value
    4. D. An accelerated benefit paid early by the original insurer

    Answer: B

    Explanation: The regulator states that settlement companies "provide an early payout to the policyholder, assume the premium payments, and collect the face value of the policy upon the policyholder’s death." Surrender, loan, and acceleration are distinct sources of cash with different ownership and premium consequences.

    Reference: Washington Office of the Insurance Commissioner, Life Settlement Providers — Life settlement providers, transaction

  5. 5Under Alaska law, who is charged with enforcing the state's insurance title?

    1. A. The director of insurance
    2. B. Pearson VUE
    3. C. The attorney general exclusively
    4. D. The guaranty association

    Answer: A

    Explanation: AS 21.06.080 provides that the director shall enforce the insurance title; the exam vendor does not enforce Title 21. Official text: "Sec. 21.06.080. General powers, duties; catastrophes. (a) The director shall enforce the provisions of this title, and shall execute the"

    Reference: Ak Title 21 Selected — AS 21.06.080(a)

  6. 6Under Alaska law, which materials generally form the entire insurance contract?

    1. A. Only oral statements
    2. B. Every advertisement
    3. C. The producer's application
    4. D. The policy and attached application

    Answer: D

    Explanation: AS 21.42.150 provides that the policy and, if attached, the application constitute the entire contract. Official text: "Sec. 21.42.150. Policy must contain entire contract. The policy, when issued, shall contain the entire contract between the parties, and"

    Reference: Ak Title 21 Selected — AS 21.42.150

  7. 7A client wants lifelong coverage and plans to pay scheduled annual premiums for exactly 20 years, with no further required premiums afterward. Which whole life arrangement matches that schedule?

    1. A. Annually renewable term with a new premium at each yearly renewal
    2. B. Limited-pay whole life with premiums due for the specified 20 years
    3. C. Single-premium whole life paid entirely in one amount at issue
    4. D. Ordinary whole life with level premiums due throughout the insured's life

    Answer: B

    Explanation: The guide states, "Under some policies, premiums are required to be paid for a set number of years." Limited-pay whole life uses a finite scheduled payment period while coverage lasts for life. Single-premium coverage is funded once, not by 20 annual payments.

    Reference: California Department of Insurance, Life Insurance Guide — Whole Life Insurance, premium periods

  8. 8An insured expects to need more life insurance later but worries that future health changes will prevent a purchase. Which rider gives a right to buy stated additional amounts at specified times without new insurability evidence?

    1. A. Waiver of premium, triggered when the insured becomes totally disabled
    2. B. Accidental death benefit, triggered when death has accidental causes
    3. C. Accelerated benefit, triggered by a qualifying serious illness
    4. D. Guaranteed insurability, exercisable at stated future option times

    Answer: D

    Explanation: The guide says guaranteed insurability "permits the policyholder to buy additional stated amounts of life insurance at certain times in the future, without having to provide new evidence of insurability." The other riders respond to different events.

    Reference: California Department of Insurance, Life Insurance Guide — Guaranteed Insurability

  9. 9An Alaska life applicant innocently omits a fact that has no bearing on acceptance of the risk or the hazard insured. After a claim, which treatment of that application error follows from the misstatement rule?

    1. A. Adjust the benefit as though the insured's age had been misstated
    2. B. Allow recovery because no fraud or statutory materiality ground is shown
    3. C. Deny recovery solely because the application contained an incorrect answer
    4. D. Return the premiums instead of paying the claimed death benefit.

    Answer: B

    Explanation: Alaska law says, "Misrepresentations, omissions, concealment of facts, and incorrect statements may not prevent a recovery under the policy or contract unless either" a statutory ground applies; one is a matter "material either to the acceptance of the risk, or to the hazard assumed by the insurer;". The stipulated innocent immaterial omission alone does not bar recovery. Age adjustment and premium return address other policy conditions.

    Reference: Alaska Statutes, Title 21 — AS 21.42.110(a)

  10. 10A company would suffer financial loss if its lead engineer died. It wants life insurance specifically to protect the business from that employee's loss. Who ordinarily owns and receives proceeds under key-person coverage?

    1. A. The employee owns a policy payable to the employee's family.
    2. B. The partners own policies payable to a surviving partner.
    3. C. The employer owns a policy payable to the employer.
    4. D. The employer holds group cover payable to an employee beneficiary.

    Answer: C

    Explanation: The glossary describes key-employee coverage for employer financial loss and states, "The policy is owned by and payable to the employer." Family, partner, and group beneficiaries reflect different valid ownership arrangements.

    Reference: Washington Office of the Insurance Commissioner, Consumer Insurance Glossary — Key person insurance

Topics in this practice bank

These topics describe the available practice for Life Producer. Review the examination outline and its sources for scope and allocation details.

  • General Knowledge — I. TYPES OF POLICIES (15 scored questions)
    • Traditional whole life products
    • Traditional whole life products > Ordinary whole life
    • Traditional whole life products > Limited-pay and single-premium life
    • Interest/market-sensitive/adjustable life products
    • Interest/market-sensitive/adjustable life products > Universal life
    • Interest/market-sensitive/adjustable life products > Variable whole life
    • Interest/market-sensitive/adjustable life products > Variable universal life
    • Interest/market-sensitive/adjustable life products > Interest-sensitive whole life
    • Interest/market-sensitive/adjustable life products > Indexed life
    • Term life
    • Term life > Types
    • Term life > Types > Level
    • Term life > Types > Decreasing
    • Term life > Types > Return of premium
    • Term life > Types > Annually renewable
    • Term life > Special features
    • Term life > Special features > Renewable
    • Term life > Special features > Convertible
    • Annuities
    • Annuities > Single and flexible premium
    • Annuities > Immediate and deferred
    • Annuities > Fixed and variable
    • Annuities > Indexed
    • Annuities > Accumulation and Annuity Periods
    • Annuities > Payout options
    • Combination plans and variations
    • Combination plans and variations > Joint life (first to die)
    • Combination plans and variations > Survivorship life (second to die)
  • General Knowledge — II. LIFE PROVISIONS, RIDERS, OPTIONS, AND EXCLUSIONS (15 scored questions)
    • Policy riders
    • Policy riders > Waiver of premium and waiver of monthly deduction
    • Policy riders > Guaranteed insurability
    • Policy riders > Payor benefit
    • Policy riders > Accidental death and/or accidental death and dismemberment
    • Policy riders > Term riders
    • Policy riders > Other insureds
    • Policy riders > Long term care
    • Policy riders > Return of premium
    • Policy riders > Disability
    • Policy riders > Cost of Living
    • Policy provisions and options
    • Policy provisions and options > Entire contract
    • Policy provisions and options > Insuring clause
    • Policy provisions and options > Free look
    • Policy provisions and options > Consideration
    • Policy provisions and options > Owner’s rights
    • Policy provisions and options > Beneficiary designations
    • Policy provisions and options > Beneficiary designations > Primary and contingent
    • Policy provisions and options > Beneficiary designations > Revocable and irrevocable
    • Policy provisions and options > Beneficiary designations > Common disaster
    • Policy provisions and options > Beneficiary designations > Minor beneficiaries
    • Policy provisions and options > Beneficiary designations > Designation by class
    • Policy provisions and options > Premium Payment
    • Policy provisions and options > Premium Payment > Modes
    • Policy provisions and options > Premium Payment > Grace period
    • Policy provisions and options > Premium Payment > Automatic premium loan
    • Policy provisions and options > Premium Payment > Level or flexible
    • Policy provisions and options > Reinstatement
    • Policy provisions and options > Policy loans, withdrawals, partial surrenders
    • Policy provisions and options > Non-forfeiture options
    • Policy provisions and options > Dividends and dividend options (eg. participating, non- participating)
    • Policy provisions and options > Incontestability
    • Policy provisions and options > Assignments
    • Policy provisions and options > Suicide
    • Policy provisions and options > Misstatement of age and gender
    • Policy provisions and options > Settlement options
    • Policy provisions and options > Accelerated death benefits
    • Policy exclusions
    • Policy exclusions > War
    • Policy exclusions > Aviation
    • Policy exclusions > Dangerous Occupation
  • General Knowledge — III. COMPLETING THE APPLICATION, UNDERWRITING, AND DELIVERING THE POLICES (12 scored questions)
    • Completing the application
    • Completing the application > Required signatures
    • Completing the application > Changes in the application
    • Completing the application > Consequences of incomplete applications
    • Completing the application > Warranties and representations
    • Completing the application > Collecting the initial premium and issuing the receipt
    • Completing the application > Replacement
    • Completing the application > Disclosures at point of sale (e.g., HIPAA, HIV consent)
    • Completing the application > USA PATRIOT Act/anti-money laundering
    • Completing the application > Gramm-Leach-Bliley Act (GLBA) Privacy
    • Underwriting
    • Underwriting > Insurable interest
    • Underwriting > Medical information and consumer reports
    • Underwriting > Fair Credit Reporting Act
    • Underwriting > Risk classification
    • Underwriting > Stranger/Investor-owned life insurance (STOLI/IOLI)
    • Delivering the policy
    • Delivering the policy > When coverage begins
    • Delivering the policy > Explaining the policy and its provisions, riders, exclusions, and ratings to the client
    • Contract law
    • Contract law > Elements of a contract
    • Contract law > Elements of a contract > Consideration
    • Contract law > Elements of a contract > Offer and Acceptance
    • Contract law > Elements of a contract > Competent parties
    • Contract law > Elements of a contract > Legal purpose
    • Contract law > Unique aspects of the insurance contract
    • Contract law > Unique aspects of the insurance contract > Conditional
    • Contract law > Unique aspects of the insurance contract > Unilateral
    • Contract law > Unique aspects of the insurance contract > Adhesion
    • Contract law > Unique aspects of the insurance contract > Aleatory
  • General Knowledge — IV. RETIREMENT AND OTHER INSURANCE CONCEPTS (8 scored questions)
    • Third-party ownership
    • Life Settlements
    • Group life insurance
    • Group life insurance > Conversion privilege
    • Group life insurance > Contributory vs. noncontributory
    • Retirement plans
    • Retirement plans > Qualified plans
    • Retirement plans > Nonqualified plans
    • Life insurance needs analysis/suitability
    • Life insurance needs analysis/suitability > Personal insurance needs
    • Life insurance needs analysis/suitability > Business insurance needs
    • Life insurance needs analysis/suitability > Business insurance needs > Key person
    • Life insurance needs analysis/suitability > Business insurance needs > Buy sell
    • Social Security benefits
    • Tax treatment of insurance premiums, proceeds, and dividends
    • Tax treatment of insurance premiums, proceeds, and dividends > Individual life
    • Tax treatment of insurance premiums, proceeds, and dividends > Group life
    • Tax treatment of insurance premiums, proceeds, and dividends > Modified Endowment Contracts (MECs)
  • Alaska Specific Life — I. ALASKA LAWS, RULES AND REGULATIONS COMMON TO LIFE, HEALTH (ACCIDENT AND HEALTH), PROPERTY, CASUALTY AND PERSONAL LINES INSURANCE (30 scored questions)
    • Director of Insurance
    • Director of Insurance > Broad powers
    • Director of Insurance > Adoption of regulations
    • Director of Insurance > Examination of records
    • Director of Insurance > Notice and hearing
    • Director of Insurance > Penalties
    • Definitions
    • Definitions > Admitted (authorized) and nonadmitted companies
    • Definitions > Domestic, foreign, and alien
    • Definitions > Stock and mutual
    • Definitions > Premiums
    • Definitions > Transacting insurance
    • Definitions > Certificate of Authority
    • Definitions > Fraternal benefit societies
    • Licensing
    • Licensing > License required
    • Licensing > License required > Insurance producer
    • Licensing > License required > Firm licenses
    • Licensing > License required > Compliance Officer (Designated Responsible Producer)
    • Licensing > License required > Resident
    • Licensing > License required > Nonresident licensees
    • Licensing > License required > Exceptions
    • Licensing > License required > Producer appointments
    • Licensing > Maintenance of license
    • Licensing > Maintenance of license > Renewal
    • Licensing > Maintenance of license > Denial, Nonrenewal, Suspension or Revocation
    • Licensing > Maintenance of license > Continuing education
    • Marketing Practices
    • Marketing Practices > Unfair practices
    • Marketing Practices > Unfair practices > Unfair claims methods and practices
    • Marketing Practices > Unfair practices > Rebating
    • Marketing Practices > Unfair practices > Twisting
    • Marketing Practices > Unfair practices > Misrepresentation
    • Marketing Practices > Unfair practices > Defamation
    • Marketing Practices > Unfair practices > Unfair discrimination
    • Marketing Practices > Unfair practices > Boycott, coercion, and intimidation
    • Marketing Practices > Fiduciary responsibilities
    • Marketing Practices > Compensation of licensees
    • Marketing Practices > Required records and record retention
    • Marketing Practices > Advertising
    • Marketing Practices > Controlled business
    • Marketing Practices > Duty to report fraudulent claims/Immunity from reporting fraudulent claims
    • Marketing Practices > Alaska Insurance Guaranty Association
  • Alaska Specific Life — II. ALASKA LAWS, RULES AND REGULATIONS PERTINENT TO LIFE INSURANCE ONLY (10 scored questions)
    • Policy requirements
    • Individual life and annuities
    • Individual life and annuities > Standard provisions
    • Individual life and annuities > Policy loans
    • Individual life and annuities > Standard nonforfeiture law
    • Individual life and annuities > Life Insurance Policy and Annuity Replacement Contract
    • Group Life
    • Group Life > Eligible groups
    • Group Life > Standard provisions
    • Annuity Suitability

How to use these free practice questions

Choose an answer, check the explanation, and review your progress by chapter. Practice questions and explanations are free to access without signing up.

These are independent study questions, not actual examination items. For examination requirements and official information, view Life Producer details.