Question: At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?

Answer: Upon completion of the application

Question: In regards to representations or warranties, which of these statements is TRUE?

Answer: If material to the risk, false representations will void a policy

Question: Statements made on an insurance application that are believed to be true to the best of the applicant’s knowledge are called

Answer: representations

Question: A life insurance arrangement which circumvents insurable interest statutes is called

Answer: Investor-Originated Life Insurance

Question: Insurance policies are offered on a “take it or leave it” basis, which make them

Answer: Contracts of Adhesion

Question: At what point does an informal contract become binding?

Answer: When one party makes an offer and the other party accepts that offer

Question: Insurance policies are considered aleatory contracts because

Answer: performance is conditioned upon a future occurrence

Question: All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for

Answer: Modified Whole Life

Question: Which of these is an element of a Variable Life policy?

Answer: A fixed, level premium

Question: Which of the following types of policies BEST identifies one in which the cash value may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors?

Answer: Universal Life