West Virginia Life Insurance Practice Exam Free - 2026

• A. A grace period of 31 days
• B. A grace period of 10 days
• C. A grace period of 60 days
• D. A grace period of four weeks

Correct answer: A. A grace period of 31 days

Explanation: W. Va. Code § 33-13-3 requires every ordinary life policy to grant a grace period of thirty-one days for payment of any premium after the first, during which the policy continues in full force; if a claim arises during the grace period the overdue premium may be deducted from the proceeds. Ten days is the monthly-premium health policy grace under § 33-15-4, not the life figure; 60 days is not a West Virginia grace period; four weeks is the industrial (weekly premium) life grace under § 33-13-32. See W. Va. Code § 33-13-3.

• A. One year from the date of issue
• B. Two years from the date of issue
• C. Three years from the date of issue
• D. Five years from the date of issue

Correct answer: B. Two years from the date of issue

Explanation: West Virginia's required incontestability provision makes the policy (excluding disability and accidental death benefit provisions) incontestable, except for nonpayment of premiums, after it has been in force during the lifetime of the insured for two years from its date of issue. One year is not the statutory period; three years is the reinstatement window under § 33-13-12, not the contestability period; five years appears nowhere in § 33-13-4. See W. Va. Code § 33-13-4.

• A. Within one year of default
• B. Within two years of default
• C. Within three years of default
• D. Within five years of default

Correct answer: C. Within three years of default

Explanation: W. Va. Code § 33-13-12 requires a provision that the policy will be reinstated at any time within three years from the date of premium default upon written application, satisfactory evidence of insurability, payment of all premiums in arrears and reinstatement of indebtedness, with interest not exceeding six percent compounded annually. One and two years understate the statutory window (two years is the incontestability period), and five years overstates it. See W. Va. Code § 33-13-12.

• A. 30 days
• B. 20 days
• C. 15 days
• D. 10 days

Correct answer: D. 10 days

Explanation: Section 33-6-11b requires all life or sickness and accident policies issued to persons in West Virginia to carry a prominently printed first-page notice that the person may return the policy within ten days of its receipt and have the premium refunded if not satisfied for any reason (group annuities under qualified pension plans are excepted). Thirty days is the Medicare supplement free-look period under § 33-16-3d(f), not the general life figure; 20 and 15 days are not West Virginia periods. See W. Va. Code § 33-6-11b.

• A. Covering a decreasing obligation like a mortgage
• B. Providing a guaranteed retirement income stream
• C. Accumulating cash value for future policy loans
• D. Replacing income that is expected to grow over time

Correct answer: A. Covering a decreasing obligation like a mortgage

Explanation: Decreasing term life insurance has a death benefit that decreases over time. It's commonly used to cover debts that decrease over time, such as a mortgage balance.

• A. A term policy that can be renewed for another term without proof of insurability
• B. A term policy that can be converted to permanent insurance without proof of insurability
• C. A permanent policy that can be exchanged for a lower-premium term policy at any time after issue
• D. A term policy whose accumulated cash value can be converted into an immediate annuity

Correct answer: B. A term policy that can be converted to permanent insurance without proof of insurability

Explanation: A convertible term policy allows the policyholder to convert their term coverage to a permanent policy (like whole life) without providing evidence of insurability. This protects the insured if their health declines.

• A. Whole life covers natural death alone; term covers both natural and accidental death
• B. Term life provides lifetime coverage at a lower cost; whole life ends at a stated age
• C. Whole life provides lifetime coverage and cash value; term is temporary with no cash value
• D. Term life builds cash value faster because its premiums are lower than whole life

Correct answer: C. Whole life provides lifetime coverage and cash value; term is temporary with no cash value

Explanation: Whole life insurance provides permanent coverage for the insured's entire life and accumulates cash value. Term life provides temporary coverage for a specific period and has no cash value component.

• A. A term policy that renews only after the insured passes a new medical exam
• B. A permanent policy whose premiums are recalculated each year at attained age
• C. A term policy that can be exchanged for permanent coverage without a new exam
• D. A term policy that can be renewed without proof of insurability

Correct answer: D. A term policy that can be renewed without proof of insurability

Explanation: Renewable term insurance allows the policyholder to renew the policy at the end of the term without providing evidence of insurability. Premiums typically increase with each renewal based on the insured's attained age.

• A. A provision that limits the insurer's ability to void the policy after 2 years
• B. A provision that limits the beneficiary's right to contest a claim denial after 2 years
• C. A provision that bars the insurer from adjusting benefits for a misstated age after 2 years
• D. A provision that prevents the policyowner from changing the beneficiary after 2 years

Correct answer: A. A provision that limits the insurer's ability to void the policy after 2 years

Explanation: Once a life policy has been in force for the contestable period, commonly two years, the insurer can no longer contest the policy or deny a claim because of misstatements in the application. Nonpayment of premium is never barred by the clause. A minority of states preserve a narrow exception for fraudulent misstatements, so the protection is close to but not absolutely universal.

• A. A provision allowing the insurer to contest the policy for material misstatements made on the application during its first two years
• B. A provision limiting the payout to a refund of premiums if the insured dies by suicide within a stated period after the policy is issued
• C. A provision that permanently excludes suicide as a covered cause of death for the entire life of the policy
• D. A provision requiring a two-year waiting period before the full death benefit becomes payable for any cause of death

Correct answer: B. A provision limiting the payout to a refund of premiums if the insured dies by suicide within a stated period after the policy is issued

Explanation: The suicide clause applies only during a stated period after issue - typically the first two years. If the insured dies by suicide within that period, the insurer does not pay the face amount; it refunds the premiums paid (some policies add interest). After the period ends, suicide is a covered cause of death, so option C is wrong. Option A describes the contestability provision, and option D describes a graded-benefit design, not the suicide clause.

• A. A loan from the insurer that is repaid to the beneficiary out of the death benefit
• B. An advance of the death benefit paid to the insured after a terminal diagnosis
• C. A loan from the insurance company using the policy's cash value as collateral
• D. A loan from a lender secured by an assignment of the policy's death benefit

Correct answer: C. A loan from the insurance company using the policy's cash value as collateral

Explanation: A policy loan allows the policyholder to borrow money from the insurance company using the policy's cash value as collateral. Interest is charged on the loan, and unpaid loans reduce the death benefit.

• A. A provision that waives premiums once the insured reaches age 65
• B. A provision that pays a monthly income if the insured becomes disabled
• C. A provision that waives the policy's surrender charges after 10 years
• D. A provision that waives premiums if the insured becomes disabled

Correct answer: D. A provision that waives premiums if the insured becomes disabled

Explanation: The waiver of premium rider allows premium payments to be waived if the insured becomes totally disabled for a specified period. The policy remains in force without premium payments during the disability.