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Which life insurance product provides level death benefit coverage for a fixed period with no cash value accumulation?

Whole life insurance

Universal life insurance

Level term life insurance

Variable universal life

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2026 Statistics

Key Facts: ILA 101 Exam

~5 hrs

Time Limit

SOA ILA syllabus

~$1,275

Standard Fee

SOA fee table

Mar, Jul, Nov

2026 Sittings

SOA exam schedule

Weighted Domains

SOA syllabus

ASA

Required Prereq

SOA FSA pathway

300-500 hrs

Typical Study Time

Candidate consensus

ILA 101 replaces the legacy ILA-LP under SOA's 2025 FSA restructuring and is the first of two ILA-track FSA assessments (ILA 101 and ILA 201). It is a ~5-hour written-response case study sat in March, July, and November 2026 cycles, with an exam fee around $1,275. The syllabus weights Life Product Design and Pricing Theory most heavily at 20% each, followed by Annuity Product Design and Underwriting & Mortality at 15% each, with Reinsurance, Intro to Valuation, and Intro to Risk Management each at 10%. Candidates need ASA designation and typically log 300-500 study hours.

Sample ILA 101 Practice Questions

Try these sample questions to test your ILA 101 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which life insurance product provides level death benefit coverage for a fixed period with no cash value accumulation?

A.Whole life insurance

B.Universal life insurance

C.Level term life insurance

D.Variable universal life

Explanation: Level term provides a level death benefit for a stated period (e.g., 10, 20, or 30 years) with no cash value accumulation. Whole, UL, and VUL all build cash value.

2A whole life policy classified as participating distributes excess earnings primarily through which mechanism?

A.Annual policyholder dividends

B.Increased COI charges

C.Higher mortality assumptions

D.Reduced corridor factors

Explanation: Participating whole life pays annual dividends derived from favorable mortality, investment, and expense experience. Dividends are not guaranteed but reflect the insurer's actual experience versus pricing assumptions.

3The 2017 CSO mortality table is primarily used in U.S. life insurance pricing and valuation for which purpose?

A.Setting GAAP DAC amortization rates

B.Determining minimum statutory reserves and nonforfeiture values

C.Calculating IFRS 17 risk adjustment

D.Estimating embedded value distributable earnings

Explanation: The 2017 CSO is the prescribed mortality table for statutory minimum reserves under CRVM and for nonforfeiture value calculations on policies issued in the U.S.

4Within a universal life policy, the cost of insurance (COI) charge is most directly a function of which item?

A.The credited interest rate

B.The premium load percentage

C.The net amount at risk and the insured's attained-age mortality rate

D.The surrender charge schedule

Explanation: COI = NAR x (monthly mortality rate). Net amount at risk equals death benefit minus account value, multiplied by the per-thousand attained-age COI rate. Loads, credited rate, and surrender charges are separate UL elements.

5A no-lapse guarantee (NLG) rider on a universal life policy provides what protection?

A.Guarantees the credited interest rate will not fall below a stated floor

B.Guarantees the death benefit will remain in force as long as the cumulative NLG premium test is met, even if account value reaches zero

C.Guarantees a minimum cash surrender value equal to total premiums

D.Guarantees the COI rates will never increase

Explanation: An NLG (also called secondary guarantee) keeps the death benefit in force even if account value falls to zero, provided the policyholder pays at least the cumulative NLG premium specified in the contract.

6An indexed universal life (IUL) policy credits interest based on the change in the S&P 500 over a one-year segment, subject to a 9% cap, 100% participation rate, and 0% floor. If the index returns 12% over the segment, what interest rate is credited?

A.0%

B.9%

C.12%

D.5.4%

Explanation: The credited rate equals min(index return x participation rate, cap), with the floor providing protection in negative years. Here min(12% x 100%, 9%) = 9%.

7Which IUL crediting feature is essentially a fee charged against the index return before crediting?

A.Cap rate

B.Spread (margin)

C.Floor

D.Participation rate

Explanation: A spread (or margin) reduces the index return by a fixed percentage before any cap or floor is applied (e.g., index 10% minus 2% spread = 8% credited, subject to cap). It functions like a fee on positive index performance.

8Variable universal life (VUL) differs from traditional UL primarily because the policyholder's account value is invested in:

A.The insurer's general account

B.Separate accounts containing equity and bond subaccounts selected by the policyholder

C.A pool of FHLB bonds

D.An indexed crediting strategy

Explanation: VUL contracts hold cash value in separate accounts whose investment risk is borne by the policyholder. UL credits a declared rate from general-account assets, while IUL ties credits to an index without direct equity exposure.

9Which test under IRC §7702A determines whether a permanent life policy becomes a Modified Endowment Contract (MEC)?

A.The corridor test

B.The cash value accumulation test (CVAT)

C.The 7-pay premium test

D.The guideline premium test (GPT)

Explanation: §7702A's 7-pay test compares cumulative premiums paid in the first seven years to the level annual premium that would fully fund the contract over seven years. Exceeding the limit triggers MEC status; CVAT and GPT relate to the §7702 definition of life insurance.

10Under IRC §7702 corridor requirements, what is the minimum death benefit relationship for a life insurance contract on a 40-year-old?

A.The death benefit must always be at least 250% of cash value

B.The death benefit must equal at least the corridor percentage (e.g., 250% at age 40) times the cash value

C.The cash value must equal at least 60% of the death benefit

D.The premium must equal at least 7% of the death benefit

Explanation: The §7702 corridor requires that death benefit equal at least the applicable corridor percentage times the cash value. The percentages decrease with age (e.g., 250% at age 40, 150% at age 60, 100% at age 95).

About the ILA 101 Exam

SOA ILA 101 is the first of two ILA-track FSA exams under the 2025 FSA restructuring. It tests life and annuity product design (Term, WL, UL, IUL, VUL, SPIA, MYGA, FIA, VA), pricing theory (asset share, profit testing, GAAP vs. statutory), valuation (CRVM, CARVM, FAS 60/97/120, IFRS 17 BBA/PAA/VFA), and risk management (ALM, embedded value, ORSA, PBR VM-20/VM-21/VM-22).

Assessment

Written-response case-study exam covering life insurance and annuity product design, pricing methodology, valuation, and risk management for the FSA Individual Life and Annuities track.

Time Limit

~5 hours

Passing Score

Pass mark set by SOA

Exam Fee

~$1,275 (Society of Actuaries (SOA))

ILA 101 Exam Content Outline

20%

Life Insurance Product Design

Term, whole life (par/non-par), universal life with NLG, indexed UL (cap, participation, spread, floor, multiplier), variable UL, plus §7702 and MEC §7702A definitional rules.

15%

Annuity Product Design

SPIA payout options, DIA, SPDA/MYGA, FIA with GLWB roll-up rates and rider charges, VA living and death benefit riders (GLWB/GMAB/GMIB/GMDB), §1035 exchanges, and §72 taxation.

20%

Pricing Theory & Methodology

Asset-share method, gross premium valuation, profit testing on distributable earnings, statutory vs. GAAP profit emergence, sensitivity testing, embedded value, and option-budget pricing for IUL.

15%

Underwriting & Mortality Assumptions

2017 CSO mortality table, preferred risk classes, direct substandard tables, flat extras, accelerated underwriting with predictive models, and mortality experience studies and credibility.

10%

Reinsurance for Life and Annuity

YRT, coinsurance, modified coinsurance (Modco), funds-withheld, financial reinsurance for surplus relief, retention limits, facultative submissions, recapture, and credit-for-reinsurance collateral.

10%

Introduction to Valuation

Statutory CRVM and CARVM with AG 33 / AG 38 guidance, U.S. GAAP FAS 60 / FAS 97 / FAS 120 with LDTI ASU 2018-12, and IFRS 17 BBA, PAA, and VFA with the Contractual Service Margin.

10%

Introduction to Risk Management

Asset-liability management, embedded value, ORSA, RBC categories, hedging programs for VA living benefits and IUL, and Principle-Based Reserves under VM-20, VM-21, and VM-22.

How to Pass the ILA 101 Exam

What You Need to Know

Passing score: Pass mark set by SOA
Assessment: Written-response case-study exam covering life insurance and annuity product design, pricing methodology, valuation, and risk management for the FSA Individual Life and Annuities track.
Time limit: ~5 hours
Exam fee: ~$1,275

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

ILA 101 Study Tips from Top Performers

1Master the §7702 / §7702A / §72 / §1035 tax framework early - these definitional rules underlie almost every product-design and exchange question and reward precise recall.

2Build a one-page comparison of YRT, coinsurance, Modco, and funds-withheld covering reserves, assets, premium flow, and risk transferred - this matrix shows up in case studies repeatedly.

3Learn to mechanically walk through an asset-share or profit-testing projection: premium in, expenses out, claims out, reserves changing, surplus released - the structure matters more than memorization.

4Anchor IFRS 17 by remembering the building-block triangle (best-estimate cash flows, time-value adjustment, risk adjustment, CSM) and the three measurement models BBA, PAA, and VFA with one example product per model.

5Use the VM-20 (life), VM-21 (variable annuity), and VM-22 (non-VA annuity) split as your mental map for PBR; pair it with CRVM/CARVM/AG 33/AG 38 as the formula-reserve counterpart.

Frequently Asked Questions

What is the SOA ILA 101 exam?

ILA 101 is the first of two FSA-track exams in the SOA's Individual Life and Annuities specialty under the 2025 FSA restructuring. It replaced the legacy ILA-LP exam and pairs with ILA 201 to complete the ILA specialty. The exam covers life and annuity product design, pricing theory and methodology, and an introduction to valuation and risk management, sat as a ~5-hour written-response case study in March, July, and November sittings.

What are the prerequisites for taking SOA ILA 101?

Candidates must hold the SOA Associate (ASA) designation before sitting for any FSA-track exam, including ILA 101. The ASA pathway covers Exam P, FM, FAM, ALTAM/ASTAM, SRM, PA, plus VEE credits and FAP modules. ILA 101 also assumes working knowledge of life-insurance accounting, mortality tables, and U.S. statutory valuation that candidates may have built through prior exams or work experience.

How is ILA 101 graded?

SOA reports FSA exam grades on a 0-10 scale, with grades 6-10 considered passing. SOA does not publish a fixed raw percentage cut score. Pass marks are set per administration through SOA's pass-mark methodology after exam grading is complete. ILA 101 results historically post several weeks after each sitting.

Which topics carry the most weight on ILA 101?

Life Insurance Product Design and Pricing Theory & Methodology are the heaviest at about 20% each. Annuity Product Design and Underwriting & Mortality Assumptions follow at roughly 15% each, while Reinsurance, Introduction to Valuation, and Introduction to Risk Management each carry about 10%. Strong candidates can connect product features to their pricing, valuation, and risk-management implications across topics.

What is the relationship between ILA 101 and the legacy ILA-LP exam?

Under the 2025 FSA restructuring, the SOA replaced the older ILA-LP, ILA-LFV, and related modules with the new two-exam ILA sequence (ILA 101 followed by ILA 201). ILA 101 carries forward life and annuity pricing content and adds an introduction to valuation and risk management that previously sat in separate FSA assessments. Candidates with prior ILA-LP credit should consult SOA transition rules.

How should I structure my study plan for ILA 101?

Most candidates plan 300-500 hours over a 5-7 month study period. Build a base in the SOA-listed source readings, then spend at least one-third of your time writing past-exam answers under timed conditions. Use a study manual for structure and the SOA syllabus, sample exam, and grading rubrics from prior sittings to calibrate your written-response style. Practice questions like ours are useful for reinforcement after you have absorbed the source readings.