Life Insurance Exam Questions & Answers / A+
Score Solution | 2025/2026 LATEST UPDATED
1. The Commissioner conducts an examination of a domestic insurer and believes
that the costs of examination place an unreasonable financial burden on the insurer.
Which of the following will happen?
a. The federal government will absorb the full cost
b. The federal government will absorb part of the cost, and the state government
will absorb the rest
c. The costs will be reduced to the amount that the examinee can reasonably pay;
the rest will be paid by the federal government
d. The Commissioner's office may pay all or part of the costs
✅ Answer: d
2. Forcing a client to buy insurance from a particular lender as a condition of
granting a loan is defined as
a. Defamation
b. Coercion
c. Rebating
d. Misleading advertising
✅ Answer: b
,3. An agent who includes a statement or omits a statement which, when taken in
context of the whole presentation, may tend to mislead or deceive the persons
addressed has committed
a. Twisting
b. Coercion
c. Misrepresentation
d. Defamation
✅ Answer: c
4. If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to comply?
a. 7 days
b. 10 days
c. 3 days
d. 5 days
✅ Answer: d
5. After the original hearing and a final order is issued, an aggrieved person may
request a re-hearing within
a. 30 days
b. 40 days
c. 15 days
d. 20 days
✅ Answer: d
,6. Which of the following is an example of a producer being involved in an unfair
trade practice of rebating?
a. Telling a client that his first premium will be waived if he purchases the
insurance policy today
b. Inducing the insured to drop a policy in favor of another one when it is not in the
insured's best interest
c. Charging a client a higher premium for the same policy as another client in the
same insuring class
d. Making deceptive statements about a competitor
✅ Answer: a
7. Which type of misrepresentation persuades an insured, to his or her detriment, to
cancel, lapse, or switch policies from one to another?
a. False advertising
b. Rebating
c. Twisting
d. Switching
✅ Answer: c
8. An insurer can refuse, cancel, or deny insurance coverage to a class of risks
based on which of the following?
a. Moral character
b. Physical condition or developmental disability
c. Sexual preference
d. None of the above
✅ Answer: d
, 9. If a person does not comply with an order issued within 2 weeks after the
Commissioner has given notice, for each day that the violation continues, the
Commissioner may issue a fine of up to
a. 3,000𝑏.∗∗5,000**
c. 1,500𝑑.2,000
✅ Answer: b
10. Which of the following persons is NOT required to complete CE?
a. A property insurance intermediary with 40 years of continuous licensure
b. Any licensee over 65 with more than 25 years of continuous licensure
c. A limited lines intermediary with 40 years of continuous licensure
d. A life insurance intermediary with 18 years of continuous licensure
✅ Answer: c
11. An intermediary must notify the Commissioner of a change of residence
address within how many days of the change?
a. 20
b. 30
c. 5
d. 10
✅ Answer: b
Score Solution | 2025/2026 LATEST UPDATED
1. The Commissioner conducts an examination of a domestic insurer and believes
that the costs of examination place an unreasonable financial burden on the insurer.
Which of the following will happen?
a. The federal government will absorb the full cost
b. The federal government will absorb part of the cost, and the state government
will absorb the rest
c. The costs will be reduced to the amount that the examinee can reasonably pay;
the rest will be paid by the federal government
d. The Commissioner's office may pay all or part of the costs
✅ Answer: d
2. Forcing a client to buy insurance from a particular lender as a condition of
granting a loan is defined as
a. Defamation
b. Coercion
c. Rebating
d. Misleading advertising
✅ Answer: b
,3. An agent who includes a statement or omits a statement which, when taken in
context of the whole presentation, may tend to mislead or deceive the persons
addressed has committed
a. Twisting
b. Coercion
c. Misrepresentation
d. Defamation
✅ Answer: c
4. If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to comply?
a. 7 days
b. 10 days
c. 3 days
d. 5 days
✅ Answer: d
5. After the original hearing and a final order is issued, an aggrieved person may
request a re-hearing within
a. 30 days
b. 40 days
c. 15 days
d. 20 days
✅ Answer: d
,6. Which of the following is an example of a producer being involved in an unfair
trade practice of rebating?
a. Telling a client that his first premium will be waived if he purchases the
insurance policy today
b. Inducing the insured to drop a policy in favor of another one when it is not in the
insured's best interest
c. Charging a client a higher premium for the same policy as another client in the
same insuring class
d. Making deceptive statements about a competitor
✅ Answer: a
7. Which type of misrepresentation persuades an insured, to his or her detriment, to
cancel, lapse, or switch policies from one to another?
a. False advertising
b. Rebating
c. Twisting
d. Switching
✅ Answer: c
8. An insurer can refuse, cancel, or deny insurance coverage to a class of risks
based on which of the following?
a. Moral character
b. Physical condition or developmental disability
c. Sexual preference
d. None of the above
✅ Answer: d
, 9. If a person does not comply with an order issued within 2 weeks after the
Commissioner has given notice, for each day that the violation continues, the
Commissioner may issue a fine of up to
a. 3,000𝑏.∗∗5,000**
c. 1,500𝑑.2,000
✅ Answer: b
10. Which of the following persons is NOT required to complete CE?
a. A property insurance intermediary with 40 years of continuous licensure
b. Any licensee over 65 with more than 25 years of continuous licensure
c. A limited lines intermediary with 40 years of continuous licensure
d. A life insurance intermediary with 18 years of continuous licensure
✅ Answer: c
11. An intermediary must notify the Commissioner of a change of residence
address within how many days of the change?
a. 20
b. 30
c. 5
d. 10
✅ Answer: b
