LIFE AND HEALTH INSURANCE EXAM
2026 COMPLETE PRACTICE QUESTIONS
AND CORRECT ANSWERS WITH DETAILED
EXPLANATIONS COMPREHENSIVE LIFE
AND HEALTH INSURANCE LICENSING
EXAM STUDY GUIDE GRADE A+ 2026
EDITION
Nonqualified withdrawal - CORRECT ANSWER -f a withdrawal is taken
without meeting the above criteria and the amount of the withdrawal
exceeds the total amount contributed, it is a nonqualified withdrawal. The
earnings from the contributions become taxable.
Profit sharing plan - CORRECT ANSWER -A benefit whereby employees may
share in the profits of the business.
Qualified plan - CORRECT ANSWER -A qualified plan is a retirement or
employee compensation plan established and maintained by an employer
that meets specific guidelines spelled out by the IRS and consequently
receives favorable tax treatment.
Qualified withdrawals - CORRECT ANSWER -Qualified Withdrawals provide
the tax-free distribution of earnings from a Roth IRA. To be a qualified
withdrawal, the funds must have been held in the account for a minimum of
five years; and if the withdrawal occurs for one of the following reasons, no
portion of the withdrawal is subject to tax; permanent disability; made by a
,beneficiary after the owner's death; or used to buy, build or rebuild your
first home ( $10,000 maximum ).
Roth IRA - CORRECT ANSWER -A personal savings plan; contributions are
not tax-deductible; earnings are tax-free.
Traditional IRA - CORRECT ANSWER -Individual Retirement Account - A
personal qualified retirement account through which eligible individuals
accumulate tax-deferred income up to a certain amount each year,
depending on the person's tax bracket.
Notice of claim - CORRECT ANSWER -A provision that spells out an
insured's duty to provide the insurer with reasonable notice in the event of
a loss.
Change of occupation provision - CORRECT ANSWER -If Insured changes to:
more hazardous job - benefits reduced, coverage goes down; less hazardous
job - premiums reduce, coverage goes up
Entire contract provision - CORRECT ANSWER -The policy owner is entitled
to the entire contract so that he knows any riders or waivers
Insurers may request a hearing within ___ if their policy is rejected -
CORRECT ANSWER -20
, Noncancellable - CORRECT ANSWER -An insurance contract that the
insured has a right to continue in force by payment of premiums that
remain the same for a substantial period of time.
Payment of claims provision - CORRECT ANSWER -Defines how proceeds
are to be paid out + requirements to initiate death benefit claim
Proof of loss - CORRECT ANSWER -A statement of facts about a loss for
which the insured is making a claim.
Guaranteed renewable - CORRECT ANSWER -A rider in some insurance
policies that guarantees that a policy is renewable, without the need for
further underwriting and usually at the same premium or a premium no
greater than charged for a similar class of policyholders.
Conditionally renewable - CORRECT ANSWER -An insurance policy renewal
provision that grants the insurer a limited right to refuse to renew a health
insurance policy at the end of a premium payment period.
Nonrenewable policy - CORRECT ANSWER -Expires at the end of the
protection period
The policyholder does not have the contractual right to renew the policy.
Legal actions provision - CORRECT ANSWER -States the insured cannot take
legal action against the company in a claim dispute until after 60 days from
the time the insured submits proof of loss.
2026 COMPLETE PRACTICE QUESTIONS
AND CORRECT ANSWERS WITH DETAILED
EXPLANATIONS COMPREHENSIVE LIFE
AND HEALTH INSURANCE LICENSING
EXAM STUDY GUIDE GRADE A+ 2026
EDITION
Nonqualified withdrawal - CORRECT ANSWER -f a withdrawal is taken
without meeting the above criteria and the amount of the withdrawal
exceeds the total amount contributed, it is a nonqualified withdrawal. The
earnings from the contributions become taxable.
Profit sharing plan - CORRECT ANSWER -A benefit whereby employees may
share in the profits of the business.
Qualified plan - CORRECT ANSWER -A qualified plan is a retirement or
employee compensation plan established and maintained by an employer
that meets specific guidelines spelled out by the IRS and consequently
receives favorable tax treatment.
Qualified withdrawals - CORRECT ANSWER -Qualified Withdrawals provide
the tax-free distribution of earnings from a Roth IRA. To be a qualified
withdrawal, the funds must have been held in the account for a minimum of
five years; and if the withdrawal occurs for one of the following reasons, no
portion of the withdrawal is subject to tax; permanent disability; made by a
,beneficiary after the owner's death; or used to buy, build or rebuild your
first home ( $10,000 maximum ).
Roth IRA - CORRECT ANSWER -A personal savings plan; contributions are
not tax-deductible; earnings are tax-free.
Traditional IRA - CORRECT ANSWER -Individual Retirement Account - A
personal qualified retirement account through which eligible individuals
accumulate tax-deferred income up to a certain amount each year,
depending on the person's tax bracket.
Notice of claim - CORRECT ANSWER -A provision that spells out an
insured's duty to provide the insurer with reasonable notice in the event of
a loss.
Change of occupation provision - CORRECT ANSWER -If Insured changes to:
more hazardous job - benefits reduced, coverage goes down; less hazardous
job - premiums reduce, coverage goes up
Entire contract provision - CORRECT ANSWER -The policy owner is entitled
to the entire contract so that he knows any riders or waivers
Insurers may request a hearing within ___ if their policy is rejected -
CORRECT ANSWER -20
, Noncancellable - CORRECT ANSWER -An insurance contract that the
insured has a right to continue in force by payment of premiums that
remain the same for a substantial period of time.
Payment of claims provision - CORRECT ANSWER -Defines how proceeds
are to be paid out + requirements to initiate death benefit claim
Proof of loss - CORRECT ANSWER -A statement of facts about a loss for
which the insured is making a claim.
Guaranteed renewable - CORRECT ANSWER -A rider in some insurance
policies that guarantees that a policy is renewable, without the need for
further underwriting and usually at the same premium or a premium no
greater than charged for a similar class of policyholders.
Conditionally renewable - CORRECT ANSWER -An insurance policy renewal
provision that grants the insurer a limited right to refuse to renew a health
insurance policy at the end of a premium payment period.
Nonrenewable policy - CORRECT ANSWER -Expires at the end of the
protection period
The policyholder does not have the contractual right to renew the policy.
Legal actions provision - CORRECT ANSWER -States the insured cannot take
legal action against the company in a claim dispute until after 60 days from
the time the insured submits proof of loss.
