LIFE AND HEALTH INSURANCE EXAM
2025 QUESTIONS AND ANSWERS
All of these statements concerning Settlement options are true Except - ANS Only the
benificiary may select
All of these statements about equity indexed life insurance are correct except? - ANS The
premiums can be lowered or raised, based on investment performance.
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental
Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q,
and R are involved in a car accident and Q and R are killed instantly. The Accidental Death
benefits will be paid to? - ANS P only
A variable insurance policy - ANS Does not guarantee a return on its investments returns
A person is required to be at least how old before he or she is licensed as an agent in North
Carolina - ANS 18
At Least how many days before the effective date of a rate increase must an insurer provide
written notice to individual accident and health policy owners? - ANS 30
Which of these would be considered a Limited-Pay Life policy? - ANS Life Paid-Up at Age 70
1|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
, N is a 40 year old applicant who like to retire at age 70. He is looking to buy a life insurance
policy level premiums, permanent protection, and be paid up at retirement. Which of these
should N purchase? - ANS 30- pay life
How do life insurance companies handle cases where the insured commits suicide within the
contracts stated contestable period? - ANS Claims are denied under the Suicide clause of the
policy
An agent who signs a blank contract application or policy of insurance- - ANS Is guilty of
misdemeanor
In a Key Employee life insurance policy, the third party owner can be all of the following
Except? - ANS Insured
Upon delivery of a rated life insurance policy, The Producer must obtain each of the following
except? - ANS Signed HIPAA disclosure
Inducing or attempting to induce any insured person through misrepresentation to lapse,
forfeit, or surrender insurance is? - ANS Twisting
The Consideration clause in a life insurance policy indicates that a policyowner's consideration
consists of a completed application and ? - ANS The initial premium
Which of this statement is an element of Variable Life policy? - ANS A fixed level premium
Stranger Oriented Life Insurance (STOLI) has been found to be a violation of which of the
contractual elements? - ANS Legal Purpose (Insurable Interest)
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, M had an annual life insurance premium payment due January 1. She died January 10 without
making the premium payment. What action will the insurer take? - ANS Pay face minus the
past due premium.
The policy provision that entitles the insurer to establish conditions the insured must meet
while a claim is pending is - ANS Time Limit on certain defenses
A life insurance policy that provides a policyowner with cash value along with a level face
amount is called - ANS Whole life
Disability policies do NOT normally pay for disabilities arising from which of the following? -
ANS War
D needs a life insurance that provides coverage for only a limited amount of time while also
paying the lowest possible premium. What kind of policy is needed? - ANS Level term
T look out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider.
Five years later, T commits suicide. How much will the insurance take? - ANS $50,000
Before a Health Policy is issued or delivered, the form, classification or risks, and premium rates
MUST be filled with the - ANS Commissioner of Insurance
Which type of plan normally includes hospice benefits? - ANS Managed care plans
Health insurance benefits NOT covered due to an act of war are - ANS Excluded by the
insurer in the contract provision
An incomplete health insurance application submitted to an insurer will result in which of these
actions? - ANS Application will be returned to the writing producer
3|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
2025 QUESTIONS AND ANSWERS
All of these statements concerning Settlement options are true Except - ANS Only the
benificiary may select
All of these statements about equity indexed life insurance are correct except? - ANS The
premiums can be lowered or raised, based on investment performance.
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental
Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q,
and R are involved in a car accident and Q and R are killed instantly. The Accidental Death
benefits will be paid to? - ANS P only
A variable insurance policy - ANS Does not guarantee a return on its investments returns
A person is required to be at least how old before he or she is licensed as an agent in North
Carolina - ANS 18
At Least how many days before the effective date of a rate increase must an insurer provide
written notice to individual accident and health policy owners? - ANS 30
Which of these would be considered a Limited-Pay Life policy? - ANS Life Paid-Up at Age 70
1|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
, N is a 40 year old applicant who like to retire at age 70. He is looking to buy a life insurance
policy level premiums, permanent protection, and be paid up at retirement. Which of these
should N purchase? - ANS 30- pay life
How do life insurance companies handle cases where the insured commits suicide within the
contracts stated contestable period? - ANS Claims are denied under the Suicide clause of the
policy
An agent who signs a blank contract application or policy of insurance- - ANS Is guilty of
misdemeanor
In a Key Employee life insurance policy, the third party owner can be all of the following
Except? - ANS Insured
Upon delivery of a rated life insurance policy, The Producer must obtain each of the following
except? - ANS Signed HIPAA disclosure
Inducing or attempting to induce any insured person through misrepresentation to lapse,
forfeit, or surrender insurance is? - ANS Twisting
The Consideration clause in a life insurance policy indicates that a policyowner's consideration
consists of a completed application and ? - ANS The initial premium
Which of this statement is an element of Variable Life policy? - ANS A fixed level premium
Stranger Oriented Life Insurance (STOLI) has been found to be a violation of which of the
contractual elements? - ANS Legal Purpose (Insurable Interest)
2|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
, M had an annual life insurance premium payment due January 1. She died January 10 without
making the premium payment. What action will the insurer take? - ANS Pay face minus the
past due premium.
The policy provision that entitles the insurer to establish conditions the insured must meet
while a claim is pending is - ANS Time Limit on certain defenses
A life insurance policy that provides a policyowner with cash value along with a level face
amount is called - ANS Whole life
Disability policies do NOT normally pay for disabilities arising from which of the following? -
ANS War
D needs a life insurance that provides coverage for only a limited amount of time while also
paying the lowest possible premium. What kind of policy is needed? - ANS Level term
T look out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider.
Five years later, T commits suicide. How much will the insurance take? - ANS $50,000
Before a Health Policy is issued or delivered, the form, classification or risks, and premium rates
MUST be filled with the - ANS Commissioner of Insurance
Which type of plan normally includes hospice benefits? - ANS Managed care plans
Health insurance benefits NOT covered due to an act of war are - ANS Excluded by the
insurer in the contract provision
An incomplete health insurance application submitted to an insurer will result in which of these
actions? - ANS Application will be returned to the writing producer
3|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
