Connecticut Life and Health Insurance
Exam Questions With Complete
Solutions
A producer has indicated to a potential client that the proposed life insurance is covered
by the Connecticut Life and Health Insurance Guaranty Association. This action taken
by the producer is CORRECT ANSWERS "Prohibited by law". Pointing out to a
prospective client that the life insurance policy you are presenting is covered by the
Connecticut Life and Health Guaranty Association is prohibited by law.
Which of the following does NOT involve a life settlement transaction? CORRECT
ANSWERS Converting term life coverage to whole life insurance. the business of life
settlements includes all of these except "Converting term life coverage to whole life
insurance.
Life settlement brokers are NOT allowed to CORRECT ANSWERS Complete
transactions prior to being approved for a license. Life settlement brokers need to be
licensed before conducting any life settlement transactions. the exception to this would
be certain eligible financial professionals.
A producer must complete____credit hours of continuing education for each licensing
period. CORRECT ANSWERS 24 hours. All insurance agents must successfully
complete 24 credit hours of continuing education every 2 years, prior to license renewal.
Three of those hours must be in ethics.
A life insurance policy provision that has the ability to reduce the death benefit is called
the CORRECT ANSWERS Accelerated (living) benefit. Whatever amount is withdrawn
from an accelerated benefit will be deducted from the face amount when death occurs.
An officer for a corporation takes out numerous unsecured loans from the company's
qualified retirement plan. Which of these rules is the plan in violation of? CORRECT
ANSWERS Exclusive benefit rule. The assets held in a company's qualified retirement
plan must be maintained for the exclusive benefit of the employees and their
beneficiaries.
A source of supplemental income for a life insurance policyowner can be derived from
the CORRECT ANSWERS Cash value. Cash value may be used as a source to
supplement a policyowner's income.
Purchasing insurance is an example of risk CORRECT ANSWERS Transference.
Purchasing insurance is an example of risk transference.
, Which statement best describes a single premium whole life policy? CORRECT
ANSWERS Paid-up policy that offers lifetime protection. A single premium whole life
policy provides protection for life as a paid-up policy.
Which of the following situations would allow funds to be deposited into a rollover IRA?
CORRECT ANSWERS An employee quits her job and receives $50,000 from her
qualified plan.
Medical costs in birthing centers are lowered by using CORRECT ANSWERS Certified
nurse midwives. Birthing centers reduce medical costs through the use of certified nurse
midwives.
What is a a "functional assessment" for long-term care benefits? CORRECT ANSWERS
A review of the insured's ability to perform the activities of daily living. A "functional
assessment" determines the insured's ability to perform the activities of daily living
(ADLs)
John bought a deferred annuity on Mary. John amends the contract years later to name
Tom as the recipient of the proceeds if Mary dies. Who is the annuitant for this contract?
CORRECT ANSWERS Mary. In this situation, Mary is the annuitant because that is
where the proceeds of the annuity will be directed.
When does the producer give a premium receipt for a life insurance application?
CORRECT ANSWERS "When the initial premium has been paid with the application". A
premium receipt is given to an applicant when the initial premium is paid with the
application .
Which statement is true regarding hospital preadmission certification for emergency
situations? CORRECT ANSWERS Notification is required to be given after insured is
admitted to the hospital. Hospital preadmission certification typically requires notification
to be given after the patient is admitted to the hospital for an emergency situation. For
nonemergency situations, notification is to be given BEFORE admission.
When using the approach for life insurance planning, a lump sum may be created to
provide for all of the following EXCEPT CORRECT ANSWERS "Employee benefits".
The needs approach to personal life insurance planning may involve creating a lump
sum to provide for all of these EXCEPT employee benefits.
How are the premiums for an individually-owned disability income policy treated for tax
purposes? CORRECT ANSWERS Not tax-deductable at all. Premiums for individually-
owned disability income policy are not tax-deductable at all.
Which of the following must clearly be illustrated in ALL sales material for market value
adjusted annuities ? CORRECT ANSWERS The market value adjustment can be either
upward or downward. Sales material used in the marketing of market value adjusted
Exam Questions With Complete
Solutions
A producer has indicated to a potential client that the proposed life insurance is covered
by the Connecticut Life and Health Insurance Guaranty Association. This action taken
by the producer is CORRECT ANSWERS "Prohibited by law". Pointing out to a
prospective client that the life insurance policy you are presenting is covered by the
Connecticut Life and Health Guaranty Association is prohibited by law.
Which of the following does NOT involve a life settlement transaction? CORRECT
ANSWERS Converting term life coverage to whole life insurance. the business of life
settlements includes all of these except "Converting term life coverage to whole life
insurance.
Life settlement brokers are NOT allowed to CORRECT ANSWERS Complete
transactions prior to being approved for a license. Life settlement brokers need to be
licensed before conducting any life settlement transactions. the exception to this would
be certain eligible financial professionals.
A producer must complete____credit hours of continuing education for each licensing
period. CORRECT ANSWERS 24 hours. All insurance agents must successfully
complete 24 credit hours of continuing education every 2 years, prior to license renewal.
Three of those hours must be in ethics.
A life insurance policy provision that has the ability to reduce the death benefit is called
the CORRECT ANSWERS Accelerated (living) benefit. Whatever amount is withdrawn
from an accelerated benefit will be deducted from the face amount when death occurs.
An officer for a corporation takes out numerous unsecured loans from the company's
qualified retirement plan. Which of these rules is the plan in violation of? CORRECT
ANSWERS Exclusive benefit rule. The assets held in a company's qualified retirement
plan must be maintained for the exclusive benefit of the employees and their
beneficiaries.
A source of supplemental income for a life insurance policyowner can be derived from
the CORRECT ANSWERS Cash value. Cash value may be used as a source to
supplement a policyowner's income.
Purchasing insurance is an example of risk CORRECT ANSWERS Transference.
Purchasing insurance is an example of risk transference.
, Which statement best describes a single premium whole life policy? CORRECT
ANSWERS Paid-up policy that offers lifetime protection. A single premium whole life
policy provides protection for life as a paid-up policy.
Which of the following situations would allow funds to be deposited into a rollover IRA?
CORRECT ANSWERS An employee quits her job and receives $50,000 from her
qualified plan.
Medical costs in birthing centers are lowered by using CORRECT ANSWERS Certified
nurse midwives. Birthing centers reduce medical costs through the use of certified nurse
midwives.
What is a a "functional assessment" for long-term care benefits? CORRECT ANSWERS
A review of the insured's ability to perform the activities of daily living. A "functional
assessment" determines the insured's ability to perform the activities of daily living
(ADLs)
John bought a deferred annuity on Mary. John amends the contract years later to name
Tom as the recipient of the proceeds if Mary dies. Who is the annuitant for this contract?
CORRECT ANSWERS Mary. In this situation, Mary is the annuitant because that is
where the proceeds of the annuity will be directed.
When does the producer give a premium receipt for a life insurance application?
CORRECT ANSWERS "When the initial premium has been paid with the application". A
premium receipt is given to an applicant when the initial premium is paid with the
application .
Which statement is true regarding hospital preadmission certification for emergency
situations? CORRECT ANSWERS Notification is required to be given after insured is
admitted to the hospital. Hospital preadmission certification typically requires notification
to be given after the patient is admitted to the hospital for an emergency situation. For
nonemergency situations, notification is to be given BEFORE admission.
When using the approach for life insurance planning, a lump sum may be created to
provide for all of the following EXCEPT CORRECT ANSWERS "Employee benefits".
The needs approach to personal life insurance planning may involve creating a lump
sum to provide for all of these EXCEPT employee benefits.
How are the premiums for an individually-owned disability income policy treated for tax
purposes? CORRECT ANSWERS Not tax-deductable at all. Premiums for individually-
owned disability income policy are not tax-deductable at all.
Which of the following must clearly be illustrated in ALL sales material for market value
adjusted annuities ? CORRECT ANSWERS The market value adjustment can be either
upward or downward. Sales material used in the marketing of market value adjusted
