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ILLINOIS LIFE AND HEALTH INSUARANCE
EXAM ACTUAL PREP QUESTIONS AND WELL
REVISED ANSWERS - LATEST AND COMPLETE
UPDATE WITH VERIFIED SOLUTIONS –
ASSURES PASS
1. What is the primary purpose of life insurance?
a) To accumulate savings
b) To provide death benefits to beneficiaries
c) To pay for medical expenses
d) To provide retirement income
ANSWER: b) To provide death benefits to beneficiaries
2. Which of the following is NOT a type of life insurance policy?
a) Term Life Insurance
b) Whole Life Insurance
c) Disability Insurance
d) Universal Life Insurance
ANSWER: c) Disability Insurance
3. In Illinois, a policyholder can exercise a 30-day free look period in which of
the following types of life insurance policies?
a) Universal Life Insurance
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b) Term Life Insurance
c) Whole Life Insurance
d) All of the above ANSWER: d) All of the above
4. The face amount of a life insurance policy refers to:
a) The amount of premiums paid
b) The amount the policyholder will receive during their lifetime
c) The amount payable to beneficiaries upon the death of the insured
d) The commissions earned by the insurance agent
ANSWER: c) The amount payable to beneficiaries upon the death of the insured
5. Which of the following life insurance policies has flexible premiums and the
ability to adjust death benefits?
a) Whole Life Insurance
b) Universal Life Insurance
c) Variable Life Insurance
d) Term Life Insurance
ANSWER: b) Universal Life Insurance
6. Which of the following is a characteristic of major medical health insurance?
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a) Covers only emergency care
b) Provides comprehensive benefits, including hospital and physician services
c) Has low deductible amounts
d) Limits the number of covered doctor visits
ANSWER: b) Provides comprehensive benefits, including hospital and physician
services
7. A "pre-existing condition" clause in a health insurance policy refers to:
a) Conditions that arise after the policy is issued
b) Medical conditions that existed before the policy's effective date
c) The policyholder’s history of health claims
d) Illnesses that are covered regardless of when they occurred
ANSWER: b) Medical conditions that existed before the policy's effective date
8. Under Illinois law, how long is the maximum waiting period for a health
insurance policy to exclude coverage for pre-existing conditions?
a) 6 months
b) 12 months
c) 24 months
d) 36 months
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ANSWER: b) 12 months
9. Which type of health insurance policy provides benefits for the treatment of
mental health conditions?
a) Disability Insurance
b) Long-Term Care Insurance
c) Health Maintenance Organization (HMO)
d) Mental Health Insurance (not a specific type of policy)
ANSWER: c) Health Maintenance Organization (HMO)
10. The Health Insurance Portability and Accountability Act (HIPAA) ensures
which of the following?
a) Employers cannot deny coverage to employees based on their health status
b) Health plans must cover all pre-existing conditions
c) Health information must remain private and confidential
d) All health insurance premiums must be subsidized by the government
ANSWER: c) Health information must remain private and confidential
11. According to Illinois law, which of the following is required to be included
in a health insurance policy’s outline of coverage?
ILLINOIS LIFE AND HEALTH INSUARANCE
EXAM ACTUAL PREP QUESTIONS AND WELL
REVISED ANSWERS - LATEST AND COMPLETE
UPDATE WITH VERIFIED SOLUTIONS –
ASSURES PASS
1. What is the primary purpose of life insurance?
a) To accumulate savings
b) To provide death benefits to beneficiaries
c) To pay for medical expenses
d) To provide retirement income
ANSWER: b) To provide death benefits to beneficiaries
2. Which of the following is NOT a type of life insurance policy?
a) Term Life Insurance
b) Whole Life Insurance
c) Disability Insurance
d) Universal Life Insurance
ANSWER: c) Disability Insurance
3. In Illinois, a policyholder can exercise a 30-day free look period in which of
the following types of life insurance policies?
a) Universal Life Insurance
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b) Term Life Insurance
c) Whole Life Insurance
d) All of the above ANSWER: d) All of the above
4. The face amount of a life insurance policy refers to:
a) The amount of premiums paid
b) The amount the policyholder will receive during their lifetime
c) The amount payable to beneficiaries upon the death of the insured
d) The commissions earned by the insurance agent
ANSWER: c) The amount payable to beneficiaries upon the death of the insured
5. Which of the following life insurance policies has flexible premiums and the
ability to adjust death benefits?
a) Whole Life Insurance
b) Universal Life Insurance
c) Variable Life Insurance
d) Term Life Insurance
ANSWER: b) Universal Life Insurance
6. Which of the following is a characteristic of major medical health insurance?
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a) Covers only emergency care
b) Provides comprehensive benefits, including hospital and physician services
c) Has low deductible amounts
d) Limits the number of covered doctor visits
ANSWER: b) Provides comprehensive benefits, including hospital and physician
services
7. A "pre-existing condition" clause in a health insurance policy refers to:
a) Conditions that arise after the policy is issued
b) Medical conditions that existed before the policy's effective date
c) The policyholder’s history of health claims
d) Illnesses that are covered regardless of when they occurred
ANSWER: b) Medical conditions that existed before the policy's effective date
8. Under Illinois law, how long is the maximum waiting period for a health
insurance policy to exclude coverage for pre-existing conditions?
a) 6 months
b) 12 months
c) 24 months
d) 36 months
, 4|Page
ANSWER: b) 12 months
9. Which type of health insurance policy provides benefits for the treatment of
mental health conditions?
a) Disability Insurance
b) Long-Term Care Insurance
c) Health Maintenance Organization (HMO)
d) Mental Health Insurance (not a specific type of policy)
ANSWER: c) Health Maintenance Organization (HMO)
10. The Health Insurance Portability and Accountability Act (HIPAA) ensures
which of the following?
a) Employers cannot deny coverage to employees based on their health status
b) Health plans must cover all pre-existing conditions
c) Health information must remain private and confidential
d) All health insurance premiums must be subsidized by the government
ANSWER: c) Health information must remain private and confidential
11. According to Illinois law, which of the following is required to be included
in a health insurance policy’s outline of coverage?
