PRACTICE TEST QUESTIONS FOR
LIFE AND HEALTH INSURANCE EXAM
QUESTIONS & UPDATED CORRECT
ANSWERS
Which authority is NOT stated in an agent's contract but is required for the agent to
conduct business?
Apparent
Assumed
Express
Implied - CORRECT ANSWER Implied
Medicaid is sponsored by what kind of sources?
Federal only
State only
Both state and federal
Private Companies - CORRECT ANSWER Both state and federal
Which of the following losses will be covered by a group medical expense policy?
An intentionally self-inflicted injury
An elective cosmetic surgery
A pre-existing condition
An injury resulting from active military duty - CORRECT ANSWER A pre-existing
condition
The Omnibus Budget Reconciliation Act of 1990 (OBRA) requires that large-group
health plans must provide primary coverage for disabled individuals under:
,Age 65 who are retired
Age 59 ½ who are retired
Age 65 who are not retired
Age 59 ½ who are not retired - CORRECT ANSWER Age 65 who are not retired
A newly licensed producer decided to hold a cookout for friends and family. At the
event, the producer gave a short presentation about his company and specific
insurance products that they offer. Some interest was generated. In this scenario, the
producer was:
Marketing
Soliciting
Negotiating
Selling - CORRECT ANSWER Soliciting
All of the following statements are correct regarding credit life insurance EXCEPT:
Benefits that are paid to the borrower's beneficiary
The amount of insurance permissible is limited per borrower
Premiums are usually paid by the borrower
Benefits are paid to the creditor - CORRECT ANSWER Benefits that are paid to the
borrower's beneficiary
Under which installments option does the annuitant select the amount of each payment,
and the insurer determines how long they will pay benefits?
Fixed amount
Variable period
Variable amount
Fixed period - CORRECT ANSWER Fixed Amount
A Universal Life insurance policy has two types of interest rates that are called:
Guaranteed and Current
,Option A and Option B
Fixed and Variable
Minimum and Target - CORRECT ANSWER Guaranteed and Current
To be eligible for group health insurance, an employee must meet all of these conditions
EXCEPT:
Be working in a covered classification
Be actively at work
Be a full-time employee
Have dependants - CORRECT ANSWER Have dependants
Which benefits would a disability plan most likely pay?
Medical expenses associated with a disability
Income lost by the insured's inability to work
Rehabilitation costs
Copayments - CORRECT ANSWER Income lost by the insured's ability to work
When an applicant purchased a life insurance policy, the agent dated the application 4
months prior. When asked by the applicant, the agent said he was allowed to backdate
policies up to 6 months if it would:
Shorten the contestability period
Eliminate pre-existing conditions
Help him meet a sales quota for that period
Lower the insured's premium - CORRECT ANSWER Lower the insured's premium
An applicant has a history of heart disease in his family, so he would like to buy a health
insurance policy that strictly covers heart disease. What type of policy is this?
Term health coverage
Comprehensive care coverage
, Specified coverage
Single indemnity protection - CORRECT ANSWER Specified coverage
Which of the following is NOT covered by Health Maintenance Organizations (HMOs)?
Routine physicals
Well-baby care
Elective services
Immunizations - CORRECT ANSWER Elective services
In a group policy, who is issued a certificate of insurance?
The healthcare provider
The insurance company
The employer
The individual insured - CORRECT ANSWER The individual insured
What type of annuity activity will cause immediate taxation of the interest earned?
Failing to make the planned contribution
Surrendering the annuity for cash
Using the contract as collateral for a loan
Changing a settlement option - CORRECT ANSWER Surrendering the annuity for cash
When the policy owner specifies a dollar amount in which installments are to be paid,
he/she has chosen which settlement option?
Life income period certain
Extended term
Fixed amount
Fixed period - CORRECT ANSWER Fixed amount
LIFE AND HEALTH INSURANCE EXAM
QUESTIONS & UPDATED CORRECT
ANSWERS
Which authority is NOT stated in an agent's contract but is required for the agent to
conduct business?
Apparent
Assumed
Express
Implied - CORRECT ANSWER Implied
Medicaid is sponsored by what kind of sources?
Federal only
State only
Both state and federal
Private Companies - CORRECT ANSWER Both state and federal
Which of the following losses will be covered by a group medical expense policy?
An intentionally self-inflicted injury
An elective cosmetic surgery
A pre-existing condition
An injury resulting from active military duty - CORRECT ANSWER A pre-existing
condition
The Omnibus Budget Reconciliation Act of 1990 (OBRA) requires that large-group
health plans must provide primary coverage for disabled individuals under:
,Age 65 who are retired
Age 59 ½ who are retired
Age 65 who are not retired
Age 59 ½ who are not retired - CORRECT ANSWER Age 65 who are not retired
A newly licensed producer decided to hold a cookout for friends and family. At the
event, the producer gave a short presentation about his company and specific
insurance products that they offer. Some interest was generated. In this scenario, the
producer was:
Marketing
Soliciting
Negotiating
Selling - CORRECT ANSWER Soliciting
All of the following statements are correct regarding credit life insurance EXCEPT:
Benefits that are paid to the borrower's beneficiary
The amount of insurance permissible is limited per borrower
Premiums are usually paid by the borrower
Benefits are paid to the creditor - CORRECT ANSWER Benefits that are paid to the
borrower's beneficiary
Under which installments option does the annuitant select the amount of each payment,
and the insurer determines how long they will pay benefits?
Fixed amount
Variable period
Variable amount
Fixed period - CORRECT ANSWER Fixed Amount
A Universal Life insurance policy has two types of interest rates that are called:
Guaranteed and Current
,Option A and Option B
Fixed and Variable
Minimum and Target - CORRECT ANSWER Guaranteed and Current
To be eligible for group health insurance, an employee must meet all of these conditions
EXCEPT:
Be working in a covered classification
Be actively at work
Be a full-time employee
Have dependants - CORRECT ANSWER Have dependants
Which benefits would a disability plan most likely pay?
Medical expenses associated with a disability
Income lost by the insured's inability to work
Rehabilitation costs
Copayments - CORRECT ANSWER Income lost by the insured's ability to work
When an applicant purchased a life insurance policy, the agent dated the application 4
months prior. When asked by the applicant, the agent said he was allowed to backdate
policies up to 6 months if it would:
Shorten the contestability period
Eliminate pre-existing conditions
Help him meet a sales quota for that period
Lower the insured's premium - CORRECT ANSWER Lower the insured's premium
An applicant has a history of heart disease in his family, so he would like to buy a health
insurance policy that strictly covers heart disease. What type of policy is this?
Term health coverage
Comprehensive care coverage
, Specified coverage
Single indemnity protection - CORRECT ANSWER Specified coverage
Which of the following is NOT covered by Health Maintenance Organizations (HMOs)?
Routine physicals
Well-baby care
Elective services
Immunizations - CORRECT ANSWER Elective services
In a group policy, who is issued a certificate of insurance?
The healthcare provider
The insurance company
The employer
The individual insured - CORRECT ANSWER The individual insured
What type of annuity activity will cause immediate taxation of the interest earned?
Failing to make the planned contribution
Surrendering the annuity for cash
Using the contract as collateral for a loan
Changing a settlement option - CORRECT ANSWER Surrendering the annuity for cash
When the policy owner specifies a dollar amount in which installments are to be paid,
he/she has chosen which settlement option?
Life income period certain
Extended term
Fixed amount
Fixed period - CORRECT ANSWER Fixed amount
