DC LIFE INSURANCE PRACTICE EXAM
2026 A+ EXAM SOLUTIONS WITH
AUTHENTIC ANSWERS, COMPLETE
EXPLANATIONS, AND UNSTOPPABLE
SUCCESS
What are managed care organizations?
✔✔ Managed Care Organizations (MCOs) are companies that provide healthcare
services to their members through a network of healthcare providers. The goal is to
reduce costs and improve the quality of care by managing the use of healthcare
resources. MCOs often operate on a pre-arranged contract with healthcare
providers and include several types of plans such as:
Post-of-service plan (POS)
✔✔ A Post-of-service plan (POS) allows members to choose their healthcare
provider, but if they stay within the network, they pay less. It combines features of
both Health Maintenance Organizations (HMOs) and Preferred Provider
Organizations (PPOs).
Preferred provider organization (PPO)
✔✔ A Preferred Provider Organization (PPO) allows members to see any
healthcare provider, but they will pay less if they use the providers within the
network. PPOs offer more flexibility than HMOs but may involve higher out-of-
pocket costs.
Health Maintenance Organization (HMO)
✔✔ A Health Maintenance Organization (HMO) requires members to choose a
primary care physician (PCP) and get referrals to see specialists. Members are
required to use healthcare providers within the HMO network, except in
emergencies. HMOs are often more cost-effective but less flexible than PPOs.
,What is NOT a managed care organization?
✔✔ Medical Information Bureau (MIB)
The Medical Information Bureau (MIB) is not a managed care organization. It is
a database that provides medical underwriting information for life insurance
companies and is used to assess applicants' health risks.
Many small business owners worry how their business would survive
financially if the owner becomes disabled. The policy that BEST addresses
this concern is:
✔✔ Business Overhead Expense policy
A Business Overhead Expense policy helps cover the overhead costs of running a
business, such as rent, utilities, and employee salaries, if the business owner
becomes disabled and cannot work.
A policyowner's rights are limited under which beneficiary designation?
irrevocable
A pliot applies for Life insurance. The insurer approves the application with a $10
application monthly premium modification due to he risk involved. The pilot
declines the additional premium modifcation. The insurer ill likely issue the
coverage with an?
Aviation Exclusion
,For which of the folllowing does basic hospital policy pay?
Hospital room and board
___ Is the act of replacing existing life insurance with a new life policy based upon
misrepresentation?
Twisting
How would a contigent beneficiary receive the policy proceeds in an accidental
death and dismemberment (AD&D) policy?
If the primary beneficary dies before the insured
A life insurance application can be rejected on the basis of all these factors
Medical History, Hobbies, and weight
A life insurance application CANNOT be rejected on the basis of this factor
Gender
Which organization makes reimbursement payments directly to the insured
individual for covered medical expenditures?
Commercial insurer
, Which Life insurance policy combine Term insurance with an investment element
Universal life policy
Who issues Medicare Supplement policies
Insurance companies
DC requires that an insurance producer must complete ____ hours of continuing
eduacrtion every 24 months
24 hours
If a producer changes his residence address, the commissioner must be notified
within:
30 days
D is an architect receiving Disability Income benefits who is not able to return to
work full time, but can work on a part-time basis. Which feature (clause) would
allow D to continue receiving benefits?
residual benefit clause
2026 A+ EXAM SOLUTIONS WITH
AUTHENTIC ANSWERS, COMPLETE
EXPLANATIONS, AND UNSTOPPABLE
SUCCESS
What are managed care organizations?
✔✔ Managed Care Organizations (MCOs) are companies that provide healthcare
services to their members through a network of healthcare providers. The goal is to
reduce costs and improve the quality of care by managing the use of healthcare
resources. MCOs often operate on a pre-arranged contract with healthcare
providers and include several types of plans such as:
Post-of-service plan (POS)
✔✔ A Post-of-service plan (POS) allows members to choose their healthcare
provider, but if they stay within the network, they pay less. It combines features of
both Health Maintenance Organizations (HMOs) and Preferred Provider
Organizations (PPOs).
Preferred provider organization (PPO)
✔✔ A Preferred Provider Organization (PPO) allows members to see any
healthcare provider, but they will pay less if they use the providers within the
network. PPOs offer more flexibility than HMOs but may involve higher out-of-
pocket costs.
Health Maintenance Organization (HMO)
✔✔ A Health Maintenance Organization (HMO) requires members to choose a
primary care physician (PCP) and get referrals to see specialists. Members are
required to use healthcare providers within the HMO network, except in
emergencies. HMOs are often more cost-effective but less flexible than PPOs.
,What is NOT a managed care organization?
✔✔ Medical Information Bureau (MIB)
The Medical Information Bureau (MIB) is not a managed care organization. It is
a database that provides medical underwriting information for life insurance
companies and is used to assess applicants' health risks.
Many small business owners worry how their business would survive
financially if the owner becomes disabled. The policy that BEST addresses
this concern is:
✔✔ Business Overhead Expense policy
A Business Overhead Expense policy helps cover the overhead costs of running a
business, such as rent, utilities, and employee salaries, if the business owner
becomes disabled and cannot work.
A policyowner's rights are limited under which beneficiary designation?
irrevocable
A pliot applies for Life insurance. The insurer approves the application with a $10
application monthly premium modification due to he risk involved. The pilot
declines the additional premium modifcation. The insurer ill likely issue the
coverage with an?
Aviation Exclusion
,For which of the folllowing does basic hospital policy pay?
Hospital room and board
___ Is the act of replacing existing life insurance with a new life policy based upon
misrepresentation?
Twisting
How would a contigent beneficiary receive the policy proceeds in an accidental
death and dismemberment (AD&D) policy?
If the primary beneficary dies before the insured
A life insurance application can be rejected on the basis of all these factors
Medical History, Hobbies, and weight
A life insurance application CANNOT be rejected on the basis of this factor
Gender
Which organization makes reimbursement payments directly to the insured
individual for covered medical expenditures?
Commercial insurer
, Which Life insurance policy combine Term insurance with an investment element
Universal life policy
Who issues Medicare Supplement policies
Insurance companies
DC requires that an insurance producer must complete ____ hours of continuing
eduacrtion every 24 months
24 hours
If a producer changes his residence address, the commissioner must be notified
within:
30 days
D is an architect receiving Disability Income benefits who is not able to return to
work full time, but can work on a part-time basis. Which feature (clause) would
allow D to continue receiving benefits?
residual benefit clause
