LIFE AND HEALTH INSURANCE
EXAM REVIEW 2025-2026
Instructions
All answers are underlined and all questions are in bold.
Questions
1035 contract exchange <answer>A tax-free exchange
of one annuity contract for another, one life insurance
policy for another, or one life insurance policy for an
annuity. The contracts do not have to be issued by the
same company
401(k) plan <answer>A tax-deferred investment and
savings plan that acts as a personal pension fund for
employees.
,403(b) plan <answer>A tax-deferred retirement plan for
teachers, hospital workers, ministers, and some other
public employees
A consumer who has been recently denied insurance,
credit, or employment based on an unfavorable
consumer report MUST be advised as such. Which of
the following does this statute originate from?
<answer>Fair credit reporting act.
A person who charges a fee for giving insurance
advice is called an <answer>Certified insurance
consultant.
A temporary producer's license is effective for
<answer>180 days.
Accelerated benefit rider <answer>The accelerated
benefit rider allows the insured to receive a portion of the
death benefit prior to death if the insured has a terminal
illness and is certified by a physician as expected to die
within 1-2 years.
,Accelerated benefits rider <answer>Allows the insured
to receive a portion of the death benefit before death if the
insured has a terminal illness and is expected to die within
1-2 years. Whatever amount is withdrawn in an
accelerated death benefit will decrease the death benefit
when death occurs.
Accidental death benefit rider <answer>Pays a multiple
of the death proceeds if the cause of death is a covered
accidental event.
According to the affordable acre act, a dependent
child's eligibility status is determined by <answer>Age.
Accumulate interest options <answer>Allows dividends
to accumulate interest. Interest is the ONLY thing you can
be charged tax on.
Accumulation period <answer>When the premiums an
annuitant pays into annuities are credited as accumulation
units. The accumulation period may continue between the
time after premiums have ceased, but the payout has not
yet begun. At the end of the accumulation period,
accumulation units are converted to annuity units.
, Accumulation units <answer>Make up the value of
contributions made by the annuitant less a deduction for
expenses. The value of each accumulation unit is a credit
to the individual's account and varies depending on the
value of the underlying stock investment.
Adhesion contract <answer>A take-it-or-leave-it offer
made by a party who holds most of the power in a
bargaining session.
Adjustable life policy <answer>Whole life insurance
policy, but you can change your policy as your needs
change. You can change your premium payments to
increase or decrease coverage.
Adverse selection <answer>A high-risk person benefits
more from insurance, so is more likely to purchase it.
Age change <answer>The date halfway between
birthdays when the age of the applicant changes to the
next higher age. With some insurers, the age is based
upon the applicant's age at his nearest birthday. In others,
it is based upon the age of his last birthday.
EXAM REVIEW 2025-2026
Instructions
All answers are underlined and all questions are in bold.
Questions
1035 contract exchange <answer>A tax-free exchange
of one annuity contract for another, one life insurance
policy for another, or one life insurance policy for an
annuity. The contracts do not have to be issued by the
same company
401(k) plan <answer>A tax-deferred investment and
savings plan that acts as a personal pension fund for
employees.
,403(b) plan <answer>A tax-deferred retirement plan for
teachers, hospital workers, ministers, and some other
public employees
A consumer who has been recently denied insurance,
credit, or employment based on an unfavorable
consumer report MUST be advised as such. Which of
the following does this statute originate from?
<answer>Fair credit reporting act.
A person who charges a fee for giving insurance
advice is called an <answer>Certified insurance
consultant.
A temporary producer's license is effective for
<answer>180 days.
Accelerated benefit rider <answer>The accelerated
benefit rider allows the insured to receive a portion of the
death benefit prior to death if the insured has a terminal
illness and is certified by a physician as expected to die
within 1-2 years.
,Accelerated benefits rider <answer>Allows the insured
to receive a portion of the death benefit before death if the
insured has a terminal illness and is expected to die within
1-2 years. Whatever amount is withdrawn in an
accelerated death benefit will decrease the death benefit
when death occurs.
Accidental death benefit rider <answer>Pays a multiple
of the death proceeds if the cause of death is a covered
accidental event.
According to the affordable acre act, a dependent
child's eligibility status is determined by <answer>Age.
Accumulate interest options <answer>Allows dividends
to accumulate interest. Interest is the ONLY thing you can
be charged tax on.
Accumulation period <answer>When the premiums an
annuitant pays into annuities are credited as accumulation
units. The accumulation period may continue between the
time after premiums have ceased, but the payout has not
yet begun. At the end of the accumulation period,
accumulation units are converted to annuity units.
, Accumulation units <answer>Make up the value of
contributions made by the annuitant less a deduction for
expenses. The value of each accumulation unit is a credit
to the individual's account and varies depending on the
value of the underlying stock investment.
Adhesion contract <answer>A take-it-or-leave-it offer
made by a party who holds most of the power in a
bargaining session.
Adjustable life policy <answer>Whole life insurance
policy, but you can change your policy as your needs
change. You can change your premium payments to
increase or decrease coverage.
Adverse selection <answer>A high-risk person benefits
more from insurance, so is more likely to purchase it.
Age change <answer>The date halfway between
birthdays when the age of the applicant changes to the
next higher age. With some insurers, the age is based
upon the applicant's age at his nearest birthday. In others,
it is based upon the age of his last birthday.
