Life and Heath Test questions and Answers with explanations 2026 update

Life and Heath Test
questions and Answers with
explanations 2026
update
A term life insurance policy matures
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A. upon endowment of the contract
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B. upon death of the insured h, h, h, h,




C. when the cash value equals the death benefit
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D. upon the insured's death during the term of the policy - ANS>> Term
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life policies can only mature (pay out the face amount) if death occurs
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during the term of the policy.
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Which of the following is the MOST important factor when deciding how
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much Disability Income coverage an applicant should purchase?
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Applicant's occupation h,




h, Applicant's monthly income h, h,




h, Applicant's health h,




Applicant's previous disabilities - ANS>> In determining how much Disability
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Income insurance a prospective insured should purchase, the most important
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factor to be considered is the insured's monthly income.
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What kind of life insurance product covers children under their parent's
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h, policy? Family Maintenance rider
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Term rider h,

, Family Income rider h, h,




Payor benefit - h, h,


ANS>> "A Term rider". Family plan policies usually cover the family head with
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permanent insurance and the coverage on the spouse and children is term
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insurance in the form of a rider.
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Under the Affordable Care Act (ACA), health coverage is provided for
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dependents up to the age of
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18
21
25
26 - ANS>> A dependent's health coverage is provided under the Affordable
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Care Act (ACA) until the child reaches the age of 26.
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Which of the following statements about a Guaranteed Renewable Health
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Insurance policy is CORRECT?
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Premiums normally decrease at time of h, h, h, h, h,




h, renewal Premiums normally increase at timeh, h, h, h, h,




h, of renewal Policy can renewed at any time
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h, by the company
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Policy can be cancelled at any time by the company - ANS>> The correct
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ANS>> is "Premiums normally increase at time of renewal". A Guaranteed
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Renewable Health Insurance policy can have increasing premiums at time of
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renewal.
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When L applies for a Health Insurance Policy, L unintentionally fails to list a
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previous visit to a cardiologist. If the insurance company contests the policy,
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it MUST do so within 2 years
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after it discovers the misstatement
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, from proof of loss being submitted
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h, from the date of issue
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of paying a claim for an illness or inquiry related to the misstatement -
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ANS>> In this situation, the insurance company must contest the policy within
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2 years from the date of issue.
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A policyowner is able to choose the frequency of premium payments through
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what policy feature?
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Consideration
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h, Premium
h, Mode
Assignment provision - ANS>> The correct ANS>> is "Premium Mode".
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Premium Mode is the feature that allows the policyowner to select the
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timing of premium payment, such as monthly, quarterly, annually etc.
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Circulation of any oral or written statement or any pamphlet, circular, article,
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or literature that is false or maliciously critical of or derogatory to the
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financial condition of an insurer is known as
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intimidation
h, defamation
h, boycott
discrimination - ANS>> Circulation of any oral or written statement or any
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pamphlet, circular, article, or literature that is false or maliciously critical of
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or derogatory to the financial condition of an insurer is known as
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defamation.
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Which of these life products is NOT considered interest-sensitive?
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h, Modified Whole Life h, h,

, Variable Universal Life h, h,




h, Interest Sensitive Whole Life h, h, h,




Variable Life - ANS>> The correct ANS>> is "Modified Whole Life". All of
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these have an interest-sensitive investment aspect EXCEPT Modified Whole
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Life.
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M has a Major Medical insurance policy with a $200 flat deductible and an
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80% Coinsurance clause. If M incurs a $2,200 claim for an eligible medical
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expense, how much will M receive in payment for this claim?
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$2,000
$1,760
$1,600
$400 - ANS>> In this situation, $2,200 - $200 deductible x 80% = $1,600.
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The following acts are examples of unfair methods of competition and
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deceptive practices in the business of insurance EXCEPT the use of
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misrepresentations and false advertising of policy contracts h, h, h, h, h, h,




h, false financial statements
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comparisons showing that a policy has higher benefits h, h, h, h, h, h, h,




rebates - ANS>> Using a comparison that shows a policy having higher benefits
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is not considered an unfair method of competition.
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If the Commissioner of insurance finds that a licensed person has used
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fraudulent, coercive, or dishonest practices or has proved to be incompetent,
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untrustworthy, or financially irresponsible, the law allows the Commissioner
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to
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recommend denial of the license to the central licensing office
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convert the license from a permanent to temporary license until the
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deficiencies are corrected
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