1135 Life & Health Insurance Exam.
Questions with Correct Answers 2026-
2027. Graded A
A characteristic of a Preferred Provider Organizations (PPO) is - ANSIf
service is obtained outside the PPO, benefits are reduced and costs
increase
A characteristic of a Preferred Provider Organizations (PPOs) is - ANSIf
service is obtained outside the PPO, benefits are reduced and costs
increase
A comprehensive long term care policy covers expenses for all of the
following EXCEPT - ANSAcute care provided in a hospital
A disabled business owner who has payroll and business expenses paid
for has what kind of insurance policy? - ANSBusiness overhead expense
A disabled business owner who has payroll and business expenses paid
for has what kind of insurance policy? - ANSBusiness overhead expense
A health insuring corporation's (HIC) solicitation document is designed to -
ANSfurnish detailed information regarding the medical plan
1
,A life annuity with period certain is characterized as - ANSguaranteeing
benefit payments for a stated minimum period of time
A life insurance illustration showing future premiums being paid out of
nonguaranteed values must disclose that - ANSThe policyowner may need
to resume premium payments depending on actual results
A life insurance policy that includes a return of premium rider will pay how
much upon the insured's death? - ANSFace amount plus total premiums
paid
A life policy that has premiums that are lower than normal during the early
years is called - ANSModified life
A Medicare Supplement policy is required to do which of the following? -
ANSProvide a 30 day free-look period
A method of marketing group benefits to employers who have a small
number of employees is the multiple employer - ANS
A person can receive Medicare Part A Hospital benefits, regardless of age,
as long as the person has received which of the following benefits for at
least 24 months? - ANSSocial Security Disability
A policyowner fell behind on the premium payments of a whole life policy
and it is now in the grace period. How much will the beneficiary receive if
the insured dies during this grace period and the policy also contains an
2
,outstanding policy loan? - ANSFace amount minus the loan balance and
past-due premium
A policyowner is permitted to take out a policy loan on a whole life policy at
what point? - ANSWhen the policy has accrued cash value
A policyowner suffers a covered accident and health insurance loss on
June 30 and submits the proof of loss to the insurer July 10. If the
policyowner cancelled the coverage on July 2, how will the insurance
company handle the claim? - ANSClaim must be paid after proof of loss is
received
A prepaid dental plan has an agreement in place with a network of dentists
which - ANSestablishes amounts that are considered full payment for
services rendered
A producer who makes an agreement that unreasonably restrains the
business of insurance may have violated regulations against - ANSBoycott,
coercion and intimidation
A producer's authority to bind an insurer to an insurance contract may be
granted in the: - ANSProducer's appointment with the insurance company
A provision in a life insurance policy settlement agreement that prohibits
the beneficiary from "... commuting, anticipating, encumbering, alienating,
withdrawing, or assigning ..." any portion of the proceeds prior to actual
receipt from the company is called - ANSA spendthrift clause
3
, A qualified profit-sharing plan is designed to - ANSdistribute a portion of
company earnings to its employees
A single premium deferred annuity sometimes contains a bailout feature.
Which statement regarding this feature is correct? - ANSIf the interest rate
falls below a certain level, the surrender charge is waived
A source of supplemental income for a life insurance policyowner can be
derived from the policy's - ANScash value
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a
participant to avoid - ANSmandatory income tax withholding on the transfer
amount
A universal life insurance policy can be described most accurately as a
combination of - ANSA flexible premium deposit fund and a monthly
renewable term insurance policy
ABC Company is attempting to minimize the severity of potential losses
within its company. The company is engaged in risk - ANSreduction
ABC Partnership is a business with a limited number of partners. Which
disability buy-sell agreement is best suited for this business? - ANSCross
purchase agreement
4
Questions with Correct Answers 2026-
2027. Graded A
A characteristic of a Preferred Provider Organizations (PPO) is - ANSIf
service is obtained outside the PPO, benefits are reduced and costs
increase
A characteristic of a Preferred Provider Organizations (PPOs) is - ANSIf
service is obtained outside the PPO, benefits are reduced and costs
increase
A comprehensive long term care policy covers expenses for all of the
following EXCEPT - ANSAcute care provided in a hospital
A disabled business owner who has payroll and business expenses paid
for has what kind of insurance policy? - ANSBusiness overhead expense
A disabled business owner who has payroll and business expenses paid
for has what kind of insurance policy? - ANSBusiness overhead expense
A health insuring corporation's (HIC) solicitation document is designed to -
ANSfurnish detailed information regarding the medical plan
1
,A life annuity with period certain is characterized as - ANSguaranteeing
benefit payments for a stated minimum period of time
A life insurance illustration showing future premiums being paid out of
nonguaranteed values must disclose that - ANSThe policyowner may need
to resume premium payments depending on actual results
A life insurance policy that includes a return of premium rider will pay how
much upon the insured's death? - ANSFace amount plus total premiums
paid
A life policy that has premiums that are lower than normal during the early
years is called - ANSModified life
A Medicare Supplement policy is required to do which of the following? -
ANSProvide a 30 day free-look period
A method of marketing group benefits to employers who have a small
number of employees is the multiple employer - ANS
A person can receive Medicare Part A Hospital benefits, regardless of age,
as long as the person has received which of the following benefits for at
least 24 months? - ANSSocial Security Disability
A policyowner fell behind on the premium payments of a whole life policy
and it is now in the grace period. How much will the beneficiary receive if
the insured dies during this grace period and the policy also contains an
2
,outstanding policy loan? - ANSFace amount minus the loan balance and
past-due premium
A policyowner is permitted to take out a policy loan on a whole life policy at
what point? - ANSWhen the policy has accrued cash value
A policyowner suffers a covered accident and health insurance loss on
June 30 and submits the proof of loss to the insurer July 10. If the
policyowner cancelled the coverage on July 2, how will the insurance
company handle the claim? - ANSClaim must be paid after proof of loss is
received
A prepaid dental plan has an agreement in place with a network of dentists
which - ANSestablishes amounts that are considered full payment for
services rendered
A producer who makes an agreement that unreasonably restrains the
business of insurance may have violated regulations against - ANSBoycott,
coercion and intimidation
A producer's authority to bind an insurer to an insurance contract may be
granted in the: - ANSProducer's appointment with the insurance company
A provision in a life insurance policy settlement agreement that prohibits
the beneficiary from "... commuting, anticipating, encumbering, alienating,
withdrawing, or assigning ..." any portion of the proceeds prior to actual
receipt from the company is called - ANSA spendthrift clause
3
, A qualified profit-sharing plan is designed to - ANSdistribute a portion of
company earnings to its employees
A single premium deferred annuity sometimes contains a bailout feature.
Which statement regarding this feature is correct? - ANSIf the interest rate
falls below a certain level, the surrender charge is waived
A source of supplemental income for a life insurance policyowner can be
derived from the policy's - ANScash value
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a
participant to avoid - ANSmandatory income tax withholding on the transfer
amount
A universal life insurance policy can be described most accurately as a
combination of - ANSA flexible premium deposit fund and a monthly
renewable term insurance policy
ABC Company is attempting to minimize the severity of potential losses
within its company. The company is engaged in risk - ANSreduction
ABC Partnership is a business with a limited number of partners. Which
disability buy-sell agreement is best suited for this business? - ANSCross
purchase agreement
4
