HEALTH AND LIFE INSURANCE EXAM 2026
STATE LAWS AND ETHICS DRILL PACK
ANSWER SHEET
◉ Medical Claim Notification.
Answer: Insured must notify insurer within 30 days.
◉ Guaranteed True Policy Part.
Answer: The warranty is guaranteed to be true.
◉ Guaranty Association Funding.
Answer: Funded by member companies' contributions.
◉ Universal Life Policy.
Answer: Unbundled policy showing expenses and interest earned.
◉ Commissioner Notification.
Answer: Agent must notify within 30 business days.
◉ Accidental Death Benefits.
Answer: Paid to primary beneficiary if contingent dies first.
,◉ Guaranteed Insurability Rider.
Answer: Allows purchase of coverage without proof of insurability.
◉ Term Insurance Characteristics.
Answer: Expires at end of policy period without cash value.
◉ Marketing Research Questions.
Answer: Insurer must specify questions in any insurance
transaction.
◉ Disability Benefits Factors.
Answer: Amount affected by other benefits and dependent children.
◉ Unfair Discrimination Example.
Answer: Declining coverage due to hazardous occupation
involvement.
◉ Disability Income Insurance Application.
Answer: Insurer may deny based on undisclosed medical history.
◉ Contingent Beneficiary.
,Answer: Receives benefits if primary beneficiary is deceased.
◉ Mortality Charges Impact.
Answer: Do not affect investment amount in whole life.
◉ Flexible Premium Payment.
Answer: Allows policyholder to adjust payment amounts.
◉ Cash Value Determination.
Answer: Based on interest rates in whole life policies.
◉ Policy Exclusions.
Answer: Specific conditions not covered by the insurance policy.
◉ Nonforfeiture Options.
Answer: Benefits available if policyholder stops paying premiums.
◉ Endowment of Term Insurance.
Answer: Term insurance does not endow at policy period end.
◉ Medical Information Bureau (MIB).
Answer: Reports medical history for insurance applications.
, ◉ Accidental Death and Dismemberment (AD&D).
Answer: Policy providing benefits for accidental death or injury.
◉ Premium Tax.
Answer: Charges applied to insurance premiums by insurers.
◉ Initial Premium.
Answer: First payment returned if coverage declined.
◉ MIB Notice.
Answer: Informs MIB of applicant's declined coverage.
◉ Agent Notice.
Answer: Notifies agent about applicant's declined coverage.
◉ Individual Deductible.
Answer: Single deductible for multiple family members' accidents.
◉ Family Maximum Deductible.
Answer: Cap on total deductibles for family members.
STATE LAWS AND ETHICS DRILL PACK
ANSWER SHEET
◉ Medical Claim Notification.
Answer: Insured must notify insurer within 30 days.
◉ Guaranteed True Policy Part.
Answer: The warranty is guaranteed to be true.
◉ Guaranty Association Funding.
Answer: Funded by member companies' contributions.
◉ Universal Life Policy.
Answer: Unbundled policy showing expenses and interest earned.
◉ Commissioner Notification.
Answer: Agent must notify within 30 business days.
◉ Accidental Death Benefits.
Answer: Paid to primary beneficiary if contingent dies first.
,◉ Guaranteed Insurability Rider.
Answer: Allows purchase of coverage without proof of insurability.
◉ Term Insurance Characteristics.
Answer: Expires at end of policy period without cash value.
◉ Marketing Research Questions.
Answer: Insurer must specify questions in any insurance
transaction.
◉ Disability Benefits Factors.
Answer: Amount affected by other benefits and dependent children.
◉ Unfair Discrimination Example.
Answer: Declining coverage due to hazardous occupation
involvement.
◉ Disability Income Insurance Application.
Answer: Insurer may deny based on undisclosed medical history.
◉ Contingent Beneficiary.
,Answer: Receives benefits if primary beneficiary is deceased.
◉ Mortality Charges Impact.
Answer: Do not affect investment amount in whole life.
◉ Flexible Premium Payment.
Answer: Allows policyholder to adjust payment amounts.
◉ Cash Value Determination.
Answer: Based on interest rates in whole life policies.
◉ Policy Exclusions.
Answer: Specific conditions not covered by the insurance policy.
◉ Nonforfeiture Options.
Answer: Benefits available if policyholder stops paying premiums.
◉ Endowment of Term Insurance.
Answer: Term insurance does not endow at policy period end.
◉ Medical Information Bureau (MIB).
Answer: Reports medical history for insurance applications.
, ◉ Accidental Death and Dismemberment (AD&D).
Answer: Policy providing benefits for accidental death or injury.
◉ Premium Tax.
Answer: Charges applied to insurance premiums by insurers.
◉ Initial Premium.
Answer: First payment returned if coverage declined.
◉ MIB Notice.
Answer: Informs MIB of applicant's declined coverage.
◉ Agent Notice.
Answer: Notifies agent about applicant's declined coverage.
◉ Individual Deductible.
Answer: Single deductible for multiple family members' accidents.
◉ Family Maximum Deductible.
Answer: Cap on total deductibles for family members.
