Page 1 of 38
215 Test (Life and Health Insurance) Questions
with Answers and Complete Exam Preparation
Material
Introduction
This document contains 215 multiple-choice practice questions
with correct answers covering life and health insurance
concepts, including policy provisions, underwriting, annuities,
disability income insurance, retirement plans, Medicare, and
insurance regulations. It is designed to support insurance
licensing exam preparation and reviews both foundational and
advanced topics. The material includes explanations through
answer keys and covers a broad range of commonly tested
insurance principles.
Exam Questions and Answers
Which is NOT correct regarding reinstatement?
Suicide exclusions renew when a policy is reinstated.
Contestable periods renew when a policy is reinstated.
Interest on past-due premium will be owed.
,Page 2 of 38
Past-due premium will be owed. --- correct precise answer ---
Suicide exclusions renew when a policy is reinstated.
Which provision of a life insurance policy states that nothing
in the policy may be "incorporated by reference?
Consideration clause
Insuring clause
Entire contract clause
Incontestable clause --- correct precise answer ---Entire
contract clause
Which of the following is NOT included in the definition of
"transacting insurance"?
issuing an insurance policy
accepting an insurance application
underwriting a policy
accepting a premium payment --- correct precise answer ---
underwriting a policy
Joy has not yet paid her premium and dies during the grace
period. What happens?
The policy is cancelled because the premium has not been paid.
The policy pays the death benefit less the premium.
A prorated death benefit is paid based on the amount of
premium the insurance company received.
,Page 3 of 38
The death benefit is paid. --- correct precise answer ---The
policy pays the death benefit less the premium.
Which of the following statements regarding the National
Association of Insurance Commissioners (NAIC) is correct?
the NAIC is empowered to prosecute and punish criminal
violators in the insurance industry.
the NAIC seeks to preserve federal rather than state
regulation of the insurance industry.
the NAIC promotes uniformity in state insurance laws and
regulations.
the NAIC seeks to promote federal administration of insurance
laws and regulations. --- correct precise answer ---the NAIC
promotes uniformity in state insurance laws and regulations.
Assume four individuals, all age 30, purchase the following
life insurance policies. If all policies are still in force ten years
later, who will have the largest cash value in his policy? Bob
$100,000 straight whole life Dennis $100,000 life paid-up at
65 Ralph $100,000 20-pay life Jack $100,000 life paid-up at
55BobDennisRalphJack
Bob
Dennis
Ralph
Jack --- correct precise answer ---Ralph
, Page 4 of 38
Which is the purpose of insurance?
It is an opportunity to gamble.
It spreads financial risk over a large group.
It protects against physical hazards.
It creates risk avoidance. --- correct precise answer ---It
spreads financial risk over a large group.
After a family's breadwinner dies, the "blackout period"
generally can be defined as
the period during which children are living at homethat
begins with the youngest child turns 16 and ends with the
surviving parent retires
during which children are in school
from the surviving parent's retirement to death --- correct
precise answer ---begins with the youngest child turns 16 and
ends with the surviving parent retires
A licensed agent legally represents
the insurer
the applicant/insured
the state insurance department
himself or herself --- correct precise answer ---the insurer
215 Test (Life and Health Insurance) Questions
with Answers and Complete Exam Preparation
Material
Introduction
This document contains 215 multiple-choice practice questions
with correct answers covering life and health insurance
concepts, including policy provisions, underwriting, annuities,
disability income insurance, retirement plans, Medicare, and
insurance regulations. It is designed to support insurance
licensing exam preparation and reviews both foundational and
advanced topics. The material includes explanations through
answer keys and covers a broad range of commonly tested
insurance principles.
Exam Questions and Answers
Which is NOT correct regarding reinstatement?
Suicide exclusions renew when a policy is reinstated.
Contestable periods renew when a policy is reinstated.
Interest on past-due premium will be owed.
,Page 2 of 38
Past-due premium will be owed. --- correct precise answer ---
Suicide exclusions renew when a policy is reinstated.
Which provision of a life insurance policy states that nothing
in the policy may be "incorporated by reference?
Consideration clause
Insuring clause
Entire contract clause
Incontestable clause --- correct precise answer ---Entire
contract clause
Which of the following is NOT included in the definition of
"transacting insurance"?
issuing an insurance policy
accepting an insurance application
underwriting a policy
accepting a premium payment --- correct precise answer ---
underwriting a policy
Joy has not yet paid her premium and dies during the grace
period. What happens?
The policy is cancelled because the premium has not been paid.
The policy pays the death benefit less the premium.
A prorated death benefit is paid based on the amount of
premium the insurance company received.
,Page 3 of 38
The death benefit is paid. --- correct precise answer ---The
policy pays the death benefit less the premium.
Which of the following statements regarding the National
Association of Insurance Commissioners (NAIC) is correct?
the NAIC is empowered to prosecute and punish criminal
violators in the insurance industry.
the NAIC seeks to preserve federal rather than state
regulation of the insurance industry.
the NAIC promotes uniformity in state insurance laws and
regulations.
the NAIC seeks to promote federal administration of insurance
laws and regulations. --- correct precise answer ---the NAIC
promotes uniformity in state insurance laws and regulations.
Assume four individuals, all age 30, purchase the following
life insurance policies. If all policies are still in force ten years
later, who will have the largest cash value in his policy? Bob
$100,000 straight whole life Dennis $100,000 life paid-up at
65 Ralph $100,000 20-pay life Jack $100,000 life paid-up at
55BobDennisRalphJack
Bob
Dennis
Ralph
Jack --- correct precise answer ---Ralph
, Page 4 of 38
Which is the purpose of insurance?
It is an opportunity to gamble.
It spreads financial risk over a large group.
It protects against physical hazards.
It creates risk avoidance. --- correct precise answer ---It
spreads financial risk over a large group.
After a family's breadwinner dies, the "blackout period"
generally can be defined as
the period during which children are living at homethat
begins with the youngest child turns 16 and ends with the
surviving parent retires
during which children are in school
from the surviving parent's retirement to death --- correct
precise answer ---begins with the youngest child turns 16 and
ends with the surviving parent retires
A licensed agent legally represents
the insurer
the applicant/insured
the state insurance department
himself or herself --- correct precise answer ---the insurer
