South Dakota Life and Health Final Exam
Questions and Correct Answers
Question 1
A producer has indicated to a potential client that the proposed life insurance policy
is covered by the South Dakota Life and Health Insurance Guaranty Association. This
action taken by the producer is
Correct Answer
prohibited by law
Pointing out to a prospective client that the life insurance policy you are presenting
is covered by the South Dakota Life and Health Insurance Guaranty Association is
prohibited by law.
Question 2
Which of the following statements about noncontributory employee group life
insurance is FALSE?
Correct Answer
A minimum number of employees is required to participate
Question 3
When an insured has the same disability within a specified time period and the
insurance company provides the same benefits without a new waiting period, the
second disability is covered under which of the following benefits?
Correct Answer
Recurrent Disability
Question 4
Basic inpatient alcohol treatment must be covered for at least ___ days per year.
Correct Answer
30
Page 1 of 29
,Question 5
Which of the following actions may result in a producer's license being suspended?
Correct Answer
Misappropriation of premiums
Question 6
A term life insurance policy matures:
Correct Answer
upon the insured's death during the term of the policy
Question 7
Disability policies do NOT normally pay for disabilities arising from which of the
following?
Correct Answer
War
Question 8
Under a Long Term Care policy, which benefit would be typically excluded or limited?
Correct Answer
Alcohol rehabilitation
Question 9
How long does the coverage normally remain on a limited-pay life policy?
Correct Answer
age 100
Page 2 of 29
, Question 10
T has an annuity that guarantees an income payment for the rest of his life. The
contract also guarantees that if T dies before receiving payments for 20 years, the
remaining payments will be paid to his son for the balance of the 20 years. What type
of annuity is this?
Correct Answer
Life Annuity with Period Certain
Question 11
A prepaid application for individual Disability Income insurance was recently
submitted to an insurer. When the insurer received the Medical Information Bureau
(MIB) report, the report showed that the applicant had suffered a stroke 18 months
ago, something that was not disclosed on the application. Which of the following
actions would the insurance company NOT take?
Correct Answer
Send a notice to the MIB that the applicant was declined
Question 12
Which contract permits the remaining partners to buy-out the interest of a disabled
business partner?
Correct Answer
Disability Buy-Sell
Question 13
T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary
designation. If T wishes to change the beneficiary, T must obtain permission from the
Correct Answer
beneficiary
Page 3 of 29
Questions and Correct Answers
Question 1
A producer has indicated to a potential client that the proposed life insurance policy
is covered by the South Dakota Life and Health Insurance Guaranty Association. This
action taken by the producer is
Correct Answer
prohibited by law
Pointing out to a prospective client that the life insurance policy you are presenting
is covered by the South Dakota Life and Health Insurance Guaranty Association is
prohibited by law.
Question 2
Which of the following statements about noncontributory employee group life
insurance is FALSE?
Correct Answer
A minimum number of employees is required to participate
Question 3
When an insured has the same disability within a specified time period and the
insurance company provides the same benefits without a new waiting period, the
second disability is covered under which of the following benefits?
Correct Answer
Recurrent Disability
Question 4
Basic inpatient alcohol treatment must be covered for at least ___ days per year.
Correct Answer
30
Page 1 of 29
,Question 5
Which of the following actions may result in a producer's license being suspended?
Correct Answer
Misappropriation of premiums
Question 6
A term life insurance policy matures:
Correct Answer
upon the insured's death during the term of the policy
Question 7
Disability policies do NOT normally pay for disabilities arising from which of the
following?
Correct Answer
War
Question 8
Under a Long Term Care policy, which benefit would be typically excluded or limited?
Correct Answer
Alcohol rehabilitation
Question 9
How long does the coverage normally remain on a limited-pay life policy?
Correct Answer
age 100
Page 2 of 29
, Question 10
T has an annuity that guarantees an income payment for the rest of his life. The
contract also guarantees that if T dies before receiving payments for 20 years, the
remaining payments will be paid to his son for the balance of the 20 years. What type
of annuity is this?
Correct Answer
Life Annuity with Period Certain
Question 11
A prepaid application for individual Disability Income insurance was recently
submitted to an insurer. When the insurer received the Medical Information Bureau
(MIB) report, the report showed that the applicant had suffered a stroke 18 months
ago, something that was not disclosed on the application. Which of the following
actions would the insurance company NOT take?
Correct Answer
Send a notice to the MIB that the applicant was declined
Question 12
Which contract permits the remaining partners to buy-out the interest of a disabled
business partner?
Correct Answer
Disability Buy-Sell
Question 13
T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary
designation. If T wishes to change the beneficiary, T must obtain permission from the
Correct Answer
beneficiary
Page 3 of 29
