Connecticut Life Insurance Exam UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What is the purpose of the Connecticut Life and Health Insurance Guaranty Association? -
CORRECT ANSWER - Protects policyowners against insolvent insurance companies
If an employer decides to cancel a group life insurance plan, it must give at least --- days notice
to the employees prior to the date of cancellation or discontinuation. - CORRECT
ANSWER - 15
Rebating is - CORRECT ANSWER - an illegal practice in Connecticut
G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were
to die at age 50, how long would G's family receive income? - CORRECT ANSWER - 10
years
Which provision prevents an insurer from changing the terms of the contract with the
policyowner by referring to documents not found within the policy itself? - CORRECT
ANSWER - Entire Contract provision
A statement made by an insured in an insurance application that must be true to the best of one's
knowledge and which becomes a part of the contract is known as - CORRECT ANSWER -
a representation
An underwriter determines that an applicant's risk should be recategorized due to a health issue.
This policy may be issued with a(n) - CORRECT ANSWER - extra premium
Which of these is an element of a Variable Life policy? - CORRECT ANSWER - A fixed,
level premium
, All of these Settlement options involve the systematic liquidation of the death proceeds in the
event of the insured's death EXCEPT - CORRECT ANSWER - Interest only
Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is
attempted by the policyowner? - CORRECT ANSWER - Irrevocable beneficiary
Which of these terms accurately defines an underwriter's assessment of information on a life
insurance application? - CORRECT ANSWER - Risk classification
S, age 40, is looking to buy a Life Insurance policy that will allow for increases or decreases in
coverage as his needs change. The policy best suited for S would be - CORRECT
ANSWER - Universal Life
An example of rebating would be - CORRECT ANSWER - returning a portion of a
premium as inducement to purchase insurance
How are policyowner dividends treated in regards to income tax? - CORRECT
ANSWER - Interest on accumulations is taxed
D owns a Whole Life policy that was purchased 10 years ago. If the premium payments suddenly
stop and D takes no additional action, which Nonforfeiture Option will the insurer likely proceed
with? - CORRECT ANSWER - Extended term
B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase,
without evidence of insurability, stated amounts of - CORRECT ANSWER - additional
whole life coverage at specified times
What is the underlying concept regarding level premiums? - CORRECT ANSWER - The
early years are charged more than what is needed
P is the insured on a participating life policy. Which statement is true if P's premiums are waived
due to a disability? - CORRECT ANSWER - P will still receive declared dividends
ACTUAL Exam Questions and CORRECT
Answers
What is the purpose of the Connecticut Life and Health Insurance Guaranty Association? -
CORRECT ANSWER - Protects policyowners against insolvent insurance companies
If an employer decides to cancel a group life insurance plan, it must give at least --- days notice
to the employees prior to the date of cancellation or discontinuation. - CORRECT
ANSWER - 15
Rebating is - CORRECT ANSWER - an illegal practice in Connecticut
G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were
to die at age 50, how long would G's family receive income? - CORRECT ANSWER - 10
years
Which provision prevents an insurer from changing the terms of the contract with the
policyowner by referring to documents not found within the policy itself? - CORRECT
ANSWER - Entire Contract provision
A statement made by an insured in an insurance application that must be true to the best of one's
knowledge and which becomes a part of the contract is known as - CORRECT ANSWER -
a representation
An underwriter determines that an applicant's risk should be recategorized due to a health issue.
This policy may be issued with a(n) - CORRECT ANSWER - extra premium
Which of these is an element of a Variable Life policy? - CORRECT ANSWER - A fixed,
level premium
, All of these Settlement options involve the systematic liquidation of the death proceeds in the
event of the insured's death EXCEPT - CORRECT ANSWER - Interest only
Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is
attempted by the policyowner? - CORRECT ANSWER - Irrevocable beneficiary
Which of these terms accurately defines an underwriter's assessment of information on a life
insurance application? - CORRECT ANSWER - Risk classification
S, age 40, is looking to buy a Life Insurance policy that will allow for increases or decreases in
coverage as his needs change. The policy best suited for S would be - CORRECT
ANSWER - Universal Life
An example of rebating would be - CORRECT ANSWER - returning a portion of a
premium as inducement to purchase insurance
How are policyowner dividends treated in regards to income tax? - CORRECT
ANSWER - Interest on accumulations is taxed
D owns a Whole Life policy that was purchased 10 years ago. If the premium payments suddenly
stop and D takes no additional action, which Nonforfeiture Option will the insurer likely proceed
with? - CORRECT ANSWER - Extended term
B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase,
without evidence of insurability, stated amounts of - CORRECT ANSWER - additional
whole life coverage at specified times
What is the underlying concept regarding level premiums? - CORRECT ANSWER - The
early years are charged more than what is needed
P is the insured on a participating life policy. Which statement is true if P's premiums are waived
due to a disability? - CORRECT ANSWER - P will still receive declared dividends
