Answer Key – Connecticut Life Insurance Practice Test
(PDF)
Life Insurance Exam Prep – Connecticut Practice Test
Answer Key
1. Describe the implications of the Misstatement of Age provision in life
insurance policies.
The insured must pay additional premiums for the misstatement.
If the insured's age is misstated, the insurance coverage will be
recalculated based on the correct age, potentially affecting the
benefits.
The insurer will cancel the policy without any refund.
The policy remains unchanged regardless of age misstatements.
2. Describe the coverage duration of whole life insurance policies and
how it relates to premium payments.
Coverage lasts for a fixed number of years, with premiums due
annually.
Coverage lasts until the death of the insured, and premiums are
paid throughout the insured's lifetime.
, Coverage lasts until the insured decides to cancel the policy,
with flexible premium payments.
Coverage is limited to a specific term, with premiums paid only
during that term.
3. Describe the implications of reinstating a lapsed whole life insurance
policy for the policyholder.
Reinstating a lapsed policy automatically increases the death
benefit without any additional requirements.
Reinstating a lapsed policy eliminates the need for any further
premium payments.
, Reinstating a lapsed policy means the policyholder can change
the beneficiary without restrictions.
Reinstating a lapsed policy allows the policyholder to regain
coverage, but may require payment of overdue premiums and
could affect certain policy provisions.
4. If a client receives a conditional receipt but fails to meet the specified
conditions, what will be the outcome regarding their insurance
coverage?
The client will receive a full refund of the
premium. The coverage will automatically begin
after 30 days. The insurance coverage will not take
effect.
The policy will be issued retroactively.
5. If an individual chooses a whole life insurance policy, how would their
premium payment obligations change if they become disabled?
They may be eligible for a waiver of premium payments due to
disability.
They will receive a refund of all premiums paid.
They can switch to a term life policy without penalty.
They must continue paying premiums regardless of their
condition.
6. Which dividend option allows a policyowner to generate
taxable income?
Paid-Up Additions
Accumulation at Interest
Term Insurance
Cash Payment
, 7. What is another term used to describe a Universal Life policy?
unbundled Life Policy
term Life Policy
whole Life Policy
variable Life Policy
8. Which of the following statements about Indexed Life insurance is TRUE?
To sell Equity Indexed Life, a producer only needs a securities
license
The insured/owner bears all risk regarding cash surrender
value, as negative stock market performance can cause the cash
values to decrease
The interest credited to the policy is based off of the
performance of a stock market index like the S&P 500
The policyowner can decide which separate accounts to invest
the policy's cash values into
9. The receipt given to a life insurance applicant when the application is
completed and the initial premium is recieved is called an
Conditional receipt
unconditional receipt
ensuring receipt
Insurable Receipt
10. Defined as replacing an existing life insurance policy without providing
full disclosure:
Misrepresentation
Twisting
(PDF)
Life Insurance Exam Prep – Connecticut Practice Test
Answer Key
1. Describe the implications of the Misstatement of Age provision in life
insurance policies.
The insured must pay additional premiums for the misstatement.
If the insured's age is misstated, the insurance coverage will be
recalculated based on the correct age, potentially affecting the
benefits.
The insurer will cancel the policy without any refund.
The policy remains unchanged regardless of age misstatements.
2. Describe the coverage duration of whole life insurance policies and
how it relates to premium payments.
Coverage lasts for a fixed number of years, with premiums due
annually.
Coverage lasts until the death of the insured, and premiums are
paid throughout the insured's lifetime.
, Coverage lasts until the insured decides to cancel the policy,
with flexible premium payments.
Coverage is limited to a specific term, with premiums paid only
during that term.
3. Describe the implications of reinstating a lapsed whole life insurance
policy for the policyholder.
Reinstating a lapsed policy automatically increases the death
benefit without any additional requirements.
Reinstating a lapsed policy eliminates the need for any further
premium payments.
, Reinstating a lapsed policy means the policyholder can change
the beneficiary without restrictions.
Reinstating a lapsed policy allows the policyholder to regain
coverage, but may require payment of overdue premiums and
could affect certain policy provisions.
4. If a client receives a conditional receipt but fails to meet the specified
conditions, what will be the outcome regarding their insurance
coverage?
The client will receive a full refund of the
premium. The coverage will automatically begin
after 30 days. The insurance coverage will not take
effect.
The policy will be issued retroactively.
5. If an individual chooses a whole life insurance policy, how would their
premium payment obligations change if they become disabled?
They may be eligible for a waiver of premium payments due to
disability.
They will receive a refund of all premiums paid.
They can switch to a term life policy without penalty.
They must continue paying premiums regardless of their
condition.
6. Which dividend option allows a policyowner to generate
taxable income?
Paid-Up Additions
Accumulation at Interest
Term Insurance
Cash Payment
, 7. What is another term used to describe a Universal Life policy?
unbundled Life Policy
term Life Policy
whole Life Policy
variable Life Policy
8. Which of the following statements about Indexed Life insurance is TRUE?
To sell Equity Indexed Life, a producer only needs a securities
license
The insured/owner bears all risk regarding cash surrender
value, as negative stock market performance can cause the cash
values to decrease
The interest credited to the policy is based off of the
performance of a stock market index like the S&P 500
The policyowner can decide which separate accounts to invest
the policy's cash values into
9. The receipt given to a life insurance applicant when the application is
completed and the initial premium is recieved is called an
Conditional receipt
unconditional receipt
ensuring receipt
Insurable Receipt
10. Defined as replacing an existing life insurance policy without providing
full disclosure:
Misrepresentation
Twisting
