Accident, Life, and Health Insurance Exam
Latest Update 2025 Questions and Answers
Already Graded A+|Assured Success
What is the advantage of having a qualified annuity? - CORRECT ANSWER-a) Receiving a lump-sum
settlement tax free
b) Higher dividends
,c) Favorable tax treatment
d) No filling with the IRS
c) - CORRECT ANSWER-c)
If an insurance company makes a statement that its policies are guaranteed by the existence of the
Insurance Guaranty Association - CORRECT ANSWER-a) A misrepresentation
b) An accurate statement
c) A legal representation of the Association
d) An unfair trade practice
d) - CORRECT ANSWER-d)
The Federal Fair Credit Reporting Act - CORRECT ANSWER-a) Prevents money laundering
b) Regulates consumer reports
c) Protects customer privacy
d) Regulates telemarketing
b) - CORRECT ANSWER-b)
An insured has medical insurance coverage through 2 different providers, both covering the same
expenses on an expense-incurred basis. Neither company knows in advance that the insured has
coverage through any other insurers. The insured submits a claim to both insurers. How should the
claim be handled? - CORRECT ANSWER-a) Each insurer should pay a proportionate amount of the
claim
b) One of the insurers will pay fully, while the other will not pay any benefits
c) Once the insurers discover the duplicate coverage, the policies would most likely be cancelled, and no
claim paid.
d) The insured should receive full benefits from each insurer.
,a) - CORRECT ANSWER-a)
Premiums paid by self-employed sole proprietors or partners for medical expense insurance are -
CORRECT ANSWER-a) Not tax deductible
b) Partially tax deductible
c) Totally tax deductible
d) Taxable
c) Totally tax deductible - CORRECT ANSWER-c)
What is the purpose of a conditional receipt - CORRECT ANSWER-a) It is given by the agent only to
applicants who fully prepay all scheduled premiums in advance of policy issue
b) It is intended to provide coverage on a date earlier than the date of the issuance of the policy
c) It guarantees the applicant that the policy will be issued in the amount applied for in the application
d) It serves as proof that the agent has determined the applicant to be fully insurable for coverage by
the insurance company
b) - CORRECT ANSWER-b)
What method is used to determine the taxable portion of each annuity payment? - CORRECT
ANSWER-a) The excise ratio
b) The annuity ratio
c) The marginal tax formula
d) The exclusion ratio
d) - CORRECT ANSWER-d)
An insurance producer is also the instructor of a 3-hour ethics course held once a year. To maintain
certification, the producer - CORRECT ANSWER-a) Must take 24 hours of continuing education courses
b) Is not required to take any continuing education courses
c) May apply for a continuing education waiver from the Insurance Commissioner
, d) Must take 18 hours of continuing education courses
d) - CORRECT ANSWER-d)
What is the tax consequence of amounts received from a Traditional IRA after the money was left in the
tax-deferred accounts by the beneficiary? - CORRECT ANSWER-a) Capital gains tax on distributions and
no penalty
b) Capital gains tax on distributions plus 10% penalty
c) Income tax on distributions and no penalty
d) Income tax on distributions plus 10% penalty
c) - CORRECT ANSWER-c)
Which of the following is true regarding health insurance underwriting for a person with HIV? -
CORRECT ANSWER-a) The person may not be declined for medical coverage solely based on HIV status
b) A person may be declined for HIV but not AIDS
c) The person may be declined
d) The person may only be declined if he/she has symptoms
a) - CORRECT ANSWER-a)
Guarantee of insurability option in long-term care policies allows the insured to - CORRECT ANSWER-
a) Replace the existing LTC policy based on the original underwriting
b) Secure the policy's non-forfeiture values regardless of the insured's age or health status
c) Increase benefit levels without providing proof of insurability
d) Add dependents to the plan without providing proof of their insurability
c) - CORRECT ANSWER-c)
Latest Update 2025 Questions and Answers
Already Graded A+|Assured Success
What is the advantage of having a qualified annuity? - CORRECT ANSWER-a) Receiving a lump-sum
settlement tax free
b) Higher dividends
,c) Favorable tax treatment
d) No filling with the IRS
c) - CORRECT ANSWER-c)
If an insurance company makes a statement that its policies are guaranteed by the existence of the
Insurance Guaranty Association - CORRECT ANSWER-a) A misrepresentation
b) An accurate statement
c) A legal representation of the Association
d) An unfair trade practice
d) - CORRECT ANSWER-d)
The Federal Fair Credit Reporting Act - CORRECT ANSWER-a) Prevents money laundering
b) Regulates consumer reports
c) Protects customer privacy
d) Regulates telemarketing
b) - CORRECT ANSWER-b)
An insured has medical insurance coverage through 2 different providers, both covering the same
expenses on an expense-incurred basis. Neither company knows in advance that the insured has
coverage through any other insurers. The insured submits a claim to both insurers. How should the
claim be handled? - CORRECT ANSWER-a) Each insurer should pay a proportionate amount of the
claim
b) One of the insurers will pay fully, while the other will not pay any benefits
c) Once the insurers discover the duplicate coverage, the policies would most likely be cancelled, and no
claim paid.
d) The insured should receive full benefits from each insurer.
,a) - CORRECT ANSWER-a)
Premiums paid by self-employed sole proprietors or partners for medical expense insurance are -
CORRECT ANSWER-a) Not tax deductible
b) Partially tax deductible
c) Totally tax deductible
d) Taxable
c) Totally tax deductible - CORRECT ANSWER-c)
What is the purpose of a conditional receipt - CORRECT ANSWER-a) It is given by the agent only to
applicants who fully prepay all scheduled premiums in advance of policy issue
b) It is intended to provide coverage on a date earlier than the date of the issuance of the policy
c) It guarantees the applicant that the policy will be issued in the amount applied for in the application
d) It serves as proof that the agent has determined the applicant to be fully insurable for coverage by
the insurance company
b) - CORRECT ANSWER-b)
What method is used to determine the taxable portion of each annuity payment? - CORRECT
ANSWER-a) The excise ratio
b) The annuity ratio
c) The marginal tax formula
d) The exclusion ratio
d) - CORRECT ANSWER-d)
An insurance producer is also the instructor of a 3-hour ethics course held once a year. To maintain
certification, the producer - CORRECT ANSWER-a) Must take 24 hours of continuing education courses
b) Is not required to take any continuing education courses
c) May apply for a continuing education waiver from the Insurance Commissioner
, d) Must take 18 hours of continuing education courses
d) - CORRECT ANSWER-d)
What is the tax consequence of amounts received from a Traditional IRA after the money was left in the
tax-deferred accounts by the beneficiary? - CORRECT ANSWER-a) Capital gains tax on distributions and
no penalty
b) Capital gains tax on distributions plus 10% penalty
c) Income tax on distributions and no penalty
d) Income tax on distributions plus 10% penalty
c) - CORRECT ANSWER-c)
Which of the following is true regarding health insurance underwriting for a person with HIV? -
CORRECT ANSWER-a) The person may not be declined for medical coverage solely based on HIV status
b) A person may be declined for HIV but not AIDS
c) The person may be declined
d) The person may only be declined if he/she has symptoms
a) - CORRECT ANSWER-a)
Guarantee of insurability option in long-term care policies allows the insured to - CORRECT ANSWER-
a) Replace the existing LTC policy based on the original underwriting
b) Secure the policy's non-forfeiture values regardless of the insured's age or health status
c) Increase benefit levels without providing proof of insurability
d) Add dependents to the plan without providing proof of their insurability
c) - CORRECT ANSWER-c)
