CONNECTICUT LIFE INSURANCE EXAM QUESTIONS
What is the purpose of the Connecticut Life and Health Insurance Guaranty
Association? - Answers - 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. -
Answers - 15
Rebating is - Answers - 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? - Answers - 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? - Answers -
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 -
Answers - 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) - Answers - extra premium
Which of these is an element of a Variable Life policy? - Answers - A fixed, level
premium
A provision in a life insurance policy that pays the policyowner an amount that does not
surpass the guaranteed cash value is called the - Answers - Policy loan provision
Which statement is correct regarding the premium payment schedule for whole life
policies? - Answers - Premiums are payable throughout the insurds lifetime/ coverage
lasts until death of the insured
Which of these is NOT a type of agent authority? - Answers - Principal
Agent authority is what an agent is authorized to do on behalf of his company. The three
types of agent authority include express, implied, and apparent authority.
T cash surrenders a recently-issued whole life policy. He also requests that the
proceeds be payable to an unrelated third party. T would likely be red-flagged for
violation of - Answers - anti-money laundering rules
, T is given a receipt After completing a life insurance application and paying the initial
premium. Under this situation, T's coverage is - Answers - conditional, depending on
the insurers underwriting guidelines
Variable annuities may invest premiums in each of the following, EXCEPT: - Answers -
Insurers corporate business account
Upon policy delivery, a signed good health statement is requested from the applicant.
Why would this be necessary? - Answers - The initial premium was NOT submitted
with the application
What does a 401(k) plan generally provide its participants? - Answers - Salary-deferral
contributions
A policyowner would like to change the beneficiary on a Life insurance policy and make
the change permanent. Which type of designation would fulfill this need? - Answers -
Irrevocable
Which of the following statements is CORRECT about accelerated death benefits? -
Answers - Must have a terminal illness to qualify
A Nonforfeiture clause gives the policyowner - Answers - guaranteed values even if
the policy has lapsed
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called a(n) - Answers - Accidental Death and Dismemberment
(AD&D) rider
Reinsurance is - Answers - used by insurance companies o share risks
As a condition for a loan, a bank requires the borrower to purchase credit insurance
from a specific company. What is the bank guilty of? - Answers - Coercion
Insurance policies are offered on a "take it or leave it" basis, which make them: -
Answers - Contracts of Adhesion
What is Connecticuts definition of Life insurance replacement? - Answers - A
transaction in which a new policy is bought and an old policy is terminated
Which of these statements is INCORRECT regarding the federal income tax treatment
of life insurance? - Answers - Entire cash surrender value is taxable
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what would it
require? - Answers - Each partner must own a policy on the other partners
What is the purpose of the Connecticut Life and Health Insurance Guaranty
Association? - Answers - 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. -
Answers - 15
Rebating is - Answers - 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? - Answers - 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? - Answers -
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 -
Answers - 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) - Answers - extra premium
Which of these is an element of a Variable Life policy? - Answers - A fixed, level
premium
A provision in a life insurance policy that pays the policyowner an amount that does not
surpass the guaranteed cash value is called the - Answers - Policy loan provision
Which statement is correct regarding the premium payment schedule for whole life
policies? - Answers - Premiums are payable throughout the insurds lifetime/ coverage
lasts until death of the insured
Which of these is NOT a type of agent authority? - Answers - Principal
Agent authority is what an agent is authorized to do on behalf of his company. The three
types of agent authority include express, implied, and apparent authority.
T cash surrenders a recently-issued whole life policy. He also requests that the
proceeds be payable to an unrelated third party. T would likely be red-flagged for
violation of - Answers - anti-money laundering rules
, T is given a receipt After completing a life insurance application and paying the initial
premium. Under this situation, T's coverage is - Answers - conditional, depending on
the insurers underwriting guidelines
Variable annuities may invest premiums in each of the following, EXCEPT: - Answers -
Insurers corporate business account
Upon policy delivery, a signed good health statement is requested from the applicant.
Why would this be necessary? - Answers - The initial premium was NOT submitted
with the application
What does a 401(k) plan generally provide its participants? - Answers - Salary-deferral
contributions
A policyowner would like to change the beneficiary on a Life insurance policy and make
the change permanent. Which type of designation would fulfill this need? - Answers -
Irrevocable
Which of the following statements is CORRECT about accelerated death benefits? -
Answers - Must have a terminal illness to qualify
A Nonforfeiture clause gives the policyowner - Answers - guaranteed values even if
the policy has lapsed
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called a(n) - Answers - Accidental Death and Dismemberment
(AD&D) rider
Reinsurance is - Answers - used by insurance companies o share risks
As a condition for a loan, a bank requires the borrower to purchase credit insurance
from a specific company. What is the bank guilty of? - Answers - Coercion
Insurance policies are offered on a "take it or leave it" basis, which make them: -
Answers - Contracts of Adhesion
What is Connecticuts definition of Life insurance replacement? - Answers - A
transaction in which a new policy is bought and an old policy is terminated
Which of these statements is INCORRECT regarding the federal income tax treatment
of life insurance? - Answers - Entire cash surrender value is taxable
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what would it
require? - Answers - Each partner must own a policy on the other partners
