INSURANCE TEST CHEAT SHEET EXAM
2025 QUESTIONS AND ANSWERS
Variable Life - ANS Type of Life Insurance that allows the policyowner to have level premiums
and to also choose from a selection of INVESTMENT options.
Qualified profit-sharing plan - ANS Allows employees to participate in the profits of the
company. (Designed to distribute a portion of company warnings to its employees)
Association Plans that are designed to provide health benefits to their members are regulated
by the state because: - ANS The Association Plans must be fully insured by an authorized
insurer
Insurers are required to report receipt of cash payments in excess of $10,000 under: -
ANS The USA Patriot Act
The amount of days from the reinstatement application date the insurance company has to
notify someone of the denial before the policy will be automatically be placed back in force is: -
ANS 45 days
A Life Insurance policy's grace period entitles the insured a period of No LESS than: - ANS 30
days, to make premium payment
A pension deficiency if the key employee dies is NOT a reason for a business to buy: -
ANS Key Person Life Insurance
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,Why is an applicant's signature required on a Life Insurance application? - ANS To attest that
the statements on the application are accurate. to the best of the applicant's knowledge
If an employee injures him/herself while not on the work premises and is covered under a
group health plan what Insurance plan would be considered the primary? - ANS Her group
health plan, if the employer has more than 20 employees, the group health plan generally pays
first.
Employees that share the cost of insurance are a part of a: - ANS Contributory Group Life
Plan
An IRREVOCABLE beneficiary MAY not be changed without: - ANS The written consent of the
beneficiary
A term coverage that allows the continuation of coverage after expiration of the initial policy
period is a: - ANS Renewable (term coverage)
Agent selling medicare supplement policies MUST provide every applicant with a: -
ANS Sustainability Form
The Health Insurance Portability and Accountability Act (HIPAA) provides PRIVACY protection
for: - ANS Health Information
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families)
whose employment was terminated the right to continue: - ANS Group Health Benefits
A LIMITED pay life policy has premium payments limited to: - ANS A specified number of
years
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, Adjustable Rates for Life policy loans in Florida are based on: - ANS MOODY'S Corporate
Index
Past due premiums are NOT waived during: - ANS A policy's grace period
An agent making a mistake while filling out an insurance application MUST: - ANS Correct the
information and have the prospect initial the change
A _________ is authorized to assign a Life Insurance policy for as collateral for a loan: -
ANS Policyowner
Group Life Insurance policies are generally written as an: - ANS Annually Renewable Term
Coverage for a NON-MEDICAL insurance to take effect the same day, the producer MUST collect
a signed application and: - ANS The initial premium
Under a MASTER Group Health policy who is eligible for coverage? - ANS ALL employees,
REGARDLESS of their individual health history.
In order to qualify for Long Term Care health benefits an individual must be UNABLE to
perform: - ANS 2 activities of Daily Living
Comprehensive Major Medical policies usually combine: - ANS Major Medical with Basic
Hospital/Surgical Coverage
What is the elimination period of an individual disability policy? - ANS The amount of time a
disabled person must WAIT before benefits are paid
3 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
2025 QUESTIONS AND ANSWERS
Variable Life - ANS Type of Life Insurance that allows the policyowner to have level premiums
and to also choose from a selection of INVESTMENT options.
Qualified profit-sharing plan - ANS Allows employees to participate in the profits of the
company. (Designed to distribute a portion of company warnings to its employees)
Association Plans that are designed to provide health benefits to their members are regulated
by the state because: - ANS The Association Plans must be fully insured by an authorized
insurer
Insurers are required to report receipt of cash payments in excess of $10,000 under: -
ANS The USA Patriot Act
The amount of days from the reinstatement application date the insurance company has to
notify someone of the denial before the policy will be automatically be placed back in force is: -
ANS 45 days
A Life Insurance policy's grace period entitles the insured a period of No LESS than: - ANS 30
days, to make premium payment
A pension deficiency if the key employee dies is NOT a reason for a business to buy: -
ANS Key Person Life Insurance
1 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
,Why is an applicant's signature required on a Life Insurance application? - ANS To attest that
the statements on the application are accurate. to the best of the applicant's knowledge
If an employee injures him/herself while not on the work premises and is covered under a
group health plan what Insurance plan would be considered the primary? - ANS Her group
health plan, if the employer has more than 20 employees, the group health plan generally pays
first.
Employees that share the cost of insurance are a part of a: - ANS Contributory Group Life
Plan
An IRREVOCABLE beneficiary MAY not be changed without: - ANS The written consent of the
beneficiary
A term coverage that allows the continuation of coverage after expiration of the initial policy
period is a: - ANS Renewable (term coverage)
Agent selling medicare supplement policies MUST provide every applicant with a: -
ANS Sustainability Form
The Health Insurance Portability and Accountability Act (HIPAA) provides PRIVACY protection
for: - ANS Health Information
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families)
whose employment was terminated the right to continue: - ANS Group Health Benefits
A LIMITED pay life policy has premium payments limited to: - ANS A specified number of
years
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
, Adjustable Rates for Life policy loans in Florida are based on: - ANS MOODY'S Corporate
Index
Past due premiums are NOT waived during: - ANS A policy's grace period
An agent making a mistake while filling out an insurance application MUST: - ANS Correct the
information and have the prospect initial the change
A _________ is authorized to assign a Life Insurance policy for as collateral for a loan: -
ANS Policyowner
Group Life Insurance policies are generally written as an: - ANS Annually Renewable Term
Coverage for a NON-MEDICAL insurance to take effect the same day, the producer MUST collect
a signed application and: - ANS The initial premium
Under a MASTER Group Health policy who is eligible for coverage? - ANS ALL employees,
REGARDLESS of their individual health history.
In order to qualify for Long Term Care health benefits an individual must be UNABLE to
perform: - ANS 2 activities of Daily Living
Comprehensive Major Medical policies usually combine: - ANS Major Medical with Basic
Hospital/Surgical Coverage
What is the elimination period of an individual disability policy? - ANS The amount of time a
disabled person must WAIT before benefits are paid
3 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
