CONNECTICUT LIFE AND HEALTH INSURANCE
EVALUATION EXAM 2025/2026 QUESTIONS WITH
SOLUTIONS GRADED A+
✔✔When is the effective date of coverage? - ✔✔When the policy is delivered and the
first premium is paid.
✔✔Deferred Compensation - ✔✔Non qualified plan funded by an employer
*Employee agrees to forgo part of his current income until a future date (usually
retirement) and may use life insurance as the funding vehicle for the plan. .
✔✔Human Life Value Calculation - ✔✔-Estimate the individual's average annual
earnings over his or her productive lifetime
-Deduct taxes, insurance premiums and self-maintenance costs
-Using a reasonable discount rate, determine the present value of the family's share of
earnings for the number of years until retirement
*individual annual income x # of years till retirement
✔✔Loading = Expenses - ✔✔
✔✔ERISA (Employee Retirement Income Security Act) - ✔✔Federal law that increased
the responsibility of pension plan trustees to protect retirees, established certain rights
related to vesting and portability, and created the Pension Benefit Guarantee
Corporation
✔✔Reinsurance - ✔✔an insurance company (the ceding company) paying another
insurance company (reinsurer) to take some of the companies risk of catastrophic loss
✔✔Facultative - ✔✔the reinsurer evaluates each risk before allowing the transfer
✔✔Treaty - ✔✔the reinsurer accepts the transfer according to an agreement called a
treaty
✔✔Decreasing Term Policy - ✔✔a term insurance policy that maintains a level premium
throughout all periods of coverage while the amount of protection decreases
It would not be used to create funds or any cash value.
✔✔Level Term Policy 1,5,10,20,30 or a specified age - ✔✔Your premiums and your
dollar coverage remain the same (level) throughout the term.
✔✔Payor Rider/Benefit - ✔✔Waives the premium if the adult premium
payor/policyowner dies or becomes disabled, the juvenile is the insured, don't get the
insured and policyowner confused on the test. It pays only when the policyowner dies,
not the insured that is the minor.
, ✔✔Universal Life Insurance - ✔✔a whole life policy that combines term insurance and
investment elements
*it matches a client's needs in that they can adjust
✔✔Variable Universal Life Insurance - ✔✔Similar to universal life insurance with certain
exceptions. Cash values can be invested in a wide variety of investments; there is no
minimum interest rate guarantee; and the investment risk falls entirely on the
policyholder.
✔✔Level Term Policy - ✔✔This is the simplest form of life insurance. If the insured lives
beyond the 5 yr period, the policy expires & no benefits are payable.
*there are no cash value terms
*the premium for the renewal period will be higher than the initial period.
✔✔Modified Whole Life Policy - ✔✔Starts with lower premium that increases over life of
policy.
*This policy is designed for people w/ limited financial resources who have the promise
of higher resources in the future .
✔✔The Standard Cost of Living - ✔✔The cost of living rider, any increase in the death
benefit as a result of this rider will also result in an increase in premium
✔✔Securities and Exchange Commission (SEC) - ✔✔The agency of the U.S.
government that oversees U.S. financial markets and accounting standard-setting
bodies.
The SEC and The Department of Insurance have the authority to regulate Variable Life
Insurance because its considered a securities product. The SEC has jurisdiction over
variable life insurance.
✔✔Accelerated Benefits - ✔✔Riders attached to life insurance policies that allow death
benefits to be used to cover nursing or convalescent home expenses.
These are standard in life insurance policies and are included at no additional cost.
They allow access to the policy's face value if the insured suffers from a terminal illness
or injury. The money can be spent in any manner.
✔✔Equity Indexed Universal Life Insurance - ✔✔-Current interest on cash account
-Up or down based upon a stock market index
-Account still guaranteed by the company
-Determined by a specified participation rate and indirect links to a stock market index
✔✔Principal Sum - ✔✔the amount of coverage paid for an accidental death under a
health insurance policy
✔✔In Insurance the insurer is the Principal & the Producer is the Agent - ✔✔
EVALUATION EXAM 2025/2026 QUESTIONS WITH
SOLUTIONS GRADED A+
✔✔When is the effective date of coverage? - ✔✔When the policy is delivered and the
first premium is paid.
✔✔Deferred Compensation - ✔✔Non qualified plan funded by an employer
*Employee agrees to forgo part of his current income until a future date (usually
retirement) and may use life insurance as the funding vehicle for the plan. .
✔✔Human Life Value Calculation - ✔✔-Estimate the individual's average annual
earnings over his or her productive lifetime
-Deduct taxes, insurance premiums and self-maintenance costs
-Using a reasonable discount rate, determine the present value of the family's share of
earnings for the number of years until retirement
*individual annual income x # of years till retirement
✔✔Loading = Expenses - ✔✔
✔✔ERISA (Employee Retirement Income Security Act) - ✔✔Federal law that increased
the responsibility of pension plan trustees to protect retirees, established certain rights
related to vesting and portability, and created the Pension Benefit Guarantee
Corporation
✔✔Reinsurance - ✔✔an insurance company (the ceding company) paying another
insurance company (reinsurer) to take some of the companies risk of catastrophic loss
✔✔Facultative - ✔✔the reinsurer evaluates each risk before allowing the transfer
✔✔Treaty - ✔✔the reinsurer accepts the transfer according to an agreement called a
treaty
✔✔Decreasing Term Policy - ✔✔a term insurance policy that maintains a level premium
throughout all periods of coverage while the amount of protection decreases
It would not be used to create funds or any cash value.
✔✔Level Term Policy 1,5,10,20,30 or a specified age - ✔✔Your premiums and your
dollar coverage remain the same (level) throughout the term.
✔✔Payor Rider/Benefit - ✔✔Waives the premium if the adult premium
payor/policyowner dies or becomes disabled, the juvenile is the insured, don't get the
insured and policyowner confused on the test. It pays only when the policyowner dies,
not the insured that is the minor.
, ✔✔Universal Life Insurance - ✔✔a whole life policy that combines term insurance and
investment elements
*it matches a client's needs in that they can adjust
✔✔Variable Universal Life Insurance - ✔✔Similar to universal life insurance with certain
exceptions. Cash values can be invested in a wide variety of investments; there is no
minimum interest rate guarantee; and the investment risk falls entirely on the
policyholder.
✔✔Level Term Policy - ✔✔This is the simplest form of life insurance. If the insured lives
beyond the 5 yr period, the policy expires & no benefits are payable.
*there are no cash value terms
*the premium for the renewal period will be higher than the initial period.
✔✔Modified Whole Life Policy - ✔✔Starts with lower premium that increases over life of
policy.
*This policy is designed for people w/ limited financial resources who have the promise
of higher resources in the future .
✔✔The Standard Cost of Living - ✔✔The cost of living rider, any increase in the death
benefit as a result of this rider will also result in an increase in premium
✔✔Securities and Exchange Commission (SEC) - ✔✔The agency of the U.S.
government that oversees U.S. financial markets and accounting standard-setting
bodies.
The SEC and The Department of Insurance have the authority to regulate Variable Life
Insurance because its considered a securities product. The SEC has jurisdiction over
variable life insurance.
✔✔Accelerated Benefits - ✔✔Riders attached to life insurance policies that allow death
benefits to be used to cover nursing or convalescent home expenses.
These are standard in life insurance policies and are included at no additional cost.
They allow access to the policy's face value if the insured suffers from a terminal illness
or injury. The money can be spent in any manner.
✔✔Equity Indexed Universal Life Insurance - ✔✔-Current interest on cash account
-Up or down based upon a stock market index
-Account still guaranteed by the company
-Determined by a specified participation rate and indirect links to a stock market index
✔✔Principal Sum - ✔✔the amount of coverage paid for an accidental death under a
health insurance policy
✔✔In Insurance the insurer is the Principal & the Producer is the Agent - ✔✔
