CONNECTICUT LIFE AND HEALTH INSURANCE EXAM
SCRIPT 2025/2026 QUESTIONS WITH SOLUTIONS GRADED
A+
✔✔Which of the following must clearly be illustrated in ALL sales material for market
value adjusted annuities ? - ✔✔The market value adjustment can be either upward or
downward. Sales material used in the marketing of market value adjusted annuities in
Connecticut must clearly illustrate that the market value can be either upward or
downward.
✔✔Why do insurers require a minimum number of employees participate in a group
insurance plan? - ✔✔Minimize adverse selection. The larger the group to be insured,
the more predictable will be the expected losses from the group.
✔✔A reciprocal insurer typically has an administrator who manages the premiums
collected from the group's members. This administrator is called a(n) - ✔✔Attorney-in-
fact. The administrator of a reciprocal insurer who manages the premiums collected
from the group's members is called an attorney-in-fact.
✔✔How are qualified Roth IRA distributions normally treated for tax purposes? -
✔✔Received income tax-free. Qualified distributions are received income tax-free in a
Roth IRA.
✔✔Which of the following is generally a form of group credit life insurance? -
✔✔Decreasing term insurance
✔✔Ricks owns a variable universal life policy and chooses a variable death benefit
option. What will typically happen to the death benefit as a result of this selection? -
✔✔Fluctuate with changes in the cash account. When a variable universal life
policyowner selects a variable death benefit option, the death benefit generally will
fluctuate with changes in the cash account.
✔✔After conducting a hearing, the Commissioner is empowered to issue a cease and
desist order. A violation of such an order is punishable by a monetary fine not to exceed
- ✔✔$50,000. Anyone who violates a final cease and desist order will be subject to
license suspension or revocation, and a fine up to $50,000 for each violation.
✔✔An annuity contract may be returned for a full refund during the - ✔✔Free look
period. The period during which a buyer may return an annuity contract for a full refund
is called the "free look period".
✔✔Kelly purchases a health insurance policy issued on a conditionally renewable basis.
The insurance company has a right to refuse renewal of the policy for - ✔✔Specific
, reasons stated in the contract. If an individual health contract is issued on a
conditionally renewable basis, the insurer has a right to refuse renewal for specific
reasons stated in the contract only.
✔✔Which of these is NOT considered a Federal punishment for unfair and deceptive
insurance practices? - ✔✔Community service. Under federal law, punishment for unfair
and deceptive insurance practices may include a fine, , imprisonment and license
revocation but not community service.
✔✔A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a - ✔✔Risk retention group. A group-owned insurer
whose primary activity consists of assuming and spreading the liability risks of its
members is called a risk retention group.
✔✔Which of the following is considered to be an unfair claims settlement practice? -
✔✔Misrepresenting pertinent policy provisions relating to coverage after a loss. This is
an unfair claims settlement practice.
✔✔How long do most states allow an insurance company to delay the payment of a
cash surrender under the Delayed Payment provision? - ✔✔6 months. Most states
allow insurers to delay payment of cash surrender values for up to 6 months after
policyowners request payment. This provision is a proactive measure for companies
should an economic crisis arise, but such delays are rarely invoked.
✔✔Joe is a life insurance policyowner who has failed to pay interest on his policy loan.
What will result from this nonpayment? - ✔✔Loan amount is increased to reflect the
amount of interest due. When an interest payment is not made, the policy loan is
increased to reflect the amount of interest due.
✔✔A description of a qualified plan's insurance contract may be found in which ERISA
reporting form? - ✔✔Annual return/report (Form 5500). Form 5500 is a disclosure
document that employee benefit plans use to satisfy annual reporting requirements
under ERISA.
✔✔When does a family health policy's coverage for a newborn child begin? - ✔✔At the
moment of birth. If additional children are born to the family, the health insurance policy
must cover the children at the moment of birth.
✔✔XYZ Corp gives money to an employee to purchase a life insurance policy and
allows the employee to select the beneficiary. What kind of plan is this? - ✔✔Split-
dollar. A split-dollar plan is an arrangement where an employee and an employee share
in the cost of purchasing a life insurance policy on the employee. The employee is also
allowed to name the beneficiary.
SCRIPT 2025/2026 QUESTIONS WITH SOLUTIONS GRADED
A+
✔✔Which of the following must clearly be illustrated in ALL sales material for market
value adjusted annuities ? - ✔✔The market value adjustment can be either upward or
downward. Sales material used in the marketing of market value adjusted annuities in
Connecticut must clearly illustrate that the market value can be either upward or
downward.
✔✔Why do insurers require a minimum number of employees participate in a group
insurance plan? - ✔✔Minimize adverse selection. The larger the group to be insured,
the more predictable will be the expected losses from the group.
✔✔A reciprocal insurer typically has an administrator who manages the premiums
collected from the group's members. This administrator is called a(n) - ✔✔Attorney-in-
fact. The administrator of a reciprocal insurer who manages the premiums collected
from the group's members is called an attorney-in-fact.
✔✔How are qualified Roth IRA distributions normally treated for tax purposes? -
✔✔Received income tax-free. Qualified distributions are received income tax-free in a
Roth IRA.
✔✔Which of the following is generally a form of group credit life insurance? -
✔✔Decreasing term insurance
✔✔Ricks owns a variable universal life policy and chooses a variable death benefit
option. What will typically happen to the death benefit as a result of this selection? -
✔✔Fluctuate with changes in the cash account. When a variable universal life
policyowner selects a variable death benefit option, the death benefit generally will
fluctuate with changes in the cash account.
✔✔After conducting a hearing, the Commissioner is empowered to issue a cease and
desist order. A violation of such an order is punishable by a monetary fine not to exceed
- ✔✔$50,000. Anyone who violates a final cease and desist order will be subject to
license suspension or revocation, and a fine up to $50,000 for each violation.
✔✔An annuity contract may be returned for a full refund during the - ✔✔Free look
period. The period during which a buyer may return an annuity contract for a full refund
is called the "free look period".
✔✔Kelly purchases a health insurance policy issued on a conditionally renewable basis.
The insurance company has a right to refuse renewal of the policy for - ✔✔Specific
, reasons stated in the contract. If an individual health contract is issued on a
conditionally renewable basis, the insurer has a right to refuse renewal for specific
reasons stated in the contract only.
✔✔Which of these is NOT considered a Federal punishment for unfair and deceptive
insurance practices? - ✔✔Community service. Under federal law, punishment for unfair
and deceptive insurance practices may include a fine, , imprisonment and license
revocation but not community service.
✔✔A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a - ✔✔Risk retention group. A group-owned insurer
whose primary activity consists of assuming and spreading the liability risks of its
members is called a risk retention group.
✔✔Which of the following is considered to be an unfair claims settlement practice? -
✔✔Misrepresenting pertinent policy provisions relating to coverage after a loss. This is
an unfair claims settlement practice.
✔✔How long do most states allow an insurance company to delay the payment of a
cash surrender under the Delayed Payment provision? - ✔✔6 months. Most states
allow insurers to delay payment of cash surrender values for up to 6 months after
policyowners request payment. This provision is a proactive measure for companies
should an economic crisis arise, but such delays are rarely invoked.
✔✔Joe is a life insurance policyowner who has failed to pay interest on his policy loan.
What will result from this nonpayment? - ✔✔Loan amount is increased to reflect the
amount of interest due. When an interest payment is not made, the policy loan is
increased to reflect the amount of interest due.
✔✔A description of a qualified plan's insurance contract may be found in which ERISA
reporting form? - ✔✔Annual return/report (Form 5500). Form 5500 is a disclosure
document that employee benefit plans use to satisfy annual reporting requirements
under ERISA.
✔✔When does a family health policy's coverage for a newborn child begin? - ✔✔At the
moment of birth. If additional children are born to the family, the health insurance policy
must cover the children at the moment of birth.
✔✔XYZ Corp gives money to an employee to purchase a life insurance policy and
allows the employee to select the beneficiary. What kind of plan is this? - ✔✔Split-
dollar. A split-dollar plan is an arrangement where an employee and an employee share
in the cost of purchasing a life insurance policy on the employee. The employee is also
allowed to name the beneficiary.
