VERMONT LIFE AND HEALTH FINAL TEST EXAM LATEST
2025/2026 STUDY QUESTIONS WITH CORRECT VERIFIED
ANSWERS GUARANTEED PASS | RATED A+
According to federal fraud and false statement regulation, what is required for a prohibited
person to transact insurance business in this state? - Answer>>> Written consent from the state
insurance regulatory agency
Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this
injury. What type of insurance does Mike have? - Answer>>> Accidental Death and
Dismemberment
Charging different premiums to policyholders in the same risk classification is referred to as -
Answer>>> Unfair discrimination
Which of the following statements is TRUE if the owner of an it's named their spouse as
beneficiary, but then dies before any distributions are made - Answer>>> Account can be rolled
into the surviving spouses IRA
A producer recently replaced an existing Medicare Supplement policy with a new policy. The
producer's compensation for the new policy - Answer>>> CANNOT exceed the renewal
commission of the original policy
Which is an accurate description of the premium in a graded premium life insurance policy? -
Answer>>> Annual increases in premium for a stated number of years then levels off for the
remainder of the contract
Who may terminate coverage under a cancelable health insurance policy - Answer>>> The
insurer or the insured
An insurance company is marketing a new health insurance policy in Vermont which contains a
provision that is in conflict with Vermont insurance law. What remedy must be taken by the
insurer? - Answer>>> The provision must be amended to confirm the minimum statutory
requirements
, The reason for backdating a policy is - Answer>>> to obtain a premium rate based on an earlier
age
When using the needs approach for life insurance planning, lump sums may be created for all of
the following reasons EXCEPT
Final expenses
Charitable donation
Education
Employee benefits - Answer>>> employee benefits
According to ERISA regulations, a Summary Plan Description must be provided to a new plan
member within ___ days of the member's eligibility date. - Answer>>> 90
Tim is covered by an accident and health insurance policy that may not be changed in any way
by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this? -
Answer>>> Noncancelable
According to the affordable care act insurers can no longer deny health coverage due to pre-
existing conditions unless that plan is a(n) - Answer>>> Grandfathered plan
If a disability income policy contains a cost-of-living adjustment rider, benefits must typically be
increased - Answer>>> At least once per year from when benefits begin
A licensee who is required to take continuing education must complete 24 hours of continuing
education, which includes ___ hour(s) of ethics courseworks? - Answer>>> 3
Group life insurance is typically issued as - Answer>>> level term insurance
What is it in insurance contract that identifies individuals by relationship to a specific
organization - Answer>>> Group insurance
Insurance producer Kelly offers a $500 shopping card if a client purchases an insurance product
through her. What is this an example of? - Answer>>> Rebating, which is an unfair trade
practice
2025/2026 STUDY QUESTIONS WITH CORRECT VERIFIED
ANSWERS GUARANTEED PASS | RATED A+
According to federal fraud and false statement regulation, what is required for a prohibited
person to transact insurance business in this state? - Answer>>> Written consent from the state
insurance regulatory agency
Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this
injury. What type of insurance does Mike have? - Answer>>> Accidental Death and
Dismemberment
Charging different premiums to policyholders in the same risk classification is referred to as -
Answer>>> Unfair discrimination
Which of the following statements is TRUE if the owner of an it's named their spouse as
beneficiary, but then dies before any distributions are made - Answer>>> Account can be rolled
into the surviving spouses IRA
A producer recently replaced an existing Medicare Supplement policy with a new policy. The
producer's compensation for the new policy - Answer>>> CANNOT exceed the renewal
commission of the original policy
Which is an accurate description of the premium in a graded premium life insurance policy? -
Answer>>> Annual increases in premium for a stated number of years then levels off for the
remainder of the contract
Who may terminate coverage under a cancelable health insurance policy - Answer>>> The
insurer or the insured
An insurance company is marketing a new health insurance policy in Vermont which contains a
provision that is in conflict with Vermont insurance law. What remedy must be taken by the
insurer? - Answer>>> The provision must be amended to confirm the minimum statutory
requirements
, The reason for backdating a policy is - Answer>>> to obtain a premium rate based on an earlier
age
When using the needs approach for life insurance planning, lump sums may be created for all of
the following reasons EXCEPT
Final expenses
Charitable donation
Education
Employee benefits - Answer>>> employee benefits
According to ERISA regulations, a Summary Plan Description must be provided to a new plan
member within ___ days of the member's eligibility date. - Answer>>> 90
Tim is covered by an accident and health insurance policy that may not be changed in any way
by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this? -
Answer>>> Noncancelable
According to the affordable care act insurers can no longer deny health coverage due to pre-
existing conditions unless that plan is a(n) - Answer>>> Grandfathered plan
If a disability income policy contains a cost-of-living adjustment rider, benefits must typically be
increased - Answer>>> At least once per year from when benefits begin
A licensee who is required to take continuing education must complete 24 hours of continuing
education, which includes ___ hour(s) of ethics courseworks? - Answer>>> 3
Group life insurance is typically issued as - Answer>>> level term insurance
What is it in insurance contract that identifies individuals by relationship to a specific
organization - Answer>>> Group insurance
Insurance producer Kelly offers a $500 shopping card if a client purchases an insurance product
through her. What is this an example of? - Answer>>> Rebating, which is an unfair trade
practice
