STATE FARM INSURANCE LICENSE
COMPREHENSIVE EXAM 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉ What two specific perils does disability insurance cover. Answer:
Accidental Injury and Sickness
◉ Accidental Injury. Answer: Injury that is unintentional and
unforeseen
◉ Sickness. Answer: Sickness or disease which first manifests itself
after the effective date of the insurance policy
◉ "Disability (or health) insurance" really means what five types of
insurance?. Answer: 1. Disability Income Insurance
2. Accidental Death and Dismemberment (AD&D) Insurance
3. Medical Expense Insurance
4. Dental Insurance
5. Long Term Care Insurance
◉ Disability Income Insurance. Answer: Is a coverage that protects
against loss of your net earned income in case you become sick or
injured and cannot work.
,◉ Net earned income. Answer: Amount of your earning after taxes.
◉ When does Disability Income insurance only cover you?. Answer:
If you are totally disabled
◉ Total Disability. Answer: Unable to perform his own job for the
first two years and any job they are suited for based upon their
education, training or experience thereafter.
◉ What is the most common type of disability insurance?. Answer:
Medical Expense Insurance
◉ Medical Expense Insurance is sold on what kind of basis?. Answer:
Reimbursement basis by private insurance company
Service basis by a service organization
◉ How is dental expense insurance usually sold?. Answer: On a
group basis due to adverse selection
◉ Long Term Care Expense Insurance. Answer: Covers the cost of
convalescent nursing home care
,◉ Why do people buy long term care expense insurance?. Answer:
Medicare under Social Security does not provide this coverage
◉ What insurance is not part of social security?. Answer: Medicaid
◉ Cancelable. Answer: The insurer may cancel at any time with
proper advance notice and a return of unearned premium due, if any.
◉ What kind of policies are cancelable?. Answer: Individual policies
◉ Medicare. Answer: Federally underwritten health insurance for
seniors 65 years of age and over that is part of Social Security
◉ What does social security coverage include?. Answer: Coverage
for workers who become totally disable, survivors' benefits,
retirement benefits and a small lump sum death benefit.
◉ How are limited policies usually sold?. Answer: Through the mail
or advertising
◉ Limited Policies. Answer: Do not follow the Principal of Indemnity,
they all pay in addition to each other.
, ◉ Accidental Death and Dismemberment. Answer: It covers
accidents only
◉ When AD&D is written separately, it consists of what two things?.
Answer: Principal & Capital Sum
◉ Principal Sum. Answer: Pays for death and severe
dismemberment only
◉ Capital Sum. Answer: Pays for dismemberment.
◉ What % is capital sum usually written to be of the principal sum?.
Answer: 50%
◉ What do AD&D policies not cover?. Answer: Loss of hearing
Occupational or military related accidents
Loss of digits
◉ Travel Accident. Answer: Cover you while flying on a regularly
scheduled commercial flight, but not on private planes
◉ What is a common variation of AD&D which is sold in airport
lobbies?. Answer: Travel Accident
COMPREHENSIVE EXAM 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉ What two specific perils does disability insurance cover. Answer:
Accidental Injury and Sickness
◉ Accidental Injury. Answer: Injury that is unintentional and
unforeseen
◉ Sickness. Answer: Sickness or disease which first manifests itself
after the effective date of the insurance policy
◉ "Disability (or health) insurance" really means what five types of
insurance?. Answer: 1. Disability Income Insurance
2. Accidental Death and Dismemberment (AD&D) Insurance
3. Medical Expense Insurance
4. Dental Insurance
5. Long Term Care Insurance
◉ Disability Income Insurance. Answer: Is a coverage that protects
against loss of your net earned income in case you become sick or
injured and cannot work.
,◉ Net earned income. Answer: Amount of your earning after taxes.
◉ When does Disability Income insurance only cover you?. Answer:
If you are totally disabled
◉ Total Disability. Answer: Unable to perform his own job for the
first two years and any job they are suited for based upon their
education, training or experience thereafter.
◉ What is the most common type of disability insurance?. Answer:
Medical Expense Insurance
◉ Medical Expense Insurance is sold on what kind of basis?. Answer:
Reimbursement basis by private insurance company
Service basis by a service organization
◉ How is dental expense insurance usually sold?. Answer: On a
group basis due to adverse selection
◉ Long Term Care Expense Insurance. Answer: Covers the cost of
convalescent nursing home care
,◉ Why do people buy long term care expense insurance?. Answer:
Medicare under Social Security does not provide this coverage
◉ What insurance is not part of social security?. Answer: Medicaid
◉ Cancelable. Answer: The insurer may cancel at any time with
proper advance notice and a return of unearned premium due, if any.
◉ What kind of policies are cancelable?. Answer: Individual policies
◉ Medicare. Answer: Federally underwritten health insurance for
seniors 65 years of age and over that is part of Social Security
◉ What does social security coverage include?. Answer: Coverage
for workers who become totally disable, survivors' benefits,
retirement benefits and a small lump sum death benefit.
◉ How are limited policies usually sold?. Answer: Through the mail
or advertising
◉ Limited Policies. Answer: Do not follow the Principal of Indemnity,
they all pay in addition to each other.
, ◉ Accidental Death and Dismemberment. Answer: It covers
accidents only
◉ When AD&D is written separately, it consists of what two things?.
Answer: Principal & Capital Sum
◉ Principal Sum. Answer: Pays for death and severe
dismemberment only
◉ Capital Sum. Answer: Pays for dismemberment.
◉ What % is capital sum usually written to be of the principal sum?.
Answer: 50%
◉ What do AD&D policies not cover?. Answer: Loss of hearing
Occupational or military related accidents
Loss of digits
◉ Travel Accident. Answer: Cover you while flying on a regularly
scheduled commercial flight, but not on private planes
◉ What is a common variation of AD&D which is sold in airport
lobbies?. Answer: Travel Accident
