STATE FARM INSURANCE LICENSE EXAM
SCRIPT 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ Marketing Requirements. Answer: State law prohibits insurers
and producers from engaging, in untrue, deceptive or misleading
advertising in connections with the solicitations of health insurance.
◉ During a sales presentation, what may producers not refer to.
Answer: Life and Disability Insurance Guaranty Fund
◉ Underwriter's principal functions. Answer: Review applications to
eliminate those that do not meet underwriting standards
◉ What is a heavy factor in health insurance underwriting?. Answer:
Moral risk
◉ What are the prime considerations for underwriting health
insurance policies?. Answer: Age, sex, occupation, physical condition
and moral hazard.
,◉ Rider. Answer: An amendment attached to the policy contract that
modifies the conditions of the policy by decreasing (or expanding)
its benefits or excluding certain conditions from coverage.
◉ Statement of Continued Good Health. Answer: Ascertaining that
their health has not changed since the original application was
completed
◉ When does coverage begin?. Answer: Upon obtaining Statement of
Continued Good Health and the appropriate premium
◉ Tabular Rating. Answer: Actuary determines what the exact
surcharge should be for a client with a particular impairment based
on claims history of similar clients
◉ Most surcharges are based on what?. Answer: Percentage table
that is applied to the standard rate
◉ What kind of policy does not have a probationary period?.
Answer: AD&D
◉ How long is a probationary period for reinstatement?. Answer: 10
days from the date
,◉ Waiting Period. Answer: The client must wait for a certain period
of time from the onset of a sickness or injury before benefits will be
paid
◉ The longer the waiting period,.... Answer: the lower the premium
will be
◉ How long are waiting periods?. Answer: 30 days
◉ Recurrent Disability. Answer: Disability the client claimed
previously that recurs at a later date
◉ No Loss- No Gain. Answer: Requires that when disability
insurance is switched from one company to another, ongoing claims
under the old policy must continue to be paid under the new policy,
thereby overriding the probationary period exclusion
◉ 1996 Federal Health Insurance Portability and Accountability Act.
Answer: Addressed the issue of new probationary periods that could
occur when an insured changes health insurance carriers.
◉ Portability. Answer: Individuals that terminate employment who
were previously insured for at least 18 months on a group health
insurance plan must be offered an individual health insurance policy
without any preexisting condition exclusions
, ◉ What does HIPAA also state in regards to group health policies?.
Answer: If you had already satified your probationary period in your
prior group policy, your preexisting conditions would be covered
immediately by the new group policy as long as coverage was
continuous with no break in coverage greater than 63 days
◉ What does HIPAA limit?. Answer: The probationary period for
new enrollees in group policies to a maximum of 12 months
◉ How long does HIPAA state a preexisting condition is?. Answer:
six months of enrollment
◉ Intracompany replacement. Answer: A producer's commission is
often limited to a percentage of the increase in premium when an
insurance policy is replaced by a similar policy within the same
insurance company
◉ Time Limit on Certain Defenses. Answer: Health insurance policy
is always contestable for fraud, even after two years have gone by
◉ Grace period is depending upon what?. Answer: Mode selected by
the insured
SCRIPT 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ Marketing Requirements. Answer: State law prohibits insurers
and producers from engaging, in untrue, deceptive or misleading
advertising in connections with the solicitations of health insurance.
◉ During a sales presentation, what may producers not refer to.
Answer: Life and Disability Insurance Guaranty Fund
◉ Underwriter's principal functions. Answer: Review applications to
eliminate those that do not meet underwriting standards
◉ What is a heavy factor in health insurance underwriting?. Answer:
Moral risk
◉ What are the prime considerations for underwriting health
insurance policies?. Answer: Age, sex, occupation, physical condition
and moral hazard.
,◉ Rider. Answer: An amendment attached to the policy contract that
modifies the conditions of the policy by decreasing (or expanding)
its benefits or excluding certain conditions from coverage.
◉ Statement of Continued Good Health. Answer: Ascertaining that
their health has not changed since the original application was
completed
◉ When does coverage begin?. Answer: Upon obtaining Statement of
Continued Good Health and the appropriate premium
◉ Tabular Rating. Answer: Actuary determines what the exact
surcharge should be for a client with a particular impairment based
on claims history of similar clients
◉ Most surcharges are based on what?. Answer: Percentage table
that is applied to the standard rate
◉ What kind of policy does not have a probationary period?.
Answer: AD&D
◉ How long is a probationary period for reinstatement?. Answer: 10
days from the date
,◉ Waiting Period. Answer: The client must wait for a certain period
of time from the onset of a sickness or injury before benefits will be
paid
◉ The longer the waiting period,.... Answer: the lower the premium
will be
◉ How long are waiting periods?. Answer: 30 days
◉ Recurrent Disability. Answer: Disability the client claimed
previously that recurs at a later date
◉ No Loss- No Gain. Answer: Requires that when disability
insurance is switched from one company to another, ongoing claims
under the old policy must continue to be paid under the new policy,
thereby overriding the probationary period exclusion
◉ 1996 Federal Health Insurance Portability and Accountability Act.
Answer: Addressed the issue of new probationary periods that could
occur when an insured changes health insurance carriers.
◉ Portability. Answer: Individuals that terminate employment who
were previously insured for at least 18 months on a group health
insurance plan must be offered an individual health insurance policy
without any preexisting condition exclusions
, ◉ What does HIPAA also state in regards to group health policies?.
Answer: If you had already satified your probationary period in your
prior group policy, your preexisting conditions would be covered
immediately by the new group policy as long as coverage was
continuous with no break in coverage greater than 63 days
◉ What does HIPAA limit?. Answer: The probationary period for
new enrollees in group policies to a maximum of 12 months
◉ How long does HIPAA state a preexisting condition is?. Answer:
six months of enrollment
◉ Intracompany replacement. Answer: A producer's commission is
often limited to a percentage of the increase in premium when an
insurance policy is replaced by a similar policy within the same
insurance company
◉ Time Limit on Certain Defenses. Answer: Health insurance policy
is always contestable for fraud, even after two years have gone by
◉ Grace period is depending upon what?. Answer: Mode selected by
the insured
