L&H PRACTICE TEST QUESTIONS AND ANSWERS
Group Life insurance reduces the impact of _______________. - CORRECT ANSWER✅✅✅adverse
selection
The Buyer's Guide is _________ and the Policy Summary is __________ - CORRECT
ANSWER✅✅✅generic; specific
A Short Term Disability Income policy is one that pays benefits for ____________________. - CORRECT
ANSWER✅✅✅Less than 2 years
Don qualifies for Medicaid even though he has assets of $250,000. For this to happen, Don must have
had a _____________________. - CORRECT ANSWER✅✅✅Long Term Care Partnership policy
What is the most important rating factor in Disability Income coverage? - CORRECT
ANSWER✅✅✅Occupation
What are the participation requirements for a Group Life plan? - CORRECT
ANSWER✅✅✅Contributory - 75% Non-contributory - 100%
Except in the case of bankruptcy, credit information may be retained no longer than _____ years. -
CORRECT ANSWER✅✅✅7 years
A Long Term Disability Income policy is one that pays benefits for ______________. - CORRECT
ANSWER✅✅✅More than 5 years
An individual Medical Expense policy for which the premiums are paid weekly must offer a minimum
______ grace period. - CORRECT ANSWER✅✅✅7 day
Which Life policy provision states that statements made on the application are representations and not
warranties? - CORRECT ANSWER✅✅✅Entire Contract
,For an AD&D policy to pay a death benefit, death must occur within ___ days of the accident. - CORRECT
ANSWER✅✅✅90
What type of Health Rider would not increase the cost of the policy? - CORRECT
ANSWER✅✅✅Exclusion rider
Under a Family Medical Expense policy without maternity benefits, newborns are covered ____. -
CORRECT ANSWER✅✅✅at the moment of birth
Mary bought a Disability Income policy in 2012 and understated her age on the application by 5 years.
When she becomes totally disabled in 2020 and files a claim for her monthly benefit of $3000 per
month, her company will ______________________. - CORRECT ANSWER✅✅✅Pay the benefit
Mary's premium would have bought at her true age.
Both time and dollar deductibles help...... - CORRECT ANSWER✅✅✅hold down the cost of Health
insurance
Describe the tax consequences of a Key Employee Disability policy? - CORRECT
ANSWER✅✅✅Premiums are not tax deductible, and benefits are untaxed.
What Health benefit would be taxable? - CORRECT ANSWER✅✅✅Group Disability Income benefit
HIPAA applies to groups of ___ or more. - CORRECT ANSWER✅✅✅2
A Renewable Term policy guarantees _______________. - CORRECT ANSWER✅✅✅Insurability
When you are fully vested in your company's retirement plan, you are: - CORRECT
ANSWER✅✅✅The 100% owner of your retirement account
A dividend paid to a policy owner by a Mutual insurance company is _________________. - CORRECT
ANSWER✅✅✅Not taxable
,A Health Savings Account can only be used with a(n) __________. - CORRECT ANSWER✅✅✅High
Deductible Health plan
Maternity benefits are mandated for Health insurance groups of _____ or more participants. - CORRECT
ANSWER✅✅✅15
When it is said that a policy is rated, we would expect that the proposed insured is
_________________________. - CORRECT ANSWER✅✅✅A substandard risk
Which Non-forfeiture Option would permit coverage to continue until age 100? - CORRECT
ANSWER✅✅✅Reduced Paid-up
The use of which Dividend Option would create a taxable event? - CORRECT
ANSWER✅✅✅Accumulate at interest
Jim's beneficiaries, Joe and Janet were named as "children of the insured." If either Joe or Janet
predecease Jim, their share is to be divided among their own children. Jim has designated his
beneficiaries on a ____________ basis. - CORRECT ANSWER✅✅✅Per stirpes
Does a Variable Whole Life policy guarantee Cash Value growth? - CORRECT ANSWER✅✅✅No
Non-forfeiture benefits are available in.... - CORRECT ANSWER✅✅✅Policies that develop cash value
What best describes the tax consequences of a Group Disability Income policy in which the premiums
are paid by the employer? - CORRECT ANSWER✅✅✅Premiums are tax deductible, and benefits are
taxed
What is the automatic Non-forfeiture Option? - CORRECT ANSWER✅✅✅Extended Term
This exchange could be considered a gain and would, therefore, be subject to taxation? - CORRECT
ANSWER✅✅✅An Annuity for a Life policy
, Under the Individual Health Insurance Policy Provisions law, a Notice of Claim must be provided by the
insured within ____ days of the loss or as soon thereafter as reasonably possible. - CORRECT
ANSWER✅✅✅20
Who assumes the investment risk in a Variable Whole Life policy? - CORRECT ANSWER✅✅✅The
policy owner
The primary qualifier for Medicaid is: - CORRECT ANSWER✅✅✅Financial need
Benefits paid to you under Social Security are based upon your _____. - CORRECT
ANSWER✅✅✅Primary Insurance Amount (PIA)
Medicare Supplement policies can exclude coverage on preexisting conditions for up to ____ months. -
CORRECT ANSWER✅✅✅6
How does a traditional IRA differ from a Roth IRA? - CORRECT ANSWER✅✅✅Roth IRAs are funded
with after-tax dollars
Disability Income benefits are based upon: - CORRECT ANSWER✅✅✅Earned income
Under HIPAA if Mark loses his longstanding Group Major Medical at ABC Corp, but makes timely entry
into the Group Major Medical plan offered by his new employer, he will not be subject to new
preexisting conditions limitations. Timely entry is defined as ______ days or less. - CORRECT
ANSWER✅✅✅63
Which Life policy provision states that the application is part of the contract? - CORRECT
ANSWER✅✅✅Entire Contract Clause
Medicare Advantage is also known as _____ of Medicare. - CORRECT ANSWER✅✅✅Part C
David allows his Major Medical policy to lapse. Is his company is required to reinstate him? - CORRECT
ANSWER✅✅✅No
Group Life insurance reduces the impact of _______________. - CORRECT ANSWER✅✅✅adverse
selection
The Buyer's Guide is _________ and the Policy Summary is __________ - CORRECT
ANSWER✅✅✅generic; specific
A Short Term Disability Income policy is one that pays benefits for ____________________. - CORRECT
ANSWER✅✅✅Less than 2 years
Don qualifies for Medicaid even though he has assets of $250,000. For this to happen, Don must have
had a _____________________. - CORRECT ANSWER✅✅✅Long Term Care Partnership policy
What is the most important rating factor in Disability Income coverage? - CORRECT
ANSWER✅✅✅Occupation
What are the participation requirements for a Group Life plan? - CORRECT
ANSWER✅✅✅Contributory - 75% Non-contributory - 100%
Except in the case of bankruptcy, credit information may be retained no longer than _____ years. -
CORRECT ANSWER✅✅✅7 years
A Long Term Disability Income policy is one that pays benefits for ______________. - CORRECT
ANSWER✅✅✅More than 5 years
An individual Medical Expense policy for which the premiums are paid weekly must offer a minimum
______ grace period. - CORRECT ANSWER✅✅✅7 day
Which Life policy provision states that statements made on the application are representations and not
warranties? - CORRECT ANSWER✅✅✅Entire Contract
,For an AD&D policy to pay a death benefit, death must occur within ___ days of the accident. - CORRECT
ANSWER✅✅✅90
What type of Health Rider would not increase the cost of the policy? - CORRECT
ANSWER✅✅✅Exclusion rider
Under a Family Medical Expense policy without maternity benefits, newborns are covered ____. -
CORRECT ANSWER✅✅✅at the moment of birth
Mary bought a Disability Income policy in 2012 and understated her age on the application by 5 years.
When she becomes totally disabled in 2020 and files a claim for her monthly benefit of $3000 per
month, her company will ______________________. - CORRECT ANSWER✅✅✅Pay the benefit
Mary's premium would have bought at her true age.
Both time and dollar deductibles help...... - CORRECT ANSWER✅✅✅hold down the cost of Health
insurance
Describe the tax consequences of a Key Employee Disability policy? - CORRECT
ANSWER✅✅✅Premiums are not tax deductible, and benefits are untaxed.
What Health benefit would be taxable? - CORRECT ANSWER✅✅✅Group Disability Income benefit
HIPAA applies to groups of ___ or more. - CORRECT ANSWER✅✅✅2
A Renewable Term policy guarantees _______________. - CORRECT ANSWER✅✅✅Insurability
When you are fully vested in your company's retirement plan, you are: - CORRECT
ANSWER✅✅✅The 100% owner of your retirement account
A dividend paid to a policy owner by a Mutual insurance company is _________________. - CORRECT
ANSWER✅✅✅Not taxable
,A Health Savings Account can only be used with a(n) __________. - CORRECT ANSWER✅✅✅High
Deductible Health plan
Maternity benefits are mandated for Health insurance groups of _____ or more participants. - CORRECT
ANSWER✅✅✅15
When it is said that a policy is rated, we would expect that the proposed insured is
_________________________. - CORRECT ANSWER✅✅✅A substandard risk
Which Non-forfeiture Option would permit coverage to continue until age 100? - CORRECT
ANSWER✅✅✅Reduced Paid-up
The use of which Dividend Option would create a taxable event? - CORRECT
ANSWER✅✅✅Accumulate at interest
Jim's beneficiaries, Joe and Janet were named as "children of the insured." If either Joe or Janet
predecease Jim, their share is to be divided among their own children. Jim has designated his
beneficiaries on a ____________ basis. - CORRECT ANSWER✅✅✅Per stirpes
Does a Variable Whole Life policy guarantee Cash Value growth? - CORRECT ANSWER✅✅✅No
Non-forfeiture benefits are available in.... - CORRECT ANSWER✅✅✅Policies that develop cash value
What best describes the tax consequences of a Group Disability Income policy in which the premiums
are paid by the employer? - CORRECT ANSWER✅✅✅Premiums are tax deductible, and benefits are
taxed
What is the automatic Non-forfeiture Option? - CORRECT ANSWER✅✅✅Extended Term
This exchange could be considered a gain and would, therefore, be subject to taxation? - CORRECT
ANSWER✅✅✅An Annuity for a Life policy
, Under the Individual Health Insurance Policy Provisions law, a Notice of Claim must be provided by the
insured within ____ days of the loss or as soon thereafter as reasonably possible. - CORRECT
ANSWER✅✅✅20
Who assumes the investment risk in a Variable Whole Life policy? - CORRECT ANSWER✅✅✅The
policy owner
The primary qualifier for Medicaid is: - CORRECT ANSWER✅✅✅Financial need
Benefits paid to you under Social Security are based upon your _____. - CORRECT
ANSWER✅✅✅Primary Insurance Amount (PIA)
Medicare Supplement policies can exclude coverage on preexisting conditions for up to ____ months. -
CORRECT ANSWER✅✅✅6
How does a traditional IRA differ from a Roth IRA? - CORRECT ANSWER✅✅✅Roth IRAs are funded
with after-tax dollars
Disability Income benefits are based upon: - CORRECT ANSWER✅✅✅Earned income
Under HIPAA if Mark loses his longstanding Group Major Medical at ABC Corp, but makes timely entry
into the Group Major Medical plan offered by his new employer, he will not be subject to new
preexisting conditions limitations. Timely entry is defined as ______ days or less. - CORRECT
ANSWER✅✅✅63
Which Life policy provision states that the application is part of the contract? - CORRECT
ANSWER✅✅✅Entire Contract Clause
Medicare Advantage is also known as _____ of Medicare. - CORRECT ANSWER✅✅✅Part C
David allows his Major Medical policy to lapse. Is his company is required to reinstate him? - CORRECT
ANSWER✅✅✅No
