CONNECTICUT LIFE & HEALTH INSURANCE EXAM
A producer has indicated to a potential client that the proposed life insurance is covered
by the Connecticut Life and Health Insurance Guaranty Association. This action taken
by the producer is - Answers - "Prohibited by law". Pointing out to a prospective client
that the life insurance policy you are presenting is covered by the Connecticut Life and
Health Guaranty Association is prohibited by law.
Which of the following does NOT involve a life settlement transaction? - Answers -
Converting term life coverage to whole life insurance. the business of life settlements
includes all of these except "Converting term life coverage to whole life insurance.
Life settlement brokers are NOT allowed to - Answers - Complete transactions prior to
being approved for a license. Life settlement brokers need to be licensed before
conducting any life settlement transactions. the exception to this would be certain
eligible financial professionals.
A producer must complete____credit hours of continuing education for each licensing
period. - Answers - 24 hours. All insurance agents must successfully complete 24
credit hours of continuing education every 2 years, prior to license renewal. Three of
those hours must be in ethics.
A life insurance policy provision that has the ability to reduce the death benefit is called
the - Answers - Accelerated (living) benefit. Whatever amount is withdrawn from an
accelerated benefit will be deducted from the face amount when death occurs.
An officer for a corporation takes out numerous unsecured loans from the company's
qualified retirement plan. Which of these rules is the plan in violation of? - Answers -
Exclusive benefit rule. The assets held in a company's qualified retirement plan must be
maintained for the exclusive benefit of the employees and their beneficiaries.
A source of supplemental income for a life insurance policyowner can be derived from
the - Answers - Cash value. Cash value may be used as a source to supplement a
policyowner's income.
Why do insurers require a minimum number of employees participate in a group
insurance plan? - Answers - 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) - Answers - 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? - Answers
- 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? - Answers -
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? - Answers -
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
- Answers - $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 - Answers - 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 - Answers -
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? - Answers - 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 - Answers - 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? -
Answers - 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? - Answers - 6 months. Most states
allow insurers to delay payment of cash surrender values for up to 6 months after
A producer has indicated to a potential client that the proposed life insurance is covered
by the Connecticut Life and Health Insurance Guaranty Association. This action taken
by the producer is - Answers - "Prohibited by law". Pointing out to a prospective client
that the life insurance policy you are presenting is covered by the Connecticut Life and
Health Guaranty Association is prohibited by law.
Which of the following does NOT involve a life settlement transaction? - Answers -
Converting term life coverage to whole life insurance. the business of life settlements
includes all of these except "Converting term life coverage to whole life insurance.
Life settlement brokers are NOT allowed to - Answers - Complete transactions prior to
being approved for a license. Life settlement brokers need to be licensed before
conducting any life settlement transactions. the exception to this would be certain
eligible financial professionals.
A producer must complete____credit hours of continuing education for each licensing
period. - Answers - 24 hours. All insurance agents must successfully complete 24
credit hours of continuing education every 2 years, prior to license renewal. Three of
those hours must be in ethics.
A life insurance policy provision that has the ability to reduce the death benefit is called
the - Answers - Accelerated (living) benefit. Whatever amount is withdrawn from an
accelerated benefit will be deducted from the face amount when death occurs.
An officer for a corporation takes out numerous unsecured loans from the company's
qualified retirement plan. Which of these rules is the plan in violation of? - Answers -
Exclusive benefit rule. The assets held in a company's qualified retirement plan must be
maintained for the exclusive benefit of the employees and their beneficiaries.
A source of supplemental income for a life insurance policyowner can be derived from
the - Answers - Cash value. Cash value may be used as a source to supplement a
policyowner's income.
Why do insurers require a minimum number of employees participate in a group
insurance plan? - Answers - 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) - Answers - 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? - Answers
- 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? - Answers -
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? - Answers -
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
- Answers - $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 - Answers - 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 - Answers -
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? - Answers - 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 - Answers - 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? -
Answers - 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? - Answers - 6 months. Most states
allow insurers to delay payment of cash surrender values for up to 6 months after
