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CONNECTICUT LIFE AND HEALTH INSURANCE
EXAM 2025 - 2026|REAL 150QUESTIONS AND
ANSWERS|A+GRADE
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 ANS:->> " 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? **ANS:-
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 ANS:->> 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. ANS:->> 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 ANS:->> 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 Whatever amount is withdrawn from an accelerated benefit will be deducted from the face amount when death occurs.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? ANS:->> 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 ANS:->> Cash value. Cash value may be used as a source to supplement apolicyowner's income. Purchasing insurance is an example of risk ANS:->> Transference. Purchasing insurance is an example of risk transference. Which statement best describes a single premium whole life policy? ANS:->> Paid- up policy that offers lifetime protection. A single premium whole life policy provides protection for life as a paid-up policy.
Which statement is true regarding hospital preadmission certification for emergency situations? ANS:->> Notification is required to be given after insured is admitted to the hospital. Hospital preadmission certification typically requires notification to be given after the patient is admitted to the hospital for an emergency situation. For nonemergency situations, notification is to be given BEFORE admission. When using the approach for life insurance planning, a lump sum may be created toprovide for all of the following EXCEPT ANS:->> " Employee benefits". The needs approach to personal life insurance planning may involve creating a lump sum to provide for all of these EXCEPT employee benefits. How are the premiums for an individually-owned disability income policy treated for tax purposes? ANS:->> Not tax-deductable at all. Premiums for individually-owned disability income policy are not tax-deductable at all. Which of the following must clearly be illustrated in ALL sales material for market value adjusted annuities? ANS:->> The market value adjustment can be either upward or downward. Sales material used in the marketing of market value adjusted annuities in Connecticut must clearly illustrate that the market value can be either upward or downward.
Why do insurers require a minimum number of employees participate in a group insurance plan? ANS:->> 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) ANS:->> 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? ANS:->> 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? ANS:->> 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? ANS:->> 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.
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? ANS:->> Misrepresenting pertinent policy provisions relating to coverage after aloss. 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? ANS:->> 6 months. Most states allow insurers to delay payment of cash surrender values for up to 6 months after policyowners request payment. This provision is a proactive measure for companies should an economic crisis arise, but such delays are rarely invoked. Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment? ANS:->> Loan amount is increased to reflect the amount of interest due. When an interest payment is not made, the policy loan is increased to reflect the amount of interest due. A description of a qualified plan's insurance contract may be found in which ERISA reporting form? ANS:->> Annual return/report (Form 5500). Form 5500 is a disclosure document that employee benefit plans use to satisfy annual reporting requirements under ERISA. When does a family health policy's coverage for a newborn child begin? ANS:-
At the moment of birth. If additional children are born to the family, the
health insurance policy must cover the children at the moment of birth. XYZ Corp gives money to an employee to purchase a life insurance policy and allows the employee to select the beneficiary. What kind of plan is this? ANS:->> Split-dollar. A split-dollar plan is an arrangement where an employee and an employee share in the cost of purchasing a life insurance policy on the employee. The employee is also allowed to name the beneficiary. In long-term care insurance, what is an "ADL"? ANS:->> Activities of daily living Medicare Supplement insurance requires an individual to be at least how old for open enrollment? ANS:->> No minimum age. An accident and health insurance policy's premium requirements are set forth in which of the following provisions? ANS:->> Consideration clause. A producer MUST notify the Commissioner for ANS:->> conducting business under an assumed name. What determines how much an annuitant is paid for a variable annuity? ANS:-
The market value variations of the securities backing it. The amount of each variable annuity benefit paid to an annuitant varies according to the
company that is incorporated and formed in CT. The health insurance premiums paid for by each partner in a partnership is considered to be ANS:->> 100% tax deductible. In a business partnership. The inability to perform SOME of the duties of one's own occupation is known as aANS:->> Residual disability. Which of the following would most likely purchase an immediate annuity? ANS:->> Retiree having a lump sum to invest. Who is required to notify the producer in the event of appointment termination? ANS:->> Insurer. The insurer is responsible for reporting an producer's termination of appointment. All of these are considered features of whole life insurance EXCEPT ANS:->> initial premium is lower than for an equivalent amount of term insurance. The initial cost ofwhole life insurance is actually HIGHER than the equivalent amount of term insurance. Which of these statements is NOT a characteristic of the law of large numbers? ANS:->> Rates can be calculated to compensate for losses. The law of large numbers states that larger groups provide better loss predictions. The higher the exposure, the more likely the event can be predicted.
When must a producer provide disclosure about information practices to an applicant? ANS:->> Prior to or at the time of signing the application Which of the following describes the act of insuring a risk against possible loss? ANS:->> Risk transfer In regards to technology and the ACA, which of the following statements is correct? ANS:->> States which operate with an Exchange must offer an internet-based-portal
required? ANS:->> Both the cause and resultant injury must be accidental. Accidental means is a requirement of an accident based policy that the cause of the mishap must be accidental for any claim to be payable. Which of these is NOT considered to be a cost connected with an individual's death? ANS:->> Business expenses. All of these are considered to be costs associated with an individuals death EXCEPT business expenses. The free look period provided in a life insurance policy is usually ANS:->> 10 days. Life insurance policies must provide a minimum free look period of 10 days upon policy delivery. This allows the policyowner time to decide whether or not to keep it. If the policyowner decides not to keep the policy within the 10 days allowed, a full refund will be given. A life insurance beneficiary died after receiving only six payments under the policy's life income settlement option. What happens with the remaining balance of the death proceeds? ANS:->> Kept by the insurance company. Under the life income settlement option, the beneficiary is able to have the benefits converted into an annuity which is based upon the individual's life expectancy and payable as long as the beneficiary is still alive. What type of employee welfare plans are not subject to ERISA regulations? ANS:->> Church plans. Exempt from ERISA regulations
An insurer may NOT refuse the renewal of a small employer health insurance plan because of ANS:->> Overuse of medical services. Not a valid reason for denying the renewal of a small employer health insurance plan. What is the federal income tax liability of a death benefit paid from a health insurance policy to a named beneficiary? ANS:->> Benefits are not taxable. Will not likely be applied to death benefits paid to the beneficiary of an insured under a health insurance company. Which of these is a true statement regarding survivor benefits under a qualified retirement plan? ANS:->> Survivor benefits can only be waived with the written consent of a married employee's spouse. How is the insured protected if a payor benefit rider is attached to the life insurance policy? ANS:->> Premium payments are waived in the event the premium payor dies or becomes disabled. Which of these is NOT a standard provision in qualified long-term care policies sold in Connecticut? ANS:->> Prior hospitalization. Not a required provision for long-term care policies. An individual in Connecticut who charges a fee for giving advice on an insurance policy must be licensed as a consultant if the advice is given to ANS:->> The policyholder. An individual in Connecticut who charges a fee for giving advice on an insurance policy must be licensed as a consultant if the
ANS:->> May reduce her benefits. The pre-existing conditions exclusion may reduce the insured's benefits because the new policy may not cover the same health conditions. In Connecticut, the Human Immunodeficiency Virus (HIV) consent form ANS:->> Must disclose who will be receiving a copy of the test results. CT law requires the (HIV) consent form to disclose the types of individuals or organizations that may receive a copy of the test results. When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice? ANS:->> Producer. For employees covered in multiple states under a group health plan, jurisdiction rules cannot alter ANS:->> COBRA laws. COBRA is a federal law and cannot be altered by any state jurisdiction. An Individual is insured under a major medical plan with a $1,000, lifetimes benefit. The plan has a $500 deductible and an 80% coinsurance. If the insured suffers a $50,000 medical expense during the calendar year, what is the remaining lifetime benefit? ANS:->> $960,000. $50,000 - $500 deductible = $50,000. $50,000 x 80% = $40,000. $1,000,000 lifetime benefit - $40,000= $960,000 remaining.
An insured has been ordered by the court to provide a child's health insurance. Upon this order, the insurer must allow the enrollment of this child ANS:->> At any time with no open enrollment restrictions. A life annuity feature which provides benefit payments for a minimum number ofyears, no matter when the annuitant die, is called ANS:->> period certain. Which of these statements accurately portrays an adjustable life insurance policy? ANS:->> Policy can alternate between forms of term and whole life insurance. Adjustable life insurance allows the policyowner to adjust the policy's face amount, premium, and type of protection without having to complete a new application or exchange policies. Example: converting a term policy to whole life or vice versa. A producer's license may only be suspended or revoked if the producer ANS:-
Has been afforded a right to a hearing. No existing insurance license will be revoked until the license has been afforded a right to a hearing on the charges If an individual would like to enroll in Medicare or seek public information about Medicare, which federal agency handles this? ANS:->> Social Security Administration. Handles enrollment for Medicare program and provides information about medicare to the public.
The standard provisions of an accident and health insurance policy may require that the ANS:->> Policy, endorsements, and attached papers constitute the "entire contract" James the producer has sold a life insurance contract to a client without using an illustration, even though his insurer offers one. For this particular transaction, the applicant ANS:->> Must sign a statement that no illustration was provided. Which of the following does a Medicare Advantage enrollee typically pay for? ANS:->> Small co-pay per visit or per service. In addition to the premium. Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted? ANS:->> Fixed amount installment option. The fixed amount installment option pays a predetermined amount of income at specific intervals until the proceeds and any interest earned are exhausted. Laura added a children's rider to her life insurance policy. What type of coverage was added? ANS:->> Level term. Is provided by adding a children's rider to the life insurance policy.
An insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT ANS:->> Living in a rural area. Where an applicant lives is not a factor in determining preferred rates. Which tax is normally associated with an individual's death? ANS:->> Federal estate tax. When does the insured stop making payments under a thirty-payment whole life policy? ANS:->> At the time of death or 30 years after the policy's inception, whichever comes first. Stops paying premiums. Major Medical policies are typically characterized by which of the following? ANS:->> Flat deductible. Major Medical policies are typically characterized by flat deductibles. Which of the following best describes the tax treatment of medical expense policies for the self-employed? ANS:->> 100% of medical expense plan premiums are tax deductible. A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such, Which of the following does this statute originate from? ANS:->> Fair Credit Reporting Act. A consumer being investigated must be advised of any denial
