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CONNECTICUT LIFE AND HEALTH
INSURANCE Practice Exam Questions
and Answers Latest Version 2025 Top
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1. In Connecticut, a policyholder has the right to return a newly issued life insurance policy for a full refund if they are unsatisfied. This right is known as: A) The right of rescission
B) The free-look period
C) The right of renewal D) The grace period Answer: B) The free-look period Explanation: The "free-look period" allows policyholders a certain number of days (usually 10) to review their policy and return it for a full refund if they are dissatisfied.
2. What is the minimum number of lives required for a group health insurance policy in Connecticut? A) 5 B) 10
C) 2
D) 20
Answer: C) 2 Explanation: In Connecticut, a group health insurance policy can be issued to a group of at least 2 individuals, often seen in small employer groups.
3. Under Connecticut law, what is the maximum number of days an insurer can wait before sending a notice of policy renewal or non-renewal for health insurance? A) 30 days
B) 60 days
C) 90 days D) 120 days Answer: B) 60 days Explanation: Connecticut law requires that insurers send notice of renewal or non-renewal of health insurance policies at least 60 days before the policy’s expiration.
4. When an insured dies, the life insurance policy proceeds are typically paid to: A) The policyowner B) The beneficiary
C) The estate of the insured
D) The beneficiary, unless the estate is named Answer: B) The beneficiary Explanation: Life insurance proceeds are paid directly to the named beneficiary, not to the estate unless the beneficiary is the estate itself.
5. Which of the following statements is TRUE regarding the grace period for life insurance policies in Connecticut?
8. Which of the following is typically NOT covered by long-term care insurance in Connecticut? A) Nursing home care B) Home health care
C) Cosmetic surgery
D) Assisted living facility care Answer: C) Cosmetic surgery Explanation: Long-term care insurance typically covers nursing home care, home health care, and assisted living care, but it does not cover cosmetic or elective surgeries.
9. A health insurance policy in Connecticut is considered to be “guaranteed renewable” if: A) The insurer can increase premiums after the first year B) The insurer cannot cancel the policy, but may increase premiums C) The insured can change their coverage at any time D) The insurer must provide new coverage each year Answer: B) The insurer cannot cancel the policy, but may increase premiums Explanation: A "guaranteed renewable" health insurance policy guarantees the policyholder the right to renew the policy, but the insurer can increase premiums based on the policyholder's age or other factors. 10. Under Connecticut law, a life insurance policy may include a provision that allows for the policyholder to receive a portion of the death benefit in case of a terminal illness. This is known as: A) Accelerated death benefit B) Viatical settlement C) Policy loan D) Cash surrender value
Answer: A) Accelerated death benefit Explanation: The accelerated death benefit allows policyholders with a terminal illness to access part of the death benefit early to cover medical expenses.
11. Which of the following best describes a "whole life insurance policy"? A) A policy that covers the insured for a specific term B) A policy that provides coverage for the insured’s entire life C) A policy that only covers death benefits D) A policy that requires the insured to prove good health to maintain coverage Answer: B) A policy that provides coverage for the insured’s entire life Explanation: Whole life insurance is designed to provide coverage for the entire life of the insured, with both a death benefit and a cash value component. 12. What type of health insurance policy in Connecticut typically covers only specific illnesses, such as cancer or heart disease? A) Disability insurance B) Critical illness insurance C) Major medical insurance D) Dread disease insurance Answer: D) Dread disease insurance Explanation: Dread disease insurance covers specific critical illnesses like cancer, heart disease, or stroke. 13. Which of the following is required to issue a health insurance policy in Connecticut? A) Proof of medical exam B) Proof of good health C) Proof of insurability D) Proof of financial need
D) A policyholder’s beneficiaries receive the death benefit early due to a terminal illness Answer: A) A policyholder sells their life insurance policy to a third party for a lump sum Explanation: A viatical settlement involves the sale of a life insurance policy to a third party in exchange for a lump sum, typically when the policyholder has a terminal illness.
17. What is the "contestability period" for a life insurance policy in Connecticut? A) 1 year B) 2 years C) 3 years D) 5 years Answer: B) 2 years Explanation: The contestability period for life insurance policies in Connecticut is 2 years, during which an insurer can investigate claims for misrepresentation or fraud. 18. Which of the following is NOT typically covered under a health maintenance organization (HMO) plan? A) Primary care physician visits B) Specialist referrals C) Emergency care D) Out-of-network care without prior authorization Answer: D) Out-of-network care without prior authorization Explanation: HMO plans generally require that members get care from in-network providers and often require prior authorization for out-of-network care.
19. In Connecticut, which type of insurance policy would be appropriate for someone who wants a fixed premium and death benefit with a cash value component? A) Term life insurance B) Universal life insurance C) Whole life insurance D) Variable life insurance Answer: C) Whole life insurance Explanation: Whole life insurance offers fixed premiums, fixed death benefits, and builds cash value. 30. Which of the following is NOT considered a characteristic of term life insurance? A) Provides coverage for a specific period of time B) Premiums increase with age C) Does not accumulate cash value D) Can be renewed at any time without evidence of insurability Answer: D) Can be renewed at any time without evidence of insurability Explanation: While some term policies are renewable, renewal generally requires evidence of insurability and may come with higher premiums as the insured gets older. 31. Which of the following best describes a "variable life insurance" policy? A) A policy with premiums that fluctuate based on the policyholder’s age B) A policy that allows the policyholder to allocate the cash value to various investment options C) A policy with guaranteed premiums and death benefits D) A policy that only provides death benefits without cash value Answer: B) A policy that allows the policyholder to allocate the cash value to various investment options
C) Providing false information about the applicant's health to get a lower premium D) Delaying payment of premiums Answer: C) Providing false information about the applicant's health to get a lower premium Explanation: Providing false health information to obtain a lower premium or gain coverage that would not otherwise be granted is considered insurance fraud.
35. In Connecticut, health insurance companies are required to provide which of the following types of coverage for mental health conditions? A) Coverage for all types of mental illness B) Coverage for only severe mental illnesses C) Coverage equal to that for physical health conditions (parity) D) Coverage only for psychiatric hospitalization Answer: C) Coverage equal to that for physical health conditions (parity) Explanation: Connecticut law mandates that mental health coverage be provided on the same terms and conditions as physical health coverage (mental health parity). 36. In Connecticut, what is the maximum amount of time that an insurance company may issue a conditional receipt for a life insurance policy before the policy is formally issued? A) 7 days B) 60 days C) 90 days D) 120 days Answer: B) 60 days Explanation: The conditional receipt for life insurance is valid for up to 60 days from the date of issuance, depending on whether the policyholder is approved for coverage.
37. Which of the following is a requirement for an insurance company to issue a health insurance policy in Connecticut? A) Proof of income B) Proof of insurability C) A clean medical history D) Proof of employer affiliation Answer: B) Proof of insurability Explanation: Insurers may require proof of insurability, such as a medical examination or questionnaire, to determine whether a person is eligible for coverage. 38. What is the maximum amount of time an insurance company can wait to contest a claim in Connecticut if there is a material misstatement on the application? A) 1 year B) 2 years C) 3 years D) 5 years Answer: B) 2 years Explanation: In Connecticut, life insurance policies can only be contested for up to 2 years based on material misstatements made on the application. 39. When a life insurance policy is surrendered, the policyholder receives the: A) Face amount of the policy B) Cash surrender value C) Death benefit D) Premium paid Answer: B) Cash surrender value
Answer: B) The insurer cannot contest a claim after a specific period (usually 2 years) Explanation: The incontestability clause prevents insurers from contesting a life insurance claim after a period of time (usually 2 years), except for cases of fraud.
43. What is the primary function of a health insurance "exclusion rider"? A) It allows the insured to waive premiums for a period of time B) It increases the death benefit for certain events C) It excludes coverage for specific conditions or treatments D) It guarantees coverage for certain types of care Answer: C) It excludes coverage for specific conditions or treatments Explanation: An exclusion rider is added to an insurance policy to exclude coverage for specific conditions, such as pre-existing conditions or certain treatments. 44. Under Connecticut law, which of the following must a life insurance policy provide? A) A waiver of premium rider B) A guaranteed interest rate C) A 10 - day free-look period D) An accelerated death benefit rider Answer: C) A 10 - day free-look period Explanation: A life insurance policy must provide a 10 - day free-look period, during which the policyholder can cancel the policy for a full refund. 45. Which of the following statements about health maintenance organizations (HMOs) is TRUE in Connecticut? A) HMOs have no network restrictions for providers B) HMO members can see specialists without a referral
C) HMOs require a primary care physician to coordinate care D) HMO premiums are usually higher than PPO premiums Answer: C) HMOs require a primary care physician to coordinate care Explanation: HMOs typically require members to select a primary care physician (PCP) who coordinates all healthcare services, including referrals to specialists.
46. What is the maximum period of time for which Connecticut insurance companies may issue a disability income policy with a “waiting period”? A) 6 months B) 12 months C) 24 months D) 36 months Answer: B) 12 months Explanation: The waiting period, or elimination period, for a disability income policy in Connecticut typically cannot exceed 12 months. 47. In Connecticut, a "noncancelable" health insurance policy means that the insurer: A) Cannot cancel the policy, but can raise premiums B) Cannot cancel the policy or increase premiums C) Cannot increase premiums during the first year only D) Can cancel the policy after the first 2 years Answer: B) Cannot cancel the policy or increase premiums Explanation: A "noncancelable" policy means the insurer cannot cancel the policy or increase premiums as long as the policyholder continues to pay premiums. 48. What is a common feature of both life and health insurance policies in Connecticut?
51. What is the minimum age for an individual to purchase a life insurance policy on their own in Connecticut? A) 16 B) 18 C) 21 D) 25 Answer: B) 18 Explanation: In Connecticut, individuals 18 years and older can purchase life insurance policies on their own. 52. Which of the following is a feature of a "universal life insurance" policy? A) Flexible premium payments B) Fixed death benefit C) Both A and B D) None of the above Answer: C) Both A and B Explanation: Universal life insurance allows policyholders to adjust both their premiums and death benefit, offering flexibility while also providing a death benefit. 53. Under Connecticut law, health insurance companies must cover which of the following for newborns? A) Coverage is only provided if the newborn is hospitalized B) Coverage for the first 30 days of life without additional premium charges C) Coverage is provided, but with a waiting period of 90 days D) Coverage for newborns must be purchased separately Answer: B) Coverage for the first 30 days of life without additional premium charges
Explanation: In Connecticut, newborns are covered under the mother's health insurance policy for the first 30 days, with no additional premium required.
54. Which of the following health insurance policies typically provides coverage for a wide range of services, including preventive care and wellness checks? A) Catastrophic health insurance B) High-deductible health plans (HDHP) C) Comprehensive health insurance D) Short-term health insurance Answer: C) Comprehensive health insurance Explanation: Comprehensive health insurance provides broad coverage, including preventive care, hospitalization, and wellness checks. 55. In Connecticut, what is the maximum number of years that a life insurance policy can provide for a "level premium"? A) 5 years B) 10 years C) Until the policyholder turns 100 D) The length of the insured's lifetime Answer: C) Until the policyholder turns 100 Explanation: A level premium life insurance policy in Connecticut is typically guaranteed for the lifetime of the policyholder or until they reach 100 years old. 56. Which of the following is a valid reason for an insurer to deny a claim for a health insurance policy under Connecticut law? A) The insured missed a premium payment B) The insured had a pre-existing condition within the first year C) The insured misrepresented their health status on the application D) The insured was treated at an out-of-network provider
A) To approve or deny claims B) To negotiate policy terms on behalf of insurance companies C) To sell and service insurance policies to clients D) To underwrite policies for insurance companies Answer: C) To sell and service insurance policies to clients Explanation: An insurance producer, also known as an agent, sells and services insurance policies on behalf of insurance companies.
60. Which of the following is NOT a requirement for an insurance agent to maintain their license in Connecticut? A) Complete continuing education B) Renew their license periodically C) Have a clean criminal record D) Have at least 2 years of sales experience Answer: D) Have at least 2 years of sales experience Explanation: While continuing education and a clean criminal record are necessary for license renewal, there is no minimum sales experience requirement for insurance agents in Connecticut. 61. A life insurance policy that provides a death benefit only if the insured dies within a specified period (e.g., 20 years) is called: A) Whole life insurance B) Universal life insurance C) Term life insurance D) Variable life insurance Answer: C) Term life insurance Explanation: Term life insurance provides coverage for a specified period, with the death benefit only payable if the insured dies during that period.
62. Which of the following is an example of a "policy loan" option in a life insurance policy? A) A cash advance on the death benefit B) Borrowing from the policy's cash value C) A loan that must be repaid with interest D) A loan that does not need to be repaid Answer: B) Borrowing from the policy's cash value Explanation: A policy loan allows the policyholder to borrow against the accumulated cash value of their life insurance policy. 63. Which of the following is true regarding health insurance in Connecticut? A) Health insurance companies are prohibited from excluding coverage for pre- existing conditions B) Insurance companies can refuse to cover children of policyholders C) Insurance companies must accept all applicants, regardless of their health D) Health insurance premiums can increase based on a policyholder’s health history Answer: A) Health insurance companies are prohibited from excluding coverage for pre-existing conditions Explanation: Connecticut law prohibits insurers from excluding coverage for pre- existing conditions under health insurance policies. 64. What is the primary purpose of disability insurance? A) To cover funeral expenses B) To replace lost income if the policyholder is unable to work due to illness or injury C) To provide financial support for the policyholder’s family in case of death D) To pay for medical bills Answer: B) To replace lost income if the policyholder is unable to work due to illness or injury
