CTPRP CERTIFICATION EXAM SCRIPT 2026
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Agents must act in the best interests of applicants and insureds.
What does this require them to do? Answer: give all important
information about a proposed policy//Agents must act in the
applicant's or insured's best interests at all times. This means that
agents must give all important information about a proposed policy.
Also, they cannot misrepresent the terms or conditions of a
proposed policy.
◉ What does a viatical settlement allow? Answer: It allows a
chronically or terminally ill insured to gain a sum of money that is
needed to pay medical expenses or to enhance the quality of life.//A
viatical settlement allows a chronically or terminally ill insured to
gain a sum of money that might be needed to pay medical expenses
or to enhance quality of life.
◉ If an employer/employee group offers group life insurance on a
contributory basis, what percentage of the group must enroll?
Answer: At least 75 percent of the group must enroll in the plan//If
an employer/employee group life insurance plan is contributory, 75
percent of the group must enroll in the plan. If the plan is non-
contributory, 100 percent of the group must enroll.
,◉ Which of the following is NOT a life insurance premium? Answer:
competitors' rates//Actuaries base life insurance premiums on
three basic factors: mortality (a charge), interest (a credit), and
expenses (a charge).
◉ In calculating their mortality charges, life insurers today generally
use: Answer: the 2001 CSO table//The mortality factor is drawn
from mortality statistics compiled by the National Association of
Insurance Commissioners (NAIC) into a set of rates called the
Commissioners Standard Ordinary (CSO) table. Policies issued since
2009 are required to base their mortality charges on the 2001 CSO
table.
◉ All of the following are standard life insurance policy
nonforfeiture options EXCEPT: Answer: accumulate at interest
option//This is a policy dividend option in which declared dividends
are left with the insurer to accumulate interest on the policyowner's
behalf.
◉ Which of the following most correctly describes the nonforfeiture
option(s) available with universal life insurance? Answer: surrender
the policy for its cash value or stop paying premiums and continue
coverage as long as the cash value will support it//Universal life
policies do not contain the standard nonforfeiture options. Instead,
the policyowner can either surrender the policy for its cash value or
continue coverage with no further premium payments, in which case
,coverage will last for as long as the cash value is able to support the
policy's monthly mortality and expense charge deductions.
◉ James wants to convert his $150,000 traditional IRA to a Roth IRA.
What best describes the tax treatment for the Roth conversion?
Answer: The converted funds are taxed, but Roth IRA earnings and
distribution will be tax free.//The $150,000 from the traditional IRA
has been deferred so it will be taxed upon conversion. However, as
long as James holds the new Roth IRA for at least five years and is
older than 59', distributions from the Roth IRA will be tax free.
◉ Under variable life insurance plans, policy loans can be as high as
what percent of the cash value? Answer: 75 to 90 percent//Policy
loans under traditional whole life insurance plans can be as high as
100 percent of the cash value, but with variable life insurance the
maximum loan amount is something less than the full cash value
(e.g., 75 to 90 percent of the cash value), less any debt currently
outstanding against the policy.
◉ Under which nonforfeiture option does permanent life insurance
continue in force with no further need for premiums? Answer:
reduced paid-up option//A paid-up policy under the reduced paid-
up option requires no further premiums (nor can any be paid). The
paid-up policy retains a cash value that will continue to grow
throughout the life of the policy. However, it will grow much more
slowly than during the period that premiums were being paid.
, ◉ Which of the following can be funded with a single premium
payment, a series of fixed premium payments, or flexible premium
payments? Answer: deferred annuities//Deferred annuities can be
funded with a single premium payment, a series of fixed premium
payments, or with flexible premium payments. Moreover, the owner
can make these payments whenever and in whatever amount he or
she wants.
◉ How does the cost of group life insurance generally compare to
the cost of individual life insurance? Answer: Group life is less
expensive.//Per unit of benefits or coverage, group life insurance is
less expensive than individual life insurance because it has lower
administrative and operational costs.
◉ Which of the following statements about the 'accumulate at
interest' policy dividend option is correct? Answer: The insurer
credits a rate of interest to the dividends as they remain on deposit
with the insurer.//The insurer credits a rate of interest to the
dividends as they remain on deposit with the insurer.
◉ When it comes to choosing a financial instrument to fund a
qualified retirement account, which of the following features makes
an annuity the most suitable product? Answer: retirement income
that is guaranteed for life//All qualified retirement plan assets enjoy
tax-deferred growth and tax-deductible deposits, and many offer a
variety of investment choices, but only a deferred annuity can be
converted to an income stream that is guaranteed for life.
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Agents must act in the best interests of applicants and insureds.
What does this require them to do? Answer: give all important
information about a proposed policy//Agents must act in the
applicant's or insured's best interests at all times. This means that
agents must give all important information about a proposed policy.
Also, they cannot misrepresent the terms or conditions of a
proposed policy.
◉ What does a viatical settlement allow? Answer: It allows a
chronically or terminally ill insured to gain a sum of money that is
needed to pay medical expenses or to enhance the quality of life.//A
viatical settlement allows a chronically or terminally ill insured to
gain a sum of money that might be needed to pay medical expenses
or to enhance quality of life.
◉ If an employer/employee group offers group life insurance on a
contributory basis, what percentage of the group must enroll?
Answer: At least 75 percent of the group must enroll in the plan//If
an employer/employee group life insurance plan is contributory, 75
percent of the group must enroll in the plan. If the plan is non-
contributory, 100 percent of the group must enroll.
,◉ Which of the following is NOT a life insurance premium? Answer:
competitors' rates//Actuaries base life insurance premiums on
three basic factors: mortality (a charge), interest (a credit), and
expenses (a charge).
◉ In calculating their mortality charges, life insurers today generally
use: Answer: the 2001 CSO table//The mortality factor is drawn
from mortality statistics compiled by the National Association of
Insurance Commissioners (NAIC) into a set of rates called the
Commissioners Standard Ordinary (CSO) table. Policies issued since
2009 are required to base their mortality charges on the 2001 CSO
table.
◉ All of the following are standard life insurance policy
nonforfeiture options EXCEPT: Answer: accumulate at interest
option//This is a policy dividend option in which declared dividends
are left with the insurer to accumulate interest on the policyowner's
behalf.
◉ Which of the following most correctly describes the nonforfeiture
option(s) available with universal life insurance? Answer: surrender
the policy for its cash value or stop paying premiums and continue
coverage as long as the cash value will support it//Universal life
policies do not contain the standard nonforfeiture options. Instead,
the policyowner can either surrender the policy for its cash value or
continue coverage with no further premium payments, in which case
,coverage will last for as long as the cash value is able to support the
policy's monthly mortality and expense charge deductions.
◉ James wants to convert his $150,000 traditional IRA to a Roth IRA.
What best describes the tax treatment for the Roth conversion?
Answer: The converted funds are taxed, but Roth IRA earnings and
distribution will be tax free.//The $150,000 from the traditional IRA
has been deferred so it will be taxed upon conversion. However, as
long as James holds the new Roth IRA for at least five years and is
older than 59', distributions from the Roth IRA will be tax free.
◉ Under variable life insurance plans, policy loans can be as high as
what percent of the cash value? Answer: 75 to 90 percent//Policy
loans under traditional whole life insurance plans can be as high as
100 percent of the cash value, but with variable life insurance the
maximum loan amount is something less than the full cash value
(e.g., 75 to 90 percent of the cash value), less any debt currently
outstanding against the policy.
◉ Under which nonforfeiture option does permanent life insurance
continue in force with no further need for premiums? Answer:
reduced paid-up option//A paid-up policy under the reduced paid-
up option requires no further premiums (nor can any be paid). The
paid-up policy retains a cash value that will continue to grow
throughout the life of the policy. However, it will grow much more
slowly than during the period that premiums were being paid.
, ◉ Which of the following can be funded with a single premium
payment, a series of fixed premium payments, or flexible premium
payments? Answer: deferred annuities//Deferred annuities can be
funded with a single premium payment, a series of fixed premium
payments, or with flexible premium payments. Moreover, the owner
can make these payments whenever and in whatever amount he or
she wants.
◉ How does the cost of group life insurance generally compare to
the cost of individual life insurance? Answer: Group life is less
expensive.//Per unit of benefits or coverage, group life insurance is
less expensive than individual life insurance because it has lower
administrative and operational costs.
◉ Which of the following statements about the 'accumulate at
interest' policy dividend option is correct? Answer: The insurer
credits a rate of interest to the dividends as they remain on deposit
with the insurer.//The insurer credits a rate of interest to the
dividends as they remain on deposit with the insurer.
◉ When it comes to choosing a financial instrument to fund a
qualified retirement account, which of the following features makes
an annuity the most suitable product? Answer: retirement income
that is guaranteed for life//All qualified retirement plan assets enjoy
tax-deferred growth and tax-deductible deposits, and many offer a
variety of investment choices, but only a deferred annuity can be
converted to an income stream that is guaranteed for life.
