ACCIDENT AND HEALTH INSURANCE AGENT
EXAM PREP QUESTIONS AND SOLUTIONS
2026 TESTED AND VERIFIED
◉ 1) Sandra Timms, age 27, is advised by her producer to purchase
Life insurance to cover a 20-year-amortized $50,000 business-
improvement loan. Which of the following plans would adequately
protect Ms. Timms at the minimum premium outlay? Answer: A-
$50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
◉ 2) A 45-year old customer who is seeking to supplement his
retirement income at age 65 would not buy a: Answer: A- Deferred
Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
◉ 3) John Livingston owns a 30-Pay Life policy that he purchased at
the age of 30. The cash value will equal the face amount of the policy
when he reaches the age of: Answer: A- 60
,B- 70
C- 100
D- 30
◉ 4) Which of the following is an example of a Limited-Pay Life
policy? Answer: A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
◉ 5) Which of the following policies provides the greatest amount of
protection for an insured's premium dollar as well as some cash
accumulation? Answer: A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life
◉ 6) Which of the following individual policy conversions is usually
permitted without any evidence of insurability? Answer: A-
Conversion to a lower-premium plan
B- Conversion from a Whole Life policy to a Term policy
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance
,◉ 7) Which of the following is NOT correct regarding Ordinary
Whole Life policies? Answer: A- The premiums payments are owed
annually until you die or reach age 100
B- The cash value grows more quickly in the beginning years of the
policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent insurance
◉ 8) Which of the following statements is true about the premium
payment schedule for a Whole Life policy? Answer: A- Premiums are
payable for a designated period of time only, after which coverage is
no longer provided
B- Premiums are payable until the insured's retirement only, after
which coverage is continued automatically until the insured's death
C- One premium, in the amount of the insured's choice, is payable at
the time of application, and the balance of the premiums is deducted
from the face amount of the policy at the time of the insured's death
D- Premiums are payable throughout the insured's lifetime, and
coverage continues until the insured's death
, ◉ 9) A life insurance policy that covers two parties, but only pays
when the last party dies is known as: Answer: A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
◉ 10) Which of the following contracts requires that a series of
benefit payments be made at specified intervals? Answer: A- 20-Pay
Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
◉ 11) If a client wants cash value life insurance with a flexible
premium and an adjustable death benefit that will allow the policy
owner a choice of various cash value investment options, he should
buy: Answer: A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
◉ 12) If a person wants to invest a lump sum in an annuity that may
appreciate along with market and economic conditions, they should
buy a: Answer: A- Flexible premium Annuity
EXAM PREP QUESTIONS AND SOLUTIONS
2026 TESTED AND VERIFIED
◉ 1) Sandra Timms, age 27, is advised by her producer to purchase
Life insurance to cover a 20-year-amortized $50,000 business-
improvement loan. Which of the following plans would adequately
protect Ms. Timms at the minimum premium outlay? Answer: A-
$50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
◉ 2) A 45-year old customer who is seeking to supplement his
retirement income at age 65 would not buy a: Answer: A- Deferred
Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
◉ 3) John Livingston owns a 30-Pay Life policy that he purchased at
the age of 30. The cash value will equal the face amount of the policy
when he reaches the age of: Answer: A- 60
,B- 70
C- 100
D- 30
◉ 4) Which of the following is an example of a Limited-Pay Life
policy? Answer: A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
◉ 5) Which of the following policies provides the greatest amount of
protection for an insured's premium dollar as well as some cash
accumulation? Answer: A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life
◉ 6) Which of the following individual policy conversions is usually
permitted without any evidence of insurability? Answer: A-
Conversion to a lower-premium plan
B- Conversion from a Whole Life policy to a Term policy
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance
,◉ 7) Which of the following is NOT correct regarding Ordinary
Whole Life policies? Answer: A- The premiums payments are owed
annually until you die or reach age 100
B- The cash value grows more quickly in the beginning years of the
policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent insurance
◉ 8) Which of the following statements is true about the premium
payment schedule for a Whole Life policy? Answer: A- Premiums are
payable for a designated period of time only, after which coverage is
no longer provided
B- Premiums are payable until the insured's retirement only, after
which coverage is continued automatically until the insured's death
C- One premium, in the amount of the insured's choice, is payable at
the time of application, and the balance of the premiums is deducted
from the face amount of the policy at the time of the insured's death
D- Premiums are payable throughout the insured's lifetime, and
coverage continues until the insured's death
, ◉ 9) A life insurance policy that covers two parties, but only pays
when the last party dies is known as: Answer: A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
◉ 10) Which of the following contracts requires that a series of
benefit payments be made at specified intervals? Answer: A- 20-Pay
Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
◉ 11) If a client wants cash value life insurance with a flexible
premium and an adjustable death benefit that will allow the policy
owner a choice of various cash value investment options, he should
buy: Answer: A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
◉ 12) If a person wants to invest a lump sum in an annuity that may
appreciate along with market and economic conditions, they should
buy a: Answer: A- Flexible premium Annuity
