LIFE INSURANCE LICENSING STUDY GUIDE
2026 ACTUAL QUESTIONS WITH
SOLUTIONS GRADED A+
● An insured has Medicare Part D coverage. Upon reaching the out-of-
pocket cap, what percentage of the prescription drug cost is the insured
responsible for paying?. Answer: 0%
● How is emergency care covered for a member of an HMO?. Answer:
A member of an HMO may receive care in or out of the HMO service
area, but care is preferred in the service area.
● Which of the following describes taxation of individual disability
income insurance premiums and benefits. Answer: Premiums are not tax
deductible, and benefits are not taxable.
● Most scheduled plans provide first-dollar benefits without. Answer:
coinsurance and deductibles
● An employee becomes insured under a PPO plan provided by his
employer. If the insured decides to go to a physician who is not a PPO
provider, which of the following will happen?. Answer: The PPO will
pay reduced benefits
,● A 55-year-old employee has worked part-time for his new employer
for 3 months now, but has not been offered health insurance. What factor
has limited the employee's eligibility?. Answer: Number of hours
worked per week
● When an insurer issues an individual health insurance policy that is
guaranteed renewable, the insurer agrees. Answer: To renew the policy
until the insured has reached age 65.
● A long term care insurance shoppers guide must be provided in the
format developed by which of the following. Answer: NAIC national
association of insurance commissioners
● In which of the following locations would skilled care most likely be
provided?. Answer: In an institutional setting
● All of the following are true regarding the medical information bureau
(MIB) EXCEPT. Answer: MIB reports are based upon information
supplied by doctors and hospitals
● Which of the following is another term for the accumulation period of
an annuity. Answer: Pay-in period (The accumulation period is also
known as the pay-in period. It is the period of time over which the
annuitant makes payments (premiums) into an annuity.)
, ● An insurer devises an intimidating strategy in order to corner a large
portion of the insurance market. Which of the following best describes
this practice. Answer: Illegal
● In order to reduce his premium, David's insurer backdated his life
insurance policy's effect date for the maximum amount of time allowed
by law. His policy must have been backdated for how long ago?.
Answer: 6 months
● The current interest rate on an equity indexed annuity is often based
on. Answer: An index like Standard & Poor's 500
● Which of the following best describes the aleatory nature of an
insurance contract. Answer: Exchange of unequal values
● An insurance company receives an application with some information
missing and issues the policy anyway. What is this called. Answer:
waiver
● The policy owner of a Universal Life insurance policy must receive a
policy status report from the insurer at least. Answer: Annually
● Which of the following is excluded in a dental insurance plan.
Answer: Lost dentures
2026 ACTUAL QUESTIONS WITH
SOLUTIONS GRADED A+
● An insured has Medicare Part D coverage. Upon reaching the out-of-
pocket cap, what percentage of the prescription drug cost is the insured
responsible for paying?. Answer: 0%
● How is emergency care covered for a member of an HMO?. Answer:
A member of an HMO may receive care in or out of the HMO service
area, but care is preferred in the service area.
● Which of the following describes taxation of individual disability
income insurance premiums and benefits. Answer: Premiums are not tax
deductible, and benefits are not taxable.
● Most scheduled plans provide first-dollar benefits without. Answer:
coinsurance and deductibles
● An employee becomes insured under a PPO plan provided by his
employer. If the insured decides to go to a physician who is not a PPO
provider, which of the following will happen?. Answer: The PPO will
pay reduced benefits
,● A 55-year-old employee has worked part-time for his new employer
for 3 months now, but has not been offered health insurance. What factor
has limited the employee's eligibility?. Answer: Number of hours
worked per week
● When an insurer issues an individual health insurance policy that is
guaranteed renewable, the insurer agrees. Answer: To renew the policy
until the insured has reached age 65.
● A long term care insurance shoppers guide must be provided in the
format developed by which of the following. Answer: NAIC national
association of insurance commissioners
● In which of the following locations would skilled care most likely be
provided?. Answer: In an institutional setting
● All of the following are true regarding the medical information bureau
(MIB) EXCEPT. Answer: MIB reports are based upon information
supplied by doctors and hospitals
● Which of the following is another term for the accumulation period of
an annuity. Answer: Pay-in period (The accumulation period is also
known as the pay-in period. It is the period of time over which the
annuitant makes payments (premiums) into an annuity.)
, ● An insurer devises an intimidating strategy in order to corner a large
portion of the insurance market. Which of the following best describes
this practice. Answer: Illegal
● In order to reduce his premium, David's insurer backdated his life
insurance policy's effect date for the maximum amount of time allowed
by law. His policy must have been backdated for how long ago?.
Answer: 6 months
● The current interest rate on an equity indexed annuity is often based
on. Answer: An index like Standard & Poor's 500
● Which of the following best describes the aleatory nature of an
insurance contract. Answer: Exchange of unequal values
● An insurance company receives an application with some information
missing and issues the policy anyway. What is this called. Answer:
waiver
● The policy owner of a Universal Life insurance policy must receive a
policy status report from the insurer at least. Answer: Annually
● Which of the following is excluded in a dental insurance plan.
Answer: Lost dentures
