CCTC EXAMINATION TWO PRACTICE TEST
2026 TESTED QUESTIONS GRADED A+
⩥ Extended Term. Answer: Nonforfeiture option provides new TERM
policy with same face amount of coverage as original policy
⩥ Guaranteed Lifetime Withdrawal. Answer: Annuity rider that assures
owner will at least get amount paid for the annuity
⩥ Guaranteed Minimum Income. Answer: Rider that guarantees you will
get a set amount annually
⩥ Paid-Up Additions. Answer: Increase the death benefit of the original
policy by the amount the dividend will buy
⩥ Needs Approach. Answer: The predicted needs of a family after the
premature death of the insured
⩥ 3 Factors that determine premium of life insurance policy. Answer:
Mortality, Interest, Expense
⩥ Optionally Renewable. Answer: Allows insurer to terminate policy for
any reason or increase premiums for a class of insureds on specified
date. Only allowed to terminate on premium due dates
, ⩥ Monthly Premium for health insurance- How long is grace period.
Answer: 10 days for monthly pay mode. 7 days for weekly pay mode. 31
days for all other modes.
⩥ Purpose of Coinsurance provision. Answer: Prevent overutilization of
policy benefits
⩥ What does "level" refer to in level term insurance?. Answer: Face
Amount
⩥ Limited Pay Whole Life. Answer: Policyholder only pays premiums
for a specified number of years. The whole policy is paid by age 100.
⩥ What type of policy can a policyowner skip payments without
lapsing?. Answer: Universal
⩥ Death Benefit Options in Universal Life. Answer: Option A- Level
death benefit, gradually increasing cash value. IRS Corridor
Option B- Increasing death benefit
⩥ In Variable Universal, what is variable?. Answer: Cash Value and Face
Amount
2026 TESTED QUESTIONS GRADED A+
⩥ Extended Term. Answer: Nonforfeiture option provides new TERM
policy with same face amount of coverage as original policy
⩥ Guaranteed Lifetime Withdrawal. Answer: Annuity rider that assures
owner will at least get amount paid for the annuity
⩥ Guaranteed Minimum Income. Answer: Rider that guarantees you will
get a set amount annually
⩥ Paid-Up Additions. Answer: Increase the death benefit of the original
policy by the amount the dividend will buy
⩥ Needs Approach. Answer: The predicted needs of a family after the
premature death of the insured
⩥ 3 Factors that determine premium of life insurance policy. Answer:
Mortality, Interest, Expense
⩥ Optionally Renewable. Answer: Allows insurer to terminate policy for
any reason or increase premiums for a class of insureds on specified
date. Only allowed to terminate on premium due dates
, ⩥ Monthly Premium for health insurance- How long is grace period.
Answer: 10 days for monthly pay mode. 7 days for weekly pay mode. 31
days for all other modes.
⩥ Purpose of Coinsurance provision. Answer: Prevent overutilization of
policy benefits
⩥ What does "level" refer to in level term insurance?. Answer: Face
Amount
⩥ Limited Pay Whole Life. Answer: Policyholder only pays premiums
for a specified number of years. The whole policy is paid by age 100.
⩥ What type of policy can a policyowner skip payments without
lapsing?. Answer: Universal
⩥ Death Benefit Options in Universal Life. Answer: Option A- Level
death benefit, gradually increasing cash value. IRS Corridor
Option B- Increasing death benefit
⩥ In Variable Universal, what is variable?. Answer: Cash Value and Face
Amount
