GENERAL PRACTICE EXAM-MD ACCIDENT, HEALTH & LIFE
PRODUCER PRACTICE EXAM C 290 ACTUAL EXAM QUESTIONS WITH
100% CORRECT VERIFIED ANSWERS LATEST 2024
1. Marty is 56 years old and he just made a withdrawal from his IRA. What would Marty pay
for his withdrawal from his account?
A. Nothing
B. 10% penalty
C. 15% penalty
D. 20% penalty: 10% penalty
2. Which life insurance policy issued by a mutual insurer provides a return of divisible
surplus? A. Nonparticipating
B. Participating
C. Divisible
D. Earned income: Participating
3. If a producer makes untrue statements on an application, it is considered to be a(n):
A. Omission
B. Warranty breach
C. Negligence
D. Misrepresentation: Misrepresentation
4. Henry's is an insurance applicant. His statements regarding his job, hobbies and history
background is best related to which of the following?
A. Warranty
B. Representation
C. Insurable interest
D. Collateral: Representation
5. What type of employee Welfare plan is exempt from Erisa's regulations?
A. Church plans
B. Prepaid legal services
C. Day Care benefits
D. Disability and Life insurance: Church plans
6. Joan wants to put some of her money aside from her savings account to take care of her
family's financial needs when she dies. Her risk is treated in which manner? A. Indemnity
B. Retention
C. Exposure
D. Speculative: Retention
,7. George, the owner of an art shop, is very concerned that his employees may help
themselves to his art supplies from his inventory without paying for them.
What hazard does this represent?
A. Physical
B. Morale
C. Moral
D. Community: Moral
8. What term refers to accepting a risk and confronting it as it occurs called? A. Retention
B. Indemnity
C. Consideration
D. Self- insuring: Retention
9. An authorized but non-admitted insurer can be represented in this state only by which of
the following? A. Domestic insurer
B. Surplus Lines Broker
C. Licensed producer
D. Mutual Insurer: Surplus Lines Broker
10. An insurance company that is owned by its policyholders and can pay annual dividends
to them is considered :
A. Reciprocal Exchange
B. Mutual Company
C. Risk Retention Group
D. Stock Company: Mutual Company
11. Partner A and Partner B are in business together. Partner A bought a Life insurance policy
on Partner B to protect herself against a financial loss if her partner should die. Two years
after their partnership was dissolved Partner B dies. Who will receive the death benefit?
A. The beneficiary will be determined by state probate court if Partner B did not have a
will B. Estate of Partner B C. Partner A
D. No death benefit will be paid because insurable interest didn't exist at their death:
Partner A
12. What does "liquidity" refer to in a Life insurance policy?
A. The insured is receiving payments each month in retirement
B. The policy owner receives dividend checks each year
C. Cash values can be borrowed at any time
D. The death benefit replaces the assets that would have accumulated if an insured had not
died: Cash values can be borrowed at any time
13. What term refers to taxes being paid from Life Insurance proceeds, so it isn't necessary
to sell assets from an estate, to pay for them?
A. Estate Creation
,B. Estate Conservation
C. Estate Compensation
D. Estate Calculation: Estate Conservation
14. What type of Buy Sell agreement involves a partnership?
A. Cross Purchase Plan
B. Entity Plan
C. Stock Redemption Plan
D. Corporation Plan: Entity Plan
15. A replacing Life insurer must maintain a register for a replaced policy for how many
years?
A. 2
years B.
4 years
C. 5 years
D. 3 years: 5 years
16. An Industrial Life Insurance Policy has a face amount that is:
A. $3,000 or less
B. $1,000 or less
C. $2,500 or less
D. $5,000 or less: $1,000 or less
17. Which of the following is an example of replacement?
A. Cancel a Return Policy to purchase a LTC Policy
B. Cancel a Whole Life policy to purchase a Term Policy
C. Cancel a Term Policy to purchase a Disability Policy
D. Cancel a Major Medical Policy to purchase a Disability Policy: Cancel a
Whole Life policy to purchase a Term Policy
18. The special significance of a conditional receipt is that it:
A. Is given only to applicants who fully prepay all scheduled premiums in advance of
their issued policy
B. Is intended to provide coverage on a date earlier than the date of the issuance of the
policy
C. Guarantees an applicant that a policy will be issued in the amount applied for in their
application
D. Serves as proof that an agent has determined an applicant to be fully insur-able for
coverage by the insurance company: Is intended to provide coverage on a date earlier than
the date of the issuance of the policy
19. John was just delivered his Life insurance policy. How many days can he review it and
decide if it is best for him to keep?
, A. 5 days
B. 7 days
C. 10 days
D. 15 days: 10 days
20. What approach helps with the prediction of an individual's earning potential and how
much of it would be devoted to their dependents?
A. Needs
B. Human Life
C. Retirement
D. Social Security: Human Life
21. When a replacement is involved, a replacing insurance company is responsible for all of
the following EXCEPT:
A. Obtain from the producer a list of the applicant's contracts to be replaced B. Include a
policy summary on the proposed Life Insurance in the communication with the existing
company
C. Provide a copy of the Notice Regarding Replacement of Life Insurance to an applicant
D. Send the existing insurance company a written notice of replacement: Provide a copy
of the Notice Regarding Replacement of Life Insurance to an applicant
22. Which risk would pay the highest premium?
A. Substandard
B. Preferred
C. Declined
D. Average: Substandard
23. What legal agreement dictates who may buy a deceased business partner's share of their
business?
A. Key Person
B. Buy Sell
C. Business Overhead
D. Pure Salary: Buy Sell
24. Which of the following is usually true of a participating Life Insurance Policy?
A. An attorney in fact manages the company
B. It may be converted to a Term Life policy
C. It pays dividends to its stockholders
D. It pays dividends to its policy owners: It pays dividends to its policy owners
25. Members of the Armed Forces can obtain _________, also called SGLI.
A. PPO Individual Life Insurance
B. Group Universal Life Insurance
PRODUCER PRACTICE EXAM C 290 ACTUAL EXAM QUESTIONS WITH
100% CORRECT VERIFIED ANSWERS LATEST 2024
1. Marty is 56 years old and he just made a withdrawal from his IRA. What would Marty pay
for his withdrawal from his account?
A. Nothing
B. 10% penalty
C. 15% penalty
D. 20% penalty: 10% penalty
2. Which life insurance policy issued by a mutual insurer provides a return of divisible
surplus? A. Nonparticipating
B. Participating
C. Divisible
D. Earned income: Participating
3. If a producer makes untrue statements on an application, it is considered to be a(n):
A. Omission
B. Warranty breach
C. Negligence
D. Misrepresentation: Misrepresentation
4. Henry's is an insurance applicant. His statements regarding his job, hobbies and history
background is best related to which of the following?
A. Warranty
B. Representation
C. Insurable interest
D. Collateral: Representation
5. What type of employee Welfare plan is exempt from Erisa's regulations?
A. Church plans
B. Prepaid legal services
C. Day Care benefits
D. Disability and Life insurance: Church plans
6. Joan wants to put some of her money aside from her savings account to take care of her
family's financial needs when she dies. Her risk is treated in which manner? A. Indemnity
B. Retention
C. Exposure
D. Speculative: Retention
,7. George, the owner of an art shop, is very concerned that his employees may help
themselves to his art supplies from his inventory without paying for them.
What hazard does this represent?
A. Physical
B. Morale
C. Moral
D. Community: Moral
8. What term refers to accepting a risk and confronting it as it occurs called? A. Retention
B. Indemnity
C. Consideration
D. Self- insuring: Retention
9. An authorized but non-admitted insurer can be represented in this state only by which of
the following? A. Domestic insurer
B. Surplus Lines Broker
C. Licensed producer
D. Mutual Insurer: Surplus Lines Broker
10. An insurance company that is owned by its policyholders and can pay annual dividends
to them is considered :
A. Reciprocal Exchange
B. Mutual Company
C. Risk Retention Group
D. Stock Company: Mutual Company
11. Partner A and Partner B are in business together. Partner A bought a Life insurance policy
on Partner B to protect herself against a financial loss if her partner should die. Two years
after their partnership was dissolved Partner B dies. Who will receive the death benefit?
A. The beneficiary will be determined by state probate court if Partner B did not have a
will B. Estate of Partner B C. Partner A
D. No death benefit will be paid because insurable interest didn't exist at their death:
Partner A
12. What does "liquidity" refer to in a Life insurance policy?
A. The insured is receiving payments each month in retirement
B. The policy owner receives dividend checks each year
C. Cash values can be borrowed at any time
D. The death benefit replaces the assets that would have accumulated if an insured had not
died: Cash values can be borrowed at any time
13. What term refers to taxes being paid from Life Insurance proceeds, so it isn't necessary
to sell assets from an estate, to pay for them?
A. Estate Creation
,B. Estate Conservation
C. Estate Compensation
D. Estate Calculation: Estate Conservation
14. What type of Buy Sell agreement involves a partnership?
A. Cross Purchase Plan
B. Entity Plan
C. Stock Redemption Plan
D. Corporation Plan: Entity Plan
15. A replacing Life insurer must maintain a register for a replaced policy for how many
years?
A. 2
years B.
4 years
C. 5 years
D. 3 years: 5 years
16. An Industrial Life Insurance Policy has a face amount that is:
A. $3,000 or less
B. $1,000 or less
C. $2,500 or less
D. $5,000 or less: $1,000 or less
17. Which of the following is an example of replacement?
A. Cancel a Return Policy to purchase a LTC Policy
B. Cancel a Whole Life policy to purchase a Term Policy
C. Cancel a Term Policy to purchase a Disability Policy
D. Cancel a Major Medical Policy to purchase a Disability Policy: Cancel a
Whole Life policy to purchase a Term Policy
18. The special significance of a conditional receipt is that it:
A. Is given only to applicants who fully prepay all scheduled premiums in advance of
their issued policy
B. Is intended to provide coverage on a date earlier than the date of the issuance of the
policy
C. Guarantees an applicant that a policy will be issued in the amount applied for in their
application
D. Serves as proof that an agent has determined an applicant to be fully insur-able for
coverage by the insurance company: Is intended to provide coverage on a date earlier than
the date of the issuance of the policy
19. John was just delivered his Life insurance policy. How many days can he review it and
decide if it is best for him to keep?
, A. 5 days
B. 7 days
C. 10 days
D. 15 days: 10 days
20. What approach helps with the prediction of an individual's earning potential and how
much of it would be devoted to their dependents?
A. Needs
B. Human Life
C. Retirement
D. Social Security: Human Life
21. When a replacement is involved, a replacing insurance company is responsible for all of
the following EXCEPT:
A. Obtain from the producer a list of the applicant's contracts to be replaced B. Include a
policy summary on the proposed Life Insurance in the communication with the existing
company
C. Provide a copy of the Notice Regarding Replacement of Life Insurance to an applicant
D. Send the existing insurance company a written notice of replacement: Provide a copy
of the Notice Regarding Replacement of Life Insurance to an applicant
22. Which risk would pay the highest premium?
A. Substandard
B. Preferred
C. Declined
D. Average: Substandard
23. What legal agreement dictates who may buy a deceased business partner's share of their
business?
A. Key Person
B. Buy Sell
C. Business Overhead
D. Pure Salary: Buy Sell
24. Which of the following is usually true of a participating Life Insurance Policy?
A. An attorney in fact manages the company
B. It may be converted to a Term Life policy
C. It pays dividends to its stockholders
D. It pays dividends to its policy owners: It pays dividends to its policy owners
25. Members of the Armed Forces can obtain _________, also called SGLI.
A. PPO Individual Life Insurance
B. Group Universal Life Insurance
