Connecticut Life and Health Insurance Exam
UPDATED ACTUAL Exam Questions and
CORRECT Answers
A producer has indicated to a potential client that the proposed life insurance is covered by the
Connecticut Life and Health Insurance Guaranty Association. This action taken by the producer
is - CORRECT ANSWER - "Prohibited by law". Pointing out to a prospective client that
the life insurance policy you are presenting is covered by the Connecticut Life and Health
Guaranty Association is prohibited by law.
Which of the following does NOT involve a life settlement transaction? - CORRECT
ANSWER - Converting term life coverage to whole life insurance. the business of life
settlements includes all of these except "Converting term life coverage to whole life insurance.
Life settlement brokers are NOT allowed to - CORRECT ANSWER - Complete
transactions prior to being approved for a license. Life settlement brokers need to be licensed
before conducting any life settlement transactions. the exception to this would be certain eligible
financial professionals.
A producer must complete____credit hours of continuing education for each licensing period. -
CORRECT ANSWER - 24 hours. All insurance agents must successfully complete 24
credit hours of continuing education every 2 years, prior to license renewal. Three of those hours
must be in ethics.
A life insurance policy provision that has the ability to reduce the death benefit is called the -
CORRECT ANSWER - Accelerated (living) benefit. Whatever amount is withdrawn from
an accelerated benefit will be deducted from the face amount when death occurs.
An officer for a corporation takes out numerous unsecured loans from the company's qualified
retirement plan. Which of these rules is the plan in violation of? - CORRECT ANSWER -
Exclusive benefit rule. The assets held in a company's qualified retirement plan must be
maintained for the exclusive benefit of the employees and their beneficiaries.
,A source of supplemental income for a life insurance policyowner can be derived from the -
CORRECT ANSWER - Cash value. Cash value may be used as a source to supplement a
policyowner's income.
Purchasing insurance is an example of risk - CORRECT ANSWER - Transference.
Purchasing insurance is an example of risk transference.
Which statement best describes a single premium whole life policy? - CORRECT
ANSWER - Paid-up policy that offers lifetime protection. A single premium whole life
policy provides protection for life as a paid-up policy.
Which of the following situations would allow funds to be deposited into a rollover IRA? -
CORRECT ANSWER - An employee quits her job and receives $50,000 from her
qualified plan.
Medical costs in birthing centers are lowered by using - CORRECT ANSWER - Certified
nurse midwives. Birthing centers reduce medical costs through the use of certified nurse
midwives.
What is a a "functional assessment" for long-term care benefits? - CORRECT ANSWER -
A review of the insured's ability to perform the activities of daily living. A "functional
assessment" determines the insured's ability to perform the activities of daily living (ADLs)
John bought a deferred annuity on Mary. John amends the contract years later to name Tom as
the recipient of the proceeds if Mary dies. Who is the annuitant for this contract? - CORRECT
ANSWER - Mary. In this situation, Mary is the annuitant because that is where the
proceeds of the annuity will be directed.
When does the producer give a premium receipt for a life insurance application? - CORRECT
ANSWER - "When the initial premium has been paid with the application". A premium
receipt is given to an applicant when the initial premium is paid with the application .
, Which statement is true regarding hospital preadmission certification for emergency situations? -
CORRECT ANSWER - Notification is required to be given after insured is admitted to the
hospital. Hospital preadmission certification typically requires notification to be given after the
patient is admitted to the hospital for an emergency situation. For nonemergency situations,
notification is to be given BEFORE admission.
When using the approach for life insurance planning, a lump sum may be created to provide for
all of the following EXCEPT - CORRECT ANSWER - "Employee benefits". The needs
approach to personal life insurance planning may involve creating a lump sum to provide for all
of these EXCEPT employee benefits.
How are the premiums for an individually-owned disability income policy treated for tax
purposes? - CORRECT ANSWER - Not tax-deductable at all. Premiums for individually-
owned disability income policy are not tax-deductable at all.
Which of the following must clearly be illustrated in ALL sales material for market value
adjusted annuities ? - CORRECT ANSWER - The market value adjustment can be either
upward or downward. Sales material used in the marketing of market value adjusted annuities in
Connecticut must clearly illustrate that the market value can be either upward or downward.
Why do insurers require a minimum number of employees participate in a group insurance plan?
- CORRECT ANSWER - Minimize adverse selection. The larger the group to be insured,
the more predictable will be the expected losses from the group.
A reciprocal insurer typically has an administrator who manages the premiums collected from
the group's members. This administrator is called a(n) - CORRECT ANSWER - Attorney-
in-fact. The administrator of a reciprocal insurer who manages the premiums collected from the
group's members is called an attorney-in-fact.
How are qualified Roth IRA distributions normally treated for tax purposes? - CORRECT
ANSWER - Received income tax-free. Qualified distributions are received income tax-
free in a Roth IRA.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
A producer has indicated to a potential client that the proposed life insurance is covered by the
Connecticut Life and Health Insurance Guaranty Association. This action taken by the producer
is - CORRECT ANSWER - "Prohibited by law". Pointing out to a prospective client that
the life insurance policy you are presenting is covered by the Connecticut Life and Health
Guaranty Association is prohibited by law.
Which of the following does NOT involve a life settlement transaction? - CORRECT
ANSWER - Converting term life coverage to whole life insurance. the business of life
settlements includes all of these except "Converting term life coverage to whole life insurance.
Life settlement brokers are NOT allowed to - CORRECT ANSWER - Complete
transactions prior to being approved for a license. Life settlement brokers need to be licensed
before conducting any life settlement transactions. the exception to this would be certain eligible
financial professionals.
A producer must complete____credit hours of continuing education for each licensing period. -
CORRECT ANSWER - 24 hours. All insurance agents must successfully complete 24
credit hours of continuing education every 2 years, prior to license renewal. Three of those hours
must be in ethics.
A life insurance policy provision that has the ability to reduce the death benefit is called the -
CORRECT ANSWER - Accelerated (living) benefit. Whatever amount is withdrawn from
an accelerated benefit will be deducted from the face amount when death occurs.
An officer for a corporation takes out numerous unsecured loans from the company's qualified
retirement plan. Which of these rules is the plan in violation of? - CORRECT ANSWER -
Exclusive benefit rule. The assets held in a company's qualified retirement plan must be
maintained for the exclusive benefit of the employees and their beneficiaries.
,A source of supplemental income for a life insurance policyowner can be derived from the -
CORRECT ANSWER - Cash value. Cash value may be used as a source to supplement a
policyowner's income.
Purchasing insurance is an example of risk - CORRECT ANSWER - Transference.
Purchasing insurance is an example of risk transference.
Which statement best describes a single premium whole life policy? - CORRECT
ANSWER - Paid-up policy that offers lifetime protection. A single premium whole life
policy provides protection for life as a paid-up policy.
Which of the following situations would allow funds to be deposited into a rollover IRA? -
CORRECT ANSWER - An employee quits her job and receives $50,000 from her
qualified plan.
Medical costs in birthing centers are lowered by using - CORRECT ANSWER - Certified
nurse midwives. Birthing centers reduce medical costs through the use of certified nurse
midwives.
What is a a "functional assessment" for long-term care benefits? - CORRECT ANSWER -
A review of the insured's ability to perform the activities of daily living. A "functional
assessment" determines the insured's ability to perform the activities of daily living (ADLs)
John bought a deferred annuity on Mary. John amends the contract years later to name Tom as
the recipient of the proceeds if Mary dies. Who is the annuitant for this contract? - CORRECT
ANSWER - Mary. In this situation, Mary is the annuitant because that is where the
proceeds of the annuity will be directed.
When does the producer give a premium receipt for a life insurance application? - CORRECT
ANSWER - "When the initial premium has been paid with the application". A premium
receipt is given to an applicant when the initial premium is paid with the application .
, Which statement is true regarding hospital preadmission certification for emergency situations? -
CORRECT ANSWER - Notification is required to be given after insured is admitted to the
hospital. Hospital preadmission certification typically requires notification to be given after the
patient is admitted to the hospital for an emergency situation. For nonemergency situations,
notification is to be given BEFORE admission.
When using the approach for life insurance planning, a lump sum may be created to provide for
all of the following EXCEPT - CORRECT ANSWER - "Employee benefits". The needs
approach to personal life insurance planning may involve creating a lump sum to provide for all
of these EXCEPT employee benefits.
How are the premiums for an individually-owned disability income policy treated for tax
purposes? - CORRECT ANSWER - Not tax-deductable at all. Premiums for individually-
owned disability income policy are not tax-deductable at all.
Which of the following must clearly be illustrated in ALL sales material for market value
adjusted annuities ? - CORRECT ANSWER - The market value adjustment can be either
upward or downward. Sales material used in the marketing of market value adjusted annuities in
Connecticut must clearly illustrate that the market value can be either upward or downward.
Why do insurers require a minimum number of employees participate in a group insurance plan?
- CORRECT ANSWER - Minimize adverse selection. The larger the group to be insured,
the more predictable will be the expected losses from the group.
A reciprocal insurer typically has an administrator who manages the premiums collected from
the group's members. This administrator is called a(n) - CORRECT ANSWER - Attorney-
in-fact. The administrator of a reciprocal insurer who manages the premiums collected from the
group's members is called an attorney-in-fact.
How are qualified Roth IRA distributions normally treated for tax purposes? - CORRECT
ANSWER - Received income tax-free. Qualified distributions are received income tax-
free in a Roth IRA.
