L&H PRACTICE TEST QUESTIONS WITH 100% CORRECT ANSWERS
L&H P R A C T I C E T E S T QUESTIONS WITH
100% C O R R E C T A N S W E R S
Group cLife cinsurance creduces cthe cimpact cof c_______________. c- ccorrect
canswers✔✔adverse cselection
The cBuyer's cGuide cis c_________ cand cthe cPolicy cSummary cis c__________ c-
ccorrect canswers✔✔generic; cspecific
A cShort cTerm cDisability cIncome cpolicy cis cone cthat cpays cbenefits cfor
c____________________. c- ccorrect c answers✔✔Less cthan c2 cyears
Don cqualifies cfor cMedicaid ceven cthough che chas c assets cof c$250,000. c For cthis cto
chappen, cDon cmust chave chad ca c_____________________. c- ccorrect
c answers✔✔Long cTerm c Care cPartnership cpolicy
What cis cthe cmost cimportant crating cfactor cin cDisability cIncome ccoverage? c- ccorrect
canswers✔✔Occupation
What care cthe cparticipation crequirements cfor ca cGroup cLife cplan? c- ccorrect
canswers✔✔Contributory c- c 75% cNon-contributory c- c 100%
Except cin cthe ccase cof cbankruptcy, ccredit cinformation cmay cbe cretained cno clonger
cthan c_____ cyears. c- ccorrect canswers✔✔7 cyears
A cLong cTerm cDisability cIncome cpolicy cis cone cthat cpays cbenefits cfor
c______________. c- ccorrect canswers✔✔More cthan c5 cyears
An cindividual cMedical c Expense cpolicy cfor cwhich cthe cpremiums care cpaid cweekly
cmust coffer ca cminimum c______ cgrace cperiod. c- ccorrect c answers✔✔7 cday
Which cLife cpolicy cprovision cstates cthat cstatements cmade con cthe capplication care
crepresentations cand cnot c warranties? c- ccorrect canswers✔✔Entire cContract
For can cAD&D cpolicy cto cpay ca cdeath cbenefit, cdeath cmust coccur cwithin c___ cdays cof
cthe caccident. c- ccorrect canswers✔✔90
What ctype cof cHealth cRider cwould cnot cincrease cthe ccost cof cthe cpolicy? c- ccorrect
c answers✔✔Exclusion crider
Under ca cFamily cMedical cExpense cpolicy cwithout cmaternity cbenefits, cnewborns care
ccovered c____. c- ccorrect canswers✔✔at cthe cmoment cof cbirth
, L&H PRACTICE TEST QUESTIONS WITH 100% CORRECT ANSWERS
Mary cbought ca cDisability cIncome cpolicy cin c2012 cand cunderstated cher cage con cthe
capplication cby c5 cyears. cWhen c she cbecomes ctotally cdisabled cin c2020 cand cfiles ca
cclaim cfor cher cmonthly cbenefit cof c$3000 cper cmonth, cher ccompany cwill
c______________________. c- ccorrect c answers✔✔Pay cthe cbenefit cMary's cpremium
cwould chave cbought cat cher ctrue cage.
Both ctime cand cdollar cdeductibles chelp...... c- ccorrect canswers✔✔hold cdown cthe ccost
cof cHealth cinsurance
Describe cthe ctax cconsequences cof ca cKey cEmployee cDisability cpolicy? c- ccorrect
c answers✔✔Premiums care cnot ctax cdeductible, cand cbenefits care cuntaxed.
What cHealth cbenefit cwould cbe ctaxable? c- ccorrect canswers✔✔Group cDisability
cIncome cbenefit
HIPAA capplies cto cgroups cof c___ cor cmore. c- ccorrect canswers✔✔2
A cRenewable cTerm cpolicy cguarantees c_______________. c- ccorrect
canswers✔✔Insurability
When cyou care cfully cvested cin cyour ccompany's cretirement cplan, cyou care: c- ccorrect
c answers✔✔The c 100% cowner cof cyour cretirement caccount
A cdividend cpaid cto ca cpolicy cowner cby ca cMutual cinsurance ccompany c is
c_________________. c- ccorrect canswers✔✔Not ctaxable
A cHealth c Savings cAccount ccan conly cbe cused cwith ca(n) c__________. c- ccorrect
canswers✔✔High cDeductible cHealth cplan
Maternity cbenefits care cmandated cfor cHealth cinsurance cgroups cof c_____ cor cmore
cparticipants. c- ccorrect canswers✔✔15
When cit cis csaid cthat ca cpolicy cis crated, cwe cwould cexpect cthat cthe cproposed cinsured
c is c_________________________. c- ccorrect canswers✔✔A csubstandard c risk
Which cNon-forfeiture cOption cwould cpermit ccoverage cto ccontinue cuntil cage c100? c-
ccorrect canswers✔✔Reduced cPaid-up
The cuse cof cwhich cDividend cOption cwould ccreate ca ctaxable cevent? c- ccorrect
canswers✔✔Accumulate cat cinterest
Jim's cbeneficiaries, c Joe cand cJanet cwere cnamed cas c"children cof cthe cinsured." cIf
ceither c Joe cor c Janet cpredecease c Jim, ctheir cshare c is cto cbe cdivided camong ctheir
cown cchildren. c Jim c has cdesignated c his cbeneficiaries con ca c____________ c basis. c-
ccorrect c answers✔✔Per c stirpes
, L&H PRACTICE TEST QUESTIONS WITH 100% CORRECT ANSWERS
Does ca cVariable cWhole cLife cpolicy cguarantee c Cash cValue cgrowth? c- ccorrect
canswers✔✔No
Non-forfeiture cbenefits care cavailable cin.... c- ccorrect canswers✔✔Policies cthat
cdevelop ccash cvalue
What cbest cdescribes cthe ctax cconsequences cof ca cGroup cDisability cIncome cpolicy cin
cwhich cthe cpremiums care cpaid cby cthe cemployer? c- ccorrect c answers✔✔Premiums care
ctax cdeductible, cand cbenefits care ctaxed
What cis cthe cautomatic cNon-forfeiture cOption? c- ccorrect canswers✔✔Extended cTerm
This cexchange ccould cbe cconsidered ca cgain cand cwould, ctherefore, cbe csubject cto
ctaxation? c- ccorrect canswers✔✔An cAnnuity cfor ca c Life cpolicy
Under cthe cIndividual cHealth cInsurance cPolicy cProvisions claw, ca cNotice cof c Claim
cmust cbe cprovided cby cthe cinsured cwithin c____ c days cof cthe c loss cor c as csoon
cthereafter c as creasonably cpossible. c- ccorrect canswers✔✔20
Who c assumes cthe cinvestment crisk cin ca cVariable cWhole cLife cpolicy? c- ccorrect
c answers✔✔The cpolicy cowner
The cprimary cqualifier cfor cMedicaid cis: c- ccorrect canswers✔✔Financial cneed
Benefits cpaid cto cyou cunder cSocial cSecurity care cbased cupon cyour c_____. c- ccorrect
canswers✔✔Primary cInsurance cAmount c (PIA)
Medicare cSupplement cpolicies ccan cexclude ccoverage con cpreexisting cconditions cfor
cup cto c____ cmonths. c- ccorrect c answers✔✔6
How cdoes ca ctraditional c IRA cdiffer cfrom ca c Roth c IRA? c- ccorrect c answers✔✔Roth
c IRAs care cfunded cwith cafter-tax cdollars
Disability cIncome cbenefits care cbased cupon: c- ccorrect canswers✔✔Earned cincome
Under cHIPAA cif cMark c loses chis clongstanding cGroup cMajor cMedical cat c ABC c Corp,
cbut cmakes ctimely centry cinto cthe cGroup cMajor cMedical cplan coffered cby c his cnew
cemployer, che cwill cnot cbe csubject cto cnew cpreexisting cconditions climitations. cTimely
centry c is cdefined c as c______ c days cor c less. c- ccorrect canswers✔✔63
Which cLife cpolicy cprovision cstates cthat cthe capplication cis cpart cof cthe ccontract? c-
ccorrect c answers✔✔Entire cContract c Clause
Medicare cAdvantage cis calso cknown c as c_____ cof cMedicare. c- ccorrect
c answers✔✔Part c C
, L&H PRACTICE TEST QUESTIONS WITH 100% CORRECT ANSWERS
David callows chis cMajor cMedical cpolicy cto clapse. c Is chis ccompany cis crequired cto
creinstate c him? c- ccorrect canswers✔✔No
A cConditional cReceipt c is cintended cto... c- ccorrect canswers✔✔Speed cup ccoverage
The cprimary cqualifier cfor cMedicare cis... c- ccorrect canswers✔✔Age
Which cLife cpolicy cprovision cdefines cwho ccan cchange ca cpolicy cafter cit c has cbeen
c issued? c- ccorrect canswers✔✔Entire cContract
What cdo cMedical cExpense cpolicies cuse cto creduce cadverse cselection? c- ccorrect
canswers✔✔Pre-existing cconditions climitations
Accepting ca cdeductible cis can cexample cof: c- ccorrect canswers✔✔retaining crisk
would cConvertible cTerm chave can cincreased cpremium cafter ca cgiven cperiod cof ctime?
c- ccorrect c answers✔✔Yes
Who c assumes cthe cinvestment crisk cin ca cWhole cLife cpolicy? c- ccorrect
c answers✔✔The cinsurance ccompany
Ron cand cDon care cidentical ctwin cbrothers cwho cbuy ca c$100,000 cWhole cLife cpolicy
cat cage c20. c Ron c chooses cStraight c Life cand cDon c chooses ca c 20-Pay ccontract. cIf
ceach clives cto cage c100 cand c pays cpremium c as cagreed, cwhose c Cash cValue c is
cgreater? c- ccorrect c answers✔✔The ccash cvalue cof cthe ctwo cpolicies cwill cbe cthe
csame.
This cis cbecause c Ron's ccaught cup cto cDon's cat cage c100. cAt cany cage cearlier, cDon's
cwould cbe cgreater.
Assume cthat cyou cmeet cthe crequirements cfor cSocial cSecurity cDisability cbenefits con
cthe cday cyou care cterminated cby c X Y Z cIndustries. c You cmay ccontinue cyour c Group
cMajor cMedical ccoverage cfor cup cto c____ cmonths cunder c COBRA cuntil cyou cbecome
celigible cfor cMedicare. c- ccorrect canswers✔✔29
A cpolicy cowner cwho cwishes cto cretain call crights cof cownership cshould cname c his
cbeneficiary c as ca(n) c- ccorrect c answers✔✔Revocable cbeneficiary
Dental ccoverage cplans cwhich clist call ccovered cdental cprocedures cand cthe cprice cthe
ccoverage cwill cpay cfor ceach cprocedure care cknown cas_______ c plans c- ccorrect
canswers✔✔scheduled
A cSettlement cOption cwhich cwill cpay cprinciple cand cinterest cfor c20 cyears cand cthen
cstop cregardless cof cthe clife cor cdeath cof cthe cbeneficiary c is cknown cas... c- ccorrect
canswers✔✔Annuity cCertain
L&H P R A C T I C E T E S T QUESTIONS WITH
100% C O R R E C T A N S W E R S
Group cLife cinsurance creduces cthe cimpact cof c_______________. c- ccorrect
canswers✔✔adverse cselection
The cBuyer's cGuide cis c_________ cand cthe cPolicy cSummary cis c__________ c-
ccorrect canswers✔✔generic; cspecific
A cShort cTerm cDisability cIncome cpolicy cis cone cthat cpays cbenefits cfor
c____________________. c- ccorrect c answers✔✔Less cthan c2 cyears
Don cqualifies cfor cMedicaid ceven cthough che chas c assets cof c$250,000. c For cthis cto
chappen, cDon cmust chave chad ca c_____________________. c- ccorrect
c answers✔✔Long cTerm c Care cPartnership cpolicy
What cis cthe cmost cimportant crating cfactor cin cDisability cIncome ccoverage? c- ccorrect
canswers✔✔Occupation
What care cthe cparticipation crequirements cfor ca cGroup cLife cplan? c- ccorrect
canswers✔✔Contributory c- c 75% cNon-contributory c- c 100%
Except cin cthe ccase cof cbankruptcy, ccredit cinformation cmay cbe cretained cno clonger
cthan c_____ cyears. c- ccorrect canswers✔✔7 cyears
A cLong cTerm cDisability cIncome cpolicy cis cone cthat cpays cbenefits cfor
c______________. c- ccorrect canswers✔✔More cthan c5 cyears
An cindividual cMedical c Expense cpolicy cfor cwhich cthe cpremiums care cpaid cweekly
cmust coffer ca cminimum c______ cgrace cperiod. c- ccorrect c answers✔✔7 cday
Which cLife cpolicy cprovision cstates cthat cstatements cmade con cthe capplication care
crepresentations cand cnot c warranties? c- ccorrect canswers✔✔Entire cContract
For can cAD&D cpolicy cto cpay ca cdeath cbenefit, cdeath cmust coccur cwithin c___ cdays cof
cthe caccident. c- ccorrect canswers✔✔90
What ctype cof cHealth cRider cwould cnot cincrease cthe ccost cof cthe cpolicy? c- ccorrect
c answers✔✔Exclusion crider
Under ca cFamily cMedical cExpense cpolicy cwithout cmaternity cbenefits, cnewborns care
ccovered c____. c- ccorrect canswers✔✔at cthe cmoment cof cbirth
, L&H PRACTICE TEST QUESTIONS WITH 100% CORRECT ANSWERS
Mary cbought ca cDisability cIncome cpolicy cin c2012 cand cunderstated cher cage con cthe
capplication cby c5 cyears. cWhen c she cbecomes ctotally cdisabled cin c2020 cand cfiles ca
cclaim cfor cher cmonthly cbenefit cof c$3000 cper cmonth, cher ccompany cwill
c______________________. c- ccorrect c answers✔✔Pay cthe cbenefit cMary's cpremium
cwould chave cbought cat cher ctrue cage.
Both ctime cand cdollar cdeductibles chelp...... c- ccorrect canswers✔✔hold cdown cthe ccost
cof cHealth cinsurance
Describe cthe ctax cconsequences cof ca cKey cEmployee cDisability cpolicy? c- ccorrect
c answers✔✔Premiums care cnot ctax cdeductible, cand cbenefits care cuntaxed.
What cHealth cbenefit cwould cbe ctaxable? c- ccorrect canswers✔✔Group cDisability
cIncome cbenefit
HIPAA capplies cto cgroups cof c___ cor cmore. c- ccorrect canswers✔✔2
A cRenewable cTerm cpolicy cguarantees c_______________. c- ccorrect
canswers✔✔Insurability
When cyou care cfully cvested cin cyour ccompany's cretirement cplan, cyou care: c- ccorrect
c answers✔✔The c 100% cowner cof cyour cretirement caccount
A cdividend cpaid cto ca cpolicy cowner cby ca cMutual cinsurance ccompany c is
c_________________. c- ccorrect canswers✔✔Not ctaxable
A cHealth c Savings cAccount ccan conly cbe cused cwith ca(n) c__________. c- ccorrect
canswers✔✔High cDeductible cHealth cplan
Maternity cbenefits care cmandated cfor cHealth cinsurance cgroups cof c_____ cor cmore
cparticipants. c- ccorrect canswers✔✔15
When cit cis csaid cthat ca cpolicy cis crated, cwe cwould cexpect cthat cthe cproposed cinsured
c is c_________________________. c- ccorrect canswers✔✔A csubstandard c risk
Which cNon-forfeiture cOption cwould cpermit ccoverage cto ccontinue cuntil cage c100? c-
ccorrect canswers✔✔Reduced cPaid-up
The cuse cof cwhich cDividend cOption cwould ccreate ca ctaxable cevent? c- ccorrect
canswers✔✔Accumulate cat cinterest
Jim's cbeneficiaries, c Joe cand cJanet cwere cnamed cas c"children cof cthe cinsured." cIf
ceither c Joe cor c Janet cpredecease c Jim, ctheir cshare c is cto cbe cdivided camong ctheir
cown cchildren. c Jim c has cdesignated c his cbeneficiaries con ca c____________ c basis. c-
ccorrect c answers✔✔Per c stirpes
, L&H PRACTICE TEST QUESTIONS WITH 100% CORRECT ANSWERS
Does ca cVariable cWhole cLife cpolicy cguarantee c Cash cValue cgrowth? c- ccorrect
canswers✔✔No
Non-forfeiture cbenefits care cavailable cin.... c- ccorrect canswers✔✔Policies cthat
cdevelop ccash cvalue
What cbest cdescribes cthe ctax cconsequences cof ca cGroup cDisability cIncome cpolicy cin
cwhich cthe cpremiums care cpaid cby cthe cemployer? c- ccorrect c answers✔✔Premiums care
ctax cdeductible, cand cbenefits care ctaxed
What cis cthe cautomatic cNon-forfeiture cOption? c- ccorrect canswers✔✔Extended cTerm
This cexchange ccould cbe cconsidered ca cgain cand cwould, ctherefore, cbe csubject cto
ctaxation? c- ccorrect canswers✔✔An cAnnuity cfor ca c Life cpolicy
Under cthe cIndividual cHealth cInsurance cPolicy cProvisions claw, ca cNotice cof c Claim
cmust cbe cprovided cby cthe cinsured cwithin c____ c days cof cthe c loss cor c as csoon
cthereafter c as creasonably cpossible. c- ccorrect canswers✔✔20
Who c assumes cthe cinvestment crisk cin ca cVariable cWhole cLife cpolicy? c- ccorrect
c answers✔✔The cpolicy cowner
The cprimary cqualifier cfor cMedicaid cis: c- ccorrect canswers✔✔Financial cneed
Benefits cpaid cto cyou cunder cSocial cSecurity care cbased cupon cyour c_____. c- ccorrect
canswers✔✔Primary cInsurance cAmount c (PIA)
Medicare cSupplement cpolicies ccan cexclude ccoverage con cpreexisting cconditions cfor
cup cto c____ cmonths. c- ccorrect c answers✔✔6
How cdoes ca ctraditional c IRA cdiffer cfrom ca c Roth c IRA? c- ccorrect c answers✔✔Roth
c IRAs care cfunded cwith cafter-tax cdollars
Disability cIncome cbenefits care cbased cupon: c- ccorrect canswers✔✔Earned cincome
Under cHIPAA cif cMark c loses chis clongstanding cGroup cMajor cMedical cat c ABC c Corp,
cbut cmakes ctimely centry cinto cthe cGroup cMajor cMedical cplan coffered cby c his cnew
cemployer, che cwill cnot cbe csubject cto cnew cpreexisting cconditions climitations. cTimely
centry c is cdefined c as c______ c days cor c less. c- ccorrect canswers✔✔63
Which cLife cpolicy cprovision cstates cthat cthe capplication cis cpart cof cthe ccontract? c-
ccorrect c answers✔✔Entire cContract c Clause
Medicare cAdvantage cis calso cknown c as c_____ cof cMedicare. c- ccorrect
c answers✔✔Part c C
, L&H PRACTICE TEST QUESTIONS WITH 100% CORRECT ANSWERS
David callows chis cMajor cMedical cpolicy cto clapse. c Is chis ccompany cis crequired cto
creinstate c him? c- ccorrect canswers✔✔No
A cConditional cReceipt c is cintended cto... c- ccorrect canswers✔✔Speed cup ccoverage
The cprimary cqualifier cfor cMedicare cis... c- ccorrect canswers✔✔Age
Which cLife cpolicy cprovision cdefines cwho ccan cchange ca cpolicy cafter cit c has cbeen
c issued? c- ccorrect canswers✔✔Entire cContract
What cdo cMedical cExpense cpolicies cuse cto creduce cadverse cselection? c- ccorrect
canswers✔✔Pre-existing cconditions climitations
Accepting ca cdeductible cis can cexample cof: c- ccorrect canswers✔✔retaining crisk
would cConvertible cTerm chave can cincreased cpremium cafter ca cgiven cperiod cof ctime?
c- ccorrect c answers✔✔Yes
Who c assumes cthe cinvestment crisk cin ca cWhole cLife cpolicy? c- ccorrect
c answers✔✔The cinsurance ccompany
Ron cand cDon care cidentical ctwin cbrothers cwho cbuy ca c$100,000 cWhole cLife cpolicy
cat cage c20. c Ron c chooses cStraight c Life cand cDon c chooses ca c 20-Pay ccontract. cIf
ceach clives cto cage c100 cand c pays cpremium c as cagreed, cwhose c Cash cValue c is
cgreater? c- ccorrect c answers✔✔The ccash cvalue cof cthe ctwo cpolicies cwill cbe cthe
csame.
This cis cbecause c Ron's ccaught cup cto cDon's cat cage c100. cAt cany cage cearlier, cDon's
cwould cbe cgreater.
Assume cthat cyou cmeet cthe crequirements cfor cSocial cSecurity cDisability cbenefits con
cthe cday cyou care cterminated cby c X Y Z cIndustries. c You cmay ccontinue cyour c Group
cMajor cMedical ccoverage cfor cup cto c____ cmonths cunder c COBRA cuntil cyou cbecome
celigible cfor cMedicare. c- ccorrect canswers✔✔29
A cpolicy cowner cwho cwishes cto cretain call crights cof cownership cshould cname c his
cbeneficiary c as ca(n) c- ccorrect c answers✔✔Revocable cbeneficiary
Dental ccoverage cplans cwhich clist call ccovered cdental cprocedures cand cthe cprice cthe
ccoverage cwill cpay cfor ceach cprocedure care cknown cas_______ c plans c- ccorrect
canswers✔✔scheduled
A cSettlement cOption cwhich cwill cpay cprinciple cand cinterest cfor c20 cyears cand cthen
cstop cregardless cof cthe clife cor cdeath cof cthe cbeneficiary c is cknown cas... c- ccorrect
canswers✔✔Annuity cCertain
