Connecticut Life and Health Insurance Exam
ACTUAL 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 answers✔"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
answers✔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 answers✔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 answers✔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 answers✔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 Whatever amount is withdrawn from an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 answers✔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 answers✔Cash value. Cash value may be used as a source to supplement a policyowner's
income.
Purchasing insurance is an example of risk - Correct answers✔Transference. Purchasing
insurance is an example of risk transference.
Which statement best describes a single premium whole life policy? - Correct answers✔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 answers✔An employee quits her job and receives $50,000 from her qualified plan.
Medical costs in birthing centers are lowered by using - Correct answers✔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 answers✔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
answers✔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
answers✔"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 answers✔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 answers✔"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 answers✔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 answers✔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 answers✔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 answers✔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.
ACTUAL 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 answers✔"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
answers✔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 answers✔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 answers✔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 answers✔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 answers✔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 answers✔Cash value. Cash value may be used as a source to supplement a policyowner's
income.
Purchasing insurance is an example of risk - Correct answers✔Transference. Purchasing
insurance is an example of risk transference.
Which statement best describes a single premium whole life policy? - Correct answers✔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 answers✔An employee quits her job and receives $50,000 from her qualified plan.
Medical costs in birthing centers are lowered by using - Correct answers✔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 answers✔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
answers✔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
answers✔"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 answers✔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 answers✔"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 answers✔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 answers✔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 answers✔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 answers✔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.
