CONNECTICUT LIFE AND HEALTH
EXAM QUESTIONS AND ANSWERS
Which of the following actions may result in a producer's license being suspended by
the commissioner?
Soliciting insurance under a temporary license
Rebating part of a commission to the applicant
Soliciting insurance on behalf of a foreign insurer
Splitting the commission with another licensed producer - ANSWER-Rebating a
portion of the commission to the insured may result in the commissioner suspending
a producers license
Which of these is not an underwriting responsibility of a life insurance agent?
Asking relevant questions concerning an applicants avocations
Requesting an attending physicians report
Ordering an inspection report
Determining the final rate classification - ANSWER-Determining the final rate
classification
Which entity is responsible for regulating claims settlement practices of insurers? -
ANSWER-State insurance departments - claims settlement practices of insurers are
regulated by state insurance departments
The coordination of benefits provision is added to a group health plan in order to -
ANSWER-Avoid overinsurance - the coordination of benefits provision establishes
an order on which plans pay their claims, and allows secondary plans to reduce their
benefits so that the combined benefits of all plans do not exceed total allowable
expenses (overinsurance)
Which of these is a type of private insurance that covers the cost-sharing amounts
under Medicare?
Major medical insurance
Medicaid
Disability income
Medicare supplement - ANSWER-Medicare supplement policy - helps pay for the
out-of-pocket expenses involved under a Medicare claim
A disabled business owner who has payroll and business expenses paid for has
what kind of insurance policy? - ANSWER-Business Overhead Expense
How may an insurance company classify an accidental death benefit on a life policy?
- ANSWER-As an optional policy rider - the accidental death benefit provided by a
life insurance policy may be classified as an optional policy rider
Which of these is not an advantage of term life insurance?
- The greatest amount of coverage can be provided for the initial premium paid
, - It can be provided as a rider to another policy
- A cash benefit will be provided if the insured is alive at the end of the policy period
- temporary insurance needs can be met - ANSWER-A cash benefit will be provided
if the insured is alive at the end of the policy period - term life insurance does not
provide a cash benefit at the end of the policy period
How are monthly life annuity benefit payments treated under a tax sheltered annuity
(TSA)? - ANSWER-Taxed as ordinary income in the year received - monthly life
annuity benefit payments received from a tax sheltered annuity (TSA) are taxed as
ordinary income in the year received
Which of the following would most likely purchase an immediate annuity? -
ANSWER-Retiree having a lump sum to invest
Insurance crimes which affect interstate commerce are prosecuted by the -
ANSWER-US Attorney General - a violation of US Code 1033, crimes by or affecting
persons engaged in the business of insurance whose activities affect interstate,
commerce, is prosecuted by the US Attorney General
When does a family health policy's coverage for a newborn child begin? - ANSWER-
At the moment of birth
A qualified profit-sharing plan is designed to - ANSWER-distribute a portion of
company earnings to its employees
Which of the following is excluded in a medical expense plan?
Dread disease
Tropical disease
Military duty
Terminal disease - ANSWER-Military duty
An HMO prescription drug plan is generally characterized by
Generic drugs only
Annual deductibles
Drugs dispensed through participating pharmacies
Drugs dispensed through online pharmacies - ANSWER-Drugs dispensed through
participating pharmacies
Steve has a group disability income policy where the premiums are paid by his
employer. He elected to pay for additional residual disability coverage. Which of the
following statements is true?
Steve's disability benefits are received tax free
The premiums for Steve's disability policy are tax-deductible for Steve
Steve can deduct the premium for the amount he paid for the additional residual
disability coverage
Steve will pay taxes on the disability benefit received from his employer, but will
receive any residual disability benefits tax-free - ANSWER-Steve will pay taxes on
the disability benefit received from his employer, but will receive any residual
disability benefits tax-free
EXAM QUESTIONS AND ANSWERS
Which of the following actions may result in a producer's license being suspended by
the commissioner?
Soliciting insurance under a temporary license
Rebating part of a commission to the applicant
Soliciting insurance on behalf of a foreign insurer
Splitting the commission with another licensed producer - ANSWER-Rebating a
portion of the commission to the insured may result in the commissioner suspending
a producers license
Which of these is not an underwriting responsibility of a life insurance agent?
Asking relevant questions concerning an applicants avocations
Requesting an attending physicians report
Ordering an inspection report
Determining the final rate classification - ANSWER-Determining the final rate
classification
Which entity is responsible for regulating claims settlement practices of insurers? -
ANSWER-State insurance departments - claims settlement practices of insurers are
regulated by state insurance departments
The coordination of benefits provision is added to a group health plan in order to -
ANSWER-Avoid overinsurance - the coordination of benefits provision establishes
an order on which plans pay their claims, and allows secondary plans to reduce their
benefits so that the combined benefits of all plans do not exceed total allowable
expenses (overinsurance)
Which of these is a type of private insurance that covers the cost-sharing amounts
under Medicare?
Major medical insurance
Medicaid
Disability income
Medicare supplement - ANSWER-Medicare supplement policy - helps pay for the
out-of-pocket expenses involved under a Medicare claim
A disabled business owner who has payroll and business expenses paid for has
what kind of insurance policy? - ANSWER-Business Overhead Expense
How may an insurance company classify an accidental death benefit on a life policy?
- ANSWER-As an optional policy rider - the accidental death benefit provided by a
life insurance policy may be classified as an optional policy rider
Which of these is not an advantage of term life insurance?
- The greatest amount of coverage can be provided for the initial premium paid
, - It can be provided as a rider to another policy
- A cash benefit will be provided if the insured is alive at the end of the policy period
- temporary insurance needs can be met - ANSWER-A cash benefit will be provided
if the insured is alive at the end of the policy period - term life insurance does not
provide a cash benefit at the end of the policy period
How are monthly life annuity benefit payments treated under a tax sheltered annuity
(TSA)? - ANSWER-Taxed as ordinary income in the year received - monthly life
annuity benefit payments received from a tax sheltered annuity (TSA) are taxed as
ordinary income in the year received
Which of the following would most likely purchase an immediate annuity? -
ANSWER-Retiree having a lump sum to invest
Insurance crimes which affect interstate commerce are prosecuted by the -
ANSWER-US Attorney General - a violation of US Code 1033, crimes by or affecting
persons engaged in the business of insurance whose activities affect interstate,
commerce, is prosecuted by the US Attorney General
When does a family health policy's coverage for a newborn child begin? - ANSWER-
At the moment of birth
A qualified profit-sharing plan is designed to - ANSWER-distribute a portion of
company earnings to its employees
Which of the following is excluded in a medical expense plan?
Dread disease
Tropical disease
Military duty
Terminal disease - ANSWER-Military duty
An HMO prescription drug plan is generally characterized by
Generic drugs only
Annual deductibles
Drugs dispensed through participating pharmacies
Drugs dispensed through online pharmacies - ANSWER-Drugs dispensed through
participating pharmacies
Steve has a group disability income policy where the premiums are paid by his
employer. He elected to pay for additional residual disability coverage. Which of the
following statements is true?
Steve's disability benefits are received tax free
The premiums for Steve's disability policy are tax-deductible for Steve
Steve can deduct the premium for the amount he paid for the additional residual
disability coverage
Steve will pay taxes on the disability benefit received from his employer, but will
receive any residual disability benefits tax-free - ANSWER-Steve will pay taxes on
the disability benefit received from his employer, but will receive any residual
disability benefits tax-free
