South Dakota Life and Health Final Exam 2025–2026 –
Complete Exam Material with 100% Accurate Answers
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding
partners. If the agreement is funded with individual life insurance, what would it require? -
Each partner must own a policy on the other partners
Which statement regarding the Misstatement of Age provision is considered to be true? -
Coverage will be adjusted to reflect the insured's true age if a misstatement of age is
discovered
Which contract permits the remaining partners to buy-out the interest of a disabled business
partner? - Disability Buy-Sell
A term life insurance policy matures: - upon the insured's death during the term of the
policy
If a retiree on Medicare required five hospital stays in one year, which policy would provide the
best insurance for excess hospital expenses? - Medicare Supplement
K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy
would cover her loss of income? - Disability Income
S is employed by a large corporation that provides group health coverage for its employees and
their dependents. If S dies, the company must allow his surviving spouse and dependents to
continue their group health coverage for a maximum of how many months under COBRA
regulations? - 36
,Group life insurance policies are generally written as: - annually renewable term
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the - Fair Credit Reporting Act
An example of rebating would be - splitting the commission with the buyer on a sale of
insurance
A noncontributory group term life plan is characterized by: - the entire cost of the plan is
paid for by the employer
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale
of a business? - Business owner becoming disabled
Which of the following is considered to be the time period after a Health Policy is issued, during
which no benefits are provided for illness? - Probationary Period
The Common Disaster clause provides that if both the insured and the sole name beneficiary
were to die in a common accident, which of the following is true? - This clause provides
the payment of proceeds to the insured's estate
A retirement plan that sets aside part of the company's net income for distributions to qualified
employees is called a: - profit-sharing plan
What is being delivered during a policy delivery? - Insurance contract to the proposed
insured
, Long Term Care policies will usually pay for eligible benefits using which of the following
methods? - Expense incurred (reimbursement)
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take
the required minimum distributions from their qualified retirement plan? - 50%
K is an annuitant currently receiving payments. If she were to die before receiving payments
equal to the correct value, a beneficiary will continue receiving payments until an amount equal
to the contract value has been paid. This is called a(n) - Installment Refund annuity
M becomes disabled and is unable to work for six months. M dies soon after from complications
arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which of
the following statements BEST describes what is owed to her estate? - earned, but
unpaid benefits will be paid
Additional coverage can be added to a Whole Life policy by adding a(n): - decreasing
term rider
G is involved in an automobile accident as a result of driving while intoxicated and suffers
numerous injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is
responsible for paying the medical bills? - The insured
Which of the following policy features allows an insured to defer current health chargers to the
following year's deductible instead of the current year's deductible? - Carryover provision
When an insured changes to a more hazardous occupation, which disability policy provision
allows an insurer to adjust policy benefits and rates? - Change of occupation provision
Complete Exam Material with 100% Accurate Answers
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding
partners. If the agreement is funded with individual life insurance, what would it require? -
Each partner must own a policy on the other partners
Which statement regarding the Misstatement of Age provision is considered to be true? -
Coverage will be adjusted to reflect the insured's true age if a misstatement of age is
discovered
Which contract permits the remaining partners to buy-out the interest of a disabled business
partner? - Disability Buy-Sell
A term life insurance policy matures: - upon the insured's death during the term of the
policy
If a retiree on Medicare required five hospital stays in one year, which policy would provide the
best insurance for excess hospital expenses? - Medicare Supplement
K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy
would cover her loss of income? - Disability Income
S is employed by a large corporation that provides group health coverage for its employees and
their dependents. If S dies, the company must allow his surviving spouse and dependents to
continue their group health coverage for a maximum of how many months under COBRA
regulations? - 36
,Group life insurance policies are generally written as: - annually renewable term
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the - Fair Credit Reporting Act
An example of rebating would be - splitting the commission with the buyer on a sale of
insurance
A noncontributory group term life plan is characterized by: - the entire cost of the plan is
paid for by the employer
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale
of a business? - Business owner becoming disabled
Which of the following is considered to be the time period after a Health Policy is issued, during
which no benefits are provided for illness? - Probationary Period
The Common Disaster clause provides that if both the insured and the sole name beneficiary
were to die in a common accident, which of the following is true? - This clause provides
the payment of proceeds to the insured's estate
A retirement plan that sets aside part of the company's net income for distributions to qualified
employees is called a: - profit-sharing plan
What is being delivered during a policy delivery? - Insurance contract to the proposed
insured
, Long Term Care policies will usually pay for eligible benefits using which of the following
methods? - Expense incurred (reimbursement)
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take
the required minimum distributions from their qualified retirement plan? - 50%
K is an annuitant currently receiving payments. If she were to die before receiving payments
equal to the correct value, a beneficiary will continue receiving payments until an amount equal
to the contract value has been paid. This is called a(n) - Installment Refund annuity
M becomes disabled and is unable to work for six months. M dies soon after from complications
arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which of
the following statements BEST describes what is owed to her estate? - earned, but
unpaid benefits will be paid
Additional coverage can be added to a Whole Life policy by adding a(n): - decreasing
term rider
G is involved in an automobile accident as a result of driving while intoxicated and suffers
numerous injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is
responsible for paying the medical bills? - The insured
Which of the following policy features allows an insured to defer current health chargers to the
following year's deductible instead of the current year's deductible? - Carryover provision
When an insured changes to a more hazardous occupation, which disability policy provision
allows an insurer to adjust policy benefits and rates? - Change of occupation provision
