STATE FARM INSURANCE LICENSE PRACTICE
EXAM 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◉ Residual Disability. Answer: Pays benefits for loss or earning after
a return to work if the insured cannot earn as much as he or she did
before becoming disabled.
◉ How does payment for residual disability work?. Answer: It is
adjusted each month proportionately
◉ Cost of Living Adjustment Rider. Answer: The insured's monthly
benefit will be automatically increased during the period the insured
is receiving monthly payments.
◉ Cost of Living Adjustment Rider is usually tied with what?.
Answer: Consumer Price Index
◉ Future Increase Option Rider. Answer: Guaranteed Insurability
Option/Rider. It enables the insured to purchase additional
coverage, regardless or insurability, at specified future option dates.
,◉ What riders are added to disability income policies that will pay
lump sum cash benefits?. Answer: AD&D, Rehabilitation, Medical
Reimbursement
◉ Rehabilitation Benefit. Answer: Pays a lump sum benefit for
necessary vocational training to help the insured for a new career
field.
◉ Medical Reimbursement Benefit Rider (Non-Disability Injury
Rider). Answer: Pays a lump sum for payment of medical expenses
incurred due to injury which does not result in total disability.
◉ Return of Premium Rider. Answer: A portion of the premiums,
minus claims paid during the time period are refunded to the
insured.
◉ When does return of premium rider usually occur?. Answer: every
10 years and at age 65 or death
◉ Non-Occupational Coverage. Answer: Covers you only off the job
◉ Occupational Coverage. Answer: Those who are exempt from
Workers' Compensation coverage should purchase this since it
covers both on and off the job
,◉ How much do policy limits rarely exceed of your gross income?.
Answer: 70%
◉ Integration of Benefits provision. Answer: Prevents over
insurance on the part of the insured by integrating your Disability
Income benefits with benefits provided by another Disability policy
◉ The longer the benefit period,.... Answer: The higher the premium
◉ Long Term Disability. Answer: Individual or group policies that
usually provide coverage for two years or more, often to age 65,
◉ Short Term Disability. Answer: Most group disability insurance
are written this way, with short waiting period of 30 days and short
benefit periods from 6 months to 2 years.
◉ How are most disability income payment paid out?. Answer: On a
monthly basis
◉ Business Overhead Expense Policy. Answer: Does not pay your
loss of income, it pays your ongoing business expenses that will
continue even while you are sick or injured.
, ◉ Social Security's Total Disability definition. Answer: The disability
must be expected to last at least 12 months or result in death and it
must prevent you from performing any gainful work.
◉ What is the waiting period for social security disability?. Answer:
5 months
◉ Who qualifies for social security disability benefits?. Answer: Only
workers under age 65
◉ How does a covered worker become fully insured status?. Answer:
By accumulating 40 quarters of coverage
◉ OASDHI. Answer: Old Age, Survivors, Disability, and Health
Insurance, are the benefits available under social security
◉ Basic Hospital Expense Policies. Answer: Pays for hospital room
and board only, whether it is policy limit or the actual amount of it,
whichever is less
◉ What is the first dollar coverage with no deductible. Answer:
Basic Hospital Expense Policies
EXAM 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◉ Residual Disability. Answer: Pays benefits for loss or earning after
a return to work if the insured cannot earn as much as he or she did
before becoming disabled.
◉ How does payment for residual disability work?. Answer: It is
adjusted each month proportionately
◉ Cost of Living Adjustment Rider. Answer: The insured's monthly
benefit will be automatically increased during the period the insured
is receiving monthly payments.
◉ Cost of Living Adjustment Rider is usually tied with what?.
Answer: Consumer Price Index
◉ Future Increase Option Rider. Answer: Guaranteed Insurability
Option/Rider. It enables the insured to purchase additional
coverage, regardless or insurability, at specified future option dates.
,◉ What riders are added to disability income policies that will pay
lump sum cash benefits?. Answer: AD&D, Rehabilitation, Medical
Reimbursement
◉ Rehabilitation Benefit. Answer: Pays a lump sum benefit for
necessary vocational training to help the insured for a new career
field.
◉ Medical Reimbursement Benefit Rider (Non-Disability Injury
Rider). Answer: Pays a lump sum for payment of medical expenses
incurred due to injury which does not result in total disability.
◉ Return of Premium Rider. Answer: A portion of the premiums,
minus claims paid during the time period are refunded to the
insured.
◉ When does return of premium rider usually occur?. Answer: every
10 years and at age 65 or death
◉ Non-Occupational Coverage. Answer: Covers you only off the job
◉ Occupational Coverage. Answer: Those who are exempt from
Workers' Compensation coverage should purchase this since it
covers both on and off the job
,◉ How much do policy limits rarely exceed of your gross income?.
Answer: 70%
◉ Integration of Benefits provision. Answer: Prevents over
insurance on the part of the insured by integrating your Disability
Income benefits with benefits provided by another Disability policy
◉ The longer the benefit period,.... Answer: The higher the premium
◉ Long Term Disability. Answer: Individual or group policies that
usually provide coverage for two years or more, often to age 65,
◉ Short Term Disability. Answer: Most group disability insurance
are written this way, with short waiting period of 30 days and short
benefit periods from 6 months to 2 years.
◉ How are most disability income payment paid out?. Answer: On a
monthly basis
◉ Business Overhead Expense Policy. Answer: Does not pay your
loss of income, it pays your ongoing business expenses that will
continue even while you are sick or injured.
, ◉ Social Security's Total Disability definition. Answer: The disability
must be expected to last at least 12 months or result in death and it
must prevent you from performing any gainful work.
◉ What is the waiting period for social security disability?. Answer:
5 months
◉ Who qualifies for social security disability benefits?. Answer: Only
workers under age 65
◉ How does a covered worker become fully insured status?. Answer:
By accumulating 40 quarters of coverage
◉ OASDHI. Answer: Old Age, Survivors, Disability, and Health
Insurance, are the benefits available under social security
◉ Basic Hospital Expense Policies. Answer: Pays for hospital room
and board only, whether it is policy limit or the actual amount of it,
whichever is less
◉ What is the first dollar coverage with no deductible. Answer:
Basic Hospital Expense Policies
