CT LIFE & HEALTH INSURANCE EXAM –
PRACTICE QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF.
CORE DOMAINS
Insurance Regulation and Connecticut State Law
General Insurance Concepts and Contracts
Life Insurance Policies and Provisions
Life Insurance Tax Issues and Annuities
Health Insurance Managed Care and Medical Plans
Disability Income and Special Insurance Needs
Medicare, Medicaid, and Long-Term Care
Social Security and Group Insurance
Ethics and Professional Agency Conduct
INTRODUCTION
The purpose of this assessment is to evaluate a
candidate’s readiness for the Connecticut Life and
,Health Insurance licensure exam. This comprehensive
test bank assesses foundational knowledge of
insurance principles, specific state regulations, and
the intricacies of both life and health policies. The
assessment utilizes a blend of straightforward
multiple-choice questions and complex scenario-
based inquiries. By focusing on real-world application
and ethical decision-making, these questions ensure
that the candidate can effectively translate
theoretical concepts into professional practice.
Mastery of these materials demonstrates the critical
thinking required to navigate the legal and practical
landscape of the insurance industry.
SECTION ONE: QUESTIONS 1–100
1. Which of the following is an example of a
moral hazard?
A. An individual’s health condition improves after
surgery.
,B. A policyholder intentionally damages property to
collect insurance.
C. A driver unknowingly parks in a high-crime
neighborhood.
D. An applicant provides their correct date of birth
on an application.
🟢 B. A policyholder intentionally damages
property to collect insurance.
🔴 RATIONALE: Moral hazards arise from the
character and behavior of the individual, such as
dishonesty or an intent to defraud an insurance
company.
2. In Connecticut, the period of time during
which a policyholder can return a life insurance
policy for a full refund of premiums is known
as the:
A. Grace period
B. Incontestability period
, C. Free look period
D. Reinstatement period
🟢 C. Free look period
🔴 RATIONALE: The free look period allows the
policyowner a specific number of days to review the
policy and return it for a full refund if not satisfied.
3. Under a Life Income with Period Certain
settlement option, if the beneficiary dies
before the guaranteed period ends, what
happens to the remaining payments?
A. They are forfeited to the insurer.
B. They are paid to the primary beneficiary’s estate.
C. They are split among the insurance company's
shareholders.
D. They are paid to a contingent beneficiary.
🟢 D. They are paid to a contingent beneficiary.
PRACTICE QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF.
CORE DOMAINS
Insurance Regulation and Connecticut State Law
General Insurance Concepts and Contracts
Life Insurance Policies and Provisions
Life Insurance Tax Issues and Annuities
Health Insurance Managed Care and Medical Plans
Disability Income and Special Insurance Needs
Medicare, Medicaid, and Long-Term Care
Social Security and Group Insurance
Ethics and Professional Agency Conduct
INTRODUCTION
The purpose of this assessment is to evaluate a
candidate’s readiness for the Connecticut Life and
,Health Insurance licensure exam. This comprehensive
test bank assesses foundational knowledge of
insurance principles, specific state regulations, and
the intricacies of both life and health policies. The
assessment utilizes a blend of straightforward
multiple-choice questions and complex scenario-
based inquiries. By focusing on real-world application
and ethical decision-making, these questions ensure
that the candidate can effectively translate
theoretical concepts into professional practice.
Mastery of these materials demonstrates the critical
thinking required to navigate the legal and practical
landscape of the insurance industry.
SECTION ONE: QUESTIONS 1–100
1. Which of the following is an example of a
moral hazard?
A. An individual’s health condition improves after
surgery.
,B. A policyholder intentionally damages property to
collect insurance.
C. A driver unknowingly parks in a high-crime
neighborhood.
D. An applicant provides their correct date of birth
on an application.
🟢 B. A policyholder intentionally damages
property to collect insurance.
🔴 RATIONALE: Moral hazards arise from the
character and behavior of the individual, such as
dishonesty or an intent to defraud an insurance
company.
2. In Connecticut, the period of time during
which a policyholder can return a life insurance
policy for a full refund of premiums is known
as the:
A. Grace period
B. Incontestability period
, C. Free look period
D. Reinstatement period
🟢 C. Free look period
🔴 RATIONALE: The free look period allows the
policyowner a specific number of days to review the
policy and return it for a full refund if not satisfied.
3. Under a Life Income with Period Certain
settlement option, if the beneficiary dies
before the guaranteed period ends, what
happens to the remaining payments?
A. They are forfeited to the insurer.
B. They are paid to the primary beneficiary’s estate.
C. They are split among the insurance company's
shareholders.
D. They are paid to a contingent beneficiary.
🟢 D. They are paid to a contingent beneficiary.
