CONNECTICUT LIFE AND HEALTH INSURANCE EXAM

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CONNECTICUT LIFE AND HEALTH INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: How are the premiums for an individually-owned disability income policy treated for tax purposes?

Answer:

Not tax-deductable at all. Premiums for individually-owned disability income policy are not tax-deductable at all.Question 2: Which of the following is generally a form of group credit life insurance?

Answer:

Decreasing term insurance

Question 3: A consultant derives their income from which source?

Answer:

Clients Question 4: How is the insured protected if a payor benefit rider is attached to the life insurance policy?

Answer:

Premium payments are waived in the event the premium payor dies or becomes disabled.

Question 5: A producer sold a life insurance policy but did NOT provide the applicant with a basic illustration. In this situation, the insurer is REQUIRED to provide the applicant with a policy summary no later than the

Answer:

Policy delivery date.Question 6: Which of these statements is NOT a characteristic of the law of large numbers?

Answer:

Rates can be calculated to compensate for losses. The law of large numbers states that larger groups provide better loss predictions. The higher the exposure, the more likely the event can be predicted.Question 7: Which of the following is the BEST candidate for a temporary insurance license?

Answer:

The executor of the estate of a deceased licensed producer. My be issued without examination.

Question 8: Life settlement brokers are NOT allowed to

Answer:

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.

Question 9: The free look period provided in a life insurance policy is usually

Answer:

10 days. Life insurance policies must provide a minimum free look period of 10 days upon policy delivery. This allows the policyowner time to decide whether or not to keep it. If the policyowner decides not to keep the policy within the 10 days allowed, a full refund will be given.Question 10: Which of the following situations would allow funds to be deposited into a rollover IRA?

Answer:

An employee quits her job and receives $50,000 from her qualified plan.Question 11: An Individual is insured under a major medical plan with a $1,000,000 lifetimes benefit. The plan has a $500 deductible and an 80% coinsurance. If the insured suffers a $50,000 medical expense during the calendar year, what is the remaining lifetime benefit?

Answer:

$960,000. $50,000 - $500 deductible = $50,000. $50,000 x 80% = $40,000. $1,000,000 lifetime benefit - $40,000= $960,000 remaining.

Question 12: A producer MUST notify the Commissioner for

Answer:

conducting business under an assumed name.Question 13: The inability to perform SOME of the duties of one's own occupation is known as a

Answer:

Residual disability.Question 14: A source of supplemental income for a life insurance policyowner can be derived from the

Answer:

Cash value. Cash value may be used as a source to supplement a policyowner's income.Question 15: Which of the following incidents would NOT be covered by an Accidental Death and Dismemberment policy?

Answer:

Suicide. Suicide is not covered by AD&D policies.Question 16: Which of the following must clearly be illustrated in ALL sales material for market value adjusted annuities ?

Answer:

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.Question 17: Who is required to notify the producer in the event of appointment termination?

Answer:

Insurer. The insurer is responsible for reporting an producer's termination of appointment.Question 18: Which statement is true regarding hospital preadmission certification for emergency situations?

Answer:

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.

Question 19: Karen is considering replacing her individual accident and health insurance policy with another individual policy. She has had issues in the past with her gall bladder that would be considered a pre-existing condition. How will a pre-existing conditions exclusion affect Karen's new insurance contract?

Answer:

May reduce her benefits. The pre-existing conditions exclusion may reduce the insured's benefits because the new policy may not cover the same health conditions.Question 20: The health insurance premiums paid for by each partner in a partnership is considered to be

Answer:

100% tax deductible. In a business partnership.Question 21: All of these are considered features of whole life insurance EXCEPT

Answer:

initial premium is lower than for an equivalent amount of term insurance. The initial cost of whole life insurance is actually HIGHER than the equivalent amount of term insurance.Question 22: XYZ Corp gives money to an employee to purchase a life insurance policy and allows the employee to select the beneficiary. What kind of plan is this?

Answer:

Split-dollar. A split-dollar plan is an arrangement where an employee and an employee share in the cost of purchasing a life insurance policy on the employee. The employee is also allowed to name the beneficiary.Question 23: In regards to technology and the ACA, which of the following statements is correct?

Answer:

States which operate with an Exchange must offer an internet-based-portal Question 24: 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?

Answer:

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.