semplr.

Exams · Certifications · Licensing

Life and Health Insurance Producer Exam

Underwriting and policy issue: practice questions

Our Life & Health Insurance bank has 16 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

Start the free mock exam

Question 1

What is the free-look period?

  1. A period during which the insurer can cancel the newly issued policy for any reason
  2. A period after delivery when the owner can return the policy for a full refund
  3. A period before the application when the agent gives free advice
  4. A period after a claim when premiums are waived for the insured
Show the answer

B. A period after delivery when the owner can return the policy for a full refund — It is commonly at least 10 days for life policies; check state law.

Question 2

Which relationship normally has insurable interest?

  1. A spouse in the life of the other spouse
  2. A neighbour in the life of a stranger who lives on the same street
  3. A coworker in the life of a customer
  4. A fan in the life of a celebrity
Show the answer

A. A spouse in the life of the other spouse — Business partners and creditors may also have insurable interest.

Question 3

Which factor is NOT normally used in life insurance underwriting?

  1. Health history
  2. Hazardous hobbies and sports
  3. Race or national origin
  4. Age
Show the answer

C. Race or national origin — Unfair discrimination is prohibited.

Question 4

What is 'constructive delivery' of a policy?

  1. Delivery that happens only after the free-look period has ended
  2. Delivery that the insured refuses and the agent keeps the policy
  3. Delivery occurs when the insurer gives up control, such as mailing it to the agent unconditionally
  4. Delivery that only happens when the insured signs for it in person
Show the answer

C. Delivery occurs when the insurer gives up control, such as mailing it to the agent unconditionally — Physical delivery to the insured isn't required.

Question 5

When does coverage begin if the applicant pays the first premium with the application and receives a conditional receipt?

  1. On the date the policy is delivered, regardless of when the first premium is paid
  2. On the later of the application date or medical exam, if the applicant is insurable as applied for
  3. Immediately, even if the applicant later turns out to be uninsurable
  4. Only after the second premium payment has been received and processed
Show the answer

B. On the later of the application date or medical exam, if the applicant is insurable as applied for — Conditional receipts depend on insurability.

More Life & Health Insurance topics