Life & Health Insurance — Practice Questions flashcards
6 of 70 questions free to study here · 19 topics · the whole deck is built into Willys
Multiple-choice practice questions, one best answer each, across insurance basics, contracts, underwriting, ethics, life policies, provisions, taxation, annuities, retirement plans, disability, medical, group, Medicare and Medicaid.
Practice deck · part of Life and health insurance producer licence (national portion) · written against: Life, accident and health concepts common to state producer exams; NAIC model provisions; federal law as of 2026; state law excluded. Updated 2026-10-10.
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The 6 sample questions as a list
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An insurer can forecast next year's death claims closely because it insures thousands of similar lives. Which principle makes this possible?
A) Adverse selection
B) Risk retention
C) The principle of indemnity
D) The law of large numbersD) The law of large numbersInsurance Basics
The law of large numbers makes actual losses track expected losses as the group grows. Adverse selection is the opposite problem: higher risks seeking coverage disproportionately. -
A producer persuades a client to drop a policy with another insurer by misrepresenting its terms, so the client will buy a new policy from him. This is:
A) Twisting
B) Rebating
C) Sliding
D) CoercionA) TwistingEthics & Unfair Practices
Twisting is inducing a replacement through misrepresentation or an incomplete comparison. Sliding means adding coverage the client did not ask for or agree to. -
An insured dies four years after issue. The insurer discovers a material but non-fraudulent misstatement of health history in the application. What happens?
A) The insurer may rescind and return the premiums
B) The insurer pays a reduced death benefit
C) The insurer pays only the cash value
D) The insurer pays the full death benefitD) The insurer pays the full death benefitLife Policy Provisions
The incontestable clause bars challenges to application statements after the contestable period, commonly two years. Rescission is possible only inside that period. -
In an annuity, whose life expectancy determines the payments?
A) The owner's
B) The beneficiary's
C) The annuitant's
D) The producer'sC) The annuitant'sAnnuities
Payments are based on the annuitant's life. The owner holds the contract's rights and is often, but not necessarily, the same person. -
A plan has a 500 dollar deductible and 80/20 coinsurance. The insured's first covered bill of the year is 2,500 dollars. How much does the plan pay?
A) 900 dollars
B) 1,500 dollars
C) 1,600 dollars
D) 2,000 dollarsC) 1,600 dollarsMedical Expense & Managed Care
After the 500 dollar deductible, the plan pays 80 percent of the remaining 2,000 dollars, or 1,600 dollars. The insured pays 900: the deductible plus 400 of coinsurance. -
Which part of Medicare covers doctors' office visits and durable medical equipment?
A) Part A
B) Part B
C) Part C only
D) Part DB) Part BMedicare & Medicaid
Part B is medical insurance for physician services, outpatient care and equipment. Part A covers inpatient hospital, skilled nursing and hospice care.
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About these cards
Review status: Second-reader reviewed, with corrections applied.
Checked against:
- Checked against the NAIC Uniform Individual Accident and Sickness Policy Provision Law and NAIC model laws and regulations on life insurance replacement, unfair trade practices and annuity suitability, as commonly adopted; state versions vary.
- Federal items checked against the Internal Revenue Code, ERISA, COBRA, HIPAA, the Affordable Care Act and CMS Medicare publications; public domain U.S. government sources.
- Original questions written for this deck; no official exam, textbook, prep-course or question-bank items were copied. National content only: state insurance law, fees and figures indexed yearly are excluded. All worked math computed by the author with hypothetical numbers.
These are independent study notes written for Willys. They are not official exam material, may contain mistakes, and are no substitute for your course, your teacher or the exam owner's own publications. Found an error? Tell us — corrections ship as a new version of the deck.
Not insurance or legal advice. These cards cover the national portion of the producer licensing exam only. State insurance law and your state's exam content are not included; check your state's insurance department and its candidate handbook.
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