Life & Health Insurance Exam Cheat Sheet 2026

The 30 highest-yield Life & Health Insurance Exam facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A life insurer discovers that an insured misrepresented their age on the application. What will the insurer most likely do? → Adjust the benefit to what the correct premium would have purchased
2. The kind of insurance that guards against financial loss due to medical expenditures is referred to as → Health Insurance
3. An employee leaves their job and receives a check for the entire balance of their 401(k). To avoid current taxation and penalties, what must they do? → Deposit the full amount, including the 20% withheld, into a Rollover IRA within 60 days.
4. Under the 'proof of loss' provision, how many days does a health insured typically have to submit proof of loss after a claim? → 90 days
5. What is the agreement section's other name? → Acceptance
6. Companies that offer an employer-sponsored medical insurance plan must cover all dependents under the age of: → 26
7. A disability income policy's 'elimination period' functions most like which feature of other insurance policies? → Deductible
8. What is the primary source of information an underwriter uses to determine an applicant's eligibility and risk classification for a life insurance policy? → The completed insurance application
9. Which is a speculative risk? → Gambling
10. A customer is expected to pay for their beverages when they visit a bar and order them because: → An implied in-fact contract was established.
11. Who decides which of the 11 optional life insurance provisions will be part of an insurance contract? → Insurers
12. The guaranteed insurability rider in a disability income policy allows the insured to: → Purchase additional disability coverage in the future without proving insurability
13. When should I apply for life insurance? → Today, because you don’t know what might happen to you tomorrow
14. Traditional comprehensive major medical insurance cover everything except: → First-dollar coverage
15. Under the modified endowment contract (MEC) rules, policy loans from a MEC are taxed as: → Ordinary income to the extent of gain, plus a 10% penalty if under age 59½
16. What does 'Accidental Death Benefit' (ADB) rider provide? → An additional death benefit if the insured dies by accident
17. What is 'coordination of benefits' (COB) designed to prevent? → Over-insurance and duplicate payments exceeding actual expenses
18. Different benefits and/or premium payments may be provided by employers to different employee groups as long as: → Employees are not grouped by gender
19. A health maintenance organization (HMO) pays people back for covered medical services by: → Flat fee
20. Life insurance policy cash value withdrawals are normally non-taxable until: → The cash value exceeds the total premiums paid into the policy
21. Which event most commonly triggers the payment of disability income benefits? → The insured becoming unable to perform occupational duties due to sickness or injury
22. Jake told his coworkers that he will "help them out financially" if he wins at the casino. What is this to be considered? → An Illusory promise.
23. Which of the following statements most accurately sums up a "health insurance formulary"? → Prescription medications that your health plan will cover
24. Which type of health insurance claim is filed directly by the provider to the insurer on behalf of the patient? → Assignment of benefits claim
25. One significant benefit of term life insurance is that it usually: → Costs less than permanent insurance
26. Most short-term disability income benefits last between 6 months and: → 24 months
27. Underwriting is required for most individual long-term care insurance, thus applicants with poor health may be denied or offered coverage: → A lower coverage amount and/or coverage with higher premiums
28. Who receives your death benefit when you pass away? → Your Beneficiaries
29. A non-cancelable disability income policy guarantees which of the following? → The insurer cannot raise premiums or reduce benefits as long as premiums are paid
30. What qualifications do life and health insurance advisors need to market variable annuities? → Securities license