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. Which of the following best describes a 'stop-loss' provision in a major medical policy? → It is a cap on the insured's coinsurance payments, after which the insurer pays 100%
2. Under the Health Insurance Portability and Accountability Act (HIPAA), a special enrollment period is triggered when: → An employee gains a new dependent through marriage or birth
3. What does the term 'coinsurance' mean in a health insurance policy? → The policyholder shares a percentage of costs after the deductible
4. 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
5. Which of the following is NOT a qualifying life event that triggers a special enrollment period? → Voluntary termination of prior coverage
6. Which annuity feature allows the contract owner to withdraw a percentage of the account value each year without triggering surrender charges? → Free withdrawal provision
7. A Health Maintenance Organization (HMO) plan differs from a Preferred Provider Organization (PPO) primarily because HMOs: → Require a referral from a PCP to see a specialist
8. A blanket health policy is most commonly used to cover: → Members of a group whose composition changes frequently, such as students or sports teams
9. Which of the following is NOT a required benefit under a standard HIPAA special enrollment event? → Voluntary early retirement
10. What does the 'other insurance' provision in a health policy primarily prevent? → Profit from collecting more than 100% of medical expenses
11. A 'guaranteed renewable' health insurance policy means the insurer: → Must renew the policy but may increase premiums for an entire class of insureds
12. The kind of insurance that guards against financial loss due to medical expenditures is referred to as → Health Insurance
13. 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.
14. 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
15. At what point does an endowment policy's face value become payable to the policyowner while still living? → When the insured reaches the stated age or end of the endowment period
16. What is the agreement section's other name? → Acceptance
17. Companies that offer an employer-sponsored medical insurance plan must cover all dependents under the age of: → 26
18. A disability income policy's 'elimination period' functions most like which feature of other insurance policies? → Deductible
19. 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
20. Which is a speculative risk? → Gambling
21. A health insurance policy that pays a fixed dollar amount per day of hospitalization regardless of actual charges is called a: → Hospital indemnity policy
22. A producer who misrepresents policy provisions to induce a policyholder to replace existing coverage with a new policy is committing: → Twisting
23. Which provision in a health insurance policy requires the insurer to renew coverage as long as premiums are paid, regardless of claims history? → Guaranteed renewable
24. A long-term care insurance policy that adjusts benefits for inflation at a fixed rate each year has what type of rider? → Simple inflation protection rider
25. A health insurance policy with an '80/20 coinsurance' provision means: → After the deductible, the insurer pays 80% of covered expenses and the insured pays 20%
26. When an insured uses the 'settlement option' called 'interest only,' the insurer: → Retains the death benefit principal and pays only the earned interest to the beneficiary
27. Which underwriting tool is specifically used to assess financial risk and detect potential overinsurance or fraud on large life insurance applications? → Financial questionnaire and net worth statement
28. Under state insurance law, which of the following is generally considered an unfair claims settlement practice? → Denying a claim without a reasonable investigation
29. What is the primary purpose of a 'spendthrift' clause in a life insurance policy? → To protect policy proceeds from being claimed by the beneficiary's creditors
30. 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.