Sample Questions

Insurance L&H License Sample Questions

6 practice questions with complete answer explanations.

Sample Questions

Question 1life-insurance

Which type of life insurance provides coverage for a specified period with no cash value?

A.Term life✓ Correct

B.Whole life

C.Universal life

D.Variable life

Explanation

Term life: pure death benefit for a set period, no cash value. Cheapest coverage per dollar of death benefit.

Question 2health-insurance

COBRA allows a terminated employee to continue group health insurance for up to:

A.18 months (36 months for certain qualifying events)✓ Correct

B.12 months

C.24 months only

D.Until a new job is found

Explanation

COBRA: 18 months for termination/reduced hours; 36 months for death, divorce, or dependent loss of eligibility.

Question 3ethics

An agent who returns part of their commission to a client to induce the sale of an insurance policy is:

A.Rebating — illegal in most states✓ Correct

B.Providing a finder's fee — permitted

C.Practicing discretionary pricing — regulated

D.Waiving premiums — allowed by policy

Explanation

Rebating is an unfair trade practice. It's illegal in most states to return any commission to a client.

Question 4life-insurance

A whole life policy's cash value accumulation is:

A.Tax-deferred growth that can be borrowed or surrendered✓ Correct

B.Taxable annually like investment income

C.Only accessible after age 65

D.Fixed at a percentage of the death benefit from day one

Explanation

Whole life cash value grows tax-deferred. Policyholders can take loans or surrender for the cash value.

Question 5medicare

Medicare Part B covers:

A.Outpatient medical services and doctor visits✓ Correct

B.Inpatient hospital stays

C.Prescription drugs

D.Long-term nursing home care

Explanation

Part A: inpatient hospital. Part B: outpatient/physician. Part C: Medicare Advantage. Part D: prescriptions.

Question 6policy-provisions

The suicide clause in most life insurance policies excludes coverage if the insured dies by suicide within:

A.2 years of policy issuance✓ Correct

B.1 year of policy issuance

C.5 years of policy issuance

D.No waiting period — suicide is always covered

Explanation

Standard suicide exclusion: 1–2 years after issuance (2 years is most common). After that, death benefit is paid.

Test-Taking Tips

1.Know the four parts of Medicare (A, B, C, D) cold — multiple questions per exam.
2.Understand the difference between term and permanent life thoroughly including riders.
3.Unfair trade practices (rebating, twisting, churning, misrepresentation) are heavily tested.
4.Disability insurance definitions: own-occupation vs. any-occupation is a key distinction.
5.Use ExamFX or Kaplan's pre-licensing course — both align closely to exam content.
6.Practice state-specific questions — state law accounts for ~33% of your exam.

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