Practice set
1. Which life policy normally combines permanent death-benefit protection with guaranteed cash-value accumulation?
- A. Annual renewable term
- B. Whole life
- C. Decreasing term
- D. Credit life
Show answer
B. Whole lifeWhole life is permanent insurance with level-premium and guaranteed cash-value features. The term products listed do not build guaranteed cash value.
2. A covered person has a $2,500 deductible, 80/20 coinsurance and a $7,500 in-network out-of-pocket maximum that includes the deductible. Covered in-network expenses are high enough to reach the maximum. What is the person's maximum responsibility for covered services?
- A. $2,500
- B. $7,500
- C. $12,000
- D. $14,000
Show answer
B. $7,500Once eligible deductible, copayment and coinsurance spending reaches the policy's stated out-of-pocket maximum, the plan pays 100 percent of additional covered in-network benefits for the remainder of the plan year, subject to the contract.
3. Why is insurable interest required when a life policy is issued?
- A. To guarantee a claim will be paid
- B. To prevent the policy from becoming a wagering contract
- C. To eliminate underwriting
- D. To set the beneficiary's tax rate
Show answer
B. To prevent the policy from becoming a wagering contractInsurable interest connects the owner/beneficiary to a legitimate interest in the insured's continued life and prevents pure wagering on a stranger's death.
4. An annuitant chooses life income with a 10-year period certain and dies after six years of payments. What happens next?
- A. Payments always stop
- B. The beneficiary receives the remaining four years of guaranteed payments
- C. The original premium is automatically refunded
- D. The beneficiary receives lifetime payments
Show answer
B. The beneficiary receives the remaining four yearsThe life contingency ends at death, but the period-certain feature guarantees payments for at least ten years.
5. How many times may a candidate take the same Florida insurance license examination type in a rolling 12-month period?
- A. Three
- B. Five
- C. Ten
- D. Unlimited
Show answer
B. FiveFlorida DFS states that the same license examination type may not be taken more than five times in a rolling 12-month period.
6. What is the primary purpose of underwriting?
- A. To classify risk and determine appropriate terms
- B. To guarantee every applicant the lowest premium
- C. To replace the application
- D. To let the agent choose any premium
Show answer
A. To classify risk and determine appropriate termsUnderwriting evaluates the application and related evidence to classify risk according to the insurer's rules.
7. Under federal COBRA rules, what is the usual maximum continuation period after termination of employment or reduction of hours, when COBRA applies and no extension applies?
- A. 6 months
- B. 12 months
- C. 18 months
- D. 36 months
Show answer
C. 18 monthsTermination of employment or reduction of hours generally creates an 18-month maximum continuation period. Other qualifying events can create 36 months.
8. How many questions are delivered on the Texas General Lines Life, Accident & Health exam under the current outline?
- A. 100
- B. 130
- C. 145
- D. 165
Show answer
C. 145The outline lists 100 scored plus 10 pretest general questions and 30 scored plus 5 pretest Texas questions: 145 delivered in total.
9. Which change is NOT permitted under a noncancellable disability income policy while premiums are paid as required?
- A. The insured changes occupation
- B. The insurer raises only that insured's premium
- C. The insured submits a claim
- D. The policy reaches a contractually stated end date
Show answer
B. The insurer raises only that insured's premiumNoncancellable coverage protects against cancellation and unilateral premium increases during the guaranteed period, subject to the policy terms.
10. Which service is generally not covered by Original Medicare solely because a person needs it long term?
- A. Physician services
- B. Durable medical equipment
- C. Preventive screening
- D. Custodial long-term care
Show answer
D. Custodial long-term careOriginal Medicare generally does not pay for long-term custodial care when that is the only care needed.
11. What best describes term life insurance?
- A. Temporary death-benefit protection without cash value
- B. Lifetime coverage with guaranteed cash value
- C. A securities account without insurance
- D. Health coverage for a fixed term
Show answer
A. Temporary death-benefit protection without cash valueTerm insurance provides protection for a stated period and generally has no cash-value accumulation.
12. Which item is not one of the federal Essential Health Benefit categories?
- A. Hospitalization
- B. Prescription drugs
- C. Mental health and substance-use services
- D. Purely cosmetic surgery
Show answer
D. Purely cosmetic surgeryHospitalization, prescriptions and mental health/substance-use services are categories; purely cosmetic surgery is not.
13. After January 1, 2026, what California education remains required before a qualifying producer license can be issued?
- A. 12 hours of Ethics and California Insurance Code
- B. 52 hours for every applicant
- C. No education requirement at all
- D. A college degree
Show answer
A. 12 hours of Ethics and California Insurance CodeAB 943 removed the former 20-hour line-specific requirement for the listed producer licenses, but CDI confirms the 12-hour Ethics and Code course remains required for license issuance.
14. A nonqualified deferred annuity has a $50,000 cost basis and an $80,000 value. The owner withdraws $30,000 before annuitization. Under the usual federal LIFO rule, how much is taxable income?
- A. $0
- B. $15,000
- C. $30,000
- D. $50,000
Show answer
C. $30,000The contract contains $30,000 of gain. Under the usual income-first rule, the $30,000 withdrawal is treated as taxable gain before basis is recovered. Individual tax circumstances can differ.
15. What are the official time and scored-question count for California Life, Accident & Health or Sickness?
- A. 150 questions in 3 hours
- B. 150 questions in 195 minutes
- C. 130 questions in 150 minutes
- D. 165 questions in 165 minutes
Show answer
A. 150 questions in 3 hoursThe current CDI examination table lists 150 questions and a three-hour time limit for both English and Spanish.
16. What is the current format of New York's combined Life, Accident & Health exam?
- A. 150 questions in 150 minutes
- B. 145 questions in 180 minutes
- C. Two separate 50-question exams
- D. 165 questions in 165 minutes
Show answer
A. 150 questions in 150 minutesThe New York candidate bulletin lists 150 questions, two hours and 30 minutes, and 105 correct answers to pass the combined series.
17. A New Jersey resident seeks both Life and Health authority. What prelicensing structure does the state publish?
- A. No education for either line
- B. One combined eight-hour course
- C. 20 approved hours for each line
- D. A college insurance degree
Show answer
C. 20 approved hours for each lineNew Jersey handles the lines separately and publishes a 20-hour prelicensing requirement for Life and another 20 hours for Health.
18. After a first failed Georgia insurance examination, what waiting period generally applies before retesting?
- A. No waiting period
- B. 14 days
- C. 30 days
- D. 60 days after every failure
Show answer
B. 14 daysGeorgia's examination rule requires 14 days after failure; after the examination has been failed three times, the waiting period becomes 60 days.
How to use your score
A sample of 18 questions cannot prove readiness for any state's full licensing examination. Use it to identify categories that require review, then take a broader diagnostic across the exact official outline.
More important than the number correct is whether you can explain why each alternative is wrong. That is the skill needed when the real exam presents two plausible answers.
The next useful step
- Choose your state and exact line of authority.
- Download the current official outline.
- Separate product gaps from state-law gaps.
- Train in the language you will use for the examination.
- Reserve early access to the full diagnostic if you want launch notification; no payment is collected now.
Official sources and further reading
Facts and requirements were checked against the linked primary sources on the article's publication date. Licensing authorities and testing providers remain controlling.
- Florida Department of Financial Services: Insurance Licensing Frequently Asked QuestionsOfficial rule limiting one license examination type to five attempts in a rolling 12-month period.
- Texas Department of Insurance / Pearson VUE: Texas Insurance Licensing Candidate HandbookOfficial exam structure, time limit, fee, state outline and retake policy.
- California Department of Insurance: Examinations: Time Limit and Number of QuestionsOfficial 150-question, three-hour format and 60 percent producer-exam passing score.
- California Department of Insurance: 12 Hours of Ethics and California Insurance Code FAQOfficial explanation of the January 1, 2026 prelicensing change and the remaining 12-hour requirement for license issuance.
- National Association of Insurance Commissioners: Life InsuranceRegulator resource explaining term, whole life, cash value and common policy forms.
- National Association of Insurance Commissioners: AnnuitiesRegulator overview of annuity income and guarantee structures.
- HealthCare.gov: Out-of-pocket maximum/limitOfficial federal explanation of deductibles, coinsurance and the out-of-pocket maximum for covered in-network services.
- U.S. Department of Labor: An Employee's Guide to Health Benefits Under COBRAOfficial federal table of COBRA continuation periods by qualifying event.
- Medicare.gov: Long-term care coverageOfficial Medicare explanation of non-covered custodial and long-term care.
- HealthCare.gov: Essential health benefitsOfficial federal summary of the ten Affordable Care Act essential-health-benefit categories.
- Internal Revenue Service: Publication 575: Pension and Annuity IncomeOfficial federal treatment of pre-annuitization withdrawals from nonqualified annuities, including the earnings-first rule.
- PSI / New York Department of Financial Services: New York Insurance Examination Candidate BulletinOfficial exam series, 150-item format, 2.5-hour limit, scoring, fee and retake procedure.
- New Jersey Department of Banking and Insurance: Producer Frequently Asked QuestionsOfficial $47 examination fee, 20-hour-per-line education requirement and current online application fees.
- Georgia Secretary of State: Georgia Rule 120-2-3-.09 — ExaminationsControlling 70% passing score, 14-day and 60-day retake waits and 12-month score-validity rule.