Free Connecticut Life and Health Practice Exam Online

Correct answer: A. 10 days (the 'free look' right to examine period)

Correct. Conn. Gen. Stat. § 38a-436 gives the policyholder a 10-day free look period after delivery of an individual life insurance policy to examine it and return it for a full refund of premium if not satisfied.

• B: 30 days overstates Connecticut's statutory free look period for individual life policies.
• C: 60 days significantly overstates Connecticut's statutory free look period.
• D: Connecticut does provide a statutory free look right under § 38a-436; it is not left entirely to the insurer's discretion.

Correct answer: D. Allow the policyowner a set number of additional days after the premium due date to pay without the policy lapsing, with coverage remaining in force during that time

Correct. Connecticut's standard policy provisions, addressed under §§ 38a-436 and 38a-452, require a grace period giving the policyowner additional time beyond the due date to pay an overdue premium while the policy remains in force, protecting against unintended lapse.

• A: The grace period does the opposite of immediate cancellation; it is specifically designed to prevent an abrupt lapse for a late payment.
• B: The grace period allows time to pay the premium that is still owed; it does not waive the obligation to pay it.
• C: The grace period is a premium-payment accommodation; it does not operate to extend the separate incontestability clause.

Correct answer: B. Contest the validity of the policy based on misstatements in the application, except for fraud in states that permit a fraud exception

Correct. After the incontestability period (typically two years) has run during the insured's lifetime, the insurer generally cannot contest or void the policy based on misstatements made in the application, subject to any fraud exception recognized by the jurisdiction.

• A: The incontestability clause addresses the insurer's ability to challenge the policy's validity, not the premium amount charged.
• C: Beneficiary changes are governed by the policy's beneficiary designation provisions, not the incontestability clause.
• D: The incontestability clause does not eliminate the policyowner's ongoing obligation to pay premiums to keep the policy in force.

Correct answer: D. Limit payment to a refund of premiums paid, rather than the full death benefit

Correct. The standard suicide clause limits the insurer's payment to a refund of premiums paid (sometimes without interest) if the insured dies by suicide within the specified period after issue, rather than paying the full death benefit.

• A: Paying the full death benefit with no limitation describes what happens after the suicide exclusion period has expired, not during it.
• B: The policy is not simply voided with nothing paid; the standard suicide clause specifies a limited payment rather than a total forfeiture.
• C: Outright denial with no payment at all misstates the typical suicide clause, which provides for a limited, specific payment rather than a complete denial.

Correct answer: C. The interest rate that may be charged on a policy loan against the policy's cash value

The maximum death benefit an insurer may issue is a product-design and underwriting matter, not what § 38a-444 addresses.

• A: There is no minimum-age requirement for a policy loan addressed by this statute; policy loans are governed by cash value availability, not the insured's age.
• B: Correct. Conn. Gen. Stat. § 38a-444 addresses the interest rate allowable on life insurance policy loans, governing how much interest an insurer may charge when a policyowner borrows against the policy's cash value.
• D: Whether term life insurance may be issued at all is a general product-line question, not what the policy-loan interest rate statute addresses.