Connecticut Life Insurance Practice Exam Free - 2026

• A. 10 days after she receives the policy
• B. 20 days after she receives the policy
• C. 30 days after she receives the policy
• D. 15 days after the policy is issued

Correct answer: A. 10 days after she receives the policy

Explanation: Every individual life policy delivered in Connecticut must carry a notice that the applicant may return it, by delivery or mail to the insurer or agent, at any time within ten days after receipt, and the policy is then void ab initio. Twenty days is not a Connecticut figure; 30 days is the Medicare supplement free look under section 38a-495a(m); and the period runs from receipt of the policy, not from issue, so 15 days from issue is wrong. See Conn. Gen. Stat. § 38a-436.

• A. From the date of death, at 8 percent per year
• B. No later than 10 days after the date of death, at the rate the insurer pays on proceeds left under its interest settlement option
• C. 30 days after proof of loss is received, at the legal rate
• D. No interest is owed unless the beneficiary sues and wins

Correct answer: B. No later than 10 days after the date of death, at the rate the insurer pays on proceeds left under its interest settlement option

Explanation: Where no action has been commenced, Connecticut requires interest on the principal sum, computed daily at the rate the insurer currently pays on proceeds left under the interest settlement option, commencing no later than ten days after the insured's death and running to the date of payment. Eight percent is the maximum fixed policy-loan rate under section 38a-444, not a death-benefit rate; there is no 30-days-after-proof rule; and interest is owed without litigation, so D is wrong. See Conn. Gen. Stat. § 38a-452.

• A. 30 days
• B. 31 days
• C. 60 days
• D. 90 days

Correct answer: C. 60 days

Explanation: Connecticut's nonforfeiture provisions require the policy to state that the stipulated paid-up nonforfeiture benefit takes effect automatically unless the person entitled elects another available option not later than sixty days after the due date of the premium in default; the same 60-day window applies to requesting cash surrender. Thirty and 31 days are grace-period figures from other statutes, and 90 days is the health proof-of-loss period, not the nonforfeiture election window. See Conn. Gen. Stat. § 38a-439.

• A. 6 percent
• B. 10 percent
• C. 5 percent
• D. 8 percent

Correct answer: D. 8 percent

Explanation: For policies issued on or after October 1, 1981, Connecticut allows a loan provision permitting a maximum interest rate of not more than eight percent per annum, or alternatively an adjustable maximum rate set under the published-monthly-average method. Six percent, 10 percent and 5 percent are not the statutory cap. See Conn. Gen. Stat. § 38a-444.

• A. A small amount of life insurance on the employee's spouse and children, payable to the employee
• B. Full income replacement for the family if the employee becomes disabled
• C. An equal death benefit for every family member, payable to the insurer
• D. Health coverage for dependents after the employee retires

Correct answer: A. A small amount of life insurance on the employee's spouse and children, payable to the employee

Explanation: Dependent life coverage adds modest death benefits on an employee's spouse and eligible children to a group life plan, with the employee normally the beneficiary. Benefit amounts are typically small - sized for final expenses - and are often limited relative to the employee's own coverage amount.

• A. A plan where the employer pays the entire premium
• B. A plan where the employer contributes to a retirement account
• C. A plan where employees may deduct their premiums from taxes
• D. A plan where employees pay a portion of the premium

Correct answer: D. A plan where employees pay a portion of the premium

Explanation: Contributory group insurance is a plan where employees pay part of the premium, typically through payroll deduction. This contrasts with noncontributory plans where the employer pays the entire premium.

• A. Term life insurance
• B. Accidental death insurance
• C. Credit life insurance
• D. Whole life insurance

Correct answer: D. Whole life insurance

Explanation: Whole life insurance is permanent coverage. It is designed to remain in force for the insured's lifetime as long as required premiums are paid.

• A. Term life
• B. Universal life
• C. Whole life
• D. Variable life

Correct answer: A. Term life

Explanation: Term life insurance provides temporary protection for a selected term. It generally has no cash value feature.

• A. Straight whole life
• B. Universal life
• C. Decreasing term
• D. Credit life

Correct answer: B. Universal life

Explanation: Universal life insurance is known for premium flexibility and adjustable death-benefit features, subject to policy rules and sufficient policy values.

• A. Variable universal life
• B. Joint life
• C. Decreasing term life
• D. Whole life

Correct answer: C. Decreasing term life

Explanation: Decreasing term life provides a death benefit that declines over the policy period. It is often used for needs that shrink over time.

• A. It has no cash value until the insured reaches age 65
• B. It still requires annual premiums to stay in force
• C. It has immediate cash value and, under federal tax rules, is generally a modified endowment contract
• D. Its death benefit automatically decreases each year

Correct answer: C. It has immediate cash value and, under federal tax rules, is generally a modified endowment contract

Explanation: Single-premium whole life is bought with one payment and needs no further premiums, and substantial cash value exists immediately. Because one premium far exceeds the seven-pay test limit, such policies issued since 1988 are generally modified endowment contracts (MECs): lifetime withdrawals and loans are taxed earnings-first and may face a 10% penalty before age 59 1/2, though the income-tax-free death benefit is preserved.

• A. Straight whole life
• B. Accidental death and dismemberment
• C. Annual renewable term
• D. Decreasing term

Correct answer: A. Straight whole life

Explanation: Straight whole life is designed for lifetime coverage with level premiums and guaranteed cash value accumulation under the policy contract.