2024 Edition

Life and Health Insurance Agent Licensing Practice Exam

Take this free practice test to get an idea of what is on your state's life and health insurance agent licensing exam.

As an insurance agent, one is allowed to offer many different lines of coverage – provided that the required training and testing qualifications have been met. Those who wish to sell life and health insurance are required to possess the proper licensing for each state in which they conduct business. In order to obtain a life and health insurance license, individuals must take and successfully pass an exam that is offered by the state licensing boards.

To prepare for your licensing exam, use the full-length Life & Health Insurance Agent Practice Exam with answers fully explained for ideal study.

The practice exam is written by Susan Wright, MBA, CLU, RHU, REBC, who has over 20 years of experience in the insurance industry and Noah Sobin, a life insuance underwriting expert.

The following practice exam is a sample from the full-length test.

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General Life Insurance Basics, Insurable Interest, Parties and Regulations

1.	All of the following are parties to a life insurance contract EXCEPT: Insurer Underwriter Beneficiary Owner Insured
		a. II only
		b. III only
		c. II, III, and V
		d. All are parties to a life insurance contract
A beneficiary and the underwriter are not parties to a life insurance contract. An insured may be, but is not necessarily a party. A wife (owner) can take a policy out on her husband (insured), yet the husband is not a party to the insurance contract. Incorrect answer. Please choose another answer.

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2.	Mr. Smith, a whole life insurance policy holder, needs funds for his nursing home expenses. Which part of the policy could he access for these funds?
		a. The investment benefits
		b. The death benefits
		c. The annuity benefits
		d. The living benefits
Life insurance policies can provide living benefits which means that the policy holder can use funds from the cash value as well as some or all of the death benefit amount prior to death. The amount that is taken from the death benefit will be subtracted from the amount received at the insured's death by the beneficiary. Incorrect answer. Please choose another answer.

3.	James makes a good living and got a life insurance policy for the benefit of his wife. He recently experienced a life-changing event with the birth of his daughter. James should:
		a. Cancel his life insurance policy to afford to support his new daughter.
		b. Decrease his life insurance policy death benefit to get a cheaper policy.
		c. Increase his life insurance policy death benefit.
		d. Stop paying premiums on his life insurance policy.
Whenever an insured has a major life event such as marriage, the birth of a child, or the purchase of a new home, they should re-evaluate their life insurance needs. In this particular case, James would need additional life insurance coverage as his newborn daughter's care will likely depend a great deal on financial support provided by James. Incorrect answer. Please choose another answer.

4.	Which term refers to the period during which a policyholder can pay the overdue premium without losing the policy?
		a. Grace period
		b. Probation period
		c. Evaluation period
		d. Waiting period
The grace period is a specific period of time after the due date of a premium during which the policy remains valid without penalty. In most states, the grace period is 30 days before the policy lapses. Underwriting could be considered an evaluation period, waiting periods can be in effect before a death benefit is paid, and a probation period is not applicable to life insurance. Incorrect answer. Please choose another answer.

5.	James makes a good living and got a life insurance policy for the benefit of his wife. He recently experienced a life-changing event with the birth of his daughter. James should:
		a. Cancel his life insurance policy to afford to support his new daughter.
		b. Decrease his life insurance policy death benefit to get a cheaper policy.
		c. Increase his life insurance policy death benefit.
		d. Stop paying premiums on his life insurance policy.
Whenever an insured has a major life event such as marriage, the birth of a child, or the purchase of a new home, they should re-evaluate their life insurance needs. In this particular case, James would need additional life insurance coverage as his newborn daughter's care will likely depend a great deal on financial support provided by James. Incorrect answer. Please choose another answer.

Types of Life Insurance Policies and Individual versus Group Life Insurance

6.	Jack and his wife Lyn just purchased a home with a 15-year mortgage. Wanting to make sure that Lyn would be able to pay off the mortgage balance in the event of Jack's death, Jack had a "temporary" need for life insurance. What type of policy should Jack purchase?
		a. Whole Life Insurance
		b. Term Life Insurance
		c. Variable Life Insurance
		d. A Viatical Settlement
Given Jack's temporary need for 15 years of coverage to pay off the mortgage balance, the best choice for Jack would be a 15-year term life insurance policy as the premiums would likely be far less than a permanent policy, and once the mortgage is paid off in 15 years, this particular need for Jack will no longer exist. Incorrect answer. Please choose another answer.

7.	Which of the following is a type of permanent life insurance that offers both a death benefit and a cash value component?
		a. Term Life Insurance
		b. Universal Life Insurance
		c. Decreasing Term Insurance
		d. Renewable Term Insurance
Universal life insurance is a type of permanent life insurance that includes a death benefit and a cash value component, which can accumulate over time. Term life insurance policies only provide a death benefit; they don't accumulate cash value. With decreasing term insurance, the policy's death benefit will decrease over time, and renewable term insurance refers to the policyholder's option to renew the coverage when the initial term expires. Incorrect answer. Please choose another answer.

8.	What is a key characteristic of Group Life Insurance?
		a. It is generally purchased individually.
		b. Coverage amount is based on individual health assessments.
		c. It is often part of an employer or membership benefit package.
		d. Premiums are significantly higher than individual life insurance policies.
Group Life Insurance typically offers coverage to members of a group, such as employees of a company or members of an association, as part of a larger benefits package. Premiums are often lower than they are for individual policies. Incorrect answer. Please choose another answer.

9.	Which type of life insurance policy covers the insured for a specific period and pays out a benefit only if the insured dies during that period?
		a. Variable Life Insurance
		b. Whole Life Insurance
		c. Term Life Insurance
		d. Universal Life Insurance
Term life insurance is designed to offer life insurance protection for a specific period or term. Common term limits include 10, 20, and 30 years. Variable, whole, and universal life insurance are types of permanent life insurance that a policyholder can maintain until they terminate premium payments or upon the death of the insured. Incorrect answer. Please choose another answer.

10.	Which type of life insurance is considered to be more risky based on its investment component?
		a. Level Term Life Insurance
		b. Whole Life Insurance
		c. Decreasing Term Life Insurance
		d. Variable Life Insurance
Because the underlying investments are equities such as mutual funds, variable life insurance policies are considered to be securities. As these investments move up and down with the movements of the equities market, variable life insurance is considered to be more risky than other types of policies as there is the probability that the value of the policy's investment component could decrease. Incorrect answer. Please choose another answer.

Life Insurance Application and Underwriting

11.	Life insurance underwriters look at a variety of factors when determining the acceptance of an applicant. These factors can include:
		a. Health history
		b. Occupation
		c. Hobbies
		d. All of the above
		e. Both a and b only
Underwriters look at many factors that can deem an applicant for life insurance as being more or less risky. These criteria can include hobbies, occupation, lifestyle, gender, age, income, and many more. Incorrect answer. Please choose another answer.

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12.	What does underwriting in life insurance involve?
		a. Determining the policy type
		b. Evaluating the risk of insuring a person
		c. Choosing the beneficiaries
		d. Deciding the policy duration
Underwriting is the process by which insurers assess the risk associated with an insurance applicant. Medical records and medical exam results are sometimes used by underwriters to determine insurability. A, C, and D occur during the application process. Incorrect answer. Please choose another answer.

13.	In a life insurance contract, the principle of "Utmost Good Faith" implies:
		a. The insurer must cover all claims.
		b. The insured and insurer must disclose all relevant information.
		c. The policy is guaranteed to be profitable.
		d. The premiums are fixed for life.
"Utmost Good Faith" mandates that both parties to the insurance contract must deal in good faith, disclosing all material facts. Incomplete or misleading information submitted on an application by the insured can result in the contract being voided and a death benefit not being paid. Incorrect answer. Please choose another answer.

14.	Which of the following needs to have an insurable interest for an underwriter to issue an insurance policy?
		a. Owner
		b. Insurer
		c. Beneficiary
		d. Insured
The person or entity that is the policy beneficiary will have an effect on the acceptance of the policy. This is because the beneficiary must be at risk of suffering some type of loss should the insured pass away. Incorrect answer. Please choose another answer.

Selling Life Insurance, Determining Coverage Needs and Issuance and Delivery

15.	Which of the following deals with a set of relationships where one person is authorized to act on behalf of another in order to create a legal relationship with a third party.
		a. Law of principals
		b. Law of agency
		c. Law of third parties
		d. None of the above
The law of agency regulates the relationship between agents and principals as well as agents and third parties with whom they deal on the principal's behalf. Incorrect answer. Please choose another answer.

16.	When conducting a life insurance needs analysis, what factors should be considered to determine the amount of coverage needed?
		a. Current age of the policyholder
		b. Policyholder's hobbies and lifestyle
		c. Number of dependents and future financial obligations
		d. All of the above
Age, lifestyle, dependents, and future financial obligations should all be taken into account during the information-gathering process to determine the recommended face amount and policy type. Incorrect answer. Please choose another answer.

17.	All of the following can be considered life-changing events that could result in a change in the amount of life insurance coverage needed EXCEPT: I. Birth of a child II. Divorce III. Marriage IV. Change in job title
		a. I, II, and III
		b. II and III only
		c. I only
		d. IV only
While a new job with a drastic change in income and / or hazardous duties could result in a change of life insurance coverage needs, simply changing job titles will not. Incorrect answer. Please choose another answer.

Life Insurance for Business Owners and in Estate Planning

18.	Term life insurance should always be used in buy / sell agreements.
		True
		False
Permanent life insurance should be used with buy / sell agreements in order to ensure that the insured will not need to re-qualify for life insurance after a certain amount of time elapses. Incorrect answer. Please choose another answer.

19.	In estate planning, how does life insurance typically benefit the policyholder's beneficiaries?
		a. By serving as collateral for loans
		b. By covering estate taxes and final expenses
		c. By acting as a primary investment vehicle
		d. By directly transferring business ownership
In estate planning, life insurance can provide the necessary funds to cover estate taxes and other associated final expenses, such as medical and funeral costs, thereby preserving the value of the estate for the beneficiaries. Incorrect answer. Please choose another answer.

20.	For a small business owner, how can life insurance be instrumental in ensuring business continuity?
		a. By covering operational costs
		b. By providing funds to buy out a deceased partner's share
		c. By paying creditors
		d. All of the above
Life insurance for business owners can be crucial in buy-sell agreements and ensures business continuity. It is indispensable when the death benefit is used to purchase the deceased partner's share from their estate, cover operational costs during the transition, and pay creditors asking for payment when the business owner passes away. Incorrect answer. Please choose another answer.

21.	Corporate owned life insurance proceeds may be used for the following purposes: I. To find, replace, and train a new employee or executive II. To fund other corporate debt obligations III. To redeem the deceased employee's stock
		a. III only
		b. I and III only
		c. All of the above
		d. None of the above
There are many purposes in which the proceeds of corporate owned life insurance may be used. Incorrect answer. Please choose another answer.

Policy Components, Riders and Non-forfeiture Options

22.	What is the most common component in all life insurance policies?
		a. Living benefits
		b. Waiver of premium
		c. Death benefit
		d. Cost of living rider
While there are many different options and riders on life insurance, all policies possess a death benefit. Incorrect answer. Please choose another answer.

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23.	Which of the following is a type of 'Non-forfeiture Option' in a life insurance policy?
		a. An option to receive reduced paid-up insurance
		b. An option to receive cash surrender value
		c. An option to terminate the policy without receiving any benefits
		d. A and B only
Non-forfeiture options allow policyholders to receive benefits from their policy even if it lapses, typically in the form of reduced paid-up insurance, extended term insurance, or a cash surrender value. Reduced paid-up insurance is permanent insurance with a lower face amount, extended term insurance will expire at a future date, and the cash surrender value will be less than the policy's cash value. Incorrect answer. Please choose another answer.

24.	Permanent life insurance policies always have two components. What are they? I. Death benefit II. Cash value III. Living Benefits IV. Conversion Benefit
		a. I, II, III and IV
		b. I, II and III
		c. II and IV
		d. I and II
Permanent life insurance policies consist of both a death benefit component and a cash value component. Incorrect answer. Please choose another answer.

Claims, Settlement Options and Tax Concepts

25.	A beneficiary on a life insurance policy will receive what value upon the death of the insured?
		a. Cash value
		b. Surrender value
		c. Investment value
		d. Death benefit
The death benefit is the amount that is paid to the policy beneficiary upon the death of the insured. Should a permanent life insurance policy holder decide to cancel the policy prior to the insured's death, they will receive the amount of the cash surrender value. Incorrect answer. Please choose another answer.

26.	What is a 'Settlement Option' in a life insurance policy?
		a. The method chosen by the insurer to pay out claims
		b. The way a beneficiary chooses to receive the death benefit
		c. The process of disputing a claim with the insurer
		d. The options for investing the policy's cash value
Settlement options refer to the various ways in which the proceeds from a life insurance policy can be paid out to the beneficiaries, such as a lump sum, installments, or an annuity. If not specified by the policyowner at time of application, the beneficiary can choose the settlement option. Incorrect answer. Please choose another answer.

27.	John, who had a life insurance policy with a death benefit, died on August 31st, after a long bout with cancer. He had been hospitalized for a month before his death. His wife contacted the insurance company to file her claim for the death benefit on September 5th, after John's burial, and after she had time to collect her emotions to deal with her personal loss. The insurance agent filed the papers to process the claim with his supervisor, and the death benefit was settled on October 30th. Were any laws violated in this scenario?
		a. No, the agent filed the paperwork within 30 days of the claim.
		b. Yes, the claim was not settled within 30 days of the claim.
		c. No, there are suspicions around the death of John.
		d. Yes, the claim was not settled within 15 days of the claim.
Although it typically takes approximately two weeks to settle death benefit claims, insurance companies are required to settle such claims within 30 days. Some claims may require additional time if they require additional investigation. Here, there is nothing suspicious about John's death. Incorrect answer. Please choose another answer.

Living Benefits and Viatical and Life Settlements

28.	Which of the following is a rider that allows a terminally ill person to access at least a portion of the death benefit proceeds prior to death?
		a. Waiver
		b. Living benefit
		c. Supplement
		d. Addendum
A living benefit on a life insurance policy is typically a policy rider that allows an insured who has a qualifying terminal illness to access some or all of the death benefit proceeds in order to pay medical bills or other financial obligations. The death benefit proceeds on the policy will be reduced by the amount that is accessed by the insured. Incorrect answer. Please choose another answer.

29.	What distinguishes a 'Viatical Settlement' from a 'Life Settlement'?
		a. Viatical settlements involve terminally ill policyholders, while life settlements do not.
		b. Viatical settlements are for older policyholders, while life settlements are for younger ones.
		c. Life settlements always involve a lump-sum payment, while viatical settlements do not.
		d. Viatical settlements are tax-free, while life settlements are taxable.
In a viatical settlement, a terminally ill policyholder sells their life insurance policy at a discount from its face value for immediate cash, whereas a life settlement involves the sale of a life insurance policy by a policyholder who is not necessarily terminally ill. Incorrect answer. Please choose another answer.

30.	Living benefits on a life insurance policy can be typically be accessed via:
		a. Lump sum
		b. Regular installments
		c. Loan
		d. All of the above
		e. Both a and b
The living benefits that are accessed from a life insurance policy can typically be taken out either in one lump sum amount or they could be received via regular installments. With the installment method, the insured may wish to use these funds to pay his or her ongoing monthly bills. Incorrect answer. Please choose another answer.

General Health Insurance Basics, Regulation and Social Health Insurance

31.	The insured party has no part in determining the wording of an insurance contract. In this respect, insurance contracts are considered to be __________.
		a. Contracts of Adhesion
		b. Contracts of Forbearance
		c. Contracts by Regulation
		d. Contracts by Law
If a contract contains unclear wording, then a court will interpret the language used against the writer of the contract - unless the wording that is used is required by law to be stated in a specific way. Incorrect answer. Please choose another answer.

32.	What role does government regulation typically play in health insurance?
		a. It determines the medical procedures covered under all insurance plans.
		b. It sets the premium rates for private health insurance companies.
		c. It establishes standards and guidelines for health insurance policies.
		d. It directly provides health insurance to all citizens.
Government regulation in health insurance often involves setting standards for policy provisions, ensuring consumer protection, and overseeing the practices of insurance companies to maintain fairness and accessibility in the market. This is typically done at a state level through each state's Department of Insurance. It does not directly provide health insurance to all citizens, nor does it determine which medical procedures are covered, nor set premiums. Incorrect answer. Please choose another answer.

33.	A(n) __________ in an insurance contract is a statement by the issuing insurance company that sets out the essential element of insurance - to pay for losses covered in the policy.
		a. Beneficiary designation
		b. Premium amount
		c. Insuring clause
		d. Rider
This promise of covering losses is in exchange for the premium that is paid by the insured and the compliance with the policy terms. Incorrect answer. Please choose another answer.

Types of Health Insurance Policies and HMO and PPO

34.	Which of the following is not a form of health insurance? I. Dental insurance II. Vision insurance III. Disability insurance IV. Long-term care insurance
		a. I only
		b. II only
		c. All of the above
		d. None of the above
All of the above are types of health insurance policies. Incorrect answer. Please choose another answer.

35.	What is a key difference between a PPO (Preferred Provider Organization) and an HMO (Health Maintenance Organization)?
		a. PPO plans offer more flexibility in choosing healthcare providers outside the network.
		b. PPO plans only cover preventative care services.
		c. HMO plans typically have higher out-of-pocket costs than PPOs.
		d. HMO plans offer a wider choice of healthcare providers and specialists.
Unlike HMOs, PPOs allow members to see providers outside of their network without a referral, although at a higher cost. HMO members must first see their chosen Primary Care Provider (PCP) to receive care, and can then be referred to a specialist if needed. Incorrect answer. Please choose another answer.

36.	A business client is looking for ways to decrease its monthly premiums. To get down to the premium level sought after by the company, the agent realizes they have to go to a high deductible health plan. As part of your advice to the business, what should you include in your discussion?
		a. HMO
		b. PPO
		c. POS
		d. HSA
Health savings accounts (HSA) are used with high deductible health insurance policies. With an HSA, money that is saved on the premium may be put into the account and then funds are used for certain medical fees. Because the funds in the HSA account can be used for medical services, participants often use them for un-covered procedures such as chiropractic visits or other health-related services that are not covered by their insurance policy. Incorrect answer. Please choose another answer.

Health Insurance Policy Components and Exclusions

37.	The components of a long-term care insurance policy include all of the following EXCEPT:
		a. Elimination period
		b. Benefit amount
		c. Own occupation
		d. Benefit duration
Own occupation is a type of benefit trigger that is found in a disability insurance policy, not in long-term care insurance policies. An elimination period in a long-term care insurance policy is the number of days that an insured must pay for their care after a qualifying claim, but before benefits begin to pay (such as with a deductible). The benefit duration in a long-term care policy states how long benefits will be paid to an insured, and the benefit amount may be stated either as a daily or monthly amount. (Some recent long-term care insurance plans also offer a lump-sum benefit payout option). Incorrect answer. Please choose another answer.

38.	Which of the following is a common exclusion in most health insurance policies?
		a. Emergency room visits
		b. Cosmetic surgery
		c. Annual physical exams
		d. Prescription medications
Most health insurance policies do not cover cosmetic surgery as it is generally considered elective and not medically necessary. In contrast, emergency room visits, annual physical exams, and prescription medications are typically covered as they are essential for maintaining health and treating illnesses. Incorrect answer. Please choose another answer.

39.	When constructing a major medical insurance policy, several criteria must be established, including:
		a. Policy deductible
		b. Maximum out-of-pocket amount
		c. Elimination period
		d. All of the above
		e. Both a and b only
While major medical insurance policies typically have high deductibles, these must be established in the policy as well as the maximum amount of out-of-pocket costs that will be paid by the policy holder. The elimination period is not part of a major medical insurance policy. Incorrect answer. Please choose another answer.

Selling Health Insurance, Issuance and Delivery and Tax Considerations

40.	As a marketing tool, Ted, a health insurance agent, offered to send an applicant and his wife on a weekend vacation to a local resort to induce the applicant to purchase a policy. Is this practice permitted and, if not, what is it called?
		a. No; Misrepresentation
		b. No; Twisting
		c. Yes; it is perfectly acceptable
		d. No; Rebating
Rebating is the act of offering an applicant an inducement to purchase insurance. It is prohibited as an unfair trade practice. Another example would be returning a portion of the applicant's policy premium from the agent's commission. Incorrect answer. Please choose another answer.

41.	Sara, a health insurance agent, is finalizing the delivery of a health insurance policy to a client. She explains that policy delivery is more than just handing over the document. What additional step should Sara emphasize is crucial during the policy delivery process?
		a. Immediately starting the coverage as soon as the policy is handed over
		b. Thoroughly reviewing the policy with the client to ensure understanding and accuracy
		c. Advising the client to store the policy in a secure location
		d. Encouraging the client to immediately start looking for additional coverage options
Sara should emphasize the importance of a detailed review of the policy upon delivery, ensuring that the client understands the coverage, terms, conditions, exclusions, and their rights under the policy. The other options, while relevant in different contexts, do not specifically pertain to the complexity and importance of the policy delivery process. Incorrect answer. Please choose another answer.

42.	An agent is in need of generating business. He gets an idea of asking his client to let his policy lapse so that the agent can sell him a new similar policy. Is this permissible and, if not, what is this action called?
		a. No; Rebating
		b. No; Bait and switch
		c. No; Twisting
		d. Yes; it is perfectly acceptable
Twisting involves an agent suggesting that an individual let their current insurance coverage lapse in order to purchase a new policy, typically with similar benefits. It is a prohibited activity. In this case, the new policy does not necessarily benefit the client, however, the agent will likely receive a commission on the sale of the new policy. Incorrect answer. Please choose another answer.

Deductibles and Copayments

43.	A __________ is the amount that an insured person is expected to pay for a medical expense at the time of the visit.
		a. Deductible
		b. Reimbursement
		c. Corridor
		d. Copayment
A copayment is the amount or portion of the total cost that is the patient's responsibility upon receiving a medical service such as an annual check-up. Incorrect answer. Please choose another answer.

44.	How does the choice of deductible affect health insurance premiums?
		a. Higher deductibles are associated with higher premiums.
		b. Lower deductibles generally lead to lower premiums.
		c. Higher deductibles typically result in lower premiums.
		d. The deductible amount has no impact on premium rates.
When a policyholder chooses a higher deductible, it means they are willing to pay more out-of-pocket before their insurance coverage starts. This higher initial cost-sharing reduces the insurer's risk, often leading to lower premium costs. Conversely, choosing a lower deductible, which reduces out-of-pocket costs for the insured, generally results in higher premiums since the insurer is taking on more risk. Incorrect answer. Please choose another answer.

45.	The "deductible" in a long-term care insurance policy is referred to as the __________.
		a. Deductible
		b. Coinsurance
		c. Elimination period
		d. Copayment
A long-term care insurance policy's elimination period is the number of days that the insured must pay for services out-of-pocket until the insurance coverage begins to pay. Incorrect answer. Please choose another answer.

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Health Insurance Claims and Indemnity vs. Reimbursement

46.	On a health insurance claim form, the exact procedures that were performed for the insured are represented by standard codes that are referred to as __________.
		a. RVU codes
		b. AMA codes
		c. HCPCS codes
		d. CPT codes
Each CPT also corresponds to one or more International Classification of Diseases (ICD-9) codes. For example, 99214 may be used for a physical and 90658 indicates a flu shot. Incorrect answer. Please choose another answer.

47.	What is the difference between indemnity and reimbursement in health insurance?
		a. Indemnity plans provide a fixed benefit regardless of actual expenses; reimbursement plans pay back actual expenses.
		b. Reimbursement plans offer a wider network of doctors than indemnity plans.
		c. Indemnity plans require referrals for specialists; reimbursement plans do not.
		d. Reimbursement plans have higher premiums than indemnity plans.
In an indemnity plan, the insurer pays a predetermined amount for covered services, regardless of the actual cost. In contrast, a reimbursement plan reimburses the actual expenses incurred up to the policy's coverage limits. Incorrect answer. Please choose another answer.

48.	What type of notice is used to show all of the services or supplies that were billed to Medicare during a 3-month period, what Medicare paid, and what the patient may owe the provider?
		a. MSN
		b. CPT
		c. OPPS
		d. HCPCS
A MSN, or Medicare Summary Notice, can also be checked for any changes to a patient's claims. Incorrect answer. Please choose another answer.

Disability and Related Insurance and Seniors and Special Needs Individuals

49.	As a professional surgeon, which type of disability coverage would offer the most liberal definition of benefit triggers for the policy holder in terms of benefit receipt if the insured were to break his or her hand?
		a. Own occupation
		b. Employer provided
		c. Social Security
		d. Business overhead
Own occupation offers the most liberal definition of disability as the insured is considered to be totally disabled if he or she is unable to engage in the principal duties of his or her own occupation. Incorrect answer. Please choose another answer.

50.	Social Security should be considered one's primary source of disability income coverage.
		True
		False
Although Social Security may provide disability benefits, in the majority of cases, these benefits are inadequate. Therefore, Social Security disability benefits should only be used to supplement an individual disability income policy. Incorrect answer. Please choose another answer.

51.	What does "Own Occupation" mean in a disability insurance policy?
		a. The policy covers disabilities resulting only from occupational hazards.
		b. The policyholder is insured against disability in any occupation they are qualified for.
		c. The policy provides benefits if the policyholder cannot work in their specific occupation due to disability.
		d. The policy covers only short-term disabilities related to the policyholder's current job.
An "Own Occupation" disability insurance policy defines disability as the inability to perform the duties of one's own occupation. This means the policyholder can receive benefits even if they are capable of working in a different occupation. Incorrect answer. Please choose another answer.

Quality starts with who wrote the material.

Our practice exam writer

Michael Broadway, PMP,

is a Master Certified PMP. He provided writing and editing services to the PMI on the 4th and 5th editions of the PMBOK Guide, as well as created test questions for the CBAP, CCBA and CISSP certification exams.

Donna Kurtz, PMP,

is the Director of Program Management at QuanteqUSA, where she developed the project management office focusing on Agile project management. She is a certified PMP through PMI, a certified ICP-ACC Agile coach and a certified professional scrum master, PSM 1. Donna formerly taught business and technology courses at Concordia University as an adjunct professor and worked as a financial advisor with Morgan Stanley.

The Project Management Institute (PMI) is the professional organization responsible for creating and maintaining the global standards for project management and the project management profession.

The actual PMP Certification Exam consists of 200 multiple choice questions from the nine Knowledge Areas in the Project Management Body of Knowledge (PMBOK) Guide, including:

Integration Management
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Quality Management
Human Resource Management
Communications Management
Risk Management
Procurement Management

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