OpenExamsFREE PRACTICE — ANY EXAM

Free New Hampshire Producer's Life Insurance Practice Questions

154 free questions · Answer explanations · No signup required

View examination details, outline and sources

Loading selected examination banks…

Sample Practice Questions

Try these 10 sample questions from the New Hampshire Producer's Life Insurance practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A first-time New Hampshire resident applies for a Life producer license and has no statutory exemption. What examination obligation applies?

    1. A. Pass a written examination for the requested line of authority
    2. B. Complete continuing education in place of an examination
    3. C. Hold an insurer appointment before taking an examination
    4. D. Pass only a federal securities examination

    Answer: A

    Explanation: RSA 402-J:5(I) states: "A resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to RSA 402-J:9." The applicant therefore must pass the written Life examination.

    Reference: Section 402-J:5 Application for Examination. — Section 402-J:5(I)

  2. 2An insurer declines an application partly because of information in a consumer report. What must the insurer provide under the Fair Credit Reporting Act?

    1. A. A notice of adverse action to the applicant
    2. B. A notice of policy rescission to the applicant
    3. C. A notice of premium refund to the applicant
    4. D. A notice of claim denial to the applicant

    Answer: A

    Explanation: "Section 615(a) of the FCRA requires you to provide a notice of the adverse action to the consumer." Use of the report in an adverse underwriting decision triggers an adverse-action notice, rather than a policy or claim notice.

    Reference: FTC, Consumer Reports: What Insurers Need to Know — FTC, Consumer Reports: What Insurers Need to Know, adverse-action notice discussion

  3. 3An underwriter notes faulty electrical wiring that makes a house fire more likely. In insurance terminology, what is the faulty wiring?

    1. A. A peril
    2. B. A hazard
    3. C. A loss
    4. D. An exposure

    Answer: B

    Explanation: "Hazard - circumstance which tends to increase the probability or severity of a loss." The wiring raises the chance of loss, making it a hazard; the fire would be a peril.

    Reference: NAIC, Glossary of Insurance Terms — NAIC Glossary, Hazard

  4. 4A producer arranges life coverage on another person. At which point does New Hampshire law require an insurable interest in the insured's life to exist?

    1. A. When the application is first drafted
    2. B. When the policy or contract is issued
    3. C. When the first renewal premium is due
    4. D. When the beneficiary files a death claim

    Answer: B

    Explanation: "An insurable interest shall exist at the time the policy or contract is issued." Issuance is the statutory test point; an earlier proposal or later claim is not a substitute.

    Reference: New Hampshire RSA 408 — RSA 408, insurable interest at issue

  5. 5A client needs a death benefit for a fixed ten-year obligation and does not seek cash-value accumulation. Which basic policy type most directly fits?

    1. A. Ordinary whole life insurance
    2. B. Flexible-premium universal life
    3. C. Level term life insurance
    4. D. Variable permanent life insurance

    Answer: C

    Explanation: "coverage for a specific period of time (“a term”)." The guide also says, "Most term policies don’t build up cash values that you can use in the future." A finite need without cash-value goals therefore favors term over permanent insurance.

    Reference: NAIC, Life Insurance Buyer's Guide — NAIC Life Insurance Buyer's Guide, Term Insurance

  6. 6A life policyholder misses a renewal premium and dies during the grace period without having requested discontinuance. How is the death-benefit coverage treated?

    1. A. It remains in force during the grace period
    2. B. It is suspended until the overdue premium is paid
    3. C. It changes to reduced paid-up coverage at once
    4. D. It remains only if an automatic premium loan is elected

    Answer: A

    Explanation: "during which grace period the death benefit coverage shall continue in force" With no written discontinuance, the missed premium does not immediately end death-benefit coverage; lapse, paid-up coverage, and premium loans have different triggers.

    Reference: New Hampshire RSA 408 — RSA 408, grace period

  7. 7A retiree pays a single premium and wants income to begin soon after purchasing an annuity. Which contract type best matches that income start?

    1. A. Single-premium immediate annuity
    2. B. Single-premium deferred annuity
    3. C. Flexible-premium deferred annuity
    4. D. Deferred income annuity contract

    Answer: A

    Explanation: "Some annuities begin paying income to you soon after you buy it (an immediate annuity). Others begin at some later date you choose (a deferred annuity)." The immediate form starts income soon after purchase; the deferred forms start at a later selected time.

    Reference: NAIC, Buyer's Guide for Deferred Annuities — NAIC Buyer's Guide to Annuities, Immediate and Deferred

  8. 8A beneficiary receives ordinary life-insurance proceeds because the insured died. How are the proceeds generally treated for federal income tax?

    1. A. Generally excluded from the beneficiary's gross income
    2. B. Generally included as ordinary income to the beneficiary
    3. C. Generally included as capital gain to the beneficiary
    4. D. Generally included as ordinary income to the estate

    Answer: A

    Explanation: "Life insurance proceeds paid to you because of the death of the insured person generally aren’t taxable" Ordinary proceeds payable because of death are generally excluded from the beneficiary's federal income; the other choices tax the proceeds under different income categories.

    Reference: IRS Publication 525 — IRS Publication 525, Life insurance proceeds

  9. 9Which subject is expressly within the New Hampshire resident producer examination's statutory scope?

    1. A. The applicant's personal credit score
    2. B. New Hampshire insurance laws and regulations
    3. C. The insurer's quarterly investment return
    4. D. Federal income-tax return preparation

    Answer: B

    Explanation: The statute says the examination tests "the insurance laws and regulations of this state," along with line knowledge and producer duties. Personal finances and insurer investment results are not part of that statutory scope.

    Reference: Section 402-J:5 Application for Examination. — Section 402-J:5(I)

  10. 10A person with a felony conviction involving dishonesty seeks to work in the business of insurance. Which authorization removes the federal §1033 prohibition?

    1. A. Written consent from an insurance regulatory official
    2. B. A resident producer license from the insurance department
    3. C. A carrier appointment filed with the insurance department
    4. D. Completion of state-approved producer education

    Answer: A

    Explanation: "written consent of any insurance regulatory official authorized to regulate the insurer" The federal exception requires an authorized insurance regulator's written consent; a license, appointment, or course completion serves a different purpose.

    Reference: 18 U.S.C. § 1033 (2024 U.S. Code) — 18 U.S.C. §1033(e)(2)

Topics in this practice bank

These topics describe the available practice for New Hampshire Producer's Life Insurance. Review the examination outline and its sources for scope and allocation details.

  • Insurance Regulation
    • Licensing
    • Licensing — Process (402-J:5, 6)
    • Licensing — Types of Licensees
    • Licensing — Types of Licensees — Producer (402-J:2, 14)
    • Licensing — Types of Licensees — Producer with appointment (402-J:14)
    • Licensing — Types of Licensees — Business entity (402-J:6)
    • Licensing — Types of Licensees — Financial institutions (406-C:1–19)
    • Licensing — Types of Licensees — Resident versus nonresident (402-J:8, 16)
    • Licensing — Types of Licensees — Temporary (402-J:11)
    • Licensing — Maintenance and Duration
    • Licensing — Maintenance and Duration — Renewal (402-J:7(II–IV))
    • Licensing — Maintenance and Duration — Change of address (402-J:7(VI))
    • Licensing — Maintenance and Duration — Reporting of actions (402-J:17)
    • Licensing — Maintenance and Duration — Assumed names (402-J:10)
    • Licensing — Maintenance and Duration — Continuing education requirements (Reg 1302.03, 1302.04, 1304.03)
    • Licensing — Disciplinary Actions
    • Licensing — Disciplinary Actions — Cease and desist order (417:12)
    • Licensing — Disciplinary Actions — Denial, suspension or revocation (402:49; 402-J:12)
    • Licensing — Disciplinary Actions — Penalties and fines (400-A:15(III); 402:42, 48; 402-J:12(IV); 417:10, 13)
    • State regulation
    • State regulation — Commissioner's general duties and powers (400-A:3, 15; 417:5, 14)
    • State regulation — Commissioner's general duties and powers (400-A:3, 15; 417:5, 14) — Investigations enforcement (400-A:16)
    • State regulation — Company regulation
    • State regulation — Company regulation — Producer appointment (402-J:14)
    • State regulation — Company regulation — Termination of appointment (402-J:15)
    • State regulation — Producer regulation
    • State regulation — Producer regulation — Acting without a license (402-J:3, 13)
    • State regulation — Producer regulation — Commissions (402-J:13)
    • State regulation — Producer regulation — Conversion of funds by producer (402:53)
    • State regulation — Producer regulation — Referrals (402:16-B)
    • State regulation — Producer regulation — Controlled business (402:74)
    • State regulation — Producer regulation — Fiduciary requirements (Reg 4301.01–4301.09)
    • State regulation — Producer regulation — License to transact business (402:12)
    • State regulation — Producer regulation — Unfair claim settlement practices (417:4(XV); Reg 1001.01–.11, Reg 1002.01–.20)
    • State regulation — Unfair insurance trade practices
    • State regulation — Unfair insurance trade practices — Misrepresentation (402:46; 417:4(I, II))
    • State regulation — Unfair insurance trade practices — Twisting (402:47; 417:4(I))
    • State regulation — Unfair insurance trade practices — False information and advertising (417:4(III))
    • State regulation — Unfair insurance trade practices — Defamation (417:4(IV))
    • State regulation — Unfair insurance trade practices — Boycott, coercion and intimidation (417:4(V))
    • State regulation — Unfair insurance trade practices — Illegal inducement (417:4(VII))
    • State regulation — Unfair insurance trade practices — Unfair discrimination (417:4(VIII))
    • State regulation — Unfair insurance trade practices — Rebating (402:39–41; 417:4(IX))
    • Examination of books and records (400-A:37)
    • Insurance fraud regulation (400-A:36-b(II); 417:23; RL 638:20)
    • Consumer privacy regulation (Reg 3001–3006)
  • Federal Laws and Regulations
    • Fair Credit Reporting Act - Purpose
    • 18 United States Code (USC) Sections 1033 and 1034 - Purpose (Letter of Written Consent)
    • National Do Not Call List
  • General Insurance Concepts
    • Risk
    • Risk — Methods of Handling Risk (Avoidance, Retention, Sharing, Reduction, Transfer)
    • Risk — Elements of Insurable Risks
    • Risk — Definitions (Risk, Hazard, Peril, Loss)
    • Classifications of Insurers
    • Classifications of Insurers — Mutual, Stock, Fraternal
    • Classifications of Insurers — Admitted, Non-Admitted
    • Classifications of Insurers — Foreign, Domestic, Alien
    • Elements of a Contract
    • Elements of a Contract — Consideration
    • Elements of a Contract — Competent Parties
    • Elements of a Contract — Legal Purpose
    • Elements of a Contract — Offer
    • Elements of a Contract — Acceptance
    • Authority and Powers of Producers
    • Authority and Powers of Producers — Express
    • Authority and Powers of Producers — Implied
    • Authority and Powers of Producers — Apparent
    • Authority and Powers of Producers — The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Legal Interpretations Affecting Contracts — Reasonable Expectations - good faith
    • Legal Interpretations Affecting Contracts — Indemnity
    • Legal Interpretations Affecting Contracts — Good Faith
    • Legal Interpretations Affecting Contracts — Fraud
    • Legal Interpretations Affecting Contracts — Warranties, Representations, Misrepresentations, and Concealment
  • Life Insurance Basics
    • Insurable Interest
    • Personal Uses of Life Insurance
    • Personal Uses of Life Insurance — Survivor Protection
    • Personal Uses of Life Insurance — Liquidity
    • Determining Amount of Personal Life Insurance
    • Determining Amount of Personal Life Insurance — Human Life Value Approach
    • Determining Amount of Personal Life Insurance — Needs Approach
    • Business Uses of Life Insurance
    • Business Uses of Life Insurance — Buy-Sell Funding
    • Business Uses of Life Insurance — Key Person
    • Business Uses of Life Insurance — Executive Bonuses
    • Factors in Premium Determination
    • Factors in Premium Determination — Mortality
    • Factors in Premium Determination — Interest
    • Factors in Premium Determination — Expense
    • Premium Frequency
    • Field Underwriting
    • Field Underwriting — Application Procedures
    • Field Underwriting — Warranties and Representations
    • Policy Delivery
    • Policy Delivery — Effective Date of Coverage
    • Policy Delivery — Policy Review
    • Policy Delivery — Premium Collection
    • Policy Delivery — Statement of Good Health
    • Company Underwriting
    • Company Underwriting — Sources of Information
    • Company Underwriting — Classifications of Risk (Preferred, Standard, Substandard, Declined)
  • Types of Life Insurance Policies
    • Term Life Insurance
    • Term Life Insurance — Level
    • Term Life Insurance — Decreasing
    • Term Life Insurance — Increasing Term
    • Whole (Permanent, Ordinary) Life Insurance
    • Whole (Permanent, Ordinary) Life Insurance — Single Premium
    • Whole (Permanent, Ordinary) Life Insurance — Continuous Premium
    • Whole (Permanent, Ordinary) Life Insurance — Limited Payment
    • Whole (Permanent, Ordinary) Life Insurance — Adjustable Life
    • Universal Life
    • Variable Life
    • Variable Universal
    • Indexed Universal Life
    • Specialized Policies
    • Specialized Policies — Joint Life
    • Specialized Policies — Survivorship Life
    • Specialized Policies — Juvenile
    • Group Life Insurance
    • Group Life Insurance — Eligible Groups
    • Group Life Insurance — Characteristics of Group Life Insurance
  • Life Insurance Policy Provisions, Options, and Riders
    • Standard Life Insurance Provisions
    • Standard Life Insurance Provisions — Ownership
    • Standard Life Insurance Provisions — Assignment
    • Standard Life Insurance Provisions — Right to Examine (Free Look)
    • Standard Life Insurance Provisions — Payment of Premiums
    • Standard Life Insurance Provisions — Grace Period
    • Standard Life Insurance Provisions — Misstatement of Age/Sex
    • Standard Life Insurance Provisions — Incontestability
    • Standard Life Insurance Provisions — Reinstatement
    • Standard Life Insurance Provisions — Entire Contract
    • Beneficiary Designation Options
    • Beneficiary Designation Options — Individuals
    • Beneficiary Designation Options — Classes
    • Beneficiary Designation Options — Minors
    • Types of Beneficiaries
    • Types of Beneficiaries — Primary and Contingent
    • Beneficiary-Related Clauses
    • Beneficiary-Related Clauses — Common Disaster
    • Settlement Options
    • Settlement Options — Cash Payment (Lump Sum)
    • Settlement Options — Interest Only
    • Settlement Options — Life Income
    • Settlement Options — Fixed-Period
    • Settlement Options — Fixed-Amount Installments
    • Settlement Options — Joint
    • Settlement Options — Last Survivor
    • Nonforfeiture Options
    • Nonforfeiture Options — Cash Surrender Value
    • Nonforfeiture Options — Extended Term
    • Nonforfeiture Options — Reduced Paid-Up Insurance
    • Policy Loan and Withdrawal Options
    • Policy Loan and Withdrawal Options — Loans
    • Policy Loan and Withdrawal Options — Automatic Premium Loans
    • Policy Loan and Withdrawal Options — Withdrawals Partial Surrenders
    • Dividend Options
    • Dividend Options — Paid-Up Additions
    • Dividend Options — Cash Payment (Lump Sum)
    • Dividend Options — One Year Term
    • Dividend Options — Reduction of Premium
    • Dividend Options — Accumulation at Interest
    • Disability Riders
    • Disability Riders — Waiver of Premium
    • Disability Riders — Disability Income Benefit
    • Disability Riders — Payor Benefit Life
    • Riders Covering Additional Insureds
    • Riders Covering Additional Insureds — Spouse
    • Riders Covering Additional Insureds — Children
    • Riders Covering Additional Insureds — Family term rider
    • Riders Affecting Death Benefit Amount
    • Riders Affecting Death Benefit Amount — Accidental Death
    • Riders Affecting Death Benefit Amount — Guaranteed Insurability
    • Riders Affecting Death Benefit Amount — Cost of Living
    • Riders Affecting Death Benefit Amount — Return of Premium
    • Riders Affecting Death Benefit Amount — Accelerated (Living) Benefit Provision Rider
    • Riders Affecting Death Benefit Amount — Long-Term Care Rider
    • Policy Exclusions
  • Annuities
    • Annuity Principles and Concepts
    • Annuity Principles and Concepts — Accumulation Period versus Annuity Period
    • Annuity Principles and Concepts — Owner, Annuitant, and Beneficiary
    • Immediate versus Deferred Annuities
    • Annuity (Benefit) Payment Options
    • Annuity (Benefit) Payment Options — Life Contingency Options
    • Annuity (Benefit) Payment Options — Annuities Certain
    • Annuity (Benefit) Payment Options — Pure Life versus Life with Guaranteed Minimum
    • Annuity (Benefit) Payment Options — Single Life versus Multiple Life
    • Annuity Products
    • Annuity Products — Fixed Annuities
    • Annuity Products — Equity Indexed Annuities
    • Annuity Products — Variable Annuities
    • Uses of Annuities
    • Uses of Annuities — Lump-Sum Settlements
    • Uses of Annuities — Retirement Income
    • Uses of Annuities — Long-Term Care Rider
    • Uses of Annuities — Guaranteed Minimum Withdrawal Benefit (GMWB)
  • Federal Tax Considerations for Life Insurance
    • Taxation of Personal Life Insurance and Annuities
    • Taxation of Personal Life Insurance and Annuities — Premiums
    • Taxation of Personal Life Insurance and Annuities — Dividends
    • Taxation of Personal Life Insurance and Annuities — Settlements
    • Taxation of Personal Life Insurance and Annuities — Last In First Out (LIFO) and First In First Out (FIFO)
    • Taxation of Personal Life Insurance and Annuities — Surrenders and Withdrawals
    • Modified Endowment Contracts (MECs)

How to use these free practice questions

Choose an answer, check the explanation, and review your progress by chapter. Practice questions and explanations are free to access without signing up.

These are independent study questions, not actual examination items. For examination requirements and official information, view New Hampshire Producer's Life Insurance details.