CT Life & Health study guide
CT Life & Health · Work through your exam, one topic at a time.
The Connecticut Life & Health Insurance Producer License Exam is the licensing assessment a candidate must pass to be issued a Connecticut insurance producer license with life and health lines of authority. It is intended for people entering the insurance profession - career changers, agency staff, and employees of insurers and brokerages - who will sell, solicit, or negotiate life insurance, annuities, and health insurance products in Connecticut. The CT Life & Health study guide has 10 sections and about 3,670 words.
01Insurance Regulation
Insurance in the United States is regulated primarily by the states under the McCarran-Ferguson Act (1945), which also preserved limited federal antitrust immunity for state-supervised insurance activity. Each state's insurance department enforces its own code; the NAIC is a voluntary association of regulators that drafts model laws and rating rules - models carry no legal force until a state adopts them.
383 words, about 2 min02General Insurance Concepts
Risk is uncertainty about loss; peril is the cause of loss (fire, death, illness); hazard is a condition that increases the chance or severity of loss. Hazards come in three flavors: physical (a leaking roof), moral (dishonesty - arson, faking a death), and morale (carelessness because a policy exists).
401 words, about 2 min03Life Insurance Basics
A life policy requires insurable interest at the time of application - a financial or close personal relationship that would suffer economic loss at the insured's death. Interest is needed at issue, not at death; this is why a policy proceeds to the beneficiary even if the relationship later ends.
361 words, about 2 min04Life Insurance Policies
Term provides pure protection for a stated period with no cash value. Variations: level (constant face), decreasing (face declines, often used with mortgages), increasing , renewable (guaranteed renewal without evidence of insurability, at higher attained-age rates), convertible (change to permanent without proof of insurability; premium reflects the new policy), and return of premium (refunds premiums at the end of the term, at a higher cost).
352 words, about 2 min05Life Insurance Policy Provisions, Options and Riders
Entire contract - the policy plus the application constitute the whole agreement; only an authorized officer may change it. Free look - usually 10 days after delivery to return for a full refund.
384 words, about 2 min06Annuities
An annuity is a contract that liquidates a sum of money over time, protecting against the risk of living too long (longevity risk). The owner pays premiums, the annuitant is the measuring life, and the beneficiary receives any death benefit.
352 words, about 2 min07Federal Tax Considerations for Life Insurance and Annuities
Death proceeds are generally received income-tax free under IRC section 101(a) - whether paid as a lump sum or in installments (interest paid in installments is taxable). Premiums are not deductible for an individual, but cash value grows tax-deferred, and policy loans are not taxable unless the policy lapses or is surrendered with outstanding debt.
399 words, about 2 min08Health Insurance Basics
Health underwriting measures morbidity (likelihood and cost of illness), not mortality. Delivery models: indemnity (fee-for-service, any provider, higher cost), HMO (closed network, gatekeeper PCP, prepaid, usually no out-of-network coverage except emergencies), PPO (network discounts, out-of-network allowed at reduced benefit), POS (HMO/PPO hybrid with a gatekeeper), and EPO (network only, no referral needed).
301 words, about 2 min09Health Insurance Policy Provisions
Health policies contain standardized provisions designed to protect the insured: entire contract (policy plus attached papers and endorsements); a grace period tied to mode (commonly 7 days weekly, 10 days monthly, 31 days for other modes); reinstatement (automatic if the premium is accepted; otherwise evidence of insurability); a two-year time limit on certain defenses (incontestability for fraud/misstatement); claim procedures - notice of claim, claim forms, proof of loss, and time of payment of claims (often within 45 days of proof); physical examination at the insurer's expense; legal actions limits; change of beneficiary; and payment of claims. Coordination of benefits prevents double recovery when a person has two group plans: the primary plan pays, the secondary plan pays the remainder, with the birthday rule for dependent children.
352 words, about 2 min10Connecticut-Specific Laws, Rules and Regulations
The Connecticut Insurance Department, headed by a Commissioner appointed by the Governor, licenses companies and producers, reviews forms and rates, conducts financial and market-conduct examinations, and enforces the state's unfair insurance and trade practice statutes. Remedies include cease-and-desist orders, fines, license suspension or revocation, and restitution.
385 words, about 2 min