10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The IALH exam has 87 questions and runs 2 hours.
These 10 free IALH questions are organized by exam domain, so you can see how each part of the Iowa Life & Health Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
A client wants permanent coverage with flexible premiums and an adjustable death benefit. Cash value should earn interest in the insurer's general account at an insurer-declared current rate subject to a guaranteed minimum, not through an external index or separate account. Which policy best matches?
Correct answer: C - Universal life
Two years before his level term policy expires, an insured develops a condition that would make new coverage expensive or unavailable. The policy's conversion period is still open. What is the principal protection provided by the conversion privilege?
Correct answer: A - He may obtain permanent insurance without new evidence of insurability.
After 12 years, a cash-value life policy lapses. The owner elects a nonforfeiture benefit, does not want a policy loan, and wants to keep the original face amount for as long as the cash value can support it. Which option fits?
Correct answer: B - Extended term insurance
A universal life insured becomes totally disabled. The owner wants a rider designed to prevent the policy's recurring mortality and expense charges from draining account value during a qualifying disability. Which rider most directly addresses that need?
Correct answer: D - Waiver of monthly deduction rider
An applicant pays the first premium and receives an insurability-type conditional receipt stating that coverage will be effective on the application date if the applicant was insurable as applied under the insurer's rules on that date. The applicant dies before delivery; underwriting confirms standard eligibility on the application date. What is the coverage result?
Correct answer: C - Coverage was effective from the application date because the receipt conditions were met.
A 67-year-old annuitizes a nonqualified contract purchased for $120,000. Its current value is $170,000, the expected return under the chosen payout is $200,000, and each monthly payment is $2,500. Until the investment in the contract is recovered, how much of each payment is taxable?
Correct answer: D - $1,000
During a sales meeting, an Iowa producer promises to reimburse $150 of the applicant's first premium from the producer's commission if the applicant buys that day. The policy does not provide this benefit. How is the offer classified?
Correct answer: A - Rebating
An Iowa resident is beneficiary of a $420,000 life insurance death claim from an insolvent member insurer. Assuming the claim is otherwise covered and no other policies affect the limit, what is the maximum death-benefit obligation of the Iowa Life and Health Insurance Guaranty Association?
Correct answer: B - $300,000
A policyowner borrows $20,000 from an existing whole life policy and uses the loan to pay the single premium on a new annuity. The life policy remains in force. Under Iowa replacement rules, how is the transaction treated?
Correct answer: D - It is a replacement because existing policy values financed the new contract.
After reasonable efforts, an Iowa producer cannot obtain a consumer's income and liquidity information. The consumer nevertheless insists on purchasing an annuity the producer has not recommended. If the transaction proceeds, which documentation is required?
Correct answer: C - A signed record of the consumer's refusal or insufficient information and a signed acknowledgment that the transaction was not recommended
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