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 RILH exam has 90 questions and runs 2 hours.
These 10 free RILH questions are organized by exam domain, so you can see how each part of the Rhode Island Life & Health Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
An indexed universal life policy has a 0% index-crediting floor. During a year when the referenced index falls 8%, the policy also deducts $1,200 in mortality and expense charges. Which statement is correct?
Correct answer: C - The index credit is 0%, but the policy charges can still reduce account value
An insured with severe cognitive impairment can perform all six activities of daily living without assistance but requires substantial supervision to prevent wandering and other threats to safety. A licensed health-care practitioner certifies the condition and prescribes a plan of care. How does this affect a tax-qualified long-term-care policy?
Correct answer: A - The benefit trigger may be met through severe cognitive impairment requiring substantial supervision
An employee is covered by a qualifying high-deductible health plan, is not enrolled in Medicare, and cannot be claimed as another person's tax dependent. The employee's spouse also has a general-purpose health FSA that may reimburse the employee's medical expenses. What is the HSA consequence?
Correct answer: D - The employee is ineligible to contribute while that FSA coverage applies, but existing HSA funds remain available for qualified expenses
A policyowner named an irrevocable beneficiary and now wants to collaterally assign the policy to a bank as security for a loan. What is generally required before the assignment can impair the beneficiary's interest?
Correct answer: D - Obtain written consent from the irrevocable beneficiary before the assignment
An in-network surgical claim has a billed charge of $4,000 and an allowed amount of $3,200. The insured has $400 of deductible remaining, after which the plan pays 80% of the allowed amount. There is no copayment, excluded charge, or balance bill. How much should the plan and the insured pay?
Correct answer: C - Plan $2,240; insured $960
An Original Medicare beneficiary spends one day in a hospital under observation status, is then admitted as an inpatient for the next two consecutive days, and is discharged to a skilled nursing facility. Has the standard Part A qualifying hospital-stay requirement for skilled nursing facility coverage been met?
Correct answer: B - No, because observation time does not count and there were only two inpatient days
An applicant proposes funding a large single-premium life policy with numerous money orders and asks the producer to omit the third-party source of the funds. Which response is appropriate?
Correct answer: A - Record the payer, escalate through the insurer's AML program, and do not tip off the applicant
A 52-year-old owns a single-premium whole life policy classified as a Modified Endowment Contract. The policy has an $80,000 basis and a $120,000 cash value. With no exception to the premature-distribution tax available, the owner takes a $25,000 policy loan. Which tax treatment applies?
Correct answer: C - The $25,000 is treated as gain-first taxable income and is generally subject to an additional 10% tax
A 68-year-old Rhode Island consumer replaced an annuity 40 months ago. The current contract still has a surrender charge, and a producer now recommends another exchange into an annuity with a new eight-year surrender period. Which approach best satisfies the producer's annuity best-interest obligation?
Correct answer: D - Compare costs, lost benefits, liquidity, and the substantial benefit of the new contract, then make a written record of the analysis
A Rhode Island health producer uses a client's premium money to pay office rent, replaces the money the next morning, and then remits the full premium to the insurer. How should the producer's conduct be characterized?
Correct answer: B - Conversion of fiduciary funds and a ground for disciplinary action
The RILH exam also covers these domains. Drill them in the full free practice test:
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